Displaying items by tag: fossil fuels

Vietnam: Vietnam National Coal and Mineral Industries Group (Vinacomin) has forecast 6.1% three-year growth in national coal demand to 115Mt in 2025 from 108Mt in 2022. Four main industries – cement, fertilisers, metal and power generation – are expected to retain over 90% of the combined share of domestic consumption. Vinacomin expects national coal production to increase by 1.3Mt/yr over the period, retaining a 40 – 45% stake in the domestic market. Five-year consumption of imported lignite is forecast to rise to 70 – 75Mt throughout the period up to 2026.

Vietnam: The Vietnam National Cement Association (VNCA) has spoken about the difficulties that would arise from a proposed power price rise by state-owned Electricity Vietnam (EVN). VNCA chair Nguyen Quang Cung said that cement producers foresee 'business havoc' ensuing from any further cost increase to their operations. The industry says that reduced demand has prevented them from raising cement prices amid already high costs. Coal price growth is a significant contributor, and now accounts for 60% of the industry's operating expenses.

Cung said "Many companies are suffering losses and have suspended the operations of many production lines." He continued "We understand that EVN is claiming force majeure because they face the same challenge relating to the input cost burden."

India: Dalmia Cement (Bharat) has concluded a contract for the acquisition of cement and other assets from Jaypee Group for US$684m. Mint News has reported that the deal will bring Dalmia Cement (Bharat) into control of an additional 9.4Mt/yr of cement production capacity, including 6.7Mt/yr of clinker production capacity, as well as 280MW-worth of fossil fuel-fired power capacity. All cement and grinding plants included under the deal belonged to Jaypee Group subsidiaries Jaiprakash Associates and Jaiprakash Power Ventures and are situated in Chhattisgarh, Madhya Pradesh and Uttar Pradesh.

Kenya: Savannah Cement has hired China-based Sinoma International Engineering for construction of its upcoming 2.92Mt/yr Kitui clinker plant in Eastern Province. The plant will additionally have a 900,000t/yr grinding unit, a 35MW fossil fuel-fired captive power plant and a 13MW waste heat recovery (WHR) system. Savannah Cement chair Benson Ndeta said that the plant will convert to 100% solar and WHR-powered production by the end of 2029.

Sinoma International Engineering plans to commence the project immediately, and to complete it in late 2024.

Chile: Cement shipments fell by 14% year-on-year during the first nine months of 2022, to 3.2Mt from 3.7Mt. The La Tercera newspaper has reported that a construction slowdown impacted on the cement sales of all three of Chile’s cement producers. Cbb’s despatches fell by 18%, Cementos Melón’s by 15% and Cemento Polpaico’s by 9.5%. At the same time, the producers’ expenses rose due to increased costs across transportation, raw materials, fuels, labour, administration and finance. Meanwhile, imported cement from Asia reportedly presents a cheaper alternative for customers.

Nigeria: The Daily Independent newspaper has reported that BUA Cement is allegedly preparing a 'multi-million dollar lawsuit' against its gas supplier, Greenville Liquefied Natural Gas (Greenville LNG). The supplier reportedly raised prices, as stipulated in the parties' gas supply contract, following an increase in its costs. Greenville LNG attributed the increase to the dilapidation of roads and collapse of upstream gas infrastructure due to flooding, as well as a lack of access to imports. It said that none of its 44 other industrial customers has challenged the price change.

Greenville LNG chair Eddy Van Den Broeke said "It is not a breach of contract because not only are we continuing the gas supply to the BUA cement plant in Sokoto, but also because we are discussing in good faith the changed business and economic conditions that afflict both companies." He concluded “In this case, we only activated the contractual price adjustment clause. We cannot explain how it is possible that social media misrepresented so grossly the present circumstances and the conditions of our contract, which were not reflected at all."

Pakistan: The Association of Builders and Developers (ABAD) has accused cement producers of cartelisation and called on the government to take 'stern action' following a rise in cement prices. The Business Recorder newspaper has reported that builders believe that the rise does not reflect trends in local raw materials and imported coal prices. Additionally, it comes in spite of a drop in cement demand.

Italy: Cementir Holding sold 8.2Mt of cement and clinker during the first nine months of 2022, down by 1.7% year-on-year from nine-month 2021 levels. China, Denmark, Egypt and Türkiye all contributed to the decline. Group nine-month revenues were Euro1.26bn, up by 25% year-on-year. Third-quarter 2022 revenues rose most sharply, by 45%, in Türkiye, followed by the US (38%), the Nordic and Baltic region (20%) and Belgium (17%). During the third quarter of the year, operating costs increased by 36% to Euro365m from Euro268m. Raw materials, fuels and transport costs all contributed to the rise.

In the first nine months of 2022, the group recorded earnings before interest, taxation, depreciation and amortisation (EBITDA) of Euro238m, up by 11% from Euro215m during the first nine months of 2021.

India: Dalmia Bharat sold 12Mt of cement during the first half of its 2023 financial year, up by 20% year-on-year from 10Mt in the first half of the 2022 financial year. Its income was US$757m, up by 21% year-on-year from US$624m. Meanwhile, the company's earnings before interest, taxation, depreciation and amortisation (EBITDA) fell by 28% to US$116m from US$161m. The company noted the growth effects of 'fuel price corrections' during the second quarter of 2022, which it expects to increase its profitability during the second half of year.

Managing director and CEO Punit Dalmia said “We are pleased with the performance of the first half of this year despite the intense inflationary environment, and are confident that we will be among the best in the industry, leaving the bad times behind. While the geopolitical turmoil continues, we are confident in the resilience of the Indian economy, which is further cementing its position at the centre of global growth and consumption.” Dalmia continued “In view of the government's continued momentum in the infrastructure sector, driven by the revitalisation of the housing sector, we expect the demand for cement to grow rapidly. Looking ahead, we will remain focused on our capacity expansion progress.”

Dalmia Bharat's 14 integrated cement and grinding plants span 10 Indian states and have a capacity of 37Mt/yr, India's fourth largest.

China/Zimbabwe: A cement producer in China has imported 20,000t of coal from Zimbabwe. The Zimbabwean Coal Producers Association said that the Port of Beira, Mozambique, despatched the order. Mining News has reported that the shipment is a trial, with other orders also anticipated.