Displaying items by tag: Zimbabwe

Zimbabwe: Khayah Cement has secured a US$60m rescue package from East African producer Hima Cement after creditors and shareholders unanimously approved a corporate recovery plan. The agreement will allow for debt settlement, refurbishment of the Harare plant and a return to sustainable operations, according to The Sunday Mail.

Corporate rescue practitioner Balisa Mbano said the approval marked a major turning point for the company, which has struggled with debt and operational inefficiencies. “The positive is that all creditors will be paid down in a compromise amount and settled immediately. This gives the company immediate relief and the breathing space to focus on growth rather than liabilities,” he said.

In the short term, Khayah Cement will stop clinker imports and instead produce locally, securing supply reliability. The phased investment will cover both working capital and capital expenditure. The full implementation of the recovery plan is targeted within six months, with completion targeted for March 2026. Khayah Cement operates a 450,000t/yr plant in Harare, and has faced foreign currency shortages, high operational costs and equipment breakdowns in recent years, leading to its placement under corporate rescue in 2022.

Zimbabwe: Construction of the Chegutu cement plant by Chinese investor Shuntal Investment has reportedly reached the halfway stage, with production scheduled to begin in early 2026, according to the government-owned newspaper The Sunday Mail. The plant will produce 800,000t/yr of cement and is the second cement plant under development in Mashonaland West, alongside WIH-Zim’s Magunje plant, also set to open in 2026.

Shuntal Investment general manager Zhou Bin said the project is on schedule. “The entire project is expected to be completed before the onset of the 2025/2026 rainy season. This timing is deliberate so that production will not be disrupted during the critical rainy months,” he said  

He added that the plant will adopt modern technology, including a pipe spray cooling system, bag-type dust removers reportedly capable of reducing 99% of dust emissions, and fully enclosed, spill-proof production lines. Raw materials will be sourced from the nearby Lambourne quarry site, reducing Zimbabwe’s dependence on imports. Around 200 local workers are currently employed, building staff housing, storage facilities, warehouses and plant infrastructure.

Ropafadzo Chafesuka, a female truck driver at the site, said 'There are several female workers here, and this has empowered us. We are certain that once the plant starts production, more women will be employed, reducing early marriages and helping fight drug and substance abuse.”

Local press in Zimbabwe previously reported in August 2025 that Shuntai Holdings was in a legal battle with a local school over the construction of the plant 497m from the school’s boundary. Construction has reportedly continued despite a High Court judge ordering construction to cease.

Zimbabwe: China-based Shuntai Holdings is reportedly in a legal battle with Bryden Country School in Chegutu over the construction of a cement plant 497m from its boundary, according to local press.

The Board of Governors said that the company disclosed its plans in February 2025 to objections from the school and parents, with construction still continuing despite a High Court order halting construction. The Board said that there was no supporting documentation for the company to operate, as the area is zoned for education and also hosts a secondary school and university. Bryden said that it lodged multiple objections against Shuntai’s environmental and social impact assessment, which it claims failed to address key health and safety issues, yet the Environmental Management Agency (EMA) granted approval in April 2025. The school has since reportedly taken legal action against the regulator. A High Court judge ruled in July 2025 that Shuntai Holdings was in contempt of the stop-work order, but construction reportedly continues.

In July 2025, Shuntai administration manager Yan Bo confirmed the company has invested US$70m in the project, which is expected to produce 0.8Mt/yr of cement starting in 2026.

Zimbabwe: The Environmental Management Agency (EMA) has ordered WIH-Zim Cement, a joint venture between West International Holding and Labenmon Investments, to stop construction of its Magunje cement plant after inspectors found violations of Environmental Impact Assessment (EIA) conditions, including failure to compensate displaced households, according to Bulawayo 24 News. The EMA fined the company US$5000 and issued an enforcement order halting all activity until ‘EIA certificate conditions are adhered to.’

An inspection on 16 July 2025 revealed that construction continued despite High Court directives and community complaints. At least 20 households have reportedly lost farmland to a diversion road, while one homestead lies within the project boundary. Inspectors reported that WIH-Zim had already cleared 10 hectares of land and begun building staff quarters for 600 workers without meeting relocation requirements. The EMA also reportedly found that the company had failed to obtain a Communal Lands Occupation Certificate from Hurungwe Rural District Council. The EMA said “Continuous monitoring of the project is essential as this is a sensitive high-impact project,” warning that construction cannot resume until all affected families are compensated and relocated.

Local press reported in May 2025 that the cement plant was ‘progressing well,’ with the completion of site levelling and connection to the national power grid established and 60 local people already employed.

