EGYPT: Activists Rally Against Coal Imports

As Egypt's government appeared to move closer to a final decision to allow cement factories to import coal for energy, an unlikely coalition of activists from across the country met with the support of the Environment Minister to push for a campaign against what they call a "disastrous" decision.

The Arab world's most populous nation, hit by economic instability in three years of unrest, has been cutting back on natural gas supplies to energy-gulping cement factories, hoping to forestall a looming energy crisis this summer and the likelihood of sustained gas shortages.

But allowing the import of coal may force the country into a polluting and fossil fuel dependent future where Egyptians have little control over the supply, opponents of the change argue. Most importantly, the decision could further discourage a transition to renewable energy, they say.

The import of coal has been debated for months, with opposition from the environment and tourism ministries worried about potential pollution both from coal-powered factories and during shipment of coal from Egypt's ports on infrastructure poorly equipped for the load.

The industry minister announced on Monday that Egypt would allow cement firms to use coal, pending a review of stricter environmental regulations, but that was followed by contradictory statements from the interim cabinet. The pledge to look at stricter regulation did little to ease worries.

'THIS IS NOT JUST ABOUT COAL'

"This is not just about coal. It is about ensuring that this country has sovereignty over its own energy sources and guaranteeing that instead of moving in the opposite direction of the world, that we are working for renewable alternatives," said activist Ahmed El Droubi, coordinator of the Egyptians Against Coal campaign.

A loose-knit coalition of youth from across the country, concerned that the public debate over coal use has been dominated by powerful businessmen, gathered with environmental campaigners and representatives of non-governmental organisations in the Red Sea city of Hurghada to strategise and agree a grassroots campaign to reverse the decision to import coal.

"Our cause is simple and that is to protect Egypt from the coming disaster. If a decision is made for coal to be imported, that won't mean this campaign is over. We will keep working until they send it back," Amr Ali of the Hurghada Environmental Protection and Conservation Association (HEPCA) told the session to applause.

Activists say Egypt's cement industry - dominated by foreign firms like Italcementi and Lafarge - has long disproportionately benefited from cheap labor and from energy subsidies that overall account for more than 20 percent of Egypt's budget and cost the state more than $17 billion in the last fiscal year.

The cement industry argues that it is in a bind - that since the government announced massive reductions to the supply of natural gas to cement firms, the sector either has to reduce its capacity, import cement or find alternative sources of energy.

The industry has been pushing for coal as a temporary stopgap to allow for growth and keep investment in the country.

COMMITMENT TO COAL?

But anti-coal campaigners warn that the implication of building costly infrastructure to support the import of coal would mean that investing in cleaner alternatives is unlikely for years to come.

Instead of coal being a temporary solution, they fear other Egyptian industries will follow suit and rising carbon emissions will further stress the already vulnerable nation, where climate change threatens to hurt key agricultural crops, submerge prime coastal areas, and dramatically reduce water supplies.

"Egypt's future has to be in clean and renewable energy. We must as a society understand that the decisions we make today will impact the future of this nation," said Environment Minister Laila Iskander, who flew in to support the workshop. "We cannot make a decision to secure the interests of a single sector without seeing the big picture."

Mainstream Egyptian media with close ties to business associations have portrayed Iskander as a "stubborn" minister standing in the way of economic growth. But those opposed to coal imports say neither Iskander nor others opposed to coal have been given sufficient prime air-time to push for alternative proposals, including waste-to-energy schemes.

Globally, the cement industry is moving away from a heavy dependence on fossil fuels, including coal, as an exclusive source of energy for production. Egyptian activists have pointed out that many factories currently meet 20 to 70 percent of their energy requirements from alternative fuels, such as energy from trash or other waste.

With Egypt already the world's largest wheat importer, the activists also argue that an industrial production system entirely based on imports further exacerbates the country's vulnerability to foreign markets.

Cement executives say they need an immediate solution to their energy woes, and waste-to-energy alternatives will take time to implement. But activists say such an argument is exploiting the current crisis to secure the interests of a few.

