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MAGAZINE

GLOBAL CEMENT INDUSTRY. KNOWLEDGE. JUNE / JULY 2013

MozambiqueThe rough diamond of SouTh africa

Carbon Capture & Storage

The nexT gianT STep for The cemenT induSTry

cement business & industry india & south asiaOctober 9-10, 2013 • Hilton Mumbai International Airport Hotel • Mumbai, India

CBI India & South Asia 2013 Conference will focus on the various aspects of India’s cement industry from a business growth & investment perspective. Notably, the programme will take a dual-track business and technical approach to the issues around:

♦ Market perspective, forecast and competitive outlook

♦ Alternative fuels, new business models

♦ Environmental performance management

♦ Finance and capital markets

♦ Coal as mainstay fuel option and outlook

♦ Efficiency, innovation, new developments

♦ Technology, operations and best practices

GMI GLOBAL

Organized by GMI Global and again with the great support from the India Cement & Construction Materials (ICCM) journal the event is expected to bring together more than 200 cement and lime professionals. GMI is excited to build on the success of CBI India 2012 to expand the scope to include participants from the entire South Asia region this time around.

supported by

Register on-line at www.gmiforum.com or email [email protected] may also call us in the US at +1-203-516-7424

conference

india & CONSTRUCTION MATERIALSindiaCemWeek

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reen shoots of improvement may be starting to emerge on a wider scale around the planet. But even while the main focus in these markets may be on optimizing the core franchise, some are looking beyond. In this issue of the CemWeek Magazine, we take a look at two aspects in particular: the exciting (even if not yet fully certain)

prospects of carbon capture and the ever-present need to improve logistics with a case example from Holcim-controlled ACC in India.

But one market that has not had to suffer the waning demand that many developed economies did, is Mozambique in southeastern Africa. The CW Group’s Research & Analytics team shares some highlights about this market from their recently published market research report. Additionally, CW Group’s Research & Analytics provides a snapshot of the international Cement and CemEnergy segments as a recurring viewpoint in the eponymous section.

Be sure to also take a look at the CW Group upcoming meetings to see if we can meet in person or virtually in the next few months. Our regularly scheduled webinars are an excellent way to share some ideas and get a conversation started – always feel free to contact our consultants and analysts about these topics. Additionally, the CW Group will take part of several industry events over the coming months, including Cement Business & industry India 2013 and Solid Fuels Summit India 2013, both hosted in Mumbai on October 9-10, and 8-9, respectively. We hope to meet you there!

The CemWeek Magazine is published by the CW Group (CemWeek LLC)132 Larchmont Ave, Suite 12, Larchmont, NY 10538, USAT: +1-702-430-1748 F: +1-928-832-4762www.cwgrp.comwww.cemweek.com

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EDITOR'S NOTE

ImprovIng beyond today.

cement business & industry india & south asiaOctober 9-10, 2013 • Hilton Mumbai International Airport Hotel • Mumbai, India

CBI India & South Asia 2013 Conference will focus on the various aspects of India’s cement industry from a business growth & investment perspective. Notably, the programme will take a dual-track business and technical approach to the issues around:

♦ Market perspective, forecast and competitive outlook

♦ Alternative fuels, new business models

♦ Environmental performance management

♦ Finance and capital markets

♦ Coal as mainstay fuel option and outlook

♦ Efficiency, innovation, new developments

♦ Technology, operations and best practices

GMI GLOBAL

Organized by GMI Global and again with the great support from the India Cement & Construction Materials (ICCM) journal the event is expected to bring together more than 200 cement and lime professionals. GMI is excited to build on the success of CBI India 2012 to expand the scope to include participants from the entire South Asia region this time around.

supported by

Register on-line at www.gmiforum.com or email [email protected] may also call us in the US at +1-203-516-7424

conference

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ContentsFEATURES

DEPARTMENTS

6 CARboN CAPTURE PRojECTS iN ThE CEMENT iNDUSTRyThe Next Giant Step for the Cement Industry

12 LEADERS Q&A wiTh iNDiA’S ACCAchieving logistics excellence

16 MozAMbiQUEThe rough diamond of South Africa

EDiToR’S LETTER1 Improving beyond today

NUMbERS iN bRiEF4 Cement Equipment Order Intake Index Slides

RESEARCh20 Official Prices22 Coal market update23 Energy price update26 Tables Page

REgioNAL REPoRTS28 Europe, Middle East & Africa 32 Central and Southeast Asia

34 Americas38 Asia Pacific

FRoM oUR iNDUSTRy PARTNER40 Building materials update

PRojECTS & PEoPLE43 People on the move44 Equipment & notable projects

Cw gRoUP MEETiNg AgENDA46 CW Group’s upcoming events

06

16

31

12

Now it’s time for LOESCHE innovative technology. For further information please call +49 211 53 53 0 or visit www.loesche.com

iT is always a good Thing To moniTorThe Trends of our business buT we Think iT is muchbeTTer To

lead1300948_AZ_Image_A4_04.indd 6 08.04.13 13:11

CEMENT EQUIPMENT ORDER INTAKE INDEX (CEOI)

0

100

200

Q1 2013Q4 2012Q3 2012Q2 2012Q1 2012Q4 2011Q3 2011Q2 2011Q1 2011Q4 2010Q3 2010Q2 2010Q1 2010Q4 2009

nUmbers IN BRIEF

IndIces plummet In fIrst quarter of 2013

Equipment companies experienced a steep decline in order intake during the first quarter of 2013, as orders were still affected by the weak situation in some markets and uncertainty about the future performance of the industry.

CEMENT EQUiPMENT oRDER iNTAKE iNDEXThe CEOI dropped 70 percent and 82 percent in the first quarter of 2013, compared to the last quarter of 2012 and the first quarter of 2012, respectively. The slide is mostly attributed to a lack of large orders during the period, since cement customers remain indecisive about expansions and new greenfield plants under the current environment. The most active countries in terms of new capacity are still located in South America, sub-Saharan Africa and Asia, where infrastructure projects continue to boost cement demand.

CEMENT EQUiPMENT oRDER bACKLog iNDEXThe Cement Equipment Order Backlog Index (CEOB) moved to the 93 level in the first quarter of 2013, down 16 percent from the second quarter of 2012. The index continues to follow a downward trend that started in the second quarter of 2012; however, equipment supplier expectations remain positive. Companies are counting on cement demand growth from developing regions to support a strong order intake and an increase in order backlog in 2013, but tough competition and hard market conditions will remain in the short term.

