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Hima loses limestone rights in Uganda 03 April 2013
Uganda: Hima Cement has lost its mining rights to limestone deposits in Uganda following a High Court decision. The court transferred the rights to limestone deposits in Kasese, western Uganda, from the subsidiary of Lafarge to the East African Gold Sniffing Company.
The court ruled that Hima's lease was for 21 years, ending on 31 December 2011, and it had already lapsed without any renewal in accordance with Section 47 of the Mining Act. East Africa Gold Sniffing contested a decision by the Ministry of Energy that restored Hima's mining rights after Hima managed to secure an exploration licence over the same area. The ruling means that mining of limestone and processing of cement must cease until and if an appellate court overturns the decision.
Lafarge considers expansion drive 03 April 2013
Malaysia: Lafarge Malayan Cement, Malaysia's largest cement producer, is considering an expansion drive to help meet buoyant domestic demand. Lafarge Malaysia has a 40% share of the local market, in which the total industry production averages 20Mt/yr.
"We will probably expand... (but) it needs to be finalised by our board and I can't discuss it in advance," said Lafarge Malaysia president and chief executive officer Bradley Mulroney in an interview. He added that as market leader, the company has to make sure that it has sufficient capacity to maintain its position.
Lafarge Malayan Cement holds three integrated cement plants, a grinding plant and it operates five quarries. In 2012 the company reported a 10% growth in net profit while revenue grew 7% to US$887m.
Lafarge's rivals in the sector include YTL Cement Bhd, Tasek Corp Bhd and Cement Industries of Malaysia Bhd (CIMA). Both YTL Cement and CIMA have planned capacity expansions of around 1.5Mt/yr. According to Bank Negara Malaysia, the construction sector will grow by 15.9% in 2013, helped by various projects under the government's Economic Transformation Programme (ETP).
Fatality reported at Durg plant build 03 April 2013
India: One construction worker has been killed and two others injured at a cement plant being constructed in Durg district of Chhattisgarh.
"22-year-old Tapan Banjare was trapped under the debris when earth caved in from the 40-feet-deep foundation unit of an under-construction cement plant in Nandini area of Bhilai region of the district," Bhilai ASP Prashant Thakur told the Press Trust of India. He said the injured workers were admitted to a private hospital, where their condition was said to be out of danger.
Pakistan cement producers justify price rises 03 April 2013
Pakistan: Cement producers have denied the existence of a cartel to Pakistan's Ministry of Industries. In a meeting with the ministry they reported that they are operating at the lowest rate of return and have passed on the bare minimum impact of inflation to consumers in the past few years.
At the meeting cement producers argued that no cartel existed in the industry because there is no uniformity in prices of cement, utilisation and market. The
price of cement per bag in Pakistan has only increased by up to 38% since 2005 despite input costs rising more than this level. Total equity of the industry is US$1.3bn and it has a 10% rate of return. In contrast, independent power producers (IPPs) are operating at 18% rate of return.
In an interview with the Express Tribune Waleed Sehgal, Director of Maple Leaf Cement Factory, cited examples of price rises in other industries that were more than cement. According to Sehgal the price of sugar had seen a peak rise of 400% since 2005, Urea a rise of 375% and di-ammonium phosphate (DAP) of 400%.
Sehgal stressed that prices of electricity, gas, coal and paper bag, labour cost and freight rate had increased manifold. "We have given the rationale behind the increase in cement prices to the Ministry of Industries," he said. He further said the industry was under debt of US$1.02bn, which it has to pay despite a low return.
Central African Republic: Two cement plant builders have been killed accidentally by French troops in Bangui in Central African Republic (CAR). The bodies of one Indian and one Nepalese national have been sent to Gabon in a French Military aircraft for repatriation, according to Indian media. In addition, six injured Indian nationals, who were flown to Chad, have been reported as stable.
The dead workers were employed by MIs Jaguar Overseas to build a cement plant in the capital of CAR. A release from the company said that about 100 employees of the company were currently stationed at the plant. It stated that the regional stabilisation force in Bangui, as well as the French forces, had been visiting the plant to reassure employees of their safety. The release added that there had been visible improvement in the situation, with local staff returning to work and utilities restarted.