Displaying items by tag: Quarry

A dispute between Cemex and Vulcan Materials over the use of a terminal in Quintana Roo state heated up this week as the two companies publicly argued over the situation. US-based Vulcan Materials went to the press to say that the Mexican police had forced entry into the facility south of Cancun, run by its subsidiary Calica, with orders to allow a Cemex ship to discharge cement. Vulcan denied that the authorities had any legal basis for the action and said that it was an illegal occupation. Cemex then responded with a press release explaining that the two companies had held a previous contractual relationship for joint-usage of the terminal until the agreement broke down in late 2022. It says it was granted an injunction by a local court to continue using the terminal while legal proceedings carry on.

The disagreement over the use of the Punta Venado terminal dates back to at least 2018 when Vulcan initiated a North American Free Trade Agreement (NAFTA) arbitration claim over alleged planning and environmental issues in relation to a nearby quarry. Dialogue continued, but Calica’s operations in the area were shut down by the government in May 2022. Subsequently, Vulcan’s total volumes of shipped aggregates fell by 6% year-on-year to 54Mt in the fourth quarter of 2022, partly due to the closure.

Unfortunately, the argument has become increasingly politicised with Mexican president Andres Manuel Lopez Obrador criticising Vulcan for its environmental record and US senators using the Vulcan case as an alleged example of Mexico treating US companies unfairly. Some media commentators have also noted that the Mexican government is promoting a number of large-scale infrastructure schemes in the region, including the Tren Maya project, a new 1500km train line around the Yucatan peninsula, which would link tourist towns such as Cancún with historical sites like Palenque.

Graph 1: Grey cement production in Mexico, 2018 - 2022. Source: National Institute of Statistics and Geography (INEGI).

Data from the National Institute of Statistics and Geography (INEGI) shows that rolling annual cement production in Mexico peaked at around 43Mt in late 2018 before falling to 39Mt in mid-2020. It later recovered to a peak of just under 46Mt in mid-2021. It has since dropped a little to mid-2022 and then started to trend upwards again. The nominal cement production capacity in Mexico is 60Mt/yr according to the Global Cement Directory 2023. Yet, the actual production capacity has been reported in local press as being 42Mt/yr, lower than the annual cement production of 43.9Mt in 2022. In February 2023 it was reported that the Mexican government was taking steps to 'implement import facilities' to support more cement being imported. This was due to shortages in certain states particular in the south-west of the country.

Cemex’s net sales in Mexico grew by 11% to US$3.84bn in 2022 and this was attributed partly to tourism-related construction in ‘the peninsulas.’ Holcim noted ‘market softness’ for cement in the country but reported growth for concrete due to infrastructure projects such as the Tren Maya. Cemento Moctezuma’s net sales rose by 2.6% to US$878m. Despite rising sales, both Cemex and Cemento Moctezuma reported falling earnings in 2022.

The dispute between Cemex and Vulcan Materials overlaps with wider trends on how and where the Mexican cement market is developing following a lull in the late 2010s. Production is growing in certain parts of the country, particularly in the Yucatan peninsula due to various infrastructure projects and tourism-related demand. However, the overall economic environment appears to have decreased earnings for some producers. However Cemex said that this was starting to correct itself in late 2022, as prices caught up with inflation. Portraying the Cemex - Vulcan situation in nationalistic terms is unhelpful, especially since Cemex made more money in the US than Mexico in 2022! However, this may be yet another example of more isolationist economic policies along the same lines as the US Inflation Reduction Act.

Mexico: US-based Vulcan Materials has accused Cemex of illegally entering and unloading materials at its Punta Venado terminal in Quintana Roo. Vulcan Materials' subsidiary Sac-Tun operates the terminal, which serves its nearby Playa del Carmen quarry. Sac-Tun previously provided handling and unloading services at the terminal for Cemex, under a contract which expired on 31 December 2022. A local court ruled in favour of Cemex in the dispute over its continued use of the facilities on 5 March 2023. A high court intervened with an injunction in favour of Vulcan Materials on 16 March 2023.

Vulcan Materials now plans to take further legal action, according to Forbes. It is currently engaged in another legal dispute against the Mexican government for the latter's refusal to renew Sac-Tun's licence to operate the Playa del Carmen quarry. The producer is seeking damages of US$78.9m. The government said that the quarry had ceased to operate in line with requirements under its environmental impact licence and local land use plans.

Portugal: Secil says that it will commission its Outão cement plant's new line, called a Clean Cement Line, in mid-2023. The line will produce Portland limestone cement (PLC).

Jornal de Negócios News has reported that this will increase the producer's consumption of limestone, for which its already partly relies on imports. Secil has submitted an application to expand its limestone mines, entitled New Quarry Plan, to the Portuguese Environment Agency. Under the plan, Secil will connect it Vale de Mós A and Vale de Mós B quarries. It will thereby secure sufficient supply to become entirely reliant on mined limestone in its cement production. The plans also leave a 27 hectare 'plateau' at the site, which will be available for other uses.