Using polluting coal as a temporary energy source "will do nothing to help find a long-term and sustainable solution to what we all agree is an energy crisis," Droubi said. "While the interests of business elites will be served in allowing coal imports, the real price will be paid by Egyptian citizens when a new problem they did not create is shouldered by them."

NIGERIA: Dangote to produce 52.5 cement grade

Determined to give Nigerian construction sector value for money and to maintain industry lead in cement manufacturing in Africa, Dangote Cement has finalised plans to raise its cement grade from the popular 42.5 to 52.5 grade.

Dangote Cement at the a press briefing recently stated that all the products rolling out of its three cement plants are certified 42.5 cement grade in line with international standard and quality benchmark but noted that it was nursing the idea of including 52.5 grade in its product lists.

The Chief Executive Officer, Mr. D.V.G. Edwin, had earlier told the press that Dangote Cement’s adherence to global best practices informed the production of 42.5 cement grade in all its factories.

Addressing a cross-section of the media in Lagos, he said that Dangote Cement chose to produce 42.5 cement grade as it is stronger and has better qualities. According to him, the cement grade possesses higher strength capability and is rapid setting making it the preferred grade among blockmakers, builders and construction workers.

Explaining why Dangote Cement is laying emphasis on the production of 42.5 grade cement, Edwin said that prior to the nation attaining self-sufficiency in cement production, the Standards Organisation of Nigeria (SON) stipulated the 42.5 grade as the grade accepted to be imported into the country and all importers complied.

Dangote Cement, as a responsible market leader, has continued to produce 42.5 grade in its three plants in strict adherence to the stipulations of SON. He wondered why SON should insist on 42.5 grade as the standard for import and then allow a lower grade in terms of local production.

“How come during the import era, we were all compelled by the regulatory authorities to bring in 42.5 grades and now since 2012 when import was banned, the same regulatory authorities condoned the production of 32.5 grades.”

Reacting to claims by a cross section of cement manufacturers that the root cause of building collapse is not cement quality but poor use of materials especially 32.5 grade by builders, Edwin advocated that the best way to ensure safety in the construction industry is to insist on 42.5 as the grade to be produced and used in Nigeria. He explained that despite seminars and trainings to educate builders on how to use 32.5 grade in building, the unscrupulous ones among them still cut corners to cheat on quality, insisting that, “incidence of building collapse will be greatly reduced if we adhere to a common quality specification leaving no opportunity for manipulations.”

He debunked claims by some cement manufacturers that switching over to 42.5 grades would impact negatively on their profit margins, adding that producing the grade will lead to a marginal cost increase, which should be seen as a patriotic gesture to stem the tide of building collapse.

“We place a high premium on human lives and not cost. Nothing on earth can be substituted for human lives. Those arguing that migrating from 32.5 to 42.5 will erode their profit margin are insincere and selfish as human lives are more important than profit taking,” he said.

As part of promoting best practices in the building industry, Edwin said that Dangote Cement in the past two years has held several trainings and demonstrations with block makers across the nation to educate them on how to achieve premium results using the 42.5 cement grade.

This has become a permanent feature in our operations.

Giving a breakdown of the different grades of cement available, he noted that 92 per cent of Portland cement produced in the United States (US), are in 52.5 and 42.5 Grades, while other imported cement from China, Japan, Denmark and Paris are all 42.5 Grade.

He said, “Over 90 per cent of consumers are not aware of the different types of cement available in Nigeria. Their expectations in respect to the performance of cement are the same regardless of the type. The grade (quality) of concrete to be used may allow 32.5 grade cement for certain construction work such as pavements, rendering (plastering) and culverts but would demand 42.5 grade cement for structures, columns, bridges and multi storeyed buildings.”

A coalition of civil society groups and professional bodies in the construction industry are set to launch a major campaign for the standardization of the manufacturing and importation of the product. The coalitions, according to media reports, have called on the relevant authorities to initiate actions to make 42.5 grade of cement the standard product in Nigeria.

