Displaying items by tag: Government
Moldova: Rybnitsky Cement plans to challenge the Ukrainian government’s tariffs on building materials from Russia, Belarus and Moldova. The producer recently started exporting cement to Ukraine, according to the Infotag News Agency. About 20% of its export sales go to Ukraine. A 94% duty on goods originating from Moldova has been imposed following an anti-dumping investigation by the Ukrainian interdepartmental commission for international trade. In 2018 the Rybnitsky Cement plant produced about 0.4Mt of cement.
Belarus: President Alyaksandr Lukashenka has issued an edict supporting loan deferments for the country’s three major cement producers. The total amount includes loans totalling about US$550m that were provided by China’s Eximbank in 2008 – 2009 for upgrades to the company’s plants, according to the Belapan news agency. The loans were repaid to the Chinese bank by the Belarusian government in the period from 2015 to 2019.
Under the edict, Belarusian Cement Plant should repay its debt to the government in the period from 2029 to 2038, Krasnaselskbudmateryyaly’s debt should be repaid in 2030 - 2037 and Krychawtsementnashyfer’s debt should be repaid in 2038 - 2049. The edict also sets out a repayment schedule for interest on the loans with a total of US$370m to the mid-2020s.
In addition, the energy ministry has been ordered to grant the cement companies a deferment until the end of 2019, followed by a repayment plan to 2023 for late natural gas bills.
Cement industry takes emissions seriously
22 May 2019Today is the first day of the Global FutureCem Conference taking place in Brussels, Belgium. The event is looking at how the cement industry can adapt to a low or zero carbon world. Although Global Cement is organising the event, it is clearly topical as two news stories this week demonstrate.
Firstly, the chief executive officers (CEO) from 13 US companies, including LarfargeHolcim, announced that they were lobbying the US government to enact business-led climate change legislation. The initiative, known as the CEO Climate Dialogue, included principles such as ‘significantly’ reducing US greenhouse gas emissions. This is shocking because, at face value, large-scale CO2 emitters like LafargeHolcim have the most to lose from more rigorous environmental regulations. What do they have to gain from doing this? This is like turkeys voting for Christmas!
Interpretations of why LafargeHolcim and others might want to do this could go in a few directions. Firstly, the intention might be fully plausible. These companies could genuinely want to combat climate change. Secondly, more cynically perhaps, leading demands for legislation puts the lobbyists in the room when change is actually made. Given the integral nature of concrete in modern construction this is not necessarily a bad thing. Environmentalists may want to ban building materials that create CO2 emissions but, until they can offer an alternative or convince people to accept reduced quality of life, then cement is the material of choice. Thirdly, leading change allows one to stay ahead of it or at least give the sector more time to react to it. The ‘turkeys’ may not want to vote for ‘Christmas,’ but perhaps ‘Christmas’ could be replaced with something else?
This latest initiative by the CEOs in the US has parallels with the creation of the Global Cement and Concrete Association (GCCA) in 2018. Like the current moves in the US, cement producers led the creation of the GCCA, to promote concrete as the sustainable building material of choice.
Meanwhile, Germany’s HeidelbergCement also announced this week that its CO2 reduction targets to 2030 have been assessed against the Science Based Targets initiative’s (SBTi) criteria. Its SBTi target is to reduce scope 1 greenhouse gas (GHG) emissions 15% per ton of cementitious material by 2030 from a 2016 base year. HeidelbergCement has also committed to reduce scope 2 GHG emissions by 65% per ton of cementitious materials within the same timeframe. The SBTi target follows HeidelbergCement’s previous goal of a 30% reduction in its specific net CO2 emissions by 2030 compared with 1990. It says it has achieved a reduction of 20% so far.
HeidelbergCement is a sustainability leader in the sector with various projects on the go including the Low Emissions Intensity Lime And Cement (LEILAC) consortium direct separation pilot project at the Lixhe cement plant in Belgium. Following SBTi is a continuation of this trend, albeit one that anchors it with a global consensus.
Coincidence perhaps but when the two largest non-Chinese cement producers start announcing sustainability stories like then the picture is changing. The questions at this point is how far will it go.
A full review of the 3rd Global FutureCem Conference will be published after the event. To find it and more information visit: http://www.globalcement.com/conferences/global-future-cement/introduction
Chad: Société Nationale de Ciment du Tchad (SONACIM) has appointed Fatchou Etienne as its Deputy Director General, according to the Al Widha newspaper. The government-owned company operates a 0.21Mt/yr cement plant at Baor.
