September 2024
Zambia: Chilanga Cement has commissioned a US$20m kiln upgrade project, known as the Phoenix Project, at its Ndola plant. This initiative will double the plant's cement production capacity from 500,000t/yr to 1Mt/yr.
Khayah Cement records strong sales growth in 2023 17 June 2024
Zimbabwe: Khayah Cement has reported a significant increase in sales volumes across its operations for the year ending 31 December 2023. Dry mortar product sales volumes surged by 153%, bolstered by the demand for the Supagrow agricultural lime range within the government's Pfumvudza agriculture programme, absorbing 0.34Mt during the period. The firm's cement business also saw a 34% year-on-year increase in sales volumes following the installation of a vertical cement mill in the third quarter of 2022.
Despite challenges such as power quality issues and equipment breakdowns impacting production, bulk cement volumes grew from 1% to 4% during the period. However, clinker production volumes fell by 21%, mainly due to the mothballing of the kiln in the last half of 2023.
The company said “A total of 1000 hours were lost as a result of the unplanned breakdowns which in turn impacted negatively on both clinker, cement production and sales volumes and with it profits and cash generation.”
OceanaGold Philippines partners with Holcim Philippines to test mine tailings in cement production 17 June 2024
Philippines: OceanaGold Philippines (OGPI) is collaborating with Holcim Philippines to assess the feasibility of using mine tailings in cement production. Holcim will begin by acquiring tailing samples from OGPI for initial testing, aligning with its ‘circular economy’ program that integrates waste materials into cement. Both companies are committed to advancing the study, pending formal partnership arrangements and necessary permits.
OGPI President Joan Adaci-Cattiling said “We’re just waiting for the permit. Right now, we’ve found a way to put plan tailings to good use.”
Spain: Cement consumption in Spain grew by 0.3% in May 2024 to 1.36Mt, an increase of nearly 3600t compared to May 2023, as reported by the Cement Manufacturers' Association of Spain (Oficemen). Over the first five months of 2024, consumption fell by 3.4% to 6Mt, a decline of 0.21Mt from the same period in 2023. From June 2023 - May 2024, consumption dropped by 4.6% to 14.3Mt, nearly 700,000t less than the previous period.
Meanwhile, exports in May 2024 rose by 11.4% to 0.51Mt, nearly 52,000t more than in May 2023. However, cumulative exports for 2024 have decreased by 18.2% to 1.95Mt. Over the past 12 months, exports totalled 4.76Mt, a 14.7% decline, representing a year-on-year decline of over 800,000t.
The Gambia: The Gambia police force has withheld permission for the Cement Importers and Traders Association to march, citing security concerns due to the upcoming Tobaski festival. This incident marks the second denial of a permit for a peaceful protest by the association.
The Trade Ministry and Jah Oil are accused of perpetuating misinformation to justify a ‘significant’ increase in cement import duties, which has affected small-scale importers and led to increased cement prices across the country, according to The Point Newspaper. This policy has reportedly benefited large-scale importers while excluding smaller ones from importing from certain foreign markets. The association criticises the government's selective enforcement of import bans and duties, which they argue supports a monopolistic agenda favouring Jah Oil, despite widespread economic and consumer impacts.
Germany: Calix's subsidiary Leilac and Heidelberg Materials have formed a joint venture to build the Leilac-2 low emission cement demonstration plant at Heidelberg's Ennigerloh facility. Construction is set to begin in 2025, with the plant's commissioning scheduled for mid-2026. The Leilac-2 plant will showcase a module capable of capturing up to 100,000t/yr of CO₂ emissions from cement and lime production. Following construction and commissioning, Leilac-2 will be operated for up to three years to test the performance of the technology.
The project benefits from €16m in funding from the EU's Horizons 2020 programme and contributions from partner cement companies. Following construction, Heidelberg Materials may repay Leilac's capital contribution, and the partners will consider a full-scale commercial installation of Leilac technology at a Heidelberg plant. Plans for Leilac-3 envisage a significantly increased capture capacity, potentially capturing 0.5–1Mt/yr of CO₂.
Leilac CEO Daniel Rennie said "The formation of a joint venture with Heidelberg Materials for the Leilac-2 plant marks another important milestone for commercialisation of the Leilac technology. We look forward to continuing to collaborate with Heidelberg Materials to demonstrate and deploy cost-effective solutions to decarbonise cement production at commercial scale.”
Ambuja Cement to acquire Penna Cement for US$1.2bn 14 June 2024
India: Following the news of Adani’s multiple acquisition of cement companies, more details have come to light regarding the acquisition of Penna Cement. Adani-owned Ambuja Cement has signed an agreement to acquire Penna Cement Industries (PCIL) for US$1.2bn, aiming to reach a production capacity of 140Mt/yr by 2028. This acquisition adds 14Mt/yr to Adani Cement's total capacity, bringing it to 89Mt/yr, and expands Ambuja's market presence in southern India. The purchase will be fully funded through internal accruals.
Ambuja Cement CEO Ajay Kapur said "PCIL’s strategic location and sufficient limestone reserves provide an opportunity to increase cement capacity through debottlenecking and additional investment. Importantly, the bulk cement terminals will prove to be a game changer by giving access to the eastern and southern parts of peninsular India, apart from an entry to Sri Lanka, through the sea route."
UK cement industry endorses CBAM proposal 14 June 2024
UK: The UK cement industry has welcomed the government's proposal for a UK carbon border adjustment mechanism (CBAM) but urged for its implementation by 2026 to align with the EU CBAM and avoid competitive disadvantages. The Mineral Products Association (MPA) and UK Concrete responded to the government’s consultation, highlighting the need to level the carbon-cost playing field between domestic production and imports, as well as to prevent high-emission cement imports from impacting the UK market. It emphasised the urgency of introducing CBAM in 2026 rather than the proposed 2027, to prevent import diversion from the EU.
The MPA is calling for accurate measurement and reporting of embodied emissions by importers, clear calculation of CBAM rates, improved transparency in UK trade data and strict enforcement procedures with high penalties for non-compliance.
MPA executive director for energy and climate change Diana Casey said "The UK has a great opportunity to accelerate the transition to net zero while securing domestic cement supply for priority construction like housing and infrastructure. A well-designed CBAM is vital to maintain the level playing field and ensuring competitiveness of domestic cement production while it continues its transition to net zero.’
Philippines: A new 7-hectare port and industrial complex, valued at over US$51m, is under construction in Lemery, Batangas. The complex includes the Sinisian Lemery Batangas port and industrial park, Lemery cement silo tank and Lemery oil terminal, with each component costing around US$17m.
The port will support Panamax-sized vessels with a draft depth of 15m, while the cement silo will hold 60,000t of bulk cement and slag. The project is expected to generate at least 200 jobs and help meet the country's fuel security needs amidst ongoing global supply chain disruptions.
CRH acquires Adbri in US$1.4bn deal 13 June 2024
Australia: CRH has won approval from Adbri shareholders to acquire 57% of the company for close to US$1.4bn. The deal was the result of a unanimous vote in favour on 12 June 2024.
Adbri’s lead independent director and chair of its independent board committee Samantha Hogg said “A combined CRH and Adbri will bring growth opportunities, new talent and innovation to continue to strengthen Adbri’s product offering in Australia.”