The stakeholders’ argument is that nearly all the cement manufacturers and importers in the country are in the habit of taking advantage of the lax regulation and lack of enforcement to vary their pigmentation in favour of the lower grade cement (32.5) which in most cases is used in building and seen to be partly responsible for the collapse of houses. They believe that the Standards Organisation of Nigeria (SON usually overlooks the practice, which is quite prevalent.

SAUDI ARABIA: Cement sales down 3% to 4.59m tons

Sales of cement companies dropped by 3 percent to 4.59 million tons in February 2014 compared to 4.74 million tons in the same period last year, local media said.

Ten out of 14 cement firms operating in the Kingdom have their monthly sales dropped, notably Jouf Cement Company (JCC) and Najran Cement Company (NCC) whose sales dropped by 26 percent and 24 percent, respectively, the report prepared by Argaam Business Info (ABI) said.

Meanwhile, three companies have their sales grown during February compared to figures of the same period last year. Sales of Arabian Cement Company (ACC) and Safwa Cement Company (SCC) grew by 41 percent and 6 percent, respectively, the report added.

On the other hand, clinker production of the 14 cement firms jumped by 5 percent during the month to 4.07 million tons, according to the report.

Year-on-year basis, sales of cement companies rose by 4 percent to reach 55.6 million tons in 2013 compared to 53.5 million tons in 2012, according to earlier reports

IRELAND: Ecocem wins €150k contract with ITER in France

Irish environmentally friendly concrete company Ecocem has announced it has won a €150,000 contract with International Thermonuclear Energy Reactor (ITER), the world’s biggest energy research project.

The ITER is a large-scale scientific experiment to demonstrate the generation of commercial electrical energy from nuclear fusion financed with contributions from Russia, the US, the EU, Japan, China, South Korea and India. 

Ecocem’s French subsidiary Ecocem France will supply the second phase of the development of the $20bn ITER experimental nuclear fusion reactor in Cadarache in the south of France. 

This will mean that the Ecocem Cement will be used in both the seismic isolation pit and the foundations of the project. 

“ITER is the most important energy project in the world, an international cooperation of countries, including Ireland, aiming to revolutionise nuclear energy with clean, pollution free energy,” said Conor O’Riain, head of new markets and products at Ecocem. 

“The nuclear industry doesn’t take chances for obvious reasons, so the fact that they have decided to use Ecocem cement speaks volumes. 

“Ecocem as increasingly being seen as the supplier of choice to large infrastructural projects in Europe that require high performance with minimal environmental impact.”

A joint venture between Irish company Ecocem Materials (70pc) and ArcelorMittal (30pc), the biggest steel producer in the world, Ecocem France will provide around 1,500 tonnes of Ecocem cement to ITER under the new deal.

ESPAÑA: La venta de cemento registra el primer alza anual desde 2009

La venta de cemento registró en el cuarto trimestre del año pasado el primer incremento anual desde 2009, del 6,9%, según los datos facilitados por la Cámara de Comercio tinerfeña, que advierte de que, sin embargo, tanto las certificaciones de final de obra como su valor de liquidación anuales disminuyen.

El informe sectorial del cuarto trimestre de la institución cameral, que destaca que la tasa de paro en el sector de la construcción se redujo en el intervalo de referencia hasta el 33,9%, refleja que entre octubre y diciembre de 2013 continúo cayendo el precio de la vivienda protegida y el de la libre mostró un ligero aumento, del 0,3%, el primero desde hace más de cinco años.

Los indicadores de actividad del sector reflejan comportamientos dispares, siempre según este informe. Por un lado, los visados de dirección de obre tramitados en el cuarto trimestre fueron un 29,1% inferiores a los del mismo periodo del año precedente y también disminuyeron las certificaciones de fin de obra (-58,3%), así como su valor de liquidación, que es un 42,5% más bajo que hace un año.

Por lo que al Indicador de Confianza Empresarial Armonizado respecta, muestra que la confianza entre los empresarios de la construcción sigue mejorando.