Zimbabwe: The government is ‘optimistic’ that Zimbabwe will become self-sufficient in cement by early 2026, according to The Herald newspaper. The Industry and Commerce Minister Mangaliso Ndlovu toured the country’s Chegutu cement plant, currently under construction, where he was upbeat about Zimbabwe’s cement manufacturing capabilities.

Ndlovu said “This project is addressing critical cement shortages that we are experiencing, leading to imports from neighbouring countries. We are happy that by the beginning of 2026, this plant will start producing cement, meaning that more than likely there will be no need to import.”

The plant is owned by China-based Shuntal Investment, and administration manager Yan Bo confirmed it had invested US$70m in the project. The plant will produce 0.8Mt/yr of cement. The project currently employs 300 local people, with total employment across Shuntal’s Zimbabwe operations expected to reach 4000.

Zimbabwe: The Centre for Natural Resource Governance (CNRG) has called on the Ministry of Mines and Mining Development to suspend operations on a US$1bn cement project in Magunje, Mashonaland West, citing ‘a spiralling crisis’ of human rights abuses, forced displacements and environmental harm, according to Pindula News. The project is led by Labenmon Investments, in partnership with China-based West International Holding. It is expected to produce 0.9Mt/yr of cement and 1.8Mt/yr of clinker. The project will reportedly create 5000 jobs and spur local development, but CNRG has raised concerns on behalf of local communities.

There have been reports that communities have been forcefully removed from their ancestral lands and graves of relatives ‘desecrated’ in the wake of mining developments. The group also raised concerns about alleged ‘fraudulent consultations,’ with legally required village meetings bypassed and affected communities excluded from decision-making processes. The newspaper also reported that eight villagers from Kapere were arrested for standing up to the mining project and continue to be summoned to the court despite the complainants failing to appear. CNRG staff members also reportedly faced threats from the Zimbabwe National Army while conducting an inspection in Kemapondo village.

There are also reports of the local Magunje Dam being polluted by the cement plant and of fires sparked during land clearing exercises, which have razed farmlands. There are also concerns of labour violations, with employees allegedly working in dangerous conditions, below the minimum wage and without formal contracts. The Zimbabwe Diamond and Allied Minerals Workers Union has escalated the matter to the Labour Court.

South Africa: PPC’s revenues fell by 1.9% year-on-year in the 12 months to 31 March 2025, decreasing to US$560m. However, earnings before interest, tax, depreciation and amortisation (EBITDA) surged by 28% to US$88m.

CEO Matias Cardarelli said that PPC has had to focus on internal corrections to grow its earnings and unlock underutilised value for the company. He explained that the company had performed ‘ahead’ of what it had expected for the period under review. “There was a narrative that the only problems that PPC was having were the problems connected to the economy, and the cement sector in South Africa had not grown for more than 10 years. Whereas that was not completely the case. That had a negative impact on the company,” said Cardarelli.

PPC is building a new 1.5Mt/yr plant in the North West Province with China’s Sinoma, as well as a new solar power plant in Zimbabwe as it invests further into the company at a time when the costs of electricity and other inputs are spiking. The company said that imports of cement into its regional markets were not a major worry as it was increasing its competitiveness against rival local and imported products. “In South Africa, we remain cautiously optimistic for the announcement by the new government of big infrastructure plans,” Cardarelli added.

Zimbabwe: South Africa-based Robtek is working on a ‘refurbishment’ project at Khayah Cement’s integrated plant in Harare. The project work on the kiln includes replacing 10 planetary coolers, installing 23m of kiln shell sections and refurbishing eight support rollers. Work on the raw mill includes replacing trunnion bearings, overhauling raw mill bearings, upgrading the internal diaphragm and head wall liners and installing a new double-flap valve to replace the star feeder.

Zimbabwe: Khayah Cement has begun corporate rescue proceedings with appointed supervisor Grant Thornton (Zimbabwe). The Sunday News has reported that the company is in financial trouble following equipment failures affecting its vertical roller mill. Grant Thornton (Zimbabwe) has called a meeting of Khayah Cement’s stakeholders and creditors in Harare on 19 February 2025. The rescue process aims to remove the need for liquidation.

Khayah Cement switched over from integrated to grinding-only production in 2023.

Zimbabwe: Khayah Cement has initiated corporate rescue proceedings due to the impacts of Western-imposed economic sanctions, which have created an ‘untenable’ business environment, according to The Chronicle. The company adopted a resolution on 20 December 2024 to start the rescue process under the Insolvency Act, to address its financial difficulties. The sanctions have reportedly hindered access to essential resources, affecting the company’s production capabilities. Khayah Cement said that further processes will be communicated to creditors and stakeholders.