Displaying items by tag: Quarry

There was good news from the corporate finance sector for cement producers this week in the form of an approving statement by Fitch Ratings. It declared that it expected the sector to be able to pass on the costs of decarbonisation to customers due to a lack of alternatives. It recognised the challenges posed by regulators, investors and societal pressure but, even so, it suggested that cement was still an industry worth backing. Or at least for now. Added to this, it forecast that demand for building materials would grow to support the transition to a low carbon economy and to combat the damage caused by climate change. It did admit that the capital or operating costs required to decarbonise are seen as being potentially large, especially with uncertainty over how much governments will pay or incentivise. Yet the timescales involved are beyond the ratings agency’s ‘horizon’ hence no really disruptive shifts in producer economics are expected anytime soon.

This was obviously a win for the cement industry and its cheerleading associations led by the Global Cement and Concrete Association (GCCA), the World Cement Association and the regional associations. After all, the increasingly convergent message to the wider world has been along the lines of ‘concrete is part of the solution and you need our products because there’s nothing else.’ Good timing then for the GCCA to launch its collaboration with the World Economic Forum, the ‘Concrete Action for Climate’ (CAC) initiative. The collaborative platform is planned to help drive the industry’s journey to carbon neutral concrete by 2050 as part of the wider Mission Possible Partnership, a wider coalition of public and private organisations working on setting the heavy industry and transport sectors towards net-zero. Expect lots more of these kinds of announcements on the road to the 26th UN Climate Change Conference of the Parties (COP26) taking place in Scotland in late October 2021.

Fitch Ratings did point out that societal awareness was likely to accelerate decarbonisation. The sharp end of this trend was experienced by the building materials industry this week when environmental activist group Extinction Rebellion forced operations to stop temporarily at LafargeHolcim’s Port de Javel ready-mixed concrete plant in Paris on 30 June 2021. This followed a similar incident by the same group at a LafargeHolcim subsidiary ready-mix plant in London in mid-2019. Given the share of global CO₂ emissions from the cement-concrete production chain, it is perhaps surprising that climate activists haven’t targeted clinker-producing cement plants directly in the same way that they have gone after coal-fired power stations. Clinker kilns are, after all, the source of the majority of the sector’s emissions. However, blockading a concrete plant in the city may conjure up a more potent media image than doing the same to a factory out in the country.

Instead the battles with cement plants and their quarries tend to be of a ‘not in my back yard’ (Nimby) nature. Or rather ‘not in my monastery (Nimmon?) this week, with the news that a subsidiary of YTL Cement in Malaysia is attempting to evict a group of Buddhist monks and their underground place of worship from a quarry on Mount Kanthan in Perak. In the latest twist of the long running saga, the monks have hit back with an attempt to get their portion of the site recognised as a place of worship and a heritage site. Thankfully a more positive example of how quarries can fit in with the wider community could be found this week in the guise of an archaeological dig at CRH subsidiary Tarmac’s Knobb’s Farm quarry in Cambridgeshire, UK. The discovery of a Roman Britain-era cemetery with a high proportion of decapitated bodies may have been gruesome but the relations between the operator and the archaeologists were much more harmonious. Another recent example was the discovery of what may be a new precursor species of humans, unearthed at a quarry run by Nesher-Israel Cement Enterprises site at Ramla in late June 2021.

The paradox building materials producers pose to environmental activists could be summed up by the record heat wave that hit the north-western region of North America recently. CO₂ emissions, in minor part produced by the cement and concrete industries, are the most likely reason for an increased frequency of extreme weather events such as this. Yet, infrastructure such as pavements and roads were widely reported as having buckled in the heat, principally because they weren’t built for such high temperatures. They will have to be rebuilt to withstand similar temperatures in the future. Building materials can thus be seen as both part of the problem and part of the solution. Yet with net zero targets nearly 30 years away it seems likely that continued extreme weather events and their potentially lethal consequences will speed up the public demand for decarbonisation. It is worth noting here that one of Extinction Rebellion’s demands in the UK is that the country should become net zero by 2025.

Fitch Ratings has cast its vote for now and Extinction Rebellion and its fellows are set to continue to wage their political campaigns. In the meantime it is debatable how much spiritual solace will be found by the monks of Mount Kanthan during blasting hours at the neighbouring quarry.

Sweden: Cementa says that the decision by the Supreme Land and Environmental Court to reject its renewal application to continue mining limestone at its quarries in Gotland will create a ‘crisis’ for consumers in the autumn of 2021. The quarries supply its integrated Slite cement plant. The producer said that the ‘majority’ of Swedish cement production could cease in November 2021 following the expiry of the current licence in October 2021.

“We are seriously concerned but also surprised by the court's ruling today,” said Magnus Ohlsson, the chief executive officer of Cementa. “Limestone has been mined in Slite for over 100 years, which has built up a huge knowledge bank about how the business affects the surrounding environment. Our application is solid and clearly shows that it is possible to conduct a continued sustainable limestone mining in the area. We must go through the decision carefully and then set up the strategy for how we will handle the situation,” He added, “For Sweden, our customers and for us and our employees, it is important that political decision-makers and authorities quickly draw up new guidelines for how the supply of critical building materials such as cement and concrete should work.”

