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Angola: The Nova Cimangola cement plant will get US$116m from the Angolan government to boost its cement production capacity, as per a presidential decree. The funds will be transferred by the Finance Ministry and will ensure a greater cement supply to the Angolan market and reduce cement prices.
The presidential decree described the importance of cement in the process of repairing and building manufacturing and social infrastructure in Angola, as well as for execution of house building programmes. The shareholders of Nova Cimangola are Ciminvest (49%), the Angolan State (40%) and the state bank Banco Angolano de Investimentos (10%). The remaining 1% is in the hands of individual shareholders.
EAPCC staff suspended after cement theft probe 09 June 2014
Kenya: Three employees of East Africa Portland Cement Co (EAPCC) have been suspended while three more have been put under further investigations in the ongoing forensic audit into the theft of cement. The six are said to be mid-level managers in the company's procurement and supplies department.
Another two employees have been cautioned following the audit of EAPCC sales and procurement books. "A number of staff who were found culpable were disciplined according to the gravity of their offences," said EAPCC. "Three people were interdicted, three were asked to explain their actions and why disciplinary action should not be taken against them and another two were cautioned."
The investigations into suspected theft by staff at EAPCC revealed massive manipulations of sales records leading to the fraudulent shipment of large consignments of cement from the factory premises in Athi River. Sources at EAPCC said that the audit revealed rampant manipulation of product quotations and Local Purchases Order (LPO) prices, rendering the company's products more expensive in the market hence depressing sales. This has had a direct impact on the business and raised the cost of production.
"We are not relenting on this one," said an EAPCC spokesperson. "A lot of dirty things have been going on here and we have resolved to kill the illegal deals once and for all."
EAPCC expects its profits to dip by more than 25% over the financial year that ends in June 2014. The company attributed the expected dip in profit to reduced sales and rising costs. EAPCC also attributed the outlook to reduced export sales and loss of market share in Kenya.
India: It has been reported that the Adhunik Cement factory in Jaintia Hills, Meghalaya State has been working without clearance from the Ministry of Forests and Environment ever since its inception in 2008. Not only is the plant working without clearance, there have been serious violations of the environment, according to local media.
In a report sent to the Ministry of Environment and Forests, dated 18 January 2013, the then scientist who was appointed by the ministry to check into the clearance, S C Katiyar, found major violations within the plant and passed the information to the Central Ministry. The project consisted of a 20MW captive power plant and a 1.5Mt/yr cement plant. Even though the report was submitted to the Ministry in 2013, the plant is still in operation.
"We believe that none of the cement plants have valid clearances from the Environment and Forest Department," said Agnes Kharshiing, the president of the Civil Society Women's Organisation (CSWO). "They have been flouting rules and destroying the place without any care for the region. This is a serious violation and shows what we have been hinting at – that the plants are not cleared for operation. The scientist has made a fair report and our Pollution Board is also violating norms when they did not close down these cement plants with major violations."
The CSWO has demanded the immediate closure of all the cement plants of the region and a proper check to be done on the validity of their papers before operations are allowed to continue. Kharshiing also alleged that "The government has been working hand in glove with them and is now even trying to provide them land for reforestation. This is not fair and is making life for the people of the region difficult. We demand that the clearance certificates be checked for all of the companies working in Jaintia Hills, because we believe none of them are working through legal norms."
Update - 11 June 2014: Adhunik Cement have responded to the original source of this news story in the Meghalaya Times and asked Global Cement to publish it.
10 June 2014
Subject: Article in your publication
Dear sir,
This is in context of an article published in the Meghalaya Times datelined Tura, June 7th 2014 titled 'Adhunik Cement Factory Working Without Environmental Clearance'. The article alleges that the factory has "been working without environmental clearance... ever since its inception". And "...there have been serious violations of the environment..."
1. We would like to submit that the Adhunik Cement factory at Jaintia Hills has been in compliance of all clearances. It was granted environmental clearance vide Environment Clearance Letter No. J-110111/109/2007-IA-II (I) dated June 19th 2008.
2. The MoEFF nominee referred to in the article, Dr SC Katiyar had pointed out certain areas of improvement, these have been met. Regular reports on compliance status are being formally submitted, per protocol to the concerned authorities including the MoEF.
We are a mature, responsible corporate citizen, sensitive to the environment. We adhere to best-in-class business practices and high thresholds of environmental and safety standards. We are disappointed that a publication of your stature did no consider checking out perspective. In the interest of factual accuracy to present a correct perspective, we required you to publish this letter.
Yours sincerely,
LN Mishara
Adhunik Cement Limited
Nigeria: Lafarge Cement WAPCO, Ashaka Cement and Unicem have established suits against the Standards Organisation of Nigeria (SON) over its recent decision to employ a new Mandatory Industrial Standard Order for the field of cement manufacturing, distribution and effective usage in Nigeria.
The cement producers are also seeking an order of the court restraining SON, their privies, agents and whosoever is involved in purporting to act through the respondent from implementing the Mandatory Industrial Standard NIS 444-1 2014.
PPC Zimbabwe domestic sales drop 5% 06 June 2014
Zimbabwe: PPC Zimbabwe reports that its domestic sales for the first five months of 2014 have fallen by 5% compared to the same period in 2013. Managing director Njombo Lekula blamed the drop on a decrease in housing projects.
"For the past few years there has been significant growth in housing, which boosted cement demand, however, the current economic situation is beginning to have an impact on home building activities," said Lekula in comments reported by The Herald.
PPC Zimbabwe now intends to sell its excess production in neighbouring countries. However, Lekula pointed out that Mozambique has a 'very competitive' market due to imports from the Far East via the port of Beira. In addition the cost of logistics to reach this market is an issue for the cement producer. PPC Zimbabwe are also considering targeting Zambia but logistics and the fluctuating price of the Kwacha have posed challenges.
PPC Zimbabwe intends to start building a US$200m cement plant in the north-east of Zimbabwe in 2014. The company has also started constructing clinker grinding plants near Harare and Tete, Mozambique. Currently, PPC Zimbabwe has a cement production capacity of 0.76Mt/yr. The new projects are expected to increase capacity to 1.2Mt/yr.