Displaying items by tag: Coal

Sweden: UK-based Samson Materials Handling is supplying an Eco Hopper product for installation at the Port of Slite in Gotland. The hopper will be designed to receive clinker, limestone, coal and refuse-derived (RDF) fuel pellets. These materials will be unloaded at the quay area via crane grabs. The hopper will then discharge direct to trucks via a telescopic chute.

The Eco Hopper installation under normal operating conditions and based on the client’s grab sizes and cycle time, will achieve peak discharging rates of: 353t/hr - based on clinker with a bulk density of 1.4 t/m³; 454t/hr - based on limestone with a bulk material density range of 1.8 t/m³; and 420t/hr - based on RDF Pellets with a bulk material density of 0.6 t/m³.

The Eco Hopper product design concept comprises of a specialised reception hopper unit incorporating Integral filter arrangement with a reverse jet filter media cleaning system which returns all material back in to the material stream. In addition, the inlet system of the hopper is based on the Samson Flex-Flap design which reduces the volume of air necessary to control dust both from the opening grab and displaced air from material falling into the inner hopper below. This contributes to the reduction of airflow reducing filter and power requirements of the equipment.

Commissioning and operator training will be provided by Aumund Group Field Services.

South Korea: Finance Minister Hong Nam-ki has announced plans for a further increase to his country’s coal imports from Australia in order to enable cement production to continue and prevent a shortage. The Yonhap News Agency News has reported that the government plans to accelerate customs clearance processes around the fossil fuel. Hong added that the government will ‘sternly deal with any illegal hoarding or price fixing’ of cement.

Serbia: The impacts of Russia’s invasion of Ukraine mean that the Serbian cement industry’s operations are ‘endangered’ and will likely fail to meet steady market demand in the coming months. Serbian Cement Industry Association director Dejana Milinkovic said that the industry relied on Russia and Ukraine for 50% of its coal supply in 2021.

In 2021, the industry produced 2.6Mt of cement, up by 10% year-on-year, operating close to 100% capacity utilisation.

Indonesia: Donny Arsal, the chief executive officer of Semen Indonesia, has told the government that the ongoing war in Ukraine has negatively affected supplies of coal and kraft paper to the cement industry.

The head of the state-owned company said that the international price of coal had driven local mines to export it rather than sell it locally at capped prices, according to the Jakarta Post newspaper. This had made it more difficult for cement producers to buy coal at the lower price. The Indonesian coal index (HBA) price rose to high of US$288/t in April 2022 following the introduction of international economic sanctions but the local domestic market obligation (DMO) price is US$70/t. Around 160Mt of coal is sold at the capped price. The majority of this goes to power generation and the remaining quarter of this is made available to cement and other industries.

Arsal lobbied the government to clarify its supply policy for DMO. He said that the cement sector needs 16Mt/yr of coal. Semen Indonesia needs about half of this. However, at present, it is only receiving about 63% of its coal requirements at the DMO price.

Arsal also mentioned that imports of kraft paper from Russia had stopped since the war started. Semen Indonesia uses the paper to make cement bags. Most of its kraft is sourced from Russia. The company spends around US$68m/yr on paper. It is now switching to using a woven material instead.

US: A fire has been contained within the alternative fuels system at Holcim US’ integrated Whitehall cement plant in Pennsylvania. Suppression systems were activated and then fire fighters attended the scene, according to the Express-Times newspaper. The plant has notified the US Mine Safety and Health Administration about the incident. No injuries have been reported and an investigation is ongoing. A fact sheet about the plant says that it uses 2m tires/yr as part of its alternative fuels mix. It uses coal and petcoke for 50% of its mix.

Vicat’s plans to buy another 42% stake in Sinai Cement became public this week. Once completed, the France-based company should own 98% of the Egyptian company, based on previously published ownership figures. The announcement heralds a rapprochement in the relationship between the cement producer and the Egyptian government.

Last year Vicat raised a case against the government with the International Centre for Settlement of Investment Disputes (ICSID) over an argument about how it could invest in Sinai Cement as a foreign company. All seems forgiven and forgotten now with a settlement agreement signed in March 2022 between Rania el Mashat, the Minister of International Cooperation on behalf of the Egyptian government, and Guy Sidos, the chairman and chief executive officer of Vicat Group. Local press reported that the government is trying to attract more direct foreign investment. Sinai Cement reported a loss attributable to its parent company of around US$19.1m in 2021, down from a loss of US$30.3m in 2020. However, its sales rose by 63% year-on-year to US$78m.

Sinai Cement has some specific operating issues related to its geographic position in the Sinai Peninsula and ongoing security concerns. Yet its mixed fortunes also sum up some of the continuing challenges the Egyptian cement industry is facing. After years of overcapacity, the government introduced reduced cement production quotas in July 2021 and this is mostly perceived to have improved prices in the second half of the year. Vicat described the arrangement as having capped the local market at 65% of its production capacity and it said that prices recovered ‘significantly’ as a result in the second half of 2021. Cemex’s regional chief Carlos Gonzalez told local press that the move had given plants “A glimmer of hope for the return of balance to the cement market.” The company has also announced a US$20m local investment backing up this view. Not all the foreign multinational companies entirely agreed, with HeidelbergCement reporting a ‘sharp’ decline in sales volumes although chief executive officer Dominik von Achten did describe the country as ‘coming back’ in an earnings call about his company’s financial results in 2021. Solomon Baumgartner Aviles, the chief executive officer of Lafarge Egypt, was also cooler about the production cap in a press interview in October 2021, describing it as too early to assess how well the cap was working and noting that the gap between supply and demand was still large.

