Displaying items by tag: Government
Pakistan: All cement plants in Pakistan will have implemented systems for tracking taxable assets by 1 April 2023. The required upgrade comprises an applicator to generate and affix unique identification stamps on products for digital monitoring. The Business Recorder newspaper has reported that the Federal Board of Revenue initially set a deadline of 1 July 2022 for conformity with the new rules. Plant operators will bear the cost of licences for their new applicators.
Cementa running trials on pilot water treatment plant at Slite
25 January 2023Sweden: Cementa is running trials on a pilot water treatment plant in the File Hajdar limestone quarry near its Slite cement plant in Gotland. The pilot plant has been running since September 2022 and the subsidiary of Germany-based Heidelberg materials describes the first results as ‘promising.’ The cement company plans to build and pay for a full-scale water treatment plant at the site. Engineering and design company AFRY has been collaborating with Cementa on the project.
Matilda Hoffstedt, the manager of the Slite cement plant, said “We can contribute to greatly strengthening the public water supply here in northern Gotland. The results from the pilot project are extremely promising and we see that a new water plant would really make a difference to the water supply throughout the year.”
Cementa started work on the water project in 2021 with a feasibility study and plans for the pilot. The entire feasibility study is expected to be completed in the summer of 2023 and the goal is to be able to put a full-scale water plant into operation in 2027. However, Cementa says that it needs a long-term permit for its mining operations in Gotland in order to invest in the project. The cement producer has faced opposition to renewing its permit at the site since 2021. A perceived threat to the area’s drinking water supplies has been a repeated concern made by groups against continued quarrying in the area.
Iran: Data released by the Industry, Mining and Trade Ministry reveals that the country produced just over 48Mt of cement in the first nine months of the local calendar year that started on 21 March 2022. This fell slightly, by 1% year-on-year, from the previous year, according to the Tehran Times newspaper. In 2021 the country produced 63Mt of cement and exported 14.4Mt. Exports grew by 4% year-on-year to 7.6Mt in the first seven months of the current calendar year.
Ivory Coast: The Council of Ministers has approved cement producers to use dolomite in place of limestone to reduce imports from Europe and Asia. The government said that it had conducted the necessary tests supporting the change in the local cement standard, according to the Agence Ivoirienne de Presse. The Ministry of Industry and other related government departments have been instructed to take action to support the change.
Zementwerk Hatschek's Gmunden cement plant eliminates 3800t/yr of local CO2 emissions with WHR heating
24 January 2023Austria: Zementwerk Hatschek's Gmunden cement plant eliminated 3800t of CO2 emissions from its local area during 2022 through its contribution to municipal heating. Zementwerk Hatschek, a subsidiary of Rohrdorfer, heats local households using recovered heat from the Gmunden cement plant's waste heat recover (WHR) system.
A delegation of cement plant representatives and local officials from Baden-Württemberg, Germany, visited the plant to learn about its WHR and heat supply systems on 20 January 2022.
Plant manager Peter Fürhapter said "Municipal heating based on our waste heat contributes to CO2 reduction in Upper Austria, helping us to achieve our CO2 reduction goals under the Paris Climate Agreement." He added "We are pleased that with this forward-looking project we are a model for similar projects in Europe."
WH Resources to conduct limestone exploration in Kampot Province
23 January 2023Cambodia: WH Resources plans to assess the feasibility of the Taken limestone reserve in Kampot Province's Chhouk District for exploitation. The Phnom Penh Post newspaper has reported that the company holds a licence to operate a 155 hectare mine at the site. The Cambodian Ministry of Mines and Energy said that, if its exploration is successful, WH Resources may proceed to establish a cement plant there.
The Cambodian cement sector has 9Mt/yr of cement capacity, but consumed 14Mt of cement in 2022.
Australian government to reduce industrial emissions limits
20 January 2023Australia: The government plans to reform its CO2 emissions Safeguard Mechanism in line with its stated goal of net zero CO2 emissions by 2050. Under the latest proposals, 215 industrial plants, including Australia's cement plants, will have to reduce their CO2 emissions by 4.9% year-on-year every year until 2030. The Australian newspaper has reported that the government is currently receiving submissions on the proposed reform as part of its consultation process, which will end on 24 February 2023.
The Business Council of Australia and the Australian Industry Group have encouraged the government to introduce an adjustment mechanism for imports, based on the EU's Carbon Border Adjustment Mechanism (CBAM), in conjunction with any tightening of the Safeguard Mechanism.