Belarus/Moldova/Russia/Ukraine: The Ukrainian interdepartmental commission for international trade has imposed antidumping tariffs on imported clinker and Ordinary Portland Cement (OPC) from Russia, Belarus and Moldova. It has set duties of 115% for goods originating in Russia, 57% for goods from Belarus and 94% for goods from Moldova, according to Interfax. The tariffs will have a duration of five years. Previously the government had embargoed OPC, alumina, slag, sulphate-resistant cement and similar hydraulic cements, including clinkers, from Russia.
Philippines: Data from the Department of Trade and Industry (DTI) shows that imports of cement rose by 64% year-on-year to 1.74Mt in the first quarter of 2019 despite the introduction of a 4% tariff in January 2019. Imports were 1.06Mt in the same period in 2018, according to the Philippines News Agency. The production capacity utilisation factor of local producers is also reported to have fallen. The DTI says it will continue to monitor the situation.
Uzbekistan blocks cement exports from Kyrgyzstan
21 May 2019Kyrgyzstan/Uzbekistan: Azamat Arapbaev, a member of the Kyrgz parliament, says that Uzbekistan has blocked exports of cement from Kyrgyzstan. The block started in mid-May 2019, according to the Central Asia News Service. Economy Minister Oleg Pankratov said that talks have been held with the ambassador of Uzbekistan over the matter. Cement plants in the south of Kyrgyzstan are dependent on the export market.
Police action against UltraTech Cement mining protestors referred to Criminal Investigation Department
20 May 2019India: Accusations of violence by local police against activists protesting against a limestone mining lease granted to UltraTech Cement in Gujarat have been referred to the Criminal Investigation Department (CID). Police from Bhavnagar allegedly attacked protestors with batons and used tear without prior provocation during a march in early January 2019, according to the DNA India newspaper. The protestors were complaining about a mining lease for a quarry in the Talaja district.
US: The chief executive officers (CEO) of 13 US companies, including LarfargeHolcim, are lobbying the President and Congress to enact business-led climate change legislation. This initiative, known as the CEO Climate Dialogue, urges the government to put in place a long-term federal policy as soon as possible, in accordance with a set of six guiding principles. The group aims to build bipartisan support for climate policies that it says will, “… increase regulatory and business certainty, reduce climate risk, and spur investment and innovation needed to meet science-based emissions reduction targets.”
Companies involved in the CEO Dialogue include BASF, BP, Citi, Dominion Energy, Dow, DTE Energy, DuPont, Exelon, Ford Motor Company, LafargeHolcim, PG&E, Shell, and Unilever. Four environmental groups have also supplied input to the initiative. These are the Center for Climate and Energy Solutions, Environmental Defense Fund, the Nature Conservancy and World Resources Institute.
The six principles include: ‘significantly’ reducing US greenhouse gas emissions; allowing an effective timeline for reductions that will help capital intensive industries to adjust in an ‘economically rational manner’; instituting a market-based price on carbon; making the policies durable and responsible; doing no harm to the competitiveness of the US economy with particular attention to carbon leakage; and promoting equity. Specifically the initiative says that US policy should ensure the country is on a path to achieve economy-wide emissions reductions of 80% or more by 2050 with ‘aggressive’ short and medium term emissions reductions.
“Tackling the challenge of climate change is no easy task, and as industry leaders, we have an opportunity to join forces to advocate for climate legislation. It is critical we begin to set durable and achievable goals that help safeguard the environment while reducing our carbon footprint,” said Jamie Gentoso, the CEO for US Cement operations of LafargeHolcim.
Ukraine blocks cement imports from Russia
17 May 2019Ukraine/Russia: The Ukrainian government has imposed an embargo on Russian-manufactured cement and plywood in response to Russia’s ban on the entry of Ukrainian goods to the Russian market. The Ukrainian Economic Development and Trade Ministry recommended to the Cabinet of Ministers of Ukraine that imports be blocked for the following goods: Portland cement, calcium aluminate cement, slag cement, sulphate resistant cement and similar hydraulic cement varieties, pigmented and non-pigmented, finished or clinker, as well as glue wood, lamwood panels and similar materials made from laminated wood.
Ukraine imported an estimated US$17m worth of cement products from Russia in 2018. The latest sanctions follow a block by Russia on goods from Ukraine in mid-April 2019.