BOLIVIA: Fancesa quiere licitar nueva línea con dos opciones de ubicación

La Presidencia del Directorio de FANCESA lanzó una última propuesta a las instituciones copropietarias respecto a su proyecto de expansión: avanzar en la licitación internacional con dos propuestas de ubicación a fin de no rezagar la inversión que le permitirá a la cementera pelear un mayor cupo del mercado nacional. Aunque hoy se cumple el plazo que estableció el Comité Cívico y organizaciones afines al MAS para revertir la propuesta de emplazar parte de la nueva línea de producción en Santa Cruz, la Gobernación decidió tomarse unos 15 días más para presentar un estudio técnico y legal que sustente el rechazo a esa opción de ubicación.

De acuerdo con lo informado por el presidente de la Fábrica Nacional de Cemento S. A. (FANCESA), Eduardo Rivero, las copropietarias conocieron, en la última reunión de Directorio, la propuesta de dar el visto bueno a la licitación de la nueva línea de producción con dos opciones de ubicación: el 70% de la nueva planta en Sucre y el 30% en Santa Cruz o el 100% a instalarse en Sucre. 

La Alcaldía ya habría aceptado dicho planteamiento lanzado por el representante de la Universidad, en tanto que la Gobernación pidió un compás de espera. 

“Esto va a seguir adelante y sólo esperamos que se pueda consensuar nuestra propuesta: calificar con dos alternativas, la empresa que se adjudique nos dará la mejor opción en función a la estructura de costos; eso será de tres a cuatro meses una vez que se adjudique, lo importante es que se licite y no perdamos tiempo respecto a la inversión que se va a hacer en Chuquisaca”, explicó Rivero al detallar que mientras tanto FANCESA viene trabajando en la ficha ambiental de las canteras de El Romeral y de la nueva planta en Sunchu Tambo. 

15 DÍAS.

Por su parte, el gobernador Esteban Urquizu, adelantó que en un plazo de diez a 15 días presentará un sustento técnico y legal sobre su posición respecto al pedido de emplazamiento de la nueva planta en su integridad en Sucre. “La Gobernación va a seguir dando el respaldo (a la expansión), pero también trabajaremos una propuesta técnica, vamos a tardar unos diez a 15 días para presentar oficialmente la propuesta, un sustento técnico para lo que es la nueva línea de producción con sede en Sucre. Como Gobernación tenemos la responsabilidad, la obligación no sólo de decir se queda (en Sucre), sino (decir) cuáles los motivos y como sustentamos técnica y legalmente”, aseguró.

Urquizu reveló también que se avanza en la implementación de las fábricas que comprometió el Gobierno a la región. La Alcaldía de Monteagudo está dispuesta a ceder 30 hectáreas de terreno para la fábrica de miel, en vez de las 20 hectáreas solicitadas por el Ministerio de Desarrollo Productivo; en tanto que se localizó al municipio de Zudáñez como una mejor opción que Yamparáez, para establecer una fábrica de vidrio. 

Con ese ejemplo, Urquizu defendió la creación de más fuentes de empleo en la región. 

A principios de mes, una marcha convocada por el Comité Cívico y el Movimiento Al Socialismo (MAS) había definido un plazo de diez días, que se cumple hoy, para que FANCESA revierta la decisión de ubicar un 30% de la nueva línea de producción de cemento en Santa Cruz. El plazo es incierto ahora, una vez que la Gobernación pidió un compás de espera en el Directorio de la fábrica y anuncia una propuesta técnica dentro de 15 días.

Sustento

Vamos a tardar unos diez a 15 días para presentar oficialmente un sustento técnico para la nueva línea de producción con sede en Sucre". Esteban Urquizu / GOBERNADOR

Horno Kawasaki funcionaría a un 95% en junio

El presidente de FANCESA, Eduardo Rivero, por otra parte, explicó que superando los imponderables que viene atravesando el horno Kawasaki, éste podría estar funcionando al 95% de su capacidad hasta junio próximo para que recién FANCESA firme las pruebas de garantía. “Un horno no es como arrancar un auto”, dijo en respuesta a las críticas sobre la tardanza de la puesta en marcha de dicho proyecto. 