Update on Türkiye, January 2023
18 January 2023The Ministry of Trade in Türkiye said this week that it was monitoring developments in the construction industry. Specifically, the ministry is reacting to complaints it has received about the high price of cement and supply issues. It has been looking at exports of clinker and cement. The statement noted that prices had risen particularly in the last one to two months and that the government was prepared to take unspecified action to alleviate the situation.
The comments hark back to the autumn of 2021 when members of the Construction Contractors Confederation (IMKON) stopped working for two weeks in response to high prices including cement. At the time the ministry tightened its rules on exporting cement and clinker. This followed the start of an investigation into alleged anti-competitive behaviour by the regulator Rekabat Kurumu into nine cement producers in the first half of that year. Around the same time Türk Çimento, the Turkish Cement Manufacturers' Association, had also been warning about growing raw material and energy costs. It noted that declining domestic sales between 2017 and 2019 had encouraged its members to focus on export markets more. All of this was overshadowed in February 2022 when Russia invaded Ukraine and global energy prices spiked. Türk Çimento then warned of the trouble that high coal prices were causing the sector.
Graph 1: Domestic and export cement sales in Türkiye, January – September, 2017 – 2022. Source: Türk Çimento.
Graph 1 above shows that the trend towards exports that Türk Çimento pointed out in mid-2021 has continued. Domestic sales fell to a low of 33.2Mt in 2019, recovered to 2021 and dropped somewhat so far in 2022. As an aside, that decline in domestic sales from 2017 to 2019 was the first the local cement industry had experienced a fall in sales since at least 2002. Exports fell year-on-year in 2018 but have increased steadily since then to 14.6Mt in the first nine months of 2022. Exports represented 10% of total sales in 2017. So far in 2022 they have accounted for 27% of total sales. Türk Çimento’s take on the picture so far in 2022 is that it expects the domestic market to decline by 10% in 2022 in all regions of the country principally due to high commodity prices. Cement exports are expected to increase but clinker exports to decrease.
Commercially, Türkiye-based cement producers have reacted to high energy prices by upping their own product prices in turn. OYAK Çimento, for example, reported significant rises year-on-year in sales revenue and earnings in the first nine months of 2022. Net sales grew by 160% year-on-year to Euro403m and earnings before interest, taxation, depreciation and amortisation (EBITDA) increased by 202% to Euro106m. Akçansa and Çimsa reported a similar situation.
Despite the high energy costs, both investment and merger and acquisition activity has continued in the cement sector in 2022. In August 2022 Fernas Group completed its purchase of two integrated cement plants, a grinding plant and associated ready-mix concrete assets from Çimsa Çimento for US$110m. Later in the year, in November 2022, Safi Çimento acquired Sancim Bilecik Çimento’s integrated plant from Aşkale Çimento. Various upgrade projects to cement plants were also reported including projects at KÇS Kipaş Çimento’s Kahramanmaraş plant, Nuh Çimento’s Hereke cement plant, MEDCEM’s Silifke plant and OYAK Çimento’s Ünye plant.
Recent reporting by the Economist newspaper suggests that the government is targeting the domestic housing sector in response to higher than inflation price rises even compared to Türkiye’s high consumer price inflation rate. The next general election in June 2023 may also be encouraging legislators to look at the accommodation needs of their constituents. Whether this is connected to the Ministry of Trade’s recent decision is unknown. Cement producers have followed the money to lucrative export markets in recent years. How far the government is willing to intervene in this strategy could mark a change in direction for the sector.
Turkish government investigating cement price and supply issues
18 January 2023Türkiye: The Ministry of Trade says it is monitoring developments in the construction sector with regards to high cement prices and supply problems. It is looking at exports in particular, according to the Hürriyet Daily News newspaper. It has taken action following complaints it received in late 2022. Previously in 2021 the government added cement and clinker to the list of products which require a permission to be exported. Government bodies including the Ministry of Trade, the Ministry of Treasury and Finance and the Turkish Competition Authority (Rekabet Kurumu) have each been recently conducing inspections of cement companies looking in domestic and export prices.
Karnataka limestone quarry operators suspend mining
16 January 2023India: Operators of limestone mines in Karnataka's Chamarajanagar District have suspended quarry operations indefinitely in protest against the Karnataka state government's increased licensing royalties and rules requiring drone surveillance. The companies also demand that the state government cease to implement new policies affecting them. The Times of India newspaper has reported that the strike has impacted a total of 10,000 jobs, both at quarries and downstream in the building materials and construction sectors.