Vicat said in its annual report for 2021 that, “Provided no further adverse geopolitical, health or security developments occur, the current climate is unlikely to jeopardise the prospects of an improvement in the subsidiary’s profitability, which should begin to gradually occur.” The geopolitical bit was timely given that Russia’s war in Ukraine started on 24 February 2022. It also targets the latest problem hitting Egyptian cement producers: energy costs. The head of Arabian Cement told Enterprise Press that initially some producers had opted to temporarily stop production and use stocks instead to attempt to try and wait until the energy price volatility ended. However, it stayed high so the cost of cement has gone up generally. Producers are now trying to switch to using a high ratio of natural gas, such as 10%, but this is dependent on the government letting them.

The Egyptian government, for its part, is facing a decision whether to supply subsidised gas for domestic industry or to export to Europe. The backstory here is that Egyptian cement producers are facing yet another step change in fuel supply. In the mid-2010s lots of plants switched from heavy fuel oil and gas to coal. High international coal prices could be heralding another change.

Alongside this the value of Egypt’s cement exports rose by 151% year-on-year to US$456m in 2021 from US$182m in 2020. The Cement Division of the Federation of Egyptian Industries has attributed this to growth mainly on the African market. This trend continued in January and February 2022 with cement exports up by 141% year-on-year to US$104m from US$43m. The main destinations were Ghana, Cameroon, Ivory Coast and Libya.

HeidelbergCement summed up the current state of the Egyptian cement market in its 2021 annual report as follows “The development of the Egyptian cement market continues to be determined by government intervention.” What happens next is very much in the hands of the state as it decides whether to extend the production cap, which fuels to subsidise, whether to allow exports and where to invest in infrastructure projects. One variation on this theme may be local decarbonisation targets. At the end of March 2022 the Global Cement and Concrete Association (GCCA) launched a series of Net Zero Accelerator initiatives, including one in Egypt. How a country that produces more cement than it needs reduces its CO₂ emissions presents another challenge for manufacturers and the government to grapple with.

Europe: The Council of Europe has banned imports of cement from Russia as part of a fifth set of economic and individual sanctions. The import ban, in response to the war in Ukraine, also includes wood, fertilisers, seafood and alcoholic spirits. It has been valued at Euro5.5bn/yr. Other measures within the European Union (EU) include blocking coal and other solid fossil fuel imports from August 2022, stopping access of Russian flagged ships at ports, banning Russian or Belorussian road transport within the region and additional restrictions on the export on materials such as jet fuel, computer parts and certain types of machinery. Imports of coal into the EU are currently valued at Euro8bn/yr.

Josep Borrell, High Representative for Foreign Affairs and Security Policy at the European Council said, “These latest sanctions were adopted following the atrocities committed by Russian armed forces in Bucha and other places under Russian occupation. The aim of our sanctions is to stop the reckless, inhuman and aggressive behaviour of the Russian troops and make clear to the decision makers in the Kremlin that their illegal aggression comes at a heavy cost.”

Vietnam: Vicem Hoàng Mai Cement has announced a full-year sales target of US$79.2m for 2022, down by 1.5% year-on-year from 2021 levels. Its target net profit for the year is US$656,000, more than five times its 2020 figure. The company forecasts cement production of 1.73Mt, up by 11% from 1.56Mt, and clinker production of 1.4Mt, down by 4.1% from 1.46Mt, for the year. It plans to replace 30 – 40% of the natural gypsum currently used in cement production with synthetic gypsum. It will also increase the proportion of ash and slag in its raw materials mix.

The Chúng Khoán newspaper has reported that Vicem Hoàng Mai Cement said that it is experiencing increased costs due to high raw materials and fossil fuel prices. A coal shortage has also disrupted production.

South Korea: Seven cement producers have agreed to produce 3.77Mt of cement in the second quarter of 2022, up by 36% quarter-on-quarter from first-quarter 2022 levels, to alleviate a shortage. 380,000t of cement which would previously have been exported will now supply the domestic market instead. The Yonhap News Agency has reported that bituminous coal supply issues have hampered the domestic cement industry's ability to increase its production in line with demand growth. In the first quarter of 2022, South Korea's coal imports consisted of 54% Russian coal and 46% Australian coal, compared to 75% Russian and 25% Australian coal in 2021.

The government plans to invest US$764m between 2023 and 2030 in improving the sustainability of South Korean cement production, including moving it away from reliance on coal through increased alternative fuel use.

Pakistan: Lucky Cement plans to install a 34MW solar power plant at its Pezu power plant in Khyber Pakhtunkhwa. The Balochistan Times newspaper has reported that the 48GWh/yr installation will be equipped with a 5.59MWh Reflex energy storage system. Both the power plant and energy system will be the country’s largest when commissioned. Fossil fuel generation will remain online, but be shut down in the daytime, saving 26,600t/yr of CO₂ emissions.