CEMENT EQUIPMENT ORDER BACKLOG INDEX (CEOB)

80

100

120

Q1 2013Q4 2012Q3 2012Q2 2012Q1 2012Q4 2011Q3 2011Q2 2011Q1 2011Q4 2010Q3 2010Q2 2010Q1 2010Q4 2009

Sour

ce: C

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www.cemweek.com JUNE / JULY 20134BMWeekBMWeek

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The Cw group's global Cement Trade Price Report includes current pricing for cement delivered through the retail channel as well as import and export pricing for major markets around the world.

worldwide monthly cement prices ■ Major market retail prices ■ Regional retail price indices ■ Covers grey and white products

Regional monthly cement price indices: ■ Mediterranean basin ■ North America & Caribbean ■ East & Southeast Asia ■ And other regions

global import and export cement prices: ■ Major market trade flows ■ FOB export prices ■ CIF import prices

Annual subscriptions include four quarterly 50+ page reports: ■ Single user: USD2,300 ■ Multi-user (max 3-users): USD3,800 ■ Corporate use: Upon request

Contact us at [email protected] to discuss this unique offering further.

We know the cement industry well. Let us guide you. For more information please contact us at [email protected] or on +1-702-430-17 48848 N. Rainbow Blvd., Box #1658, Las Vegas NV, 89107, USA

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Global market cement prices.Import & export trade prices.All in a single must-have resource.

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Capture &Capture &Carbon Carbon

StorageStorage




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Brevik Cement Plant, NorwayNorcem is working with Norway’s Aker Solutions and RTI International on a carbon capture pilot project at the Brevik cement plantCourtesy of Norcem, HeidelberCement Group. Norway.

the next giant Step for

the Cement Industry

the next giant Step for

the Cement Industry

As global development surges on, the rapid deterioration of the environment has

become a major concern in every part of the world. And carbon dioxide (CO2) emissions have been recognized as the

primary culprit in climate change.

www.cemweek.comJUNE / JULY 2013 7BMWeekBMWeek



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during the past decades, the world has seen a rapid increase in carbon dioxide emissions, and the most recent statistical reports show that

global CO2 continues to rise. Growth is primarily concentrated in the Asia Pacific region, and attributed mostly to emis-sions in China, Japan and India. Indus-trialized nations with more access to the latest technology and information have been able to curb growth in carbon di-oxide emissions for the past two decades.

Although there is no question that the answer lies in energy conservation and alternative fuel sources, technology plays a critical part in finding a real solution to this global issue. As the largest con-tributors to emissions, energy genera-tors have been one of the first sectors to pursue projects aimed at discovering new technology and methods to reduce CO2 emissions. On the other hand, the U.S. and Europe are currently leading the way in the use of hybrid technology for the transport industry, which is the second largest contributor. Vehicles that run purely on renewable energy sources and electricity may be decades away from commercial distribution, but those that run on a mix of electricity and fuel are gaining popularity. As the technol-

ogy becomes cheaper and more reliable, it will soon become the standard in the automotive industry. And as the third largest contributor, the manufacturing and construction industries are ensuring that they follow the same commitment as the energy producers in finding ways to minimize, if not totally eliminate, carbon dioxide emissions.

gLobAL CEMENT iNDUSTRy ACTivE iN REDUCiNg Co2 EMiSSioNSAt the very core of global progress and development is rising infrastructure, and along with increased infrastructure de-

velopment comes increased production of cement. In 2011, world cement pro-duction was estimated at 3.6 billon tons, which translated to more than 2 billion tons of CO2 released in the atmosphere from fuels utilized in the production pro-cess and the calcination of limestone. So it is no surprise that cement manufactur-ers have become one of the sectors that more actively pursue reduction of CO2 emissions.

Over the past two decades, cement pro-ducers were able to reduce CO2 emissions per ton of cementitious material by as

FEATURE

0

10,000

20,000 Asia Pacific Africa Middle East Europe & Eurasia

South & Central America North America

20112009200720052003200119991997199519931991

GLOBAL CARBON DIOXIDE EMISSIONS-MILLION TONS OF CO2

© 2013 Aker Solutions

Source: BP Statistical Review of World Energy, June 2012




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much as 16 percent. From 754 kg of CO2 per ton in 1990, the world average has de-clined to 633 kg per ton in 2010.

The reduction was primary attributed to efforts and programs related to (a) en-ergy efficiency, (b) alternative fuel and (c) clinker substitution. However, these efforts will not be sufficient as urbaniza-tion in emerging economies is expected to accelerate in the coming decades. In-creasing demand and production will soon outpace any progress made by such programs.

CARboN CAPTURE AND SToRAgE To SUbSTANTiALLy CUT DowN Co2 EMiS-SioNS oF CEMENT SECToRAccording to the International Energy Agency (IEA), in order to meet interna-

tional standards, the cement industry will need to cut down its CO2 emissions by approximately 18 percent from current levels by 2050. With the cement sector currently accounting for 5 percent of global CO2 emissions, the only way to achieve this goal would be the use of Car-bon Capture and Storage (CCS) technol-ogy in cement production worldwide. By 2050, the IEA’s vision is to have 50 per-cent of cement plants in North America, Europe, Australia and East Asia using CCS technology, while a somewhat lower adoption rate of 20 percent is targeted in China and India.

CCS technology involves capturing waste carbon dioxide from large sources such as power plants, transporting it to a storage site and eventually depositing it

CEMENT INDUSTRY - AVERAGE NET KG OF CO2 PER TON OF CEMENTITIOUS MATERIAL

0

500

1,000

South America ex. Brazil North America Middle East Japan Aus NZ India Europe

CIS China Central America Brazil Asia ex. China, India, CIS and Japan Africa

2010200520001990

SOURCES OF CO2 EMISSIONS

Others

Fuel Combustion for Other Uses

Industries

Transport

Energy Generation

43.9%

21.7%

18.2%

12.2%

4%

where it cannot have any impact on the atmosphere. The sequestered CO2 is nor-mally injected in geological formations to serve various purposes such as enhanced oil recovery. There are three types of tech-nology for carbon sequestration that are currently under study: pre-combustion, post-combustion and oxyfuel combus-tion. For cement production, only post-combustion and oxyfuel combustion are possible options for carbon capture.


Souce: World Business Council for Sustainable Development - Cement Sustainability Initiative

Source: www.oica.com




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Post-combustion carbon capture involves the use of either chemical absorption or membrane technology, and these will not require major changes to the kiln-burn-ing process. Post-combustion technol-ogy is possible for new kilns as well as for retrofits and has the potential ability to capture about 77 percent of CO2 exhaust gases. Aside from higher capital costs, a cement plant with post-combustion tech-nology is likewise estimated to consume more energy to capture and compress the CO2.

Below is a table indicating the compara-tive costs of cement plants with post-combustion technology using chemical absorption (MEA-based solvents). The European scenario is based on a 1 mil-lion ton per year plant while the Asian developing country scenario is based on a 3 million ton per year plant. Costs of transport and storage are excluded.