The subsidiary of Germany-based HeidebergCement originally received clearance in 2020 to renew its mining operations at the site until 2041. However, this was subsequently challenged. The current decision by the Supreme Land and Environmental Court was reached as they said they had insufficient evidence to assess the environmental impact of the application.

UK: Archaeologists have completed the excavation of a 52-grave cemetery dated to 3rd century Roman Britain at Ireland-based CRH subsidiary Tarmac’s Knobb’s Farm quarry in Cambridgeshire. The company said that the find is remarkable for its high proportion of decapitated bodies (33%), indicating the proximity of an execution site. The graveyard is situated near a settlement on a peninsula in the Fens wetland area. The settlement itself is lost to the quarrying activities of the previous owner.

Malaysia: Buddhist monks at the Dhamma Sakyamuni Caves Monastery have filed a petition to the state government of Perak to have the site recognised as a place of worship and the local Mount Kanthan area approved as a national heritage site. Mongabay has reported that the caves lie in YTL Cement’s Mount Kanthan quarry. The religious site is located on the still unquarried southern face of Mount Kanthan.

YTL Cement started eviction proceedings at the site in late 2020. It said, “Contrary to what has been claimed by irresponsible parties, we have co-existed harmoniously with the local community. The real issues at hand are safety and the sanctity of the law.” It added with regard to the safety issue, “As the rightful owner of the land, we are responsible for all that occurs on it. We cannot stand by the misleading of the public nor allow such negligence.”

A predecessor company of YTL Cement leased the site in the 1960s. However, the monks allege that they were using the area several decades prior to this. The relationship between both parties broke down in 2013 when the cement company started to ask the monks to leave the monastery during rock blasting.

Uruguay: The Administación Nacional de Combustibles, Alcohol y Portland (ANCAP) and the Administración de Ferrocarriles del Estado (AFE) have signed an agreement to exchange logistics services, materials and real estate. Under the deal ANCAP estimates that 380,000tt/yr of fuel and 390,000t/yr of cement and limestone can be transported by rail. The arrangement also includes: offering preferential transport rates to ANCAP; moving cement and limestone between ANCAP’s plants and quarries; conducting restorative work at ANCAP’s Queguay limestone quarry and its integrated Paysandú cement plant; and supplying rail ballast to AFE.

New Zealand: Stevenson Concrete is set to bring concrete made using CarbonCure technology to the country in July 2021. The Auckland-based concrete producer is currently conducting final internal quality assurance at its Drury quarry and concrete plant before opening the product up on general sale. Canada-based CarbonCure’s technology uses a CO₂ mineralisation process during production to reduce carbon footprint of concrete.

"Along with a number of other carbon-decreasing initiatives we are using, this technology is going to change the way New Zealand builds houses, footpaths, roads, pipes, and thousands of other man-made, everyday objects. Stevenson has brought it into the New Zealand mainstream, just as this technology is used in countries like Singapore, North America and parts of Europe," said Anthony Bitossi, general manager of Stevenson Concrete.

Israel: Archaeologists have identified a new precursor species of humans dated to 130,000 years ago among discoveries from a quarry run by Nesher-Israel Cement Enterprises site at Ramla. Called Homo Nesher Ramla, the species’ antiquity and proximity to Homo Neanderthalensis suggest it as a possible ancestor of Neanderthals, according to Reuters. This would contradict previous theories of European origins of our sister species. Researchers from the Hebrew University of Jerusalem and Tel Aviv University say that Homo Nesher Ramla may have lived alongside Homo Sapiens for hundreds of years at the important junction of Africa and Eurasia now occupied by modern Israel, and could have interbred with our own ancestors.

US: The state Land Use Commission of Hawaii has approved Hawaiian Cement’s licence application for expanded operations at Pohokea quarry in Wiakapu until 2035. The Maui News newspaper has reported that the commission has ordered the producer to hold consultations with the US Department of Land and Natural Resources with regards to the management of possible impacts on yellow-faced bees. The insects were declared an endangered species in 2016. The bees’ welfare formed the basis of a challenge by the conservationist Sierra Club Maui against the licence extension.

India: The National Green Tribunal has received a complaint from the Jaintia Students’ Union (JSU) challenging the Meghalaya Ministry of Environment, Forest and Climate Change’s approval of Star Cement’s Brishyrnot quarry expansion plans. The Sentinel newspaper has reported that the student organisation demanded the cancellation or suspension of environmental clearance for the expansion pending proper processes. It claims that the ministry failed to meet the necessary requirements for a public hearing. It allegedly did not receive no-objection confirmation from all affected local groups.

The Brishyrnot quarry currently covers 42ha in East Jaintia Hills district and has a limestone capacity of 2.5Mt/yr.

India: The state government of Telangana has renewed The India Cements’ mining licence for two sites in Guntur district until 2037. These are the Pondugula and Pulipadu mines, which supply the company’s Vishnupuram cement plant in Nalgonda district. The Times of India has reported that the producer first received its licence for the mines in 2000 and applied for the recent extension a decade later.