Displaying items by tag: Clinker

Algeria: Algeria’s estimated value of exported cement in 2019 is US$60m, up by 200% from US$20m in 2018. Algerian Trade Minister Saïd Djellab noted increases to grinding capacity in Guinea Bissau, Senegal, Gabon and Mali as a potential source of revenue from clinker exports, according to L’Expression. “Algeria can meet the needs of these markets and become their leading supplier of clinker in 2020.” The minister estimated that the total value of cement and clinker exports ‘will reach US$400m by 2021.’

India: JSW Cement has revised its planned expansion to its 14Mt/yr total installed capacity to 39Mt/yr before 1 January 2023, an increase of 5Mt/yr compared to its initial target of 34Mt/yr by 2020. The figure includes JSW’s 54% subsidiary Shiva Cement’s new 1Mt/yr integrated and 1Mt/yr grinding plant, valued at a total of US$112m. Parth Jindal, JSW Cement managing director, said that the figure had been revised upward because Shiva Cement had become self-sufficient in clinker production, freeing the group’s east Indian cement production from ‘volatile import costs.’

Economic Times has reported that Shiva Cement is set to bring its limestone reserves to 100Mt with the acquisition of the Khatkurbahal mine. The company sources its granulated blast furnace slag from the Odisha steel industry. Production of JSW Cement’s flagship product, JSW Portland Slag Cement (PSC), releases CO₂ at a rate of 325kg/Mt compared to between 760kg/Mt and 800kg/Mt for typical Ordinary Portland Cement (OPC).

Kenya: Mombasa Cement has completed construction of a 36MW wind farm consisting of 12 3MW turbines in Vipingo. Bahrain News Agency has reported that the plant will power Mombasa Cement’s 1.6Mt/yr integrated Vipingo cement plant, with surplus to be sold to the state-owned power provider Kenya Power. The power plant will supply electricity for the completion of Mombasa Cement’s planned US$73m upgrade to its grey cement clinker production process at the Vipingo plant.

Turkmenistan: Iron ore reserves of between 70Mt and 75Mt of around 20% iron recently discovered in the Turkmenbeshi district of western Turkmenistan could replace other ingredients in ordinary Portland cement (OPC) clinker production in the region, resulting in savings of US$10m/yr for producers. Trend News has reported that the deposits, located near Turkmencement’s 1.3Mt/yr integrated Kelete plant and Polimeks’ 1.0Mt/yr integrated Jebel plant, could sustain production for a century.

Spain: Cementos Tudela Veguín’s new cement terminal on the El Musel North Pier of the Port of Gijón is fully constructed and licenced for operation. The terminal will serve for the reception and storage of 0.7Mt/yr of clinker for the company’s Narón grinding plant in La Coruña.

The Australian cement supply spat calmed down a little this week with the announcement that Wagners Holdings has agreed to resume the supply of cement products from its Pinkenba grinding plant in Brisbane to Boral. Legal proceedings are still on-going with a trial date set at the Supreme Court of Queensland in late November 2019.

The argument blew up publicly in March 2019, when Wagners said it had suspended its cement supply to Boral for six months. Wagners has a cement supply agreement with Boral whereby it supplies cement on an annual basis for a fixed price. However, Boral informed Wagners that it had found cheaper cement from a ‘long established’ supplier in South East Queensland. Local press speculated that this ‘long established’ supplier was Cement Australia, the joint venture between LafargeHolcim and HeidelbergCement. Wagners then had the choice to either match the lower price or suspend its supply. The disagreement took the legal route as the parties failed to reach an agreement. Wagner says that its cement supply agreement with Boral ‘remains binding on both parties’ until 2031.

Wagners later reported that it expected the suspension to cost it around US$7m in 2019. The deal with Boral constituted about 40% of its cement sales volumes. Its overall revenue grew year-on-year in its 2019 business year to the end of June 2019 but its cement sales volumes fell. Its earnings also fell. This was blamed on higher activity in lower margin areas such as contract haulage and fixed plant concrete, and delays in major infrastructure project work in South-East Queensland.

Boral, meanwhile, suffered from falling revenue and earnings from its Boral Australia subsidiary in its financial year to June 2019 due to a slowing construction market. Notably, its cement sales revenue rose by 7% due to ‘favourable’ pricing, higher volumes and cost-saving programs. It didn’t say whether the cost cutting included sourcing cement from a different supplier! All of this though was counteracted by lower contributions from its Sunstate joint venture (JV) with Adelaide Brighton and higher fuel and clinker costs.

All of this is fascinating because these kinds of disputes usually remain out of the public eye. The large size of Wagners’ cement supply deal with Boral meant that when it was threatened it likely had to tell its shareholders due to the potential financial impact. Whether Boral can wriggle out of the contract is now a matter for the courts.

The broader picture is that even though Boral Australia’s cement division seemed to be growing in its 2019 financial year it was still trying to reduce its costs in the face of a decelerating construction market. Added to this, the companies hold both a supplier and a competitor relationship. On the production side Boral operates an integrated plant at Berrima in New South Wales (NSW), a grinding plant at Maldon, NSW and another grinding plant in its Sunstate JV at Brisbane, Queensland. Wagners runs its own grinding plant at Pinkenba, Queensland. Both companies operate concrete plants. This is not unusual for a concentrated industrial sector like cement but it creates problems for the regulators. Note that, also this week, the Australian Competition and Consumer Commission was reportedly paying attention to the links between Barro Group and Adelaide Brighton. Barro owns a 43% stake in Adelaide Brighton but the authorities are concerned about a possible overlap in the two companies’ roles as suppliers of cement, concrete and aggregates. Any slowdown in construction in Australia seems likely to heighten these kinds of issues.

US: A team of researchers at the Massachusetts Institute of Technology (MIT) have demonstrated an electrochemical process to make clinker in a laboratory. A paper on the work by Yet-Ming Chiang, the Kyocera Professor of Materials Science and Engineering at MIT, with postdoctoral researcher Leah Ellis, graduate student Andres Badel and others has been published in the Proceedings of the National Academy of Sciences of the United States of America (PNAS).

In the new process, pulverised limestone is dissolved in acid at one electrode in an electrolyser and carbon dioxide (CO₂) is released in a pure, concentrated stream. Lime is precipitated out as a solid at the other electrode. The lime can then be processed in another step to produce clinker.

Benefits of the new process include potentially substituting fossil fuels with electricity supplied from renewable sources and the production of a pure source of CO₂ that could be captured with less or no scrubbing compared to conventional clinker production.

Saudi Arabia: Najran Cement has received a licence to export clinker from the Saudi Ministry of Commerce and Investment. The licence is valid for a year from 4 September 2019.

Haiti: Jamaica’s Caribbean Cement has begun exporting clinker to Haiti. The Jamaica Observer reports that the first shipment of 7500t of clinker was of surplus material from the company’s 1.3Mt/yr Rockfort Plant. The plant has received US$162m in capital expenditure since 30 June 2015.

UAE: Al Ain Cement and National Cement have signed a clinker offtake deal. Al Ain Cement, a subsidiary of Arkan Building Materials, will supply clinker to National Cement’s grinding plant in Abu Dabi, according to Gulf Today. The agreement is also intended to help both companies reduce production and logistics costs. The two companies have a combined production capacity of 3.1Mt/yr of clinker and 6.6Mt/yr of cement.