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Displaying items by tag: Coal

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Albanian government to implement coal tax

10 November 2023

Albania: The government will raise the tax on coal by a factor of five, to Euro0.15/kg. EmergingMarketWatch News has reported that the measure will bring Albania’s industrial products into line with the International Monetary Fund (IMF)’s recommended minimum emissions tax of Euro55.8/t CO2. Without this, exporters to the EU would have to settle the difference.

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China Energy International Group Samarkand Cement installs kiln at upcoming Samarkand cement plant

02 October 2023

Uzbekistan: China Energy International Group Samarkand Cement has installed a 3Mt/yr kiln at its upcoming Samarkand cement plant. Local press has reported that the kiln is the largest at a cement plant in Uzbekistan. The Samarkand plant will cost US$313m to build. Parent company China Energy and the government of Uzbekistan previously indicated that construction would conclude in 2024. The plant will produce ordinary Portland cement (OPC) of the local designations M-400 and M-500. It will use coal as fuel in its cement production and directly employ 500 people.

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Caribbean Cement to begin US$40m Rockfort cement plant expansion in October 2023

14 September 2023

Jamaica: Caribbean Cement plans to launch an upgrade to expand its Rockfort cement plant’s capacity by 30% to 1.3Mt/yr in October 2023. The producer says that the expansion will cost US$40m and that the new capacity will come online in early 2025. The work will include enlargements of multiple kiln sections and the installation of a new coal dosing system, clinker cooler and clinker transport system.

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Japanese cement sector consumes 70Mt of limestone in 2023 financial year

13 September 2023

Japan: Cement plants consumed 70Mt-worth (50%) of total limestone shipments in Japan during the 2023 financial year, which ended on 31 March 2023. Nikkei Industry Summary News has reported that limestone is the only mineral resource for which Japan is self-sufficient. However, it reported that the country’s cement sector is exposed to effects from the global coal market. Producers expect that the rising price of coal from China may diminish their earnings due to increased costs.

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Coal and road projects to boost cement production in Pakistan

08 September 2023

Pakistan: The Central Development Working Party (CDWP) has cleared four development projects worth US$528m that are likely to lead to increased cement demand. This includes the Coal Rail Connectivity Project to connect significant coal reserves in the Thar Coal Mines with the existing rail network, including last mile connectivity to the Port of Qasim, according to the Nation newspaper. The project, part of the government’s Pakistan Vision 2025 policy, has been designed to provide reliable and efficient railway infrastructure to ‘break the geographical barriers’ of accessing domestic coal for industrial use, including cement production, which is currently reliant on more expensive imported fuels.

Separately, funding has been approved for a road project to connect the N50 and N70 national highways, to serve as the main route to connect the Central Cities of Northern Balochistan to Southern Punjab. This is expected to raise cement demand in these areas.

 

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Coal price in Northern Pakistan drops to US$126/t

23 August 2023

Pakistan: Cement producers in Northern Pakistan have reported a 13% drop in the price of coal to US$126/t. The Pakistan Today newspaper has reported that this is due to the Afghan government lowering taxes on exports of coal from Afghanistan. The Taliban reduced its royalties on coal exports by 12% to US$30/t. Meanwhile, it reduced customs duties on coal exports by 33%, also to US$30/t.

Northern Pakistan is comprised of Azad Jammu and Kashmir, Khyber Pakhtunkhwa and Punjab. In 2022, regional cement plants were over 70% reliant on Afghan coal. That year, they paid coal prices of US$170 – 200/t.

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Anhui Conch Cement tenders for coal supply bids

22 August 2023

China: Anhui Conch Cement is seeking coal suppliers for two of its subsidiaries. The producer has tendered for bids for contracts to supply 410,000t of bituminous coal, high-sulphur coal and lignite to Naiman Banner Hongji Cement and 10,000t of lignite to Chifeng Conch. Online bidding will open on 25 August 2023 and close on 27 August 2023.

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Sumitomo Osaka Cement to raise sales in profit-making first half of 2024 financial year

08 August 2023

Japan: Sumitomo Osaka Cement says that it expects sales to rise by 14% year-on-year to US$761m during the first half of the 2024 financial year. Nikkei Financial Summary News has reported that the producer expects a drop in its cement volumes, offset by price hikes. Currency effects will also impact its result. Meanwhile, coal prices remained lower than expected. The company expects to record a net profit of US$26.6m, compared to a loss of US$20.4m in the first half of the 2023 financial year. It previously forecast a US$13.3m loss.

Sumitomo Osaka Cement recorded US$52.8m in sales in the first quarter of the 2024 financial year (1 April - 30 June 2023). This corresponds to year-on-year growth of 16%. Nonetheless, it made a net loss of US$7.6m.

Throughout the first quarter of the 2024 financial year, Japanese cement despatches fell by 15% to 10.1Mt. Exports declined most sharply, by 43%, to 1.51Mt.

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Prism Johnson awards US$2.42m coal supply contract to Vikas Ecotech

07 August 2023

India: Prism Johnson has ordered US$2.42m-worth of coal for use as cement fuel from Vikas Ecotech. Press Trust of India News has reported that the supplier will complete the order by 31 October 2023.

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Dalmia Bharat increases cement sales and income in first quarter of 2024 financial year

21 July 2023

India: Dalmia Bharat sold 7Mt of cement during the first quarter of the 2024 financial year, up by 12% year-on-year from 6.2Mt in the first quarter of the 2023 financial year. The company's income also rose, by 10% to US$442m, while its net profit dropped by 30% to US$17.6m. Hindu BusinessLine News has reported that the producer noted a continued downward trajectory to its fuel costs. During the quarter, Dalmia Bharat commissioned its new 2.5Mt/yr Bokaro cement plant in Jharkhand, and completed de-bottlenecking work at its 0.6Mt/yr Midnapore plant in West Bengal.

Managing Director and CEO Puneet Dalmia said "This quarter has been a disappointment as against our expectations. Having said so, we remain focused on seizing the emerging demand opportunities.”

Cement Managing Director and CEO Mahendra Singhi added “Given the promising outlook for cement demand, the expectation of stable cement prices during the rest of the year, and the softening in commodity costs, we anticipate a gradual improvement in profitability."

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