Displaying items by tag: Diamond Cement

Sierra Leone: HeidelbergCement has agreed to sell its 50% stake in Sierra Leone Cement Corporation to Diamond Cement Group. Sierra Leone Cement Corporation's assets consist of the 500,000t/yr Freetown grinding plant. HeidelbergCement said that its regional activity will now focus on its key markets of Benin, Burkino Faso, the Gambia, Ghana, Liberia and Togo.

Zimbabwe: The National Social Security Authority (NSSA) has lifted a prohibition order which it issued to Livetouch Investments subsidiary Diamond Cement after the death of a worker on 6 March 2020 at the company’s 0.4Mt/yr Redcliff grinding plant. The incident brought to light “sub-standard safety and security arrangements.” The Chinese-owned company had also failed to register any employees under the NSSA’s Workers’ Compensation Insurance Fund (WCIF) and the National Pension Scheme (NPS).

The New Zimbabwe newspaper has reported that the NSSA lifted the prohibition order in mid-September 2020 after the company was found to have complied with its registration and safety requirements. NSSA communications officer Tendai Mutseyekwa said, “After a joint visit by the NSSA’s Occupational Safety and Health Inspectorate and the Compliance Inspectorate, the company registered with the NSSA schemes. They subsequently settled their subscriptions for the two NSSA schemes from the effective date of 4 April 2017, when the company started operating.”

A police investigation into the fatality continues.

Ghana: Diamond Cement Group has donated 250t of cement and US$17,500 to the government to support its efforts to curb the spread of coronavirus in Ghana. The Ghanaian Times newspaper has reported that the cement will be used for hospital repairs. Diamond Cement Group chair Mukesh Patel said, “It is crucial that we all work together to minimise the negative impact of the pandemic on economic activities.”

Zimbabwe: China-based Sino-Zimbabwe Cement Company and LiveTouch Invest, owner of Diamond Cement Zimbabwe, have acquired a six hectare site in the coal mining area of Hwange, Matabeleland North Province, and announced a planned investment of US$30m in the construction of a grinding plant which will grind clinker with waste materials from coal extraction to produce cement.

LiveTouch Invest had previously mooted the idea of a Zimbabwean clinker plant joint venture with South Africa-based PPC in July 2019.

Mali: Diamond Cement Mali (DCM) has signed a deal with La Société Malienne de Cartonnerie (SCS MDC) to procure 50kg bags to hold cement. DCM operates two plants in the country with a production capacity of 1Mt/yr, according to local press. It requires over 20 million bags per year. SCS MDC became operational locally in 2019. It runs a plant at Kamalé near Bamako. Moussa Silvain Diakité, the chief executive oficer (CEO) of SCS MDC described the contract as the company’s first ‘big’ deal.

The news from Mali this week is that a new cement grinding plant is in the works. Ciments et Matériaux du Mali plans to build a 0.5Mt/yr plant near Bamako. Work on the US$34m project is set to start in October 2019 although there has been no word on the equipment supplier. The project is a long-standing one from France’s Vicat.

A new plant is probably very welcome following the last six months in the local market. Prices spiked by a third in May 2019, leading local producer Diamond Cement Mali to arrange a press conference to defend itself. Director Ibrahima Dibo explained that the company had fixed its prices in conjunction with the government at its units at Astro and Dio Gare since 2012. Instead, he blamed importers and traders for the situation, as well as low import rates from Senegal and Ivory Coast. The company proposed that it tackle the situation by importing more cement from one of its plants in Takoradi in Ghana and then transporting it into Mali via Dakar in Senegal. Although it noted that it would need permission from the government to do this.

The country has also been targeted by Nigeria’s Dangote Cement for several years. Back in 2016 the Nigerian cement producer was considering building a 1.5Mt/yr grinding plant. It also wanted to build a second production line at its Pout plant near Dakar in Senegal to export clinker specifically to Mali. It has since scaled back its expansion plans as the Nigerian economy entered a recession but in its 2018 annual report it noted that it had exported 0.43Mt of cement from Senegal and that most of this had gone to Mali, with plans to further increase exports in 2019.

At present Mali has three main grinding plants. Two are run by Diamond Cement and the third by Ciments de l'Afrique (CIMAF). An integrated plant at Guinbané, Diéma in the Kayes region was announced in late 2016 when the government signed a memorandum of understanding with Gaia Equity, a private equity company. This project was going to be built by China’s Sinoma.

Figure 1: Distribution of cement prices in Africa and Location of Plants 2015. Source: World Bank / ECDPM.

The status of that last project is unknown since there has been little news on it since. However, Figure 1 above shows why a private equity firm might sense opportunity. It’s out of date as various countries have become self-sufficient and we’ve covered this plenty of times before but the graphic from the World Bank really brings home the message that moving cement overland is uneconomical. This is mirrored by the mounting price of cement in Mali earlier this year. Africa has been described as the last great cement frontier and Mali is on the frontline.

Mali: Ibrahima Dibo, a director of Diamond Cement Mali has denied that his company is responsible for recent price rises. At a press conference on the issue he explained that the cement producer has had fixed prices in conjunction with the government at its units at Astro and Dio Gare since 2012, according to the Le Républicain newspaper. Instead he blamed traders for exploiting cement shortages and poor roads. Dibo added that the company produced 0.73Mt of cement in 2016 from its two units in the country but that its sales have fallen since then. As a whole the country has an estimated 3Mt/yr demand for cement.

Republic of Congo: The Congolese Ministry of Industry says that it is ready to inaugurate the Diamond cement plant. The new plant is located in the district of Mindouli, about 200km south of Brazzaville, according to Agence de Presse Africaine. The 0.1Mt/yr unit started production in early 2018 at a cost of around US$100m. The project had previously been delayed by four years due to local security issues. The plant will be the fifth cement plant in the country and will bring local cement production capacity to over 3.0Mt/yr.

Ghana: The Cement Manufacturers Association of Ghana (CMAG) has appealed to the Ghana Standards Authority (GSA) to investigate the quality of Chinese cement imports. In a letter of the GSA George Dawson-Ahmoah cited two companies in Tema and Ejisu that allegedly sell cement products of ‘questionable’ quality, according to the Business and Financial Times newspaper. He also posited that samples of cement from these companies were ‘alarming’ and that this explained why their prices were ‘ridiculously’ low.

CMAG consists of Ghacem Limited, Diamond Cement group, CIMAF Ghana and CBI Ghana Limited. However, when asked by the local media why Chinese companies supplying Ghana were not part of the association, Dawson-Ahmoah said that they had been invited.

Ghana: The Cement Manufacturers Association of Ghana (CMAG) formally inaugurated itself at the start of July 2018. The association is intended to protect and accelerate the development of the industry, according to MyJoyOnline. Members of the association include Ghacem, Diamond Cement and Ciments de l’Afrique (CIMAF). In its constitution the association stated that it, “is not a cartel, but an umbrella body for cement manufacturers in the country.”

Raju Baddharaju, Diamond Cement, has been appointed as the first chairman of the association’s board. George Dawson-Ahmoah, Strategy & Corporate Affairs Director of Ghacem has been appointed as the executive secretary with effect from August 2018. Other members on the governing board include: Morten Gade-Member, Ghacem; Eugene Laryea-Member, Ghacem; N. Venkatesh-Member, Diamond Cement; Mohamed Bennis-Member, CIMAF; and Joseph Aboo-Member, CIMAF.

Previously, the Ghana Cement Manufacturers Association (GCMA) published its memorandum of understanding in 2015 with Ghacem and Diamond Cement as its founding members. Dawson-Ahmoah was the chairman of an interim executive body for the association.