Displaying items by tag: Clinker

Spain: Cemex has announced the definitive closure of its clinker production kilns at the Lloseta plant, aligning its operations with the global 'Future in Action' programme that targets carbon neutrality by 2050.

The company has confirmed its plans to the government and the Lloseta City Council to dismantle the two cyclone towers at the Lloseta plant by 31 December 2030. While clinker production will cease, the site will continue to engage in grinding, storage, marketing and dispatch of bulk and bagged cement; maintain its regional offices, aggregate treatment plant, ground transport base and operate the Can Negret quarry in Alaró.

The plant’s closure has led to the dismissal of six of the seven employees who worked at the kilns. Cemex has offered these workers positions at other company production centres.

Kyrgyzstan: The Eurasian Development Bank is financing the construction of the Kulanak hydropower Plant with a capacity of 100MW and a new clinker line at the Kant cement plant.

"The substantial growth in the bank's investment portfolio in Kyrgyzstan, which reached 61.6% of the investments planned in the country strategy for 2022-2026, reflects the bank's commitment to increasing its project activities in the region," said Nikolai Podguzov, Chairman of the EDB Board, during a meeting with Kyrgyzstan's Finance Minister, Almaz Baketaev.

Vietnam: The Vietnam Cement Association (VNCA) has requested the exemption of clinker from the current 10% export tax, arguing it does not qualify under the Value-Added Tax Law as a natural resource or unprocessed mineral. According to Viet Nam News, VNCA has formally appealed to the Ministry of Finance and the Ministry of Construction to review the tax, asserting that clinker, produced at temperatures around 1450 - 1500°C, should not be taxed as a mineral resource. The industry exported over 31.3Mt of clinker and cement in 2023, equivalent to US$1.32bn, representing a year-on-year decline of 1.2% in volume and 4.1% in value compared to 2022, marking the second consecutive year of export decline. The total production capacity of Vietnam's 61 cement plants is about 117Mt/yr, with domestic consumption reaching only 56.6Mt.

Canada: Lafarge Canada and Geocycle Canada have successfully completed a pilot at the Lafarge Brookfield cement plant in Nova Scotia to produce clinker using recycled minerals from discarded material. This pilot can potentially cut CO₂ emissions by 60% of clinker. The new clinker product will be used to produce recycled cement in 2024.

CEO of Lafarge Canada David Redfern said "Our teams have been tirelessly working towards finding solutions to decarbonise our business in Canada. This new recycled-minerals clinker combines operational excellence with circular construction, building new and green from what is considered old and waste. This is a great example of how far we can go - the local team at Brookfield is certainly setting the tone for the industry in Canada."

Since May 2023, Lafarge Canada, Geocycle Canada and the Holcim Group Innovation Centre have been collaborating on a 100% circular production of clinker at the Brookfield plant. The new production method involves substitution of raw materials with lower carbon options from discarded materials, as well as alternative fuels produced from these materials. The trial was performed in February 2024 and cement from this clinker will be produced in 2024 for further testing and development of the technology.

Barbados: Trinidad Cement, owners of Arawak Cement Company, noted a decline in the Barbados cement market in 2023, according to its annual report.

Managing director Francisco Aguilera Mendoza said "In Barbados, the overall market declined by 14.3%, of which Arawak Cement Company experienced a decline of 8.8% in domestic cement volumes compared to 2022. Trinidad and Tobago’s cement export volume fell by almost 11% when compared to 2022, due to supply chain constraints and an increase in the local market demand. This drop in cement exports was almost fully compensated by our clinker exports to Barbados that started in 2023 after Arawak Cement’s change in its operating model.”

Saudi Arabia: Cement sales in Saudi Arabia recorded a 12.5% increase in April 2024 to 2.92Mt, up from 2.6Mt in 2023, despite the impact of Ramadan. This is according to a report by Aljazira Capital. However, cement exports saw a significant decrease, dropping by 30% year-on-year to 554,000t from 790,000t. Additionally, clinker inventories reached 43.4Mt in April 2024, marking an 18% year-on-year increase and a 3% rise from March 2024.

Kenya-based East African Portland Cement (EAPCC) made the news this week with the reopening of the company’s Athi River cement plant after a month-long shutdown. The closure was conspicuous because the company is gradually working towards increasing the integrated plant’s production capacity. The first phase of the maintenance and upgrade project saw the replacement of the production line’s kiln shell in September 2022. The current aim is to increase the unit’s cement production capacity to 1Mt/yr by mid-2026. The recent shutdown appears to have been a more normal annual renewal and repair job but EAPCC has used it as a promotional opportunity. Notably, a spokesperson for EAPCC described clinker as the “new gold” in a recent video explaining what was going on.