On the other hand, oxyfuel combustion technology utilizes oxygen instead of air in cement kilns. It cannot be installed as a retrofit and is only possible as new

build. A new cement plant with oxyfuel technology is expected to incur 25 per-cent more in investment cost than a tradi-tional cement plant. Oxyfuel combustion is still in its early stages of research and would require more study before it can be considered as a viable option for CCS.

The costs of an oxyfuel cement plant us-ing a 1 million ton per year plant for the European scenario and a 3 million ton per year plant for the Asian developing country scenario are provided below. Costs of CO2 transport and storage are excluded.

With CCS technology, it is important to emphasize that the transport and storage of the captured CO2 is an essential part of the process and cannot work with mere sequestration technology alone. The cap-tured CO2 will be compressed into liq-uid form and transported via pipeline or tankers for storage. Thereafter, the CO2 will be injected in depleted oil and gas fields or deep saline aquifer formations. In the process known as Enhanced Oil Recovery (EOR), the CO2 will be inject-

ed into porous rocks and bind chemically to the rock over time, keeping natural gas and oil secure underground for years.

PiLoT PRojECTS FoR CCS TEChNoLogy iN CEMENT PRoDUCTioNAt the moment, there are four pilot activi-ties worldwide that are working on CCS technology for cement plants.

1. Skyonic established a CCS facility at the Capital Aggregates cement mill in the U.S., which focuses on the re-cycling of CO2 to create sodium bi-carbonate or baking soda. They are operating a mobile facility that tests the technology with CO2 captured from a cement plant.

2. Norcem of the Heidelberg Cement Group is working with Norway’s Aker Solutions and RTI Internation-al on a $15-million carbon capture pilot project at the Brevik cement plant in Norway. RTI’s post-com-bustion capture technology was ini-tially intended for coal-fired power plants and will now be tested for the first time on a cement plant. It in-

FEATURE





CW Group Coal Week

PARAMETERS UNITWITHOUT CCS WITH POST-COMBUSTION CAPTURE

(EUROPEAN SCENARIO)

(EUROPEAN SCENARIO)

(ASIAN DEVELOPING COUNTRY SCENARIO)

Total investment cost €m 263 558 647

net Variable operating costs €m/y 17 31 97

fixed operating costs €m/y 19 35 50

cost per Tonne of co2 emissions avoided

€/t n/a 107.4 58.8

cost per Tonne of cement product €/t 65.6 129.4 72.2

PARAMETERS UNITWITHOUT CCS WITH POST-COMBUSTION CAPTURE

(EUROPEAN SCENARIO)

(EUROPEAN SCENARIO)

(ASIAN DEVELOPING COUNTRY SCENARIO)

Total investment cost €m 263 327 n/a

net Varialble operating costs €m/y 17 23 n/a

fixed operating costs €m/y 19 23 n/a

cost per Tonne of co2 emissions avoided

€/t n/a 42.4 22.9

cost per Tonne of cement product €/t 65.6 82.5 46.4

Source: IEA GHG (2008)

Source: IEA GHG (2008)

cludes Alstom’s chilled ammonia process, Alstom’s regenerative car-bonate cycle and Aker Clean Car-bon’s amine scrubbing.

3. The Industrial Technology Re-search Institute is currently work-ing with Taiwan Cement to operate a 1 ton per hour pilot scale facility for calcium looping capture. The testing is being performed at the Hualian cement plant in eastern Taiwan.

4. The European Cement Research Academy (ECRA) is now proceed-ing with Phase IV of its CCS pro-ject. This phase of the project will be focused on oxyfuel technology and is expected for completion by 2015.

PRoSPECTS oF CCS iN ThE CEMENT iNDUSTRyWhile these pilot projects are still in their early stages, other efforts to curb CO2 emissions in the cement industry include the production of alternative ce-ment products that produce lower CO2 emissions. These are manufactured us-ing magnesium instead of calcium.

However, the IEA is determined to adopt CCS into cement production and believes it is now the most viable option for the cement sector. Although it is estimated that CCS technologies will be available no earlier than 2025, the IEA is targeting to have 50 percent of all cement facilities in

OECD countries equipped with CCS tech-nology by 2050. And for countries cur-rently identified as the biggest contributors to CO2 emissions, such as China and In-dia, the IEA’s vision is to have no less than 20 percent of their cement facilities CCS-equipped by 2050.





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acc lImIted Innovates logIstIcs management

In March 2012, India’s cement manufacturer ACC Limited, one of the top cement producers in the country, launched an RFID-

based vehicle tracking system called “SPEED” with the objective of developing a new logistics management system that would stimulate

efficiency and productivity along with saving on freight costs and reducing the detention time of vehicles at its cement plants.

Leaders Q & A




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Deepak Gulati ACC

PEED was initially implemented in ACC’s Tikaria plant located in the Amethi district in the state of Uttar Pradesh (U.P.) in

northern India. Following the success in Tikaria, the company subsequently adopted the program in two more plants – Damoder Cement Works in West Ben-gal and Thondabhavi Cement Works in the State of Karnataka. The company plans to roll out the system to all of its 16 plants in two years.

We spoke to ACC’s Logistics Director-North, Mr. Deepak Gulati to learn how the project has helped the company to improve the performance of the distri-bution fleet and what ACC sees as the biggest logistics challenges the Indian ce-ment industry will face in the future.

CW: What technology choices were made and why?Deepak Gulati: We chose RFID (Ra-dio Frequency Identification) technology, which is extensively used in the identifi-cation process with the help of a card and a reader. The choice of this technology was obvious – it is a fast emerging next-gen technology that uses radio frequency waves to transfer data between a reader and a moveable item. The technology

assures tracking, access control, identifi-cation and better supply chain manage-ment. It helps in tracking the item on real-time basis.

RFID technology offers several signifi-cant advantages over barcodes (which are also capable of supporting automated data capture). Some of these are:

◆ Barcodes have to be manually scanned, keeping them close to the reader. An RFID tag, bearing a unique identifier, can be scanned from a much longer distance.

◆ RFID tags can hold more data com-pared to barcodes.

◆ Expanded reading range supports quicker reading and faster process-ing.

◆ Facilitates rapid product movement. ◆ Continuous data reading, writing, modifying, adding and deleting in-formation possible.

◆ Readability of RFID tags is better

in adverse conditions such as dirt and outdoors – it makes an obvious choice for an industry like cement.

◆ RFID allows us to measure deten-tion time at each stage of truck load-ing and thus the utilization of assets within the plant.

CW: What was the value creation in terms of overall plant and logistics man-agement? DG: This project has been aptly named SPEED, keeping in mind:

◆ Safety of the stakeholders ◆ Productivity of the packers ◆ Efficient utilization of the assets (trucks) and

◆ Ensuring customer ◆ Delight

And thus the acronym SPEED.