Greece: Titan Cement has acquired a share in Aegean Perlites. The company operates perlite and pozzolan quarries on the island of Yali. It also has access to port facilities. Titan Group says it is making the investment to gain direct access to pozzolan reserves to increase its volume of pozzolan-based cementitious products with a lower clinker factor. The deal is connected to Titan’s target to reduce its CO₂ emissions by 35% by 2030, compared to 1990 levels, and increase the share of green products in its portfolio to over 50%.

Yanni Paniaras, the Group Executive Director Europe of Titan, said “We are pleased to partner with the Govdelas family as joint shareholders in Aegean Perlites, building on our excellent long-term collaboration and aiming to grow our business, maximising the high potential of the Yali pozzolans.”

Sweden: Cementa is running trials on a pilot water treatment plant in the File Hajdar limestone quarry near its Slite cement plant in Gotland. The pilot plant has been running since September 2022 and the subsidiary of Germany-based Heidelberg materials describes the first results as ‘promising.’ The cement company plans to build and pay for a full-scale water treatment plant at the site. Engineering and design company AFRY has been collaborating with Cementa on the project.

Matilda Hoffstedt, the manager of the Slite cement plant, said “We can contribute to greatly strengthening the public water supply here in northern Gotland. The results from the pilot project are extremely promising and we see that a new water plant would really make a difference to the water supply throughout the year.”

Cementa started work on the water project in 2021 with a feasibility study and plans for the pilot. The entire feasibility study is expected to be completed in the summer of 2023 and the goal is to be able to put a full-scale water plant into operation in 2027. However, Cementa says that it needs a long-term permit for its mining operations in Gotland in order to invest in the project. The cement producer has faced opposition to renewing its permit at the site since 2021. A perceived threat to the area’s drinking water supplies has been a repeated concern made by groups against continued quarrying in the area.

India: Operators of limestone mines in Karnataka's Chamarajanagar District have suspended quarry operations indefinitely in protest against the Karnataka state government's increased licensing royalties and rules requiring drone surveillance. The companies also demand that the state government cease to implement new policies affecting them. The Times of India newspaper has reported that the strike has impacted a total of 10,000 jobs, both at quarries and downstream in the building materials and construction sectors.

Philippines: Republic Cement has won seven awards at the Presidential Mineral Industry Awards 2023. The producer’s Bulacan cement plant won the Platinum Achievement Award, while its Batangas, Iligan and Teresa plants all claimed Quarry Operations (Non-Metallic) Awards. The Bulacan plant also won the Best Forest Mining Award in the Non-Metallic category, in which the Iligan plant was second runner-up. Lastly, Bulacan cement plant won the Safest Mine (Non-Metallic) Award.

Republic Cement’s CEO Roman Menz said "Throughout our 67 years of service towards building the nation, Republic Cement has always been deeply and wholly committed to responsible mining. It is through responsible mining and our daily commitment to safety and sustainability that we are able to support robust communities and a thriving environment, towards a greener and stronger republic."

India: Purvanchal Cement plans to invest US$24m in cement acquisitions and new grinding capacity construction projects before 2026. Under the plans, the producer will double its cement production capacity to 1Mt/yr. The Economic Times newspaper has reported that the plans include the establishment of a grinding plant in West Bengal and a second new plant with an associated quarry in northern Assam.

Purvanchal Cement operates the 0.5Mt/yr Kamrup grinding plant in Assam.

Sweden: The Land and Environmental Court has granted Cementa a four-year permit to continue mining operations in Slite on Gotland. The latest temporary permit was set to expire at the end of 2022. Both the Environmental Protection Agency (Naturvårdsverket) and the county administrative board of Gotland recommended rejecting Cementa’s application earlier in 2022. Prior to this the central government extended the cement company’s mining licence by one year from late 2021.

The subsidiary of Germany-based Heidelberg Materials said that it viewed the latest four-year permit as a ‘bridge’ until it is able to secure a long-term permit. It is aiming to submit an application for a 30-year permit in 2023.

Colombia: Cemex has announced the launch of the Tunjuelo Circularity Centre at its former Tunjuelo quarry near Bogotá. Having rebuilt parts of the 50m-deep quarry with demolition waste, Cemex will now work on its ecological restoration, while continuing to receive excavation waste for reconstruction of the ground. It will meanwhile divert demolition waste deliveries for recycling in aggregate production. In Bogotá, Cemex has launched an initiative for urban construction partnerships in collaboration with local authorities. It will also collect municipal solid waste (MSW) there for use in its cement production and collect its used plastic cement bags for recycling in building materials production.

Cemex’s Colombia and Peru president Alejandro Ramírez said "This is a pioneering model for Cemex in the construction materials industry globally, which we aim to position as a benchmark for circularity within the sustainable development of large cities in Colombia and the world. A piece of land that supplied materials for Bogotá's development for decades has received construction and demolition waste for its redevelopment and was transformed into a green area to the south of the city, an epicenter of the circular economy and an opportunity for urban development for the capital city of Colombia."