23 October 2014
Korea’s cement firms brought in Japanese radioactive coal 23 October 2014
South Korea: According to local media, Korea's cement firms have received US$127m from the Japanese government for three years from 2011 to 2013 for bringing in Japanese coal that is thought to have been contaminated with radioactivity.
According to data submitted by the Environment Ministry to Lee In-young of the main opposition New Politics Alliance for Democracy, who is also a member of the National Assembly's environment labour committee, four domestic cement firms (Ssangyong Cement Industrial, Tongyang Cement and Energy, Lafarge Halla Cement and Hanil Cement) brought in 3.69Mt of coal from Japan from 2011, when the Fukushima nuclear accident occurred, until 2013. In return, they received a total of US$127m for waste disposal.
This is the first time that the amount of money Korea's cement firms received from importing Japanese coal has been revealed. Japanese coal imported to Korea stood at 1.11Mt, worth US$39.9m in 2011, 1.23Mt or US$45.5m in 2012 and 1.35Mt or US$42.2m in 2013. The amount has continued to increase over the past three years.
"The problem is that 20-73Bq/kg of radioactive cesium was detected in the Japanese coal," said Lee. "Though this level is lower than the safety threshold (370Bq), there is the possibility of cesium exposure in everyday life, given that coal is used in cement as well as other construction and industrial materials." If the level of cesium that is radioactive exceeds the safety threshold and permeates into body, it can cause osteomyelitis or thyroid cancer, among others.
Managing director Richard Tomes considers resigning from PPC 23 October 2014
South Africa: PPC is in discussions with the joint managing director of its South African business, Richard Tomes, who is considering resigning from the company, according to anonymous sources. Tomes and Johan Claassen are in charge of PPC's core South African business in the face of growing competition and a slowing economy, while the company embarks on an ambitious expansion strategy in Africa.
Tomes' possible resignation comes amid a shareholder plan to replace the PPC board, which a month ago accepted the resignation of CEO Ketso Gordhan. Tomes has put forward a resignation but he and the company are still discussing the decision.
Foord Asset Management said that it and Visio Capital Management jointly held the required 10% of PPC shares to call for a special shareholders meeting to vote on replacing the PPC board, which it felt lacked cement industry experience. With recommendations from other investors, the activist shareholders have compiled a list of candidates for a new board, which included Gordhan as well as four existing PPC board members, partly in the interests of continuity. However, PPC said that the four members would not be available for re-election to a new board.
Corporate governance expert Mervyn King said that, "Shareholders of 10% or more are entitled to call for an extraordinary general meeting (EGM) and can ask for the removal of the entire board." However, King warned that this could result in 'very poor governance' due to a lack of continuity of knowledge on the new board.
Since Gordhan's resignation PPC has added to the rest-of-Africa experience on its board. The company has appointed experienced mining executive Darryll Castle as an independent non-executive director. "Darryll's extensive experience and knowledge of various countries in Africa and emerging markets, as well as the deep relationships that he has built over the years, will add great value to PPC," said Sibiya.