“Ellos (los técnicos de la proveedora Polysius) van a cambiar una parte del horno, una parte para el quemador, y la parte de prehomogeneización es una parte que FANCESA ya tiene presupuestado hace cinco años, son cosas complementarias, no es que estamos comprando algo nuevo a Kawasaki”, explicó Rivero respecto de la necesidad de la compra de un software para la homogeneización que tendría un valor de 10 millones de euros.

“Ha llegado un experto alemán en procesos, la gente más representativa de Polysius, quienes han diseñado la planta y ellos han indicado que a partir de ese manejo de lo que es la entrada de oxígeno al horno, regulando la llama, y sobre todo con el algoritmo (software) estaríamos arrancando en junio. No ha parado el horno, ahorita Kawasaki está trabajando ya tres semanas, estable, está con capacidad del 75%, pero falta alcanzar ese porcentaje (95%)”, explicó.

GABON: King Mohammed VI, Gabonese President Visit Construction Site of Cement Production Unit

HM King Mohammed VI and Gabonese President Ali Bongo Ondimba visited Friday in Owendo (southern outskirts of Libreville) the construction site of a cement production unit worth some € 30 million.

Explanations were provided to HM the King on this new industrial unit, which will create, in the implementation phase, a thousand indirect jobs, and some 200 direct jobs once it is operational. The deadline for completion of this cement plant is 18 months.

The production of this unit, which is part of South-South cooperation, is designed to fully meet the local demand for cement, which will have a beneficial impact on the price of cement, considered fundamental in the construction industry.

After Côte d'Ivoire, Guinea, Cameroon, Mali, and Burkina Faso, Ciments de l'Afrique (CIMAF) continues its expansion in Africa with the establishment of a cement plant in Gabon.

Like CIMAF plants in Africa, a Gabonese company was created under the name of Cements Africa Gabon SA.

Specializing in the production of cement, Cements Africa is a company created in 2011. It is located in six countries: Côte d'Ivoire, Burkina Faso, Guinea, Cameroon, Congo, Mali, and Gabon, and plans eventually to settle in more than 10 countries.

EE.UU.: Autorizan a Argos compra de activos de Vulcan Materials

El negocio conocido a principios de este año entre Cementos Argos y el grupo norteamericano Vulcan Materials Company, fue autorizado por las autoridades de Estados Unidos.

La cementera colombiana dio a conocer ayer que la negociación recibió el visto bueno, a través de la Superintendencia Financiera de Colombia. “Como se informó oportunamente el pasado 23 de enero, Cementos Argos suscribió un acuerdo con el grupo Vulcan Materials Company para adquirir activos de este en el estado de Florida, por valor de 720 millones de dólares”, indica.

Los activos comprados son una planta de cemento con tecnología seca, dos moliendas de clínker, 69 plantas de concreto premezclado,13 plantas de bloques de concreto y dos facilidades portuarias.

Los anteriores aumentan la capacidad actual de cemento en 3.5 millones de toneladas por año, gracias a la incorporación de una planta integrada de tecnología seca en Newberry (Norte de Florida), de 1.6 millones de toneladas al año; dos moliendas de clínker ubicadas en Tampa y Port Manatee, con una capacidad de 1.9 millones de toneladas por año.

Igualmente, 69 plantas de concreto y 372 camiones mezcladores, con capacidad de producción anual de 3.3 millones de metros cúbicos; 13 plantas de producción de bloques de concreto que pueden fabricar más de 109 millones de unidades al año y dos instalaciones portuarias.

Con esta operación, Argos duplica la capacidad de producción de cemento en Estados Unidos, que alcanzará 6.6 millones de toneladas, y cerca de 13.1 millones de metros cúbicos de concreto al año, que representa 34% más.

Con esta adquisición, la filial del Grupo Argos quedará con una capacidad instalada total, en las geografías donde tiene presencia, de 20 millones de toneladas de cemento y 17 millones anuales de metros cúbicos de concreto.

Los recursos necesarios para pagar el precio pactado provienen mayoritariamente de la emisión de acciones preferenciales realizada en el año 2013 y de recursos propios o endeudamiento.

