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Slovenia: According to the Slovenian Press Agency, on 24 June 2015 the government adopted a proposal for changes to the environment protection act that remedies shortcomings in provisions governing environmental permits. The problems with the existing legislation had led to the European Commission (EC) taking Slovenia to the EU Court of Justice.
The government said that the key purpose of the amendments was meeting the demands of the EC and that all plants without environmental permits at the time when the changes enter into force will need to stop operations. The step is related to the Lafarge cement plant in Trbovlje, which was instructed to stop operations in March 2015 after lax legislative provisions allowed it to continue to operate for a protracted period even though it did not have an environmental permit.
The EC announced in February 2015 that it was taking Slovenia to the EU Court of Justice for its failure to implement environmental licensing in line with the integrated pollution prevention and control (IPPC) directive of 2007. The EC said that the legal action came because one of the country's major cement producers had continued to operate without the required permit, in reference to Lafarge. The EC was seeking a base fine of Euro1.6m for the country plus Euro9009 for each day that the violation persisted.
Self-sufficiency and exports from every African market…? How is this possible?
Written by Peter Edwards
24 June 2015
The small cement industry of Mozambique, in south west Africa must be an interesting place to make cement. On one side the country's producers, like their more vocal South African counterparts, have been fighting off cheap imports from Iran, Pakistan, China et al. On the other side of the coin though, Mozambique has growing domestic demand and is within striking distance of growing markets further into Africa, like Malawi and the Democratic Republic of Congo (DRC).
With the announcement this week that there will be not one but two new integrated cement plants in the country, bringing over 2Mt/yr of new capacity, everything should be set fair for the coming years then, shouldn't it? Domestic production will rise, the price of local cement will fall as a result, competition from imports will drop off and money will be made from new exports.
Except that might not happen. Before the announcement of these two plants, (one of which does not state a capacity), there was around 5.5Mt/yr of grinding and integrated capacity either currently active in Mozambique or due to come onstream in 2015. With the new projects this rises to over 7.5Mt/yr.
The desirable chain of events described above starts to break down due to the fact that domestic demand in Mozambique, while rising, is not currently anywhere near as high as domestic supply. The United States Geological Survey estimated that the country produced just 1.2Mt/yr in 2012. Data for 2013 and 2014, though unavailable, is highly unlikely to show a three-fold increase. Indeed Insitec, a minority shareholder in Cimentos de Moçambique, predicted in 2014 that demand for that year would rise to just 1.5Mt, before hitting the dizzying heights of 1.8Mt in 2018 – And that's still three years away!
So what are the options? Option 1: Some or all of the planned and mooted cement plants will fail to come to fruition. Option 2: Some or all of the plants will be built but will operate at reduced capacity and/or on a campaign basis. Option 3: The Mozambican cement industry becomes a regional powerhouse and starts to export to its neighbours.
Option 1 is certainly possible. Limak Group, one of the parties linked to the new projects, is a Turkish cement producer that is inexperienced outside of Turkey. There has also been a lack of information on the progress of projects by Austral Cimentos ('coming on stream in 2015'), Star Cement and Consolidated Building Materials, although a lack of progress reports does not necessarily imply 'no progress.'
Option 2 is more likely, as some producers already operate on a campaign basis. InterCement's plant at Nacala, formerly an integrated plant, currently operates only as a grinding station. Option 3 is also possible, with Malawi particularly lacking in cement production facilities.
In reality a combination of all three 'Options' is the most likely outcome. However, this will lead to Mozambique becoming yet another player in an increasingly busy African cement market. The desire for self-sufficiency in cement production, a common goal for the region's governments, can easily lead to over-estimates of local demand growth, with resultant over-capacity. Of course the expectation that all African countries can get rid of this extra cement capacity via exports will ultimately backfire.
In southern Africa we already have South Africa exporting. Angola declared 'cement self-sufficiency' in October 2014 and banned imports at the start of 2015. Zambia, Botswana, Zimbabwe and DRC all have large-scale Dangote and/or PCC projects near completion or in production that will greatly reduce their need for imports. Meanwhile, further north, Nigeria is already a gigantic producer and significant cement exporter. Cameroon has recently banned imports and Ghana is thinking of doing the same. Over in the east of Africa, Ethiopia's (and the rest of that region's) rapidly-developing situation was covered in this column just two weeks ago.
