AFRICA: L'Etat algérien met la pression sur le groupe français Lafarge

L’Etat n’est pas satisfait du partenariat avec le groupe français Lafarge dans la gestion de la cimenterie de Meftah près de Blida. L’Assemblée générale des actionnaires de la société des ciments de la Mitidja (SCMI Meftah) a relevé la non-atteinte des objectifs contractuels au 31 décembre 2009, prévus dans le contrat de partenariat avec le cimentier français, selon le procès verbal de la réunion rendu public dimanche 3 octobre. La SCMI est détenue à 65% par l’Etat, via le Groupe industriel des ciments d’Algérie (GICA), et par Lafarge à 35%, mais le management est assuré par le groupe français.

L’AG a demandé au Conseil d’administration de la cimenterie « de prendre toutes les mesures devant permettre un redressement de la situation, une amélioration des résultats et l’atteinte de tous les objectifs et engagements quantitatifs et qualitatifs contenus dans le contrat de management » conclu en 2008 entre le gouvernement et Lafarge. La cimenterie de Meftah a réalisé un bénéfice net de 138 millions de dinars en 2009 (1,3 millions d’euros). Le groupe Lafarge a obtenu 5,95 millions de dinars de dividendes alors que 20 millions de dinars de ce bénéfice iront aux travailleurs, selon les résolutions de l’AG.

Le géant français des matériaux de construction Lafarge a racheté 35% de l'usine de Meftah pour un montant de 43,5 millions d'euros. Le contrat, qui s'inscrit dans le cadre du processus de privatisation de cette usine, prévoit aussi la gestion ("management") par Lafarge de la cimenterie, pendant une durée de dix ans. Un programme d'investissement sera mis en œuvre visant à la modernisation de la cimenterie de Meftah, pour porter la capacité de l'usine de 0,8 million de tonnes à 1,1 million de tonnes en 2010 et améliorer les performances environnementales de l'usine", avait indiqué Lafarge. Le groupe français avait déjà acquis au début 2008 les deux unités algériennes du groupe égyptien Orascom Cement.

AFRICA: Pieter Fourie, CEO of Sephaku Cement, on strategy

What will be Sephaku Holdings’ next project, after bringing in an equity investor on Sephaku Cement? Will it be the fluorspar mine at Naauwpoort/Kromdraai? Yes. We have received a mining licence, completed a feasibility study on the mine and are busy with a feasibility study into a beneficiation plant. It will probably be a two-year project, like Sephaku Cement, but will cost less, about R1,2bn in total.

Could you merge it with other mines in the area, such as Vergenoegd or Sallies’ Witkop? We are not planning to merge , as it stands up as an independent operation. There are two ore bodies, one with a resource of 8,2Mt and the other 2,9Mt. What differentiates this project is that other fluorspar operations are just mining and exporting raw material, while we are considering building SA’s first fluorspar beneficiation plant to add value in SA. It would produce about 18000t of hydrofluoric acid and 60000t of aluminium fluoride a year. Would you do something similar to Sephaku Cement, where you brought in Dangote Industries of Nigeria to take a 64% stake? Yes, we would definitely use the same formula, such as bringing in foreign investors as equity partners to fund the project. We are negotiating with a number of interested parties, both local and foreign, including a Chinese group and a European group.

Would it be your strategy to retain a long-term stake in both cement and fluorspar operations? Long-term, Sephaku Holdings will retain 36% of Sephaku Cement. In the fluorspar project, we would probably retain a larger stake because it is smaller and needs less external funding. We cannot say how much because we are in negotiations, but we are flexible.

What’s the state of the fluorspar market for rand producers? The global price of fluorspar has firmed to between $280 and $350/t, depending on quality, because of strong demand from China. Until now there has been substantial supply from Mexico. But at some point that source will dry up, so most global buyers are looking for other sources. China has its own fluorspar but it would not be enough to satisfy its long- term strategic supply needs.

What’s the plan for your coal and other mineral deposits? We have announced plans to unbundle and the final documentation and circular are being prepared. We will retain only the more developed projects in cement and fluorspar. How can investors value your shares, with your projects still in development phase? Is the current price of R3,90 a fair reflection?

The value of the 36% stake in the cement business, based on the deal with Dangote, is R4,08/share. The value of the fluorspar, based on the competent persons’ report and applying the same discount that we used in the Dangote transaction, is R2,50/ share. That does not include the value of the mineral deposits being unbundled or cash holdings. We believe the shares have been ignored largely because the group is a combination of industrial projects and exploration, and exploration is not popular with investors at the moment. Once the exploration assets are unbundled, investors will be able to value us as an industrial development business. Is it a good time to try to attract foreign investors to SA — either as shareholders or long-term project financiers — given fears about electricity, labour and regulatory issues?