ACC’s Tikaria plant loads around 500 trucks of outbound bagged cement per day. Due to this high volume, tracking and knowing the location of the vehi-

SPEED-LED screen displaying delivery details for loader personnel

This project effectively keeps in mind the safety of the stakeholders, the productivity of the packers

and the efficient utilization of the assets




CW Group Coal Week

LEADERS Q&A

cles at any stage of the loading process was extremely difficult. This project has given the logistics team the functionality to monitor real-time in-plant movement of vehicles and improve the overall safety inside the plant.

Another major advantage in terms of logistics management has been the vis-ibility of the trucks. Now, with the help of RFID based tracking, it has become possible for us to filter the seasonal and occasional trucks coming to our plant for loading during lean seasons and instead focus on the dedicated and regular fleet. This has also significantly reduced the pressure on the parking yard infrastruc-ture which can now be better utilized by the dedicated fleet.

CW: How will this help ACC serve its cus-tomers better?DG: ACC treats each of its stakeholders as a very important business partner. The implementation of the ACC SPEED pro-ject has given us several benefits and cre-ated a win-win situation for both.We have been able to reduce the overall in-plant detention of the vehicles.

This in turn has contributed in the faster execution of orders for our customers and channel partners.

Dealers/customers can now be kept in-formed, with a high degree of accuracy, as to when the truck carrying their order is likely to leave the plant, the estimated

transit time and a forecast of when the consignment is expected to reach desti-nation. Earlier we were not able to pro-ject this kind of valuable information with great accuracy. Now our customers can plan their work much better with this valuable input that we are able to provide.

CW: Does the project create a competi-tive advantage for ACC? DG: Yes. This project with its transparent and visible dispatch process is also cou-pled with other improvements we have implemented, such as enhanced basic amenities for the trucks’ crew members like a new washroom complex, a large cafeteria with television, water coolers and covered cooking area in a now much cleaner parking yard. Thanks to all these




CW Group Coal Week

improvements, our Tikaria plant has be-come the most attractive plant for load-ing in the area.

More frequent trips now enjoyed by reg-ular and dedicated trucks translates into higher earnings for them. These benefits factored in as a freight advantage with transporters can help make our product more competitive in a highly price-sen-sitive market.

CW: Is the company currently investing in any other logistics-related optimiza-tion processes?DG: This project has already been repli-cated across two more locations of ACC with three more in the pipeline. In order to further strengthen the good logistics practices, the company has already part-nered with a leading GPS service pro-vider. In the first phase, 1000 vehicles are planned to be fitted with GPS devices for real-time, out-plant vehicle tracking.

In addition, we are also in various stages of testing/piloting a truck scheduler for automated truck/order assignment and a driver/vehicle management center for improving the safety of drivers/vehicles.

What are the biggest logistics challenges the Indian cement industry is and will be facing?

The major challenges faced by the cement industry today are:

◆ Overall rising costs – particularly of fuel, which leads to rising transpor-tation costs.

◆ Availability of roadworthy and safe-to-ply trucks.

◆ Shortage of competent drivers and lesser number opting for driving as a profession.

◆ Poor road and safety infrastructure in the country.

All the above factors, particularly the availability of competent drivers, will pose the biggest challenge in road trans-portation as fewer people now seem in-terested to enter this profession as com-pared to alternate areas of employment.

BMWeekBMWeek



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SPEED-LED displaying packing bay number, tare weight details for drivers

tIkarIa cement plant




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featUre

The rough diamond of South-eastern africa

mozambIqueThe prospects for Mozambique may finally be looking bright as its resource sector has seen an unprecedented boom. The start of coal mining in 2010 and the discovery of significant offshore gas fields have become major springboards for the Mozambican economy. However, the consolidation of the country’s growth depends on its ability to exploit these huge opportunities without hiccups.




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CW Group Coal Week

COUNTRY SNAPSHOT

Mozambique’s economy expanded 7.5 percent in 2012, concluding two decades of uninterrupted growth that followed the end of the country’s civil war in 1992. The real GDP compound annual growth rate of 7.9 percent registered in the last twenty years is expected to stretch over the next five years, as well. In early 2013, severe floods destroyed crops and damaged infrastructure in southern Mozambique, which led financial institutions to lower their 2013 growth expectation for the country.

Notwithstanding positive long-term prospects, Mozambique is still severely constrained by infrastructure bottlenecks that limit the pace of development. Thus, most of the earmarked construction investments focus on the infrastructure segment with large funds pledged for railway modernization. Mozambique is dependent on Foreign Direct Investments (FDI), receiving more than US$5,200 million in 2012. Over the next three years, the amount is projected to exceed US$10 billion, on the basis of annual approval of around 300 projects.

Over the past years, Mozambique’s cement industry has been slowly expanding under the aegis of Cimpor. But with a surge in economic activity and predicted impressive growth in cement demand glittering on the horizon, the government awarded a series of cement plant construction licenses. But even so, to date, only one new cement plant has started commercial operations since 2005.

Today, Mozambique is home to five production units, four of which owned by Brazil’s InterCement (subsequent to its take-over of Cimpor’s assets in the country). The combined output of these units reached 1.19 million tons in 2012, falling short of the 1.6 million tons of cement consumed domestically.

Even though the cement capacity of the Mozambican cement plants exceeds the country’s cement consumption,

0

3,000

6,000FDI Inward (US$ million)

201220112010200920082007200620052004200320022001-100%

0%

250%

YoY Growth

FOREIGN DIRECT INVESTMENTS IN MOZAMBIQUE (2001–2012)

APPARENT CEMENT DEMAND & PRODUCTION (2005–2012) - TONS

0

1,000,000

2,000,000

Apparent consumption

Cement production

20122011201020092008200720062005

Source: CW Group Research





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This article is a summary of the 43-page in-depth market research from CW Analytics.To learn more, contact CW Analytics at [email protected].

Mozambique is still dependent on cement imports. Around 27 percent of the country’s cement consumption since 2005 was covered by imports. Operational challenges, financial difficulties and production interruptions are just a few of the hurdles faced by the Mozambican cement producers.

The CW Group highlights another important aspect of Mozambique’s cement sector - “only a fraction of the cement capacity can be produced with domestic clinker. This situation is causing increased dependency on imported clinker, with around 3.23 million tons of clinker imported by Mozambique between 2005 and 2012. Although Mozambique is known for its abundant availability of high-quality limestone, the deposits remain untapped as a result of high logistics costs as well as the limited clinker production capacity of the country.”

By 2017 the per capita cement consumption is estimated to cross 100 kg per inhabitant for the first time in its history. Large construction projects, combined with infrastructure and housing deficits, are regarded as the major drivers of the cement industry over the next five years. CW Group concludes: “under the base case scenario, cement consumption is projected to increase by a compound annual growth rate of 10.7 percent between 2012 and 2017. A more optimistic scenario, which assumes a smoother implementation for main construction projects given the presence of established and experienced international companies on the market, predicts a higher CAGR (13.6 percent) that could potentially push the cement demand beyond 3 million tons by the end of 2017.”

