Displaying items by tag: Regulations

India: Local people have launched a protest outside Wonder Cement's Kherwas grinding plant in Madhya Pradesh. The Free Press Journal has reported that the protestors are requesting that the company provide more jobs to people from the plant's host community. They stated their intent in memoranda submitted to the plant management and the local government. Local rules require companies operating plants in the area to appoint applicants from the local community to 75% of plant jobs.

Wonder Cement is a subsidiary of Rajasthan-based RK Group.

India: The municipal corporation of Kolkata, West Bengal, has enacted regulations requiring landowners to send construction waste from projects on their property to construction and demolition waste recycling facilities. The Telegraph newspaper has reported that the new regulations apply to all construction, demolition and repairs work on plots of land larger than 0.24 hectares. The city authorities have built a 183,000t/yr recycling plant in New Town, Greater Kolkata, to support the increased volumes.

Hungary: The government has enacted an 'architecture law' which will increase its role in decision making within the Hungarian cement industry. When it enters force in July 2023, the law will let the government set producers' cement volumes and prices. It will also require the companies to sell their products to the market-leading retail network, and will give the government a right of first refusal over future divestments.

Der Spiegel News has reported that the government previously enacted decrees that further regulated limestone production, imposed 90% 'additional mining levies' and required producers to obtain special permits to export their cement abroad. Duna-Dráva Cement, a subsidiary of Heidelberg Materials and Schwenk Zement, reportedly began making losses on its bagged cement sales due to the new rules. Both Germany-based owners separately received letters inviting them to sell a stake in Duna-Dráva Cement, and thanking them for their cooperation, in 2022. The sender identified themself as the owner of an 'intensively expanding group of companies' with a 'dominant position in the Hungarian building materials industry.' Anti-corruption organisation Transparency International identified the correspondent as a friend of Hungarian President Viktor Orbán.

Regarding the incoming change to the law, a representative of Heidelberg Materials said "These regulations are a total violation of all the rules of the European internal market. It is obvious that the government wants to pressure foreign cement manufacturers to sell.”

Canada: The city administration of Langford in British Columbia plans to enact regulations requiring all public and private projects to use reduced-CO₂ concrete. It plans to support the rules with parallel measures affecting the design of buildings.

Victoria News has reported that the city authorities previously mandated reduced-CO₂ cement for all projects in June 2022, but subsequently relaxed the regulations after only one company – Butler Concrete and Aggregates – completed the transition. Butler Concrete and Aggregates produces its reduced-CO₂ concrete using slag cement supplied by Lafarge Canada.

Bangladesh: The European Union (EU) and Spanish ambassadors and Swiss chargé d'affaires to Bangladesh have formally requested that Bangladeshi authorities lift all restrictions on LafargeHolcim Bangladesh's sale of crushed limestone in the country. The Financial Express newspaper has reported that Bangladeshi court previously ruled in favour of LafargeHolcim Bangladesh's right to sell its crushed limestone 'on the open market' on 5 January 2022. Limestone Importers and Suppliers Group had challenged the legal status of such sales, given that the raw limestone used in LafargeHolcim Bangladesh's produces its crushed limestone production is imported from India.

The Bangladesh government granted LafargeHolcim Bangladesh, a subsidiary of Switzerland-based Holcim, a temporary licence to resume its crushed limestone operations on 27 March 2022. This resulted in protests by local limestone producers.

India: Adani Group has issued a rebuttal against a recent report by Hindenburg Research accusing it of accounting fraud and stock manipulation. In the 413-page rebuttal, the group identifies the report as a 'calculated attack on India.' Adani Group clarified that that its operations complied with 'all local laws' and that it had made necessary regulatory disclosures, according to the group.

BBC News has reported that Hindenburg Research denied the accusation of anti-Indian sentiment, calling the country an 'emerging superpower with an exciting future.' Hindenburg Research said "India's future is being held back by the Adani Group, which has draped itself in the Indian flag while systematically looting the nation."

Hindenburg Research accused Adani Group in late January 2023 of conducting a 'stock manipulation and accounting fraud scheme' over a period of ‘decades.’ It published its allegations in a report on its website. The investment research firm also disclosed that it had taken a short position on Adani Group, meaning that it might make money should the price of shares in Adani Group drop.

The full rebutal by Adani Group can be read online here

India: Investment research firm Hindenburg Research has accused Adani Group of conducting a 'stock manipulation and accounting fraud scheme' over a period of ‘decades.’ The US-based firm alleged that listed companies belonging to Adani Group are indirectly part-owned by shell entities and funds connected to the Adani family’s private offshore trusts and companies. The listed companies have purportedly paid money into the offshore trusts and companies, which in turn funded the shell entities and funds investing and trading in Adani Group stocks. Hindenburg Research said that four Adani Group listed companies are ‘near the delisting threshold’ under Indian law requiring a minimum 25% non-promoter holding in listed companies.

Bloomberg has reported that Hindenburg Research said that its two-year investigation into Adani Group uncovered a ‘vast labyrinth of offshore shells’ managed by Adani Group chair Gautam Adani’s brother Vinod Adani. It identified 38 such shell entities based in Mauritius, and other entities based in Cyprus, Singapore, the UAE and the Caribbean. It reported that ‘many’ Vinod Adani-controlled entities show ‘no obvious signs of operations.’ Nonetheless, they have collectively ‘moved billions of dollars.’ Hindenburg Research has uncovered evidence of what it called ‘efforts that seem designed to mask the shell entities, including recurrent listings of ‘nonsensical services’ on their websites. Many of these allegedly have no named employees, and were formed on the same days as others. The Securities and Exchange Board of India (SEBI) confirmed that the offshore funds in question are subject to an on-going investigation.

In a statement, Adani Group’s chief financial officer (CFO) Jugeshinder Singh said that Hindenburg Research had not made “any attempt to contact us or verify the factual matrix.” Singh described the allegations “stale, baseless and discredited.”

Hindenburg Research has taken a short position on Adani Group, meaning that it may make money should the price of shares in Adani Group drop.

Separately, Adani Group acquired a 63% stake in Ambuja Cements and a 57% stake in ACC from Switzerland-based Holcim through an offshore special purpose vehicle (SPV) in September 2022.

Hindenburg Research's report on Adani Group, entitled ‘Adani Group: How The World’s 3rd Richest Man Is Pulling The Largest Con In Corporate History’ can be found here.

Australia: 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.

India: The Himachal Pradesh State Pollution Control Board (HPSPCB) issued a show cause notice to UltraTech Cement's Baga cement plant in Himachal Pradesh's Solan District on 18 January 2023. The Hindustan Times has reported that stack emissions monitoring at the plant recorded a breach during 2022.

UltraTech Cement now has 15 days in which to respond to the show cause notice.

Zimbabwe: Companies registered in Zimbabwe are now subject to a new penalty framework under which they will face a US$14,200 fine for failure to publish audited full-year accounts within 90 days of the end of the year. Additional fines will accrue at a rate of US$100/day for the subsequent 30 days or less, whereupon the regulator will take further action. Business Weekly News has reported that the Securities and Exchange Commission of Zimbabwe (SecZim) enacted the new rules after Lafarge Cement Zimbabwe failed to fully disclose its acquisition by Fossil Mines in December 2022.