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.