VIETNAM: Sees rise in cement consumption but fall in steel production

Cement consumption edged up to 8.4 million tons in the first two months, according to the Ministry of Construction.

In a report it said 5.3 million tons were consumed in the domestic market while the other 3.1 million tons were exported.

Prices fell by VND30,000-50,000 (US$1.42-2.37 ) per ton in February.

The inventory is now at around 2.6 million tons, including 600,000 tons of cement and 2 million tons of clinker, a reasonable level, the Ministry said.

Demand this year is expected to be 62-63 million tons, up 1.5-3 percent from last year.

According to the Ministry of Industry and Trade, for the first two month, the country’s steel industry only produced 283,000 tons, down by 26.5 percent over the same period last year.

The total consumption of steel during last year was around 5 million tons compared to 5.5 million tons of last year, statistics from the Vietnam Steel Association have shown.

As key industries that consume the most steel products of Vietnam such as shipbuilding, car marking, mechanism and construction have not show many positive signs of recovering, the total consumption of the steel this year is predicted to be around 12.2-12.5 million tons, an increase of only 3-5 percent over last year, said the Ministry of Industry and Trade.

VENEZUELA: Gobierno construirá cinco plantas de cemento en el país

El gobernador de Yaracuy, Julio León Heredia, anunció este viernes la aprobación, por parte del presidente de la República, Nicolás Maduro, de un punto de cuenta para la construcción de cinco plantas de cemento en el país, una de ellas en su entidad y las otras en Cojedes, Portuguesa, Mérida y Aragua.

El mandatario precisó que las fábricas contarán con apoyo de India y suponen una inversión de 74 millones de dólares (466,2 millones de bolívares). 

Del mismo modo, resaltó los logros en materia de construcción habitacional que exhibe Yaracuy, pues ya ha levantado más de 13.000 casas desde el inicio de la Gran Misión Vivienda Venezuela, en abril de 2011.

La meta para el estado centroccidental es edificar 56.000 viviendas en siete años a partir del comienzo de la misión. Actualmente hay unas 10.000 en ejecución.

En materia agroproductiva, León Heredia señaló que impulsan la construcción de un matadero industrial, una planta de alimentos balanceados y una de harina de maíz precocida, con el sector privado, a fin de aprovechar logros como la producción de más de 90 kilos de maíz alcanzada como hito en 2013.

La entidad es la primera productora de naranja y aguacate y cuenta con una gran cosecha de café.

El gobernador dijo que el central cafetalero recuperado recientemente pronto contará con una nueva torrefactora.

TOGO: Seeker Tec International, Inc. Announces Togo Transport Acquisition

Seeker Tec International Inc. (OTC Markets: SNTL) has acquired a controlling interest in Norwegian holding company JAMAC 333 AS, which in turn owns majority interest in Togo Transport Company of West Africa.

Togo Transport has recently been awarded a contract with the West African Cement Company to transport raw materials from the capital Lom, to the WACEM plants in Burkina Faso.

JAMAC has already procured its first truck which will deliver an estimated $200,000 of revenue in its first year and expects to have up to 9 trucks in operation by the end of 2014.

Seeker Chairman Mike Kendrick commented, "The Togo project fits perfectly into our philosophy of compassionate capitalism. By working with a local partner, we will boost the economic benefit of the business in Togo, whilst generating returns for our stakeholders.

"We are fully committed to growing the transport business in Togo and see it as a great opportunity to develop further interests in the region," he added.

The business was established by Jorn Rosting, who has significant experience in West Africa, and is currently working with Seeker on a number of initiatives.

"I have known Mike for a considerable time and am delighted to be working with him and Seeker on this exciting venture, which I expect to grow both quickly and profitably. This business has the potential to become a springboard for making a real positive impact on the local economy," said Rosting.

Togo is a small country of 6.5 million people, but it is growing fast, due to the strategic importance of its deep water harbour in the middle of the west coast of Africa and support from the World Bank. Seeker has a real opportunity to be a key player in the country's development.

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