NAMEPLATE CEMENT PRODUCTION CAPACITY (2007–2017E) - TONS

0

5,000,000

10,000,000

New Capacity

Baseline Capacity

2017E2016E2015E2014E2013E2012'20112010200920082007

APPARENT DEMAND FORECAST (2005–2017E) - TONS

500,000

1,750,000

3,000,000

Apparent consumption

2017E2016E2015E2014E2013E20122011201020092008200720062005






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-0.4%

0%

1%

Jun-

13

May-1

3

Apr-

13

Mar-

13

Feb-

13

Jan-

13

Dec-

12

Nov-

12

Oct-1

2

Sep-

12

Aug-

12

Jul-1

2

Jun-

12

May-1

2

M-O-M CEMENT PRICE COMPARATIVE SET METRICS

CW research & analytics

iNDiA AND PAKiSTAN LEAD ThE PACK iN PRiCE iNCREASE MovEMENTAfter booming in the first two months of 2013, the global official cement prices entered a stabilization phase that lasted for three consecutive months. Preliminary June 2013 estimates reveal an upward trend for cement prices, mostly driven by a sharp increase in South East Asian countries of India and Pakistan.

In Pakistan, a 50 kg cement bag was traded for Rs 488.4 in June 2013, 5.45 percent higher versus the previous month, and 10.2 percent over the corresponding month of 2012. As soon as the Federal Budget for 2013 – 2014 was released in mid June by the government, cement producers hurried to announce price increases from Rs 30 to Rs 45 per 50 kg bags of cement, blaming budgetary measures, the elevated transportation costs and retention price as driving forces

Before the release of the budget, a goods and services tax (GST) was due only on wholesale prices, but the situation has changed and the GST is currently applied on the retail price. Additionally, the recent implementation of the new axle load limit led transportation costs for both cement and coal on higher grounds.

On the positive side, the Pakistani government reduced the withholding tax on dealers to 0.1 percent in a movement predicted to relieve the burden on cement production companies. Corporate tax rate was also reduced from 35 percent to 34 percent with the prospect to reach 30 percent over the next five years.

Preliminary June 2013 estimates reveal an upward trend for

cement prices

CEMENT MARKETS

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Source: cW group research

To learn more, please contact the CW Research & Analytics team at [email protected] or +1-702-430-1748.

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OffiCiAl CEMENT PRiCESGlObAl PRiCES uPbEAT AT ThE ENd Of h1 2013

-35%

0%

35%

Spain

Colom

bia

Belar

us

Vietn

am

Arge

ntina

Ukra

ine

China

Thail

and

Saud

i Ara

biaPeru

Russ

ian Fe

dera

tion

Cypr

us

Q1 2013/Q1 2012 CEMENT PRODUCTION GROWTH RATE (%)




CW Group Coal Week

-15%

0

20%

JULY 2012 - JUNE 2013 GROWTH RATE (%)

Egyp

tAr

gent

inaPa

kistan

Thail

and

Pana

ma

Colom

biaNi

cara

gua

Serb

iaPh

ilippin

esBr

azil

Rom

ania

Vene

zuela

Belgi

umEc

uado

rTu

rkey

Unite

d Stat

es?

Belar

usGe

rman

yEl

Salva

dor

Haiti

Sout

h Afri

caPe

ruHu

ngar

yBo

livia

Tunis

iaCa

nada

Malay

siaInd

ones

iaUn

ited K

ingdo

mSin

gapo

reSw

eden

Oman

*Ja

pan

Cypr

usInd

iaFr

ance

Slova

kiaMe

xico

Gree

ceCz

ech R

epub

licCh

ilePo

land

Austr

alia*

Nepa

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ssia

Unite

d Ara

b Em

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Trini

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*

In neighboring India, cement prices closed the first half of 2013 at Rs 294 per 50 kg bag, 3.2 percent higher compared to May 2013. After increasing in a range between Rs 5 and Rs 25 in the beginning of June, mostly in the northern, eastern and western India, cement prices reversed the trend and declined between Rs 10 and 20 per 50 kg bag during the last days of the month. Local sources mention an even further price decrease during early July, even though cement companies struggled to keep prices at high levels ahead of the monsoon season.

From an annualized growth rate perspective, Egypt bagged the lion’s part from the price increases reported over the last 12 months - 15.6 percent. An unusual 21.2 per-cent increase in February 2013 up to LE 676.7 per ton prompted Egypt’s Consumer Protection Agency (CPA) to file a complaint against cement companies accusing them of unfair practices. Market sources argued that the impressive increase was generated by energy shortages and unfavorable exchange rates. In order to counteract energy costs inflation, Egyptian cement companies are currently looking for alternative fuel sources, focusing on switching to coal instead of using gas. More recent data points show that cement prices declined in the beginning of July 2013 to around LE 600 per ton.

At the other head of the scale, Trinidad and Tobago reported the highest decline in the 12-month annualized growth rate, with -12.3 percent, after a successful market recovery from the mid-2012 production hick-up.

After stabilizing in the last 10 months at AED 260 per ton, UAE cement prices also declined on an annualized base to -6.6 percent. The stabilization of the market was obtained on the back of stable evolution of raw materials and freight rates.

Taking a rear-view, cement prices have been on a rise in the last 12 months. Price drops were registered in 13 countries out of the 47 included in CW Analytics and Re-search universe. Three markets were stable, while in the remaining 31 cement prices increased.


31 countries registered cement price increases over the last 12 months

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Chinese coal imports might be stalled but trading

markets still have high expectations for 2013

CEMENT ENERGY MARKETS

CoAL EXPoRTS RECovER iN SoME MARKETS whiLE MARKETS wAiT FoR ChiNA’S DECiSioN oN Low CALoRiFiC vALUE CoAL EXPoRTS Despite the deceleration in economic growth in China, the top coal importer world-wide, year-to-date coal trading volumes remain flat compared to 2012.

Coal trading volumes in the second quarter of 2013 showed a marginal increase from the second quarter of 2012 as declining volumes from Colombia and the United States were offset by an increase in coal exports from Australia and Russia.

June 2013 coal output from South Africa’s Richards Bay Coal Terminal (RBCT) rose 22 percent to 5.3 million tons, following a 30 percent decline during May. In Australia, coal shipments out of Newcastle grew 10 percent, recovering from a 9 percent drop in May.

Colombian coal exports are back on track after the steep decline in February and March volumes that followed the coal union strike. As a result of the strike year-to-date coal exports are 23 percent down from last year.

In the United States, the Energy Information Administration (EIA) is expecting coal production to remain relatively stable this year compared to 2012, while coal exports are anticipated to decline to around 100 million tons in 2013. Exports will be mainly affected by increased competition due to low coal prices, the ongoing economic slow-down in Europe and deceleration in some economies in Asia, mainly China.