It’s an improvement on the financial trouble EAPC found itself stuck within in the late 2010s before the government ended up taking a controlling share in the cement producer. On this front local media reported in July 2023 that the government had found a 'strategic investor' to buy a 30% stake in the company. Nothing more has been said on this topic since then though.

The highlighting of the recent shutdown is likely to be a public relations exercise intended to project stability, but that focus on clinker is telling given that the government introduced its Export and Investment Promotion Levy in July 2023. This legislation imposed a 17.5% fee on imported clinker in order to encourage the local industry. Cement producers that rely on imported clinker - including Rai Cement, Bamburi Cement, Savannah Cement, Ndovu Cement and Riftcot - attempted to lobby against the levy but it remains in place. This business environment helps to explain EAPCC’s renewed focus on clinker production.

One company that stands to benefit from the levy is National Cement, producer of the Simba Cement brand and a subsidiary of Devki Group. It made the news at the start of April 2024 when its subsidiary Cemtech commissioned a 6000t/day clinker plant at Sebit in West Pokot. National Cement already operates an integrated plant near Athi River, south of Nairobi. However, hot on the heels of the West Pokot plant, it is already considering building another integrated plant in the north of Kitui County, to the east of Nairobi. As reported in the local press this week, Cemtech has submitted an environmental impact assessment for the project to the local authorities.

The country has two other clinker producers: Holcim subsidiary Bamburi Cement and Mombasa Cement. The former company announced at the end of 2023 that it had signed a contract to build solar plants at its integrated plant in Mombasa and its grinding plant in Nairobi. The deal was framed as a money saver but additionally it may have been in response to a less than reliable local grid. It also said that it was removing Ordinary Portland Cement (OPC) from its product line from the start of 2024. This move challenged expectations about sustainability initiatives outside of richer countries. Yet, considering how Bamburi Cement argued against the clinker levy, there might have been some commercial thinking here too in order to sell products that use less clinker. Finally, despite completing its divestment of Uganda-based subsidiary Hima Cement for US$84m in March 2024, Bamburi Cement reported a loss of US$2.99m in 2023 compared to a profit of US$1.36m in 2022. Although it reported a rise in turnover and operating profit, it appears that taxes and legal costs related to the sale of Hima dragged the company into a loss.

Graph 1: Rolling annual cement production in Kenya, 2019 - September 2023. Source: Kenya National Bureau of Statistics (KNBS).

It’s been a difficult business environment in Kenya over the last decade given the number of companies that have faced serious financial difficulties. This list includes ARM Cement, EAPCC and Savannah Cement. The last of these companies, Savannah Cement, is currently in administration and is trying to sell its integrated plant. Yet, rolling annual cement production in Kenya has remained above 9.5Mt/yr since early 2022. The government is sticking to promoting local clinker production, and companies like Bamburi Cement, EAPCC and National Cement are making investments of varying scales. The focus, for now at least, is on clinker production in Kenya.

Kenya: Cemtech, a subsidiary of Devki Group, has submitted an Environmental Impact Assessment report to the National Environment Management Authority for a new clinker plant in Kitui County. The company aims to receive approval from the Kenyan government to establish the plant, according to the Business Daily newspaper. The company says that the plant will boost local cement production and increase employment opportunities.

UK: Seratech has developed a process using olivine, a mineral abundant in Earth's mantle, to produce ‘carbon-negative’ cement. The company's method involves replacing some of the clinker with silica extracted from olivine. Magnesium sulphate derived from the olivine reacts with CO₂ to form nesquehonite, a mineral that sequesters CO₂. This method uses CO₂ captured from emissions sources or directly from the air.

Sam Draper, CEO, explained the process: “The researchers extracted these compounds by dissolving powdered olivine in sulphuric acid. After separating the silica and magnesium sulphate, they bubbled CO₂ through the magnesium slurry to form nesquehonite.”

According to Draper, replacing 35% of regular cement with this silica would yield carbon-neutral results, while a 40% substitution could achieve carbon negativity. Current building standards allow up to 55% of cement to be replaced by this material, although robust testing has yet to be conducted.

India: Star Cement has launched a new clinker line at its Lumshnong, Meghalaya, cement plant. Capital Market News has reported that the line has a capacity of 3.3Mt/yr.