Global Cement News

India/Bangladesh: Khaitan & Co has won Supreme Court (SC) approval for French cement company Lafarge to mine limestone in India's north-eastern region in a landmark ruling that will likely set the tone for future reforms in environmental governance. Khaitan & Co litigation partner Sanjeev Kapoor instructed senior advocates for the company, which had commenced mining activity in Meghalaya as a French-Spanish joint venture Lafarge Umiam Mining.

Lafarge successfully defended allegations of fraud and wilful concealment of the facts while contesting the case after 2010's prohibition from mining in the area. The company's project involved sending limestone across the Indo-Bangladesh border on a conveyor belt as raw material for its cement plant in Bangladesh.

"This is a landmark judgement in the context of the environment and mining, especially for projects involving use of forest land for non-forest purposes. The judgement dwells deep into many areas that were until today untouched by any judicial interpretation," said Khaitan & Co. in a statement.

The SC forest bench has upheld the decision of the Ministry of Environment and Forest (MoEF), which had granted revised environmental clearance, site clearance and stage-1 forest clearance to Lafarge. The bench, comprising chief justice S H Kapadia and justices Aftab Alam and K S Radhakrishnan dismissed the petition of 21 tribal activists under Shella Action Committee opposing Lafarge's mining activity in the forest region. The court took into consideration the principles of economic sustainability and environmental viability while laying down significant guidelines such as appointment of a 'National Regulator' to appraise projects, enforce environmental conditions and to impose penalties on polluters.

The court held that, "The word 'development' is a relative term. One cannot assume that the tribals are not aware of principles of conservation of forest. In the present case we are satisfied that limestone mining has been going on for centuries in the area and that it is an activity that is intertwined with the culture and the unique land holding and tenure system of the Nongtrai Village. On the facts of this case, we are satisfied with due diligence exercise undertaken by MoEF in the matter of forest diversion."

Qatar: Trial operations have commenced by the Qatar National Cement Company (QNCC) on its USD6m calcium carbonate plant at Umm-Bab in southern Qatar. QNCC has signed an agreement with the Stream Industrial Engineering Company to build the plant on a turn-key basis. The plant will be specialised in the production of calcium carbonate for use in water treatment operations and is expected to have a production capacity of 250t/day.

QNCC general manager Mohamed Ali al-Sulaiti commented, "There is an agreement with Kahramaa to buy the calcium carbonate for 25 years. For the plant, Ras Girtas power station at Ras Laffan will be one of the supporting stations." He added "QNCC is carefully growing and expanding to play its national role in supporting the infrastructure development in the state, especially after Qatar won the bid for hosting the 2022 FIFA World Cup." Al-Sulaiti further stated that the company has set up two new mills with a planned capacity of 130t/h.

Mexico: Indebted Mexican cement maker Cemex has cancelled its plans to sell USD650m in bonds as investors are worried about a global economic slowdown. Struggling with limited cash flow and a weak US market, Cemex aimed to raise money to help pay USD1.2bn in debt amortisations by the end of 2013 before being hit with an USD8bn payments bottleneck in 2014.

"Given market volatility and unfavourable performance of markets today, Cemex has decided to not pursue the transaction," the company said in a statement.

France: Lafarge announced new CO₂ targets in partnership with the World Wildlife Fund on 23 June 2011.Key areas include a 33% reduction of CO₂ emissions per ton of cement produced by the end of 2020 compared with 1990 levels and a commitment to develop innovative solutions for sustainable construction by 2015. It is anticipated that Lafarge will emit an average of 518kg of CO₂ per ton of cement produced in 2020, around 250kg less than in 1990.

New Zealand: Contractors are being asked to register their interest in building a USD400m cement plant near Weston and a shipping terminal at Timaru's port on behalf of Holcim New Zealand. Holcim is still seeking final approval for the projects. Expressions of interest close on 29 July 2011. On 28 June 2011 Holcim New Zealand posted a message on its website inviting contractors to register their interest. Capital projects manager Ken Cowie stated that the marketplace needs to be aware of what will be required if the company's parent board in Switzerland approves the project.

"Getting some preliminary information from the marketplace now would help us get the project under way in a timely manner if the Holcim Ltd board approves it later this year," said Cowie. "It's also about getting an indication of which contractors are in the marketplace with suitable qualifications and experience to undertake the various aspects of work that will be required."

The tentative timetable to construct the plant on a 40ha site indicates that, subject to board approval, site preparation could start in late 2011, equipment could be ordered in late 2011 and early 2012 and the pouring of foundations could take place in the third quarter of 2012. At the peak of construction, almost 500 people would be employed. Commissioning of the plant would be in early 2014 with production starting by the middle of that year. Actual dates for work on the project would depend on if and when approval is received.

The decision to call for expressions of interest from contractors followed the executive committee of parent company Holcim Ltd in may recommending the proposal go forward to its board for a decision. The general scope of works outlined in the expressions of interest document includes the Weston cement plant, associated quarries and pits and a new clinker and cement shipping terminal at Timaru.

The main raw material quarries and pits, limestone, tuff and siltstone were immediately next to the plant site and silica sand would be trucked from a pit near Windsor. Coal to fuel a kiln would be trucked from an open cast pit at Ngapara. KiwiRail would reconstruct the branch line from the South Island main trunk line at Waiareka to the plant to haul cement to Timaru.

"Aspects of the work, such as cement plant mechanical and electrical equipment, would require the involvement of specialist international suppliers and we've been in discussion with a number of these companies about our potential requirements since late 2010," said Cowie.

Holcim New Zealand said it was looking for contractors who had an excellent record of working collaboratively with both the client and other contractors to successfully complete 'a world-class project.' Completing the project with the least possible impact on the environment was also a project goal.

Holcim New Zealand would have overall management of the project and contract out a number of packages of work related to quarry operations, construction of the plant and the Timaru shipping terminal. Following a review of applications, selected contractors will be provided with detailed specifications and drawings and invited to submit bids for the various packages of work.

Once the Weston plant is completed Holcim will close its 50 year old cement factory near Westport in the West Coast region. The Buller District Mayor, Pat McManus, stated that the district's coal industry should fill the gap in the economy. Cowie stated that the West Coast facility will remain open for about three years while the new plant is built.