10 June 2015
Cement plants’ blasting threatens the Angat Dam 10 June 2015
Philippines: According to local media, Cement plants using explosives to extract limestone in the mountains of eastern Bulacan poses a threat that might break the Angat Dam, a large hydroelectric facility that supplies electricity and water to the Manila metropolitan area.
"Years of massive quarrying of mineral deposits in the area had taken its toll. The removal of the mountains in the area is not only ugly, but also appears to be a disaster waiting to happen since the mining area is so close to the Angat dam," said Martin Francisco, chairman of the Sagip Sierra Madre Environmental Society Inc (SSMSI). He added that since Angat Dam lies along the West Valley fault line, the mining of limestone deposits in the area could weaken the structure of the dam and its foundation because cement plants are still using explosives in extracting marble and limestone.
In a report to Bulacan governor Wilhelmino M Sy-Alvarado, the SSMSI said that residents and a cultural minority group, the Dumagats, have complained about the vibrations and noise in the mountains caused by dynamite blasts. "The explosions are causing too much anxiety and could even scare the people out of their wits since the Philippine Institute of Volcanology and Seismology has once again confirmed that the West Valley Fault is active. This is another threat to a dam break," said Francisco. He added that several landslides were reported in 2014 and several small sink holes in the mountains have appeared.
Alvarado has formed a team to investigate the matter and has requested that the cement plants refrain from using explosives to extract limestone.
Azerbaijan: Holcim Azerbaijan's net profit fell from US$49.2m in 2013 to US$37.8m in 2014, a 23.2% drop year-on-year. Its revenue fell from US$102m to US$74.4m in 2014. At the same time, production costs fell from US$65.8m to US$53.4m in 2014.
Spanish cement probe expanded 10 June 2015
Spain: Spanish competition regulator CNMC has expanded its probe into cement and concrete producers on alleged cartel agreements. The CNMC carried out inspections at the headquarters of cement and concrete makers on 27 and 28 May 2015 as part of the probe on 14 sector players, the CNMC said in a statement. The regulator said it has 18 months to decide whether it will impose a fine on the companies.
Russia: Russia's cement consumption may fall by 5 - 10% in 2015, according to Eurocement Group forecasts. The cement market contracted by 9% in January - April 2015. The decline slowed to 4 - 5% in May 2015, according to preliminary data.
The situation on the construction market is currently unfavourable for cement production as borrowing is too expensive, which slows new construction and gives developers an incentive to monetise projects at the implementation stage. "Developers are currently trying to complete projects that are already underway, so consumption of finished products has increased and companies are reluctant to begin new construction projects, which takes a toll on cement consumption," said Eurocement president Mikhail Skorokhod.
Eurocement has continued to upgrade its cement plants and all of its plants will switch to the dry-process for cement production by 2020. The programme will boost Eurocement's production capacity to 60Mt/yr from 50Mt/yr. Capital investment in the upgrades will total an estimated Euro1.62bn.
At the start of July 2015, a 1.3Mt/yr capacity plant will be commissioned in Ulyanovsk region's Sengileevsky district, according to Skorokhod. The plant will have the option of shipping product on the Volga river, reducing some of Eurocement's logistical costs.
Czech Republic: A reviving building material market has raised Lafarge's sales in the Czech Republic by 5% year-on-year to US$35.2m in 2014, according to company spokesperson Milena Hucanova.
Profits from operations soared by 53% to US$6.55m. Hucanova attributed the growth to rising sales, an extraordinary revenue from the sale of carbon credits and operating savings. About 40% of the company's output was exported in 2014.
Czech cement consumption increased by more than 4% year-on-year to 3.5Mt in 2014 and the same growth rate is foreseen for 2015, said Hucanova. Investments are estimated at US$1.09m this year.
Camargo Corrêa plans US$1.2bn Intercement stake sale 10 June 2015
Brazil: Reuters has reported that Brazilian industrial conglomerate Camargo Corrêa is looking to sell a stake in Intercement for up to US$1.2bn in order to make new overseas investments, according to a report in newspaper Folha de S Paulo.
Camargo Corrêa plans to sell 10 – 18% of Intercement for between US$648m and US$1.17bn. The industrial conglomerate is one of several in Brazil with executives accused of paying bribes for contracts with state-run oil company Petroleo Brasileiro, known as Petrobras, threatening its access to public works contracts and driving up borrowing costs. Two Camargo Corrêa executives have already pleaded guilty.
Folha reported that Camargo Corrêa 's US$2.66bn of debt had led it to seek a minority partner in order to take advantage of opportunities to grow in countries as diverse as Egypt, Mozambique and Paraguay.