We believe foreign fund managers are keen to get exposure to emerging markets, since developed markets are still very volatile. Most are over exposed to Asia, which means that Africa or South America are attracting attention. SA is well positioned within Africa, with good infrastructure and financial systems. The interest from strategic investors in our projects reflects the fact that since 2008 many plans have been put on hold but now with some stability in global economies they are ready to move forward.

What are Sephaku Holdings’ long- term plans? We intend expanding the cement business in SA. The first project is our entry into the sector but we will not stop there. We see long-term growth prospects because SA needs infrastructure spending and we have other strategic limestone resources which we are exploring at the moment.

AFRICA: Dangote’s ambitions push it to control Sephaku Cement

Nigerian industrial giant, Dangote Industries, which is to invest an additional R779 million (N16.7 billion) in Sephaku Cement, has given notice it aims to become the largest cement producer in Africa by 2014. Dangote will increase its equity stake in Sephaku Cement from 19.76 percent to 64 percent through the additional investment.

Dangote was established in 1981 and is one of the largest manufacturing conglomerates in sub-Saharan Africa, with interests in cement, sugar, flour, salt and fish. Aliko Dangote, the group’s chief executive, said Sunday that the group was delighted to increase its investment in Sephaku Cement and its pan-African footprint to include an enhanced presence in the South African market. “We look forward to bringing our experience and expertise to the project and to producing cement by the end of 2012 as we seek to become the largest cement producer in Africa by 2014,” he said.

The balance of Sephaku Cement’s shareholding will continue to be held by Sephaku Holdings. Dangote is the largest cement producer in Nigeria and will have a cement production capacity of 16 million tons by the first quarter of next year. Neil Crafford-Lazarus, the chief executive of JSE-listed Sephaku Holdings, said yesterday that the investment by Dangote and the continued unbundling of non-core assets signalled the rebirth of Sephaku as a recapitalised, financially sound business. It would focus on the development of two key and highly sought-after industrial products: cement and fluorspar. Crafford-Lazarus said the additional investment meant the company had now secured the full equity requirement for the cement project and would be exceptionally well positioned to finalise debt funding terms.

Sephaku plans to establish new cement plants in North West and Mpumalanga at a total cost of R3.3 billion. Sephaku Cement will issue 217.59 million ordinary shares to Dangote at the price of R3.58 a share. Dangote acquired its initial 19.76 percent in Sephaku Cement in 2008.

Crafford-Lazarus said this significant equity investment would be used to fund the development of Sephaku Cement’s Aganang and Delmas projects.

These flagship projects are scheduled to come into production in late 2012, with the Aganang project yielding about 900,000 tons of cement a year and the Delmas project 1.25 million tons a year. The transactions are subject to shareholder approval and a shareholders’ meeting is planned for the middle of next month.

AFRICA: Sephaku to realign business, posts R90m loss

JSE-listed Sephaku Holdings posted a loss of R90-million for the 16 months ended June 30, 2010, primarily as a result of an R86-million loss incurred by the Sephaku Cement group.

The loss by Sephaku Cement included an R66-million employee cost that was needed for the ramp-up of staff required for the company's ash processing plant, and its cement manufacturing project, Aganang.

The Aganang project includes a limestone mine and a cement manufacturing plant in North West province and is scheduled to produce about 900 000 t/y of cement by 2012.

The group reported that some of the more significant material additions for the period included R93-million for the company's Agnang project, R53-million for the ash processing plant at State-owned utility Eskom's Kendal project and R18-million spent on the purchase of the remaining portion of the Witklip farm.

In total, the group spent R417-million on property, plant and equipment, compared with R141-million for the comparable previous period.

During the reporting period, Sephako Holdings acquired interests in a number of businesses including Ergomark, Incubex Minerals and Sephaku Cement.

The group also sold its gold and nickel assets at the beginning of the year, as a first step in creating a more focused industrial minerals company.

Sephaku said in a statement that it would realign the group and consolidate its position in the country's minerals market during its next financial year. 

"The forthcoming year will see the company consolidate its position as one of South Africa's leading emerging industrial minerals exploration and development companies, with plant construction under way and production drawing closer. The continued strategic realignment of the group will provide clarity to shareholders and the market at large," the group concluded.

KUWAIT: Two shareholding companies founded, capital KD 6 million

KUWAIT -- Two shareholding companies were established with a capital of six million Kuwaiti dinars, reported Kuwait Today (Gazette) newspaper in its latest edition published on Monday.

Kuwaiti Readymix Cement has a capital of KD five million, distributed shares of 50 million with a value of 100 fils per share.

The company will manufacture and trade in pre-fabricated concrete. It will also import, export trade in sand and cement to local and international dealers and companies.

S.H. Holding is a shareholding company with a capital of one million KD and distributed shares of 10 million at a value of 100 fils per share.

It will deal in shares with local and foreign companies, acquire stocks for limited liability companies, participate in establishement and management of these limited liability companies by lending financial loans.

The two companies could own movables and real estate properties to direct their activities to the extent permitted by law, as well as invest in portfolios managed by specialized companies.