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Derba Cement plans US$300m expansion 04 April 2016
Ethiopia: Derba Cement is planning to build a US$300m expansion to its cement plant. The new plant in Chancho City, Sululta will have a production capacity of 2.5Mt/yr. The project is expected to take 18 – 24 months to complete once started, according to the Cihan News Agency.
The subsidiary of MIDROC is in talks with China National Building Materials Company to build the new plant. It is negotiating with the Development Bank of Ethiopia, International Financial Corp, the World Bank Group investment arm, the African Development Bank and the European Investment Bank to finance the project, according to Derba Cement CEO, Haile Assegide.
Haile added that Derba Cement’s decision to build an upgrade in a market with excess production capacity made sense due to the project’s cost efficiency. The new plant will use existing infrastructure to cut its costs. The plant will also benefit if the government implements the Second Growth and Transformation Plan (GTP II) increasing demand for cement.
Derba Cement has a 2.5Mt/yr cement plant at Chancho City. However, the plant is producing 0.5Mt/yr less than its capacity due to power supply interruptions. The Gilgel Gibe III Dam, that started producing electricity in late 2015, is expected to normalise the electric supply to the plant.
India: OCL India has inaugurated a 5.5MW solar power plant for use by its cement grinding plant in Salboni, Bengal. The 1.35Mt/yr grinding plant was set up in 2014 with an investment of US$93m.
"Our plant at Paschim Medinipore is located strategically to ensure timely and faster delivery of cement across the state. West Bengal is an emerging market for infrastructure development with a host of projects under implementation and thereby auguring well for the cement industry in Eastern India. In our first year of operations in Medinipore we are already operating at 95% capacity utilisation," said Amandeep, director and CEO of OCL India. He added that the solar plant will be the first and largest of its kind in West Bengal
OCL India also operates two cement plants at Kapilash and Rajgangpur in Orissa with a combined production capacity of 5.35Mt/yr.
India: Jaiprakash Associates has revised a US$2.4bn deal to sell cement plants to and UltraTech Cement. The new deal excludes a 1.2Mt/yr cement plant in Karnataka. UltraTech will also spend US$71m to complete a cement grinding plant that is currently being built. UltraTech will now acquire Jaiprakash Associates cement plants in five states with total capacity of 21.2Mt/yr. Jaiprakash Associates will retain a cement capacity of 10.6Mt/yr.
A Memorandum of Understanding signed in February 2016 agreed the terms of the sale. However, currency fluctuations between the Indian Rupee and US Dollar have kept the US Dollar value of the revised deal at a similar amount despite a drop in the Indian Rupee amount. The sale is expected to take around 12 to 14 months to complete subject to statutory and regulatory approvals.
Cementos Bío Bío profit rises by 4% to US$30m in 2015 01 April 2016
Chile: Cementos Bío Bío has reported that its profit rose by 4% year-on-year to US$30m in 2015 from US$28.5m in 2014. Its revenue rose by 4.4% to US$417m. It attributed the growth to higher cement sales and better prices. The Chilean cement producer also announced that it is upgrading the milling capacity at its lime plant in Antofagasta.
Georgia Power starts activity to close 29 ash ponds 31 March 2016
US: Georgia Power has started preparation activity to permanently close all of the company's 29 ash ponds located at 11 coal-fired generation facilities across Georgia. Twelve ponds are scheduled for closure by mid-2018, 16 are expected to close by 2026 and one pond is expected to close by 2030. At present, around 50% of the coal combustion by-products Georgia Power produces are used to make Portland cement, concrete, cinder blocks and gypsum wallboard.
"Our primary focus throughout the closure process is maintaining a reliable generation fleet, while conducting the closure process in the most efficient way possible," said Mark Berry, vice president of environmental affairs for Georgia Power. The company will upgrade each plant to accommodate the dry handling of Coal Combustion Residuals (CCR) required by new federal regulations. The closure of all 29 ash ponds is expected to cost over US$1bn over the next 10 years. In addition, the company has invested approximately US$5bn in new environmental compliance technologies for its coal-fired generation fleet.