Global Cement News

India: The Fly Ash Council of Maharashtra has asked state power generation company Mahagenco to plan how to give fly ash for free to industrial users. The initiative follows the decision by the state government to adopt its Fly Ash Utilisation Policy, according to the Indian Express newspaper. An official said that the power company would give away fly ash for free within 100km of the plant if it is affordable. The measure was introduced to encourage cement manufacturers and construction companies to use more fly ash by offsetting the transportation cost. At present smaller companies receive the fly ash for no charge.

In 2015 - 2016, Maharashtra used 69% of the fly ash generated in thermal power plants in the state. With an installed capacity of 20,976MW, the state generated 18.6Mt of fly ash during this period, of which 13Mt was used, mostly to make bricks and to build roads. With the new policy the government is targeting a 100% utilisation rate.

South Africa: PPC has revealed details of a US$176m black economic empowerment (BEE) transaction. The transaction, together with the BEE shareholding from the two previous transactions, will result in an effective 30% BEE shareholding in PPC South Africa Holdings, making the company compliant with the Mining Charter, according to the Pretoria Times newspaper. Called PPC Phakama, meaning ‘rise up’ in Zulu, the transaction will result in PPC's equity shareholding in PPC South Africa being reduced from 100% to 74.6%.

Sibonginkosi Nyanga, an analyst at Momentum Securities, said that the cement producer was required by the Mining Charter to implement the transaction. It requires companies to have at least a 26% BEE shareholding. Non-compliance could have had the potential put PPC’s mining rights at risk.

US: Mexico’s Cemex says that the US Department of Justice (DOJ) is investigating whether the cement producer violated the US Foreign Corrupt Practices Act (FCPA) in relation to a new cement plant being built by Cemex Colombia at Maceo in Antioquia. Previously, the cement producer received a subpoena from the US Securities and Exchange Commission in late 2016 as part of a probe also checking whether the FCPA had been breached.

Cemex says it is cooperating with both requests. However, it also said that it does not know how long either investigation will last or what impact the results of either investigation might have upon the company in terms of eventual sanctions.

In late September 2016 Cemex fired several senior staff members in relation to the Maceo project and its subsidiary’s chief executive resigned. This followed an internal audit and investigation into payments worth around US$20.5m made to a non-governmental third party in connection with the acquisition of the land, mining rights, and benefits of the tax free zone for the project.

Argentina: Germany’s KHD has been awarded a contract by Holcim Argentina for the upgrade project of a clinker production line at its Malagueño cement plant near Córdoba. Holcim Argentina intends to recommission its mothballed 1650t/day production line, which originally was supplied by KHD Humboldt Wedag in the early 1980s. Commissioning for the updated line is planned for mid-2019.

KHD’s scope includes the engineering and supply of mechanical equipment for raw material preparation and clinker production as well as electrical equipment in order to modernise and recommission the currently mothballed production line no 1.

Core equipment for the project includes: tertiary raw material crusher with a capacity of 250t/hr; ball mill drive for existing ball mill and new feeding equipment for raw meal preparation; separator for raw material grinding plant; kiln feed dosing system; four-stage preheater; rotary kiln 4.4m x 64m and drive system; revamping of existing clinker cooler with ‘fourth generation’ walking floor grate; main bag house for kiln/mill and clinker cooler; and main process fans.

Saudi Arabia: Al Baha Cement plans to build a 6000t/day plant that will manufacture sulfate-resisting Portland cement (SRPC). The company is looking for bids for a financial consultancy contract for the new plant, according to Inside International Industrials. The project is expected to cost US$100m, which will be raised from banks. The Minister of Commerce and Industry has approved the license for establishing the company. Tendering for engineering, procurement and construction is expected to occur in the second of half of 2018.