Finally, in the north of Africa, Algeria has declared its intention to be self-sufficient in cement by 2016. This news must have 'gone down like a lead balloon' in Italy, Spain and Greece, which have been reliant on north African markets after the bottoms fell out of their own economies. In the north east, Egypt has different problems at present, also described previously. It needs fuel not cement!
So where does this all lead for regional cement dynamics in Africa? Well perhaps the situation in India points the way. There, as in Africa, local and regional producers with the desire to expand grew from their local bases and eventually overlapped. Against a backdrop of lower-than-expected demand, the country now has overcapacity. This has resulted in smaller producers being acquired and leaving the market.
Could this eventually happen in Africa? Only time will tell. However one thing is certain: It's just not possible for every country to export to every other country!
US: According to Charlotte Business Journal, Duke Energy has proposed excavating 12 more of its 36 coal ash ponds in North and South Carolina and burying the waste in a fully-lined landfills or structural fill projects.
To date, Duke has proposed closure plans for 24 of the 36 ash ponds. In every case, it has proposed excavation and reburial. However, Garry Miller, head of closure engineering for Duke, said that might not be the case for the remaining 12 ponds. He said that the engineering work that remains to be done at those plants could yet show that a 'cap in place' process, which critics have said would be insufficient to protect against further contamination of groundwater, can effectively close them.
Miller said that none of the waste ash from Duke's 36 ash ponds would undergo beneficial reuse, the process of using the ash for commercial products such as a replacement for Portland cement in concrete and gypsum board. However, he added that Duke does send a portion of the dry ash it is currently producing at its largest plants for reuse. However, the time constraints imposed by North Carolina's Coal Ash Management Act of 2014 make it impossible for the existing ash ponds. "As we close these basins, the quantity in them is such that the market cannot handle it in a timely manner," said Miller.
Duke's current cost estimate for closing the ponds is US$3.4bn, although this is subject to revision.
India: According to Focus News, cement carrier MV Coastal Pride has sunk 45km south of Daman, Gujarat on 24 June 2015. The Navy and Coast Guard rescued 14 crew members of the vessel. The Coast Guard picked up six persons before the ship sank, a helicopter saved six crew members from the water and the Coast Guard rescued two further people after the boat sank. The rescued crew were evacuated to Umargaon, Gujarat.
Heavy industries set to miss deadline for installing online emissions monitoring systems 24 June 2015
India: According to Live Mint, the majority of 3261 highly-polluting industries in India, including the cement and steel sectors, are set to miss the June 2015 deadline set by the ministry of environment, forests and climate change (MoEFCC) to install online effluent and emission monitoring systems.
Most industries have recently sought an extension to September 2015, although some from sectors like petrochemicals and refinery asked the deadline to be extended to June 2016. The environment ministry is considering the former plea. "The ministry is favourably considering extending the deadline until September 2015 for the majority of industries. But we are not sure about extending it to June 2016 for certain industries. A final call will be taken soon in this regard," said a senior environment ministry official.
On 16 - 17 June 2015, the Central Pollution Control Board (CPCB) held a meeting of industrial associations and common waste management facilities to review the status of compliance of their directions regarding the installation of online effluent and emission monitoring devices. According to the minutes of the meeting, 'By-and-large, associations have agreed to meet the deadlines by September 2015, except in the case of mini cement plants, refinery, petrochemicals and common bio-medical facilities.'
In December 2014 the CPCB identified 3261 industries in 17 categories of highly-polluting industries, including the cement, iron and steel, thermal power plants, sugar, tannery, distillery, fertilisers and pesticide sectors. The CPCB had asked the industries to install online effluent and emission monitoring systems by June 2015, failing which bank guarantees of 100% of the cost of online systems (emission or effluent) would be forfeited. The CPCB had also said that its 'consent to operate' would be withdrawn from non-complaint industries.