Displaying items by tag: Mamba Cement

Tanzania: EAM, Mamba and Sungura are planning to invest in the cement industry. Industry, Trade and Investment Minister Charles Mwijage said that the companies have all requested to enter the industry at the Dar es Salaam International Trade Fair, according to the Tanzanian Daily News. EAM wants to build a 3Mt/yr plant in the Tanga region on condition that the government lets it export cement internationally. It has also requested other conditions that are in discussion with the government. Mamba and Sungura are also in discussion with the government regarding their projects.

South Africa: Costs relating to Sephaku Holdings' new cement business Sephaku Cement dragged the group to a loss in the year that ended in March 2014, though management has said that indications are positive for its cement venture.

Sephaku Holdings has a 36% share of Sephaku Cement, which in January 2014 completed the construction of two plants in North West Province and Mpumalanga. Nigeria's Dangote Cement is the majority shareholder in Sephaku Cement. Sephaku Holdings reported a post-tax loss of US$260,300 in the period under review, largely due to a loss from Sephaku Cement of US$1.37m.

Sephaku Holdings' latest results include little revenue from the cement business, as one of the plants began producing only in January 2014 and the other is due to begin production in July 2014. The South African cement market is currently oversupplied and is likely to remain that way for some time, but Sephaku and another newcomer, Mamba Cement, are banking on healthy demand growth and cost-efficiency advantages from their modern plants. Mamba has a plant under construction near Northam in Limpopo.

South Africa: Investors have confirmed that construction has started on a new 1Mt/yr cement plant by Mamba Cement in Northam, Limpopo. Nedbank Capital and the Bank of China Johannesburg are providing US$107m of debt capital to fund Mamba, according to Business Day. Equity was provided by majority shareholder Jidong Development Group, the China-Africa Development Fund and by Women Investment Portfolio Holdings.

Nedbank Capital's infrastructure, energy and telecommunications head Mike Peo said that construction had already started and the project was expected to be completed by 2016.

"We obviously had a very hard look at the South African cement market. This plant is very close to Johannesburg, a primary market, so the transport costs and the actual cost point at which it can compete is going to be very attractive," said Peo. He added that the outlook for cement demand was 'extremely good' driven by government's infrastructure plans and the provision of housing.