COAl MARKET uPdATE

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COAL GLOBAL TRADING (million tons)

0

50

100Rest US Colombia South Africa Russia Australia Indonesia

May-1

3Ap

r-13

Mar-

13Fe

b-13

Jan-

13De

c-12

Nov-

12Oc

t-12

Sep-

12Au

g-12

Jul-1

2Ju

n-12

May-1

2Ap

r-12

Mar-

12Fe

b-12

Jan-

12De

c-11

Nov-

11Oc

t-11

Sep-

11Au

g-11

Jul-1

1Ju

n-11

May-1

1Ap

r-11

Mar-

11Fe

b-11

Jan-

11De

c-10

Nov-

10Oc

t-10

Sep-

10Au

g-10

Jul-1

0Ju

n-10

May-1

0





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STEAM COAL FOB AVERAGE PRICES (US$/TON)

30

90

150South Africa Richards Bay Indonesian HBA Australia Newcastle Colombia exported US exported

May-1

3

Mar-

13

Jan-

13

Nov-

12

Sep-

12

Jul-1

2

May-1

2

Mar-

12

Jan-

12

Nov-

11

Sep-

11

Jul-1

1

May-1

1

Mar-

11

Jan-

11

Nov-

10

Sep-

10

Jul-1

0

May-1

0

Mar-

10

Jan-

10

Nov-

09

Sep-

09

Jul-0

9

May-0

9

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China’s coal imports have been declining this year as a result of weakening demand in the country. Also, the local industry has seen its sale prices plunge, making imports less attractive to coal buyers and favoring domestic products. Meanwhile, the gov-ernment is still considering a ban on imported coal with low calorific value, but the proposal has found strong opposition and it is unknown whether the authorities will move on with the ban or not. The ban would have a negative effect on Indonesia, the main supplier of low calorific coal to China. As a response, the Indonesian govern-ment has announced the country will be looking for new export markets to divert the volume lost to China.

CoALCoal trading prices in the main export hubs declined in May for a second month in a row as a consequence of a still oversupplied market. Australia, Russia and the United States have been the major sources of the additional coal shipped this year and trad-ing volume is not expected to contract anytime soon. Despite cutbacks in production to balance supply and the closure of unprofitable mines in some markets, a number of mining companies have reported an increase in production to maximize output, sacrificing margin over volume.

The average Harga Batubara Acuan (HBA) coal price in Indonesia slid 4 percent from April. In Colombia and South Africa, price fell 1 percent versus the previous month. Year-over-year prices are down 16 percent in Indonesia, 14 percent in South Africa, 13 percent in Colombia and 9 percent in Australia and the U.S.

In China, coal prices continue to fall off. The Bohai-rim Steam Coal Price Index (BSPI), which covers six major coal-shipping ports in China, is now 5 percent below the level it had at the end of 2012.

ENERGY PRiCES uPdATE

Coal prices mainly unchanged, but trends are mixed





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PETCoKEThe 12-month average price of U.S. uncalcined petcoke for export markets in April remained unchanged for the third consecutive month at US$81 per ton. Prices seem to have stabilized after a long slide that started in the fourth quarter of 2011. The decline has eased in some markets and the price in India, for example, is now at the same level it was a year ago. Compared to 2012, seven out of the top ten export market destina-tions show signs of price recovery. Only Japan, Canada and South Korea are lagging behind.

While prices are bogged down, volumes are on the rise. U.S. petcoke exports soared in April and reached the second-highest petcoke volume exported in U.S. history. Out-put was boosted by an increase in shipments to China, Canada, The Netherlands and Mexico. April year-to-date exports to The Netherlands more than doubled versus last year and the volume shipped to Mexico is 40% higher over the same period of 2012.

Petcoke prices stable and no signs of rebound yet

US PETCOKE EXPORT PRICE (US$/TON) ROLLING 12-MONTH AVERAGE

0

60

120

Apr-

13Ma

r-13

Feb-

13Ja

n-13

Dec-

12No

v-12

Oct-1

2Se

p-12

Aug-

12Ju

l-12

Jun-

12Ma

y-12

Apr-

12Ma

r-12

Feb-

12Ja

n-12

Dec-

11No

v-11

Oct-1

1Se

p-11

Aug-

11Ju

l-11

Jun-

11Ma

y-11

Apr-

11





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NATURAL gASWith oil prices declining from a 12-month high in February 2013 and a soft demand environment, natural gas prices in Europe and liquefied natural gas (LNG) prices in Japan were 5 percent and 2 percent down, respectively, in May compared to April. LNG price in Japan reached its lowest since November 2012, but it is expected to re-cover as the summer season hits and power consumption goes up.

In Europe, even after this month’s slide, price remains at high level, and the average price for the first 5 months of 2013 is 5 percent higher than the same period of 2012. Natural gas demand in Europe is still sluggish but Russia’s Gazprom, the largest gas supplier to European markets, is expecting a 9 percent growth in its deliveries to the region during 2013, following a decline of 7 percent in 2012. Gazprom reported an increase of 5 percent in its export contract pricing during 2012.

In the U.S., Henry Hub spot price has been declining since the beginning of June, after reaching levels over US$4/mmBtu in April and May. Prices are down in most regions except for the Northeast where they rose 10 to 20 percent during the second week of June due to warmer-than-normal temperatures. The heat wave continued to affect west and southwest states through the end of June and the beginning of July, with tem-peratures hitting triple digits in most locations. Experts are predicting summer 2013 will be among the top 10 warmest on record, which could send natural gas prices back to US$4/mmBtu. However, the U.S. Energy Information Administration (EIA) still maintains its natural gas price forecast for 2013 at around US$3.92/mmBtu.

Extended winter drives rally in US natural gas prices

NATURAL GAS PRICES (US$/MMBTU)

0

10

20

Japan LNG Europe US

May-1

3

Sep-

12

Jan-

12

May-1

1

Sep-

10

Jan-

10

May-0

9

Sep-

08

Jan-

08

May-0

7

Sep-

06

Jan-

06

May-0

5

Sep-

04

Jan-

04

May-0

3

Sep-

02

Jan-

02

May-0

1

Sep-

00

Jan-

00

May-9

9

Sep-

98

Jan-

98

May-9

7





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CW Group Coal WeekCEMENT - PRODUCTION (MILLION TONS)

Country LM MoM (%) YoY (%) YTD YTD %

china (June) 227.5 1% 10% 1,083.7 8%

india (april) 22.5 -7% 13% 89.9 8%

uS (april) 6.5 14% 0% 21.7 1%

russia (april) 5.4 15% 6% 16.6 11%

mexico (april) 3.0 -1% 2% 11.7 -2%

colombia (may) 0.9 5% 1% 4.4 2%

CEMENT - CONSUMPTION (MILLION TONS)


france (June) 1.9 6% -10% 9.6 -7%

Brazil (June) 5.5 -8% 4% 33.6 2%

S. arabia (June) 5.1 -4% 15% 31.4 11%

Spain (may) 1.0 10% -18% 4.4 -25%

indonesia (april) 4.5 0% 9% 18.1 9%

egypt (march) 3.5 0% -10% 10.6 -15%

PORTLAND CEMENT - IMPORTS (MILLION TONS)


uS (may) 0.5 -3% -20% 1.9 6%

malaysia (may) 0.1 -27% 27% 0.4 25%

canada (march) 0.1 24% 1% 0.2 10%

france (april) 0.2 16% -22% 0.7 -21%

Brazil (may) 0.1 41% -5% 0.4 38%

PETCOkE - ExPORTS (MILLION TONS)


uS 2.9 23% 10% 9.7 1%

PETCOkE - GLOBAL ExPORT PRICES (USD/TON)


uS 78.5 -6% -5% 79.9 1%

NATURAL GAS PRICES (US$/MMBTU)


Japan 15.3 -2% -11% 15.9 -4%

europe 12.3 -5% 6% 12.1 5%

uS 4.0 -3% 66% 3.7 59%

PORTLAND CEMENT - ExPORTS (MILLION TONS)


china (march) 0.8 26% 13% 2.2 38%

Thailand (may) 0.7 13% 4% 3.1 0%

Japan (may) 0.4 9% -28% 2.1 -5%

Korea (may) 0.3 46% -32% 1.4 16%

germany (march) 0.3 17% -21% 0.8 23%

COAL - ExPORTS (MILLION TONS)


indonesia 27.7 3% -7% 134.5 -3%

australia 14.0 -5% 9% 70.4 10%

uS 7.8 -12% -30% 45.5 -6%

colombia 7.1 17% -13% 25.6 -23%

South africa 4.8 -30% -7% 30.9 0%

COAL - GLOBAL ExPORT PRICES (USD/TON)


indonesia 85.3 -4% -16% 88.0 -19%

australia 93.7 0% -9% 97.3 -16%

uS 74.4 0% -9% 76.4 -12%

colombia 83.8 -1% -13% 86.6 -12%

South africa 81.1 -1% -14% 83.6 -18%

-1%

0%

2% South Africa ColombiaUS Australia Indonesia

May-1

3

Apr-

13

Mar-

13

Feb-

13

Jan-

13

Dec-

12

Nov-

12

Oct-1

2

Sep-

12

Aug-

12

Jul-1

2

Jun-

12

May-1

2

COAL EXPORTS MoM (%)

NATURAL GAS PRICES MoM (%)

-30%

0%

60%US Europe Japan

May-1

3

Apr-

13

Mar-

13

Feb-

13

Jan-

13

Dec-

12

Nov-

12

Oct-1

2

Sep-

12

Aug-

12

Jul-1

2

Jun-

12

May-1

2

COAL EXPORT PRICES MoM (%)

-10%

0%

10%South Africa Colombia US Australia Indonesia

May-1

3

Apr-

13

Mar-

13

Feb-

13

Jan-

13

Dec-

12

Nov-

12

Oct-1

2

Sep-

12

Aug-

12

Jul-1

2

Jun-

12

May-1

2

Source: CW Group ResearchLM: latest month (June where not specified); MoM: month vs previous month; YoY: month vs same month last year; YTD: year-to-date; YTD%: year-to-date vs previous year




CW Group Coal Week

Source: CW Group ResearchLM: latest month (June where not specified); MoM: month vs previous month; YoY: month vs same month last year; YTD: year-to-date; YTD%: year-to-date vs previous year

REGIONAL REPORT:

EURoPETough economic times continue for the Spanish cement market, which has fall-en 24 percent in 2013 on reduced public spending and is predicted to finish the year down 21 percent from 2012. Mar-ket predictions suggest that the market will stabilize at 20-25 million tons of consumption next year. Holcim in Spain will cut 75 percent (568 million euros) of its capital expenditures. The struggling Spanish CEMEX branch has sold its Sant Feliu de Llobregat, Catalonia, unit to Ce-mentos Molins.

The Italian cement market has a sim-ilarly poor outlook, with production volumes halved in the past seven years and declines of 20-25 percent predicted for 2013. Production in 2012 decreased 20.8 percent year-over-year to 26.2 mil-lion tons, while consumption fell by 22.1 percent. Excess production capacity is estimated at 40-50 percent. The Italian firms Cementir and Italcementi have announced closures and worker layoffs, spurring protests. Italcementi is moving ahead with a restructuring plan intended to boost efficiency from 60 million to 100 million euros.

In France, Holcim is venturing into the western portion of the country. Western

acquisitions have included Atlantic Ce-ment and the cement import terminal of Montoir-de-Bretagne in Saint-Nazaire. Additionally, Holcim has opened a clin-ker grinding center in Grand-Couronne, with production capacity of 0.58 million tons, and is set to open a second center on the Port of La Rochelle, also with capacity of 0.58 million tons.

Kercim is targeting 10 percent of the west-ern French market with its ultra-modern, US$44 million Saint-Nazaire grinding

center (production capacity 0.6 million tons). The venture will utilize a system based on the external supply of raw ma-terials concept. The French firm Vicat has started trial production of Alpenat cement, a new product with 30 percent lower CO2 emissions in manufacturing.In New Caledonia, Holcim will sell its 0.2-million-tons operations, Holcim Nouvelle Calédonie, to Tokuyama Cor-poration of Japan. Holcim aims to in-crease operating profit by CHF 1.5 billion between 2011 and 2014.

Oversupply of European cement has boosted imports into Belgium. Market watchers expect a loss of 8 percent in ce-ment consumption in Belgium in 2013.

In Switzerland, Holcim’s Siggenthal unit has begun using lignite to power its kiln, importing 1,500 tons of fuel per week via freight train. Since the fuel comes from Europe, the supply chain is shorter and security higher than for overseas coal.

Price pressures are increasing in the Aus-trian cement industry, after 2012 regis-tered stable sale margins of 4.46 million tons, but revenue that declined 4.7 per-cent to 375 million euros. New technol-ogies are one promising approach: in the Austrian Leitha Mountains, Lafarge has a 12 million-euro, large-scale plant with catalyst technology, expected to reduce nitrogen emissions.

Cimpor will export 0.045 million tons of cement from Alhambra port via barge to Lisbon and thence to Africa. The city of Tema, Ghana, will receive 55 percent of the shipment, with the rest bound for Freetown in Sierra Leone.

In Romania, the cement manufacturer Carpatcement expects to increase cement production by 1.9 percent this year to 2.8 million tons. Total cement production in Romania totaled 7.7 million tons in 2012 and 7.6 million tons in 2011. Carpatce-ment predicts a turnover of RON 834.8 million this year, up 3.3 percent com-pared to 2012, and a gross profit of RON 174.9 million, down 4.9 percent.

CoMPANy (LoCATioN) ovERviEw

hoLCiM/RUSSiA Holcim announced that it will start construction at a new cement plant in Saratov region, Volsk by the end of this year. The company targets to commission the unit late 2015 - early 2016.

RUSSiA A new cement plant will rise in the Buinaksk district of Dagestan. The plant will have a capacity of 0.3 million tons per year.

KERRy QiEFU/bELARUS Kerry Qiefu grinding plant has undergone initial ignition. Kerry Qiefu cement plant was the last plant in a three plants construction project, being also the longest project of all three.

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CW Group Coal Week

regional report: europe, Middle eaSt, afriCa

RUSSiA AND ThE bALTiC REgioNCement production in the first four months of the year has increased by 10.5 percent year-over-year in Russia to 16.6 million tons. Market players have shifted over the same period, with Eurocement reducing its stake by 1.1 percent to 32.8 percent, while Novoroscement increased its stake by 2.6 percent to 10.4 percent, and Heidelberg Cement is up 0.5 percent to 5.4 percent. Holcim has announced construction of a new cement plant in the Saratov region. In Pikalyovo, Russia, the company BaselCement will spend up to 5 billion rubles to modernize BaselCement Pikalyovo, integrating two new produc-tion lines. Sebryakovsky Cement has also announced the opening of a new produc-tion line in Russia.

In contrast to Russia, cement production in the Ukraine reached 1.046 million tons in May 2013, up from April by 24.5 per-cent, but a year-over-year decrease of 8.4 percent. April 2013’s production, 23.1 percent higher than March, came in at 5.5 percent below April 2012. In total, 2013 production in the country has totaled 3.201 million tons, a drop of 3.2 percent compared with the same period in 2012. Production in 2012 fell 6.8 percent below those of 2011, which had seen an increase of 11.2 percent over 2010’s production. On the fuels side, the Ukrainian cement firm Ukrcement has requested 0.816 mil-lion tons of the country’s imported coal quota to continue production.

After receiving a modernization loan of US$530 million from Eximbank, the Belarusian cement industry launched a US$1,134 million modernization proj-ect, including installation of three new production lines with a 1.8-million-ton capacity each. The lines were expected to increase national cement production

by 117 percent. However, with two of three new lines operational, production decreased by 1.6 percent, year-over-year, between January and April 2013. Domes-tic market consumption shrank and ex-ports are limited by long transportation distances and lack of demand.

MiDDLE EASTIn Saudi Arabia, cement demand is ex-pected to decrease due to a summer building lull. This is in contrast to the first half of 2013, when demand was high enough to require an estimated total of 5-6 million tons of cement imports over the year. Total cement sales in the coun-try from January through May 2013 to-taled 26.23 million tons, up 6.6 percent year-over-year. Looking ahead, a new 250-million-riyal Saudi cement plant will be constructed by Umm al-Qura, while Najran Cement has already begun test-ing a new production line expected to produce 6,500 tons of clinker daily and to boost the firm’s total output to more


NAjRAN CEMENT/SAUDi ARAbiA

Najran Cement successfully tested its third clinker line that increased the company's daily clinker capacity to 15,500 tons. The latter production line brought an additional capacity of 6,500 tons per day.

EASTERN CEMENT/SAUDi ARAbiA

Eastern Cement also announced the start of the trial run of its new 600 tons per day production line. The trial period will last for three months.

TAbUK CEMENT/SAUDi ARAbiA

Tabuk Cement announced the construction of its second clinker production line (5,000 tons per day) and a captive power plant (30 MW).

bAbyLoN CEMENT PLANT/iRAQ

The Ministry of Industry and Minerals has signed a joint investment with an Iraqi company and two others for the rehabilitation of the Babylon cement plant, while confirming that the value of the contract amounts to US$ 25 million for a period of 15 years. Once rehabilitated, the cement capacity of the plant should reach 0.22 million tons.

RAySUT CEMENT/yEMEN/UAE/oMAN/SoMALiA

Raysut Cement is planning to build a state-of-the-art cement terminal in Berbera Port, Somalia, and a grinding plant in Mukulla, Yemen. The company has also approved a plan to build a new cement terminal in Duqm Port, Oman, but also an expansion project at its UAE affiliate, Pioneer Cement.

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CW Group Coal Week

than 17,000 tons of cement per day. The Saudi company Eastern Cement has an-nounced a trial run of a new 600-ton pro-duction line for specialized cement types.

In Iran, cement and clinker exports have doubled, to 5.75 million tons, in the first quarter of the Persian solar calendar fis-cal year. In June alone, 1.4 million tons of cement and 0.33 million tons of clin-ker were exported. Iran exports cement to Iraq at US$50 per ton, a price that will increase by US$5 going forward.

With assistance from the government, the Iraqi company Babylon Cement will rehabilitate its cement plant for US$25 million, aiming for production capacity of 0.22 million tons.

GCC cement sector profits rose in the first quarter of 2013 to US$585.3 million, an increase of 16.9 percent year-over-year. The profit margin reached 40.8 per-cent compared with 39.7 percent a year earlier. Cement prices, however, fell over-all by 0.9 percent in 2013 to US$66.1 per ton, taking into account price drops of 2.5 percent in Saudi Arabia and a price increase of 6.7 percent in Kuwait.

In the UAE, foreign cement trade reached US$269 million and a growth rate of 11 percent during the first nine months of 2012. Reflecting stable commodity pric-es and a lack of cement scarcity, cement prices in the UAE are holding steady at 250-260 dirhams per ton in 2013.

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For a total investment of US$24 million, Raysut Cement plans to build a cement terminal in the Port of Duqm, Oman, and another in Berbera Port, Somaliland, Yemen, in addition to a grinding plant in Mukulla, Yemen. Pioneer Cement Indus-tries, a subsidiary of Raysut, will expand storage capacity with an additional ce-ment silo as well as equipment upgrades.

Domestic cement demand has been moderate in Jordan so far in 2013, with a volume of 1.5 million tons. White ce-ment demand, 100-120 tons per day, has remained flat from 2012 but substantially

lower than 2010 and 2011. Meanwhile, in Kuwait, a new 8,500-ton clinker produc-tion line is open on a trial basis in Kuwait Cement’s Shuaiba Industrial East plant. With the new line, the total plant capacity will reach 5 million tons per year.

The Israeli cement market is currently controlled almost entirely by the com-pany Nesher, with 10 percent supplied by Lion Baron. To promote competition and lower prices, the Israeli government has approved a bill to de-monopolize the market.

Finally, Syria’s Hama Cement company reports reduced cement marