Displaying items by tag: Almalyk Mining and Metallurgical Combine

Uzbekistan: Cement sales via the Uzbek Commodity Exchange fell by 24% year-on-year to 6.9Mt in 2022. Monthly sales hit a high of 0.82Mt in June 2022, according to Uzbekistan Newsline. Qizilqumcement retained a 40% share of sales but Akhangarancement’s share fell to 19% from 22% previously and Almalyk MMC’s share dropped to 12% from 23%.

By region Tashkent and the Tashkent region held a 25% market share, the Surkhandarya region a 13% share, the Bukhara region a 12% share, the Navoi and Kashkadarya regions a 10% share and the Samarkand and Jizzakh regions held a 8% share each. Data released by the national Agency of Statistics revealed that overall ordinary Portland cement (OPC) production fell by 3% to 11.4Mt in 2022 from 11.8Mt in 2021.

Uzbekistan: Cement sales volumes has decreased by 29% to 5000t/day from 7000t/day at the Akhangarancement cement plant in Toshkent and by 55% to 5000t/day from 11,000t/day at the Almalyk Mining and Metallurgical Combine cement plant in Jizzakh. Uzbekistan Newsline has reported the cause of the decline as the breakdown of two kilns at the plants. This has led to a decrease in domestic cement production to 37,000t/day and sales to 35,000t/day, resulting in a slight price increase. Prices had previously been falling due to the effects of the post-coronavirus lockdown economic recovery.

Uzbekistan/Afghanistan: The Almalyk Mining and Metallurgical Combine plans to ship several batches of high-quality cement to Afghanistan by the end of 2019, according to a company press statement. It elaborated that it had signed a number of contracts for the supply of three products in mid-July 2019. Its cement will be used in the construction of infrastructure and social facilities in several regions of the country. Deliveries will be made from the group’s Jizzakh and Sherabad plants.

The company is also actively increasing exports to other neighbouring countries. The Jizzakh cement plant has already exported over 1600t of white cement to Tajikistan, 1280t to Kyrgyzstan, 512t to Kazakhstan and 147t to Turkmenistan in 2019. Over the first half of 2019, the plant exported over 28,000t of cement products at a value of more than US$1.6m.

Afghanistan/Uzbekistan: Uzbekistan’s Almalyk Mining and Metallurgical Complex (AMMC) has started exporting cement to Afghanistan. A trial consignment of Ordinary Portland Cement (OPC) was despatched from the company’s new 1.5Mt/yr Sherabad cement plant in Surkhandarya, according to the Trend News Agency. It intends to export 0.5Mt/yr to Afghanistan. As part of a contract signed with the Hamid Company just under 1000t of cement has been sent by train to Mazar-i-Sharif.

A group of news stories from Central Asia and Azerbaijan this week present a good opportunity to look at the cement industry in this part of the world.

Uzbekistan

Eurocement has announced that it plans to build a 2.4Mt/yr cement plant near to Tashkent. Chinese contractors have been signed for the work in line with the Russia-based cement producer's other plant builds in 2014. Eurocement also operate a subsidiary in the country, the 1.6Mt/yr Akhangarancement cement plant, that reported a criminal investigation and financial audit following various misdemeanours in April 2014.

Also in April 2014 the Almalyk Mining-Metallurgical Combine (AMMC) proposed building a 1.5Mt/yr cement plant in the south of the country and then commissioning of a white cement plant in the central Jizzakh Province. Both the Eurocement and AMMC projects show that organisations are investing in the local market of the region's most populous country at around 30m.

Turkmenistan

In neighbouring Turkmenistan the TurkmenCement Production Association has issued a tender this week for the construction of a 1Mt/yr clinker plant in the central-south of the country in the Baharly District of the Akhal Region. If realised, the new plant will raise Turkemistan's cement production capacity to 4Mt/yr. Currently the country has three state-operated plants. The most recent, the 1.4Mt/yr Garlyk plant, was commissioned in February 2013.

Kazakhstan

An investor has stepped forward to finance the completion of the delayed Khantau cement plant in Zhambyl region in southern Kazakhstan. The 0.5Mt/yr plant was originally started in 2007 before being mothballed part-way through construction.

The reignition of this project follows a couple of stories from Kazakhstan including a report on testing at the HeidelbergCement Caspi cement plant in Mangistau region and the start of operation on Line 5 of Steppe Cement's Karaganda Cement. Kazakhstan has more western international cement producers, unlike the generally state-run companies in Uzbekistan and Turkmenistan. HeidelbergCement will join plants run by Italcementi and Vicat.

Azerbaijan

Finally, on the other side of the Caspian Sea, Azerbaijani local media has reported that cement production for the first half of 2014 has risen by 40% year-on-year to 1.1Mt. Following the opening of the Gazakh cement plant in mid-2013 the country has three cement plants with a combined cement production capacity of nearly 5Mt/yr.

Our spotlight is on Uzbekistan this week following an update on the Almalyk Mining and Metallurgical Combine's (AMMC) plans to build a new cement plant in the south of the country. The news emerged in the wake of the completion of the AMMC's cement grinding plant, in the Jizzakh region, which was finished in late March 2014. Meanwhile, Eurocement announced that its subsidiary in Uzbekistan, the Akhangarancement plant, had received a limestone and marl quarrying licence.

Previous to the new AMMC grinding plant, Uzbekistan had five cement plants with a total cement production capacity of nearly 6Mt/yr. Only one of these was a dry production process plant, the 2.5Mt/yr Krzylkumcement plant, in the south-western Bukhara province. Cement consumption in the country was estimated to be around the same, also at 6Mt/yr.

Back in 2011 the government of Uzbekistan planned to invest US$6.94bn to develop infrastructure, transport and communication construction from 2011 - 2015. This investment has now been followed up with a direct financial injection into the cement industry.

In late February 2014, local building materials company JSC Uzbuildmaterials announced government plans to invest US$49.1m into the local cement industry. The programme includes nine projects for the three largest cement plants in the country: the Kyzylkumcement plant, the Ahangarancement plant and the Bekabadcement plant. Kyzylkumcement will receive the majority of the investment, US$39.6m to spend over three years on a new cement mill, upgrades to the clinker production lines and construction of a 220/10kV main substation. Ahangarantcement and Bekabadcement will replace 'out-dated' equipment and will upgrade their production lines.

Mineral-rich Uzbekistan is relatively undeveloped but this is changing. Its Gross Domestic Product (GDP) was reported to be US$51bn in 2012 by the World Bank, having seen steady growth since 2002, and its population was just over 30m in 2013. Its cement consumption is 300kg/capita, a figure below the global average (estimated at 536kg/capita in a forthcoming Global Cement Magazine report on 'Cement consumption versus Gross Domestic Product'). This places Uzbekistan in a favourable position for future development on a graph of GDP per capita against cement consumption per capita. The latest investment programme suggests that the Uzbek government are hoping that this is the case.