17 February 2015
Dongwu Cement buys Shanghai Biofit Environmental Technology 17 February 2015
China: Dongwu Cement has agreed to acquire Shanghai Biofit Environmental Technology Co Ltd for US$5.11m. With a tier-3 professional contractor qualification for environmental engineering, Shanghai Biofit is principally engaged in organic wastewater treatment, sludge treatment and disposal, comprehensive treatment of urban organic waste and other integrated environment services.
Oman Cement’s 2014 net profit declines by 13% on weaker sales 17 February 2015
Oman: Oman Cement's net profit in 2014 declined by 12.8% to US$34.2m from US$39.2m in 2013. The decline was mainly due to a lower volume of cement sales, lower clinker production and higher volumes of imported clinker. Oman Cement imported higher volumes of clinker to bridge a temporary shortfall due to one of its kilns being closed for capacity enhancement.
The company said that it would consider a joint venture project for setting up a new cement plant after detailed studies. It said that its on-going US$39m project to install an additional 150t/hr cement mill with supporting infrastructure of cement silos and bulk despatches is expected to be completed during the fourth quarter of 2015.
Oman Cement sold 2.01Mt of cement during 2014 compared to 2.1Mt in 2013, a decrease of 1.1%. In value terms, total sales dropped by 2.05% in 2014 to US$133m, from US$136m in 2013. "Market demand for cement in Oman remains good due to continued emphasis on infrastructure development. With the company's well-structured pricing policy, we hope that in spite of stiff competition with other cement manufacturers, particularly from neighbouring countries, the company will continue to do well to retain its market share," said Oman Cement's report.
Oman Cement said that government's decision to double the price of natural gas, effective from 1 January 2015, is bound to have a major impact on its performance in the coming years. "Similarly, restrictions on carrying capacity for road transport of materials will also increase the cost of operations. However, we are committed to meet the challenge by directing our efforts towards better cost management," said the report.
Jaiprakash Associates and Aditya Birla’s Hindalco win coal mines 17 February 2015
India: Following the start of India's coal mine auction on 14 February 2015, in which Reliance Cement won the Sial Ghoghri mine in Madhya Pradesh for US$22.5/t, more mines have now been sold.
On the second day of the auction, 15 February 2015, Reliance Cement lost out on a mine in Maharashtra to Sunflag Iron and Steel, which bid US$28.7/t. Similarly, Aditya Birla Group's Hindalco Industries, which bid US$45.9/t for the Kathautia mine in Jharkhand, beat UltraTech Cement. The mine has 26Mt of coal reserves.
On the third day of the auction, 16 February 2015, Jaiprakash Associates won the Mandla North mine, which has 143Mt of extractable coal reserves, for US$40.3/t. UltraTech Cement and Hindalco Ltd had also placed bids for the mine. B S Ispat won the Marki Mangli III mine in Maharashtra for US$14.7/t, beating several rivals, including JSW Cement. The mine has 4.2Mt of extractable reserves.