Displaying items by tag: Coal

Kazakhstan: Steppe Cement's full-year sales were US$86.5m during 2022, up by 11% year-on-year from 2021 levels. This came about despite a 1.2% year-on-year drop in its cement volumes. The producer also overcame high inflation, which reached 20% year-on-year in Kazakhstan in December 2022.

Steppe Cement said "We continue our capital expenditure programme to increase our production capacity of clinker and cement by mid-2023, as well as to reduce power and coal consumption."

Australia: The Australian government’s Department of Climate Change is receiving public comments on Cement Australia subsidiary Cornwall Coal’s plans to open a new coal mine in Tasmania’s Fingal Valley, near St Mary’s. Local press has reported that the proposed site will operate across three open pits, with a total area of 26ha. The mine will replace the company’s nearby Cullenswood coal mine when it runs out of coal later in 2023, and will operate until 2026 or 2027. Cornwall Coal’s Tasmanian operations currently supply coal for Cement Australia’s Railton cement plant, as well as other local industrial sites.

Under Cornwall Coal’s proposals, the company will build travel culverts for local wildlife, and assist in relocating animals currently occupying the site. Tasmanian devils and two species of quoll – all endangered – live on the land in question.

Mick Tucker, head of Break O’Day Municipality Council, said that the municipality currently depends on Cornwall Coal’s operations for 60 – 80 jobs. He said that the company’s plans have strong support in the local community.

Vietnam: Vietnam National Coal and Mineral Industries Group (Vinacomin) has forecast 6.1% three-year growth in national coal demand to 115Mt in 2025 from 108Mt in 2022. Four main industries – cement, fertilisers, metal and power generation – are expected to retain over 90% of the combined share of domestic consumption. Vinacomin expects national coal production to increase by 1.3Mt/yr over the period, retaining a 40 – 45% stake in the domestic market. Five-year consumption of imported lignite is forecast to rise to 70 – 75Mt throughout the period up to 2026.

India: The government of West Bengal plans to commence mining activity at the Deocha Pachami cement block in Birbhum District. The state hopes that the block will support further development of industries, including cement. Financial Express Online News has reported that Mangalam Cement, Purbanchal Cement and Shree Cement all plan to build new cement facilities in West Bengal. Shree Cement will invest US$102m in its planned Purulia grinding plant. Mangalam Cement's potential upcoming grinding plant will serve its planned new integrated cement plant in Chhattisgarh.

Vietnam: The Vietnam National Cement Association (VNCA) has spoken about the difficulties that would arise from a proposed power price rise by state-owned Electricity Vietnam (EVN). VNCA chair Nguyen Quang Cung said that cement producers foresee 'business havoc' ensuing from any further cost increase to their operations. The industry says that reduced demand has prevented them from raising cement prices amid already high costs. Coal price growth is a significant contributor, and now accounts for 60% of the industry's operating expenses.

Cung said "Many companies are suffering losses and have suspended the operations of many production lines." He continued "We understand that EVN is claiming force majeure because they face the same challenge relating to the input cost burden."

Pakistan: The Association of Builders and Developers (ABAD) has accused cement producers of cartelisation and called on the government to take 'stern action' following a rise in cement prices. The Business Recorder newspaper has reported that builders believe that the rise does not reflect trends in local raw materials and imported coal prices. Additionally, it comes in spite of a drop in cement demand.

Indonesia: Semen Indonesia’s revenue fell slightly to US$1.61bn in the first nine months of 2022. Its total sales volumes of cement fell by 13% year-on-year to 26.2Mt from 30Mt in the same period in 2021. Domestic and regional sales fell by 6% to 21.9Mt and by 37% to 4.3Mt respectively. The group’s earnings before interest, taxation, depreciation and amortisation (EBIDTA) rose slightly to US$365m. It said that its cost of goods rose by 1.6% to US$1.14bn, driven by a 12% increase in fuel and energy costs. It added that its coal purchase price increased by 42% in the reporting period but that the company managed to secure its coal supply in the second and third quarter of 2022 at the local Domestic Market Obligation capped price.

India: Dalmia Bharat sold 12Mt of cement during the first half of its 2023 financial year, up by 20% year-on-year from 10Mt in the first half of the 2022 financial year. Its income was US$757m, up by 21% year-on-year from US$624m. Meanwhile, the company's earnings before interest, taxation, depreciation and amortisation (EBITDA) fell by 28% to US$116m from US$161m. The company noted the growth effects of 'fuel price corrections' during the second quarter of 2022, which it expects to increase its profitability during the second half of year.

Managing director and CEO Punit Dalmia said “We are pleased with the performance of the first half of this year despite the intense inflationary environment, and are confident that we will be among the best in the industry, leaving the bad times behind. While the geopolitical turmoil continues, we are confident in the resilience of the Indian economy, which is further cementing its position at the centre of global growth and consumption.” Dalmia continued “In view of the government's continued momentum in the infrastructure sector, driven by the revitalisation of the housing sector, we expect the demand for cement to grow rapidly. Looking ahead, we will remain focused on our capacity expansion progress.”

Dalmia Bharat's 14 integrated cement and grinding plants span 10 Indian states and have a capacity of 37Mt/yr, India's fourth largest.

China/Zimbabwe: A cement producer in China has imported 20,000t of coal from Zimbabwe. The Zimbabwean Coal Producers Association said that the Port of Beira, Mozambique, despatched the order. Mining News has reported that the shipment is a trial, with other orders also anticipated.

South Korea: Russia exported 14.9Mt of cement in the first nine months of 2022, up by 31% year-on-year from 11.4Mt in the corresponding period of 2021. Tex Energy Report News has reported that this occurred due to sharp price rises in imported coal from Australia, Canada and Indonesia. Cement producers increased their reliance on these alternative sources of coal after the South Korean government placed sanctions on Russia in March 2022.

Meanwhile in India, Russian coal imports are expected to decline for a second consecutive month in October 2022, by 51% month-on-month to 730,000t. Russian media attributed this to stockpiling by cement market leader UltraTech Cement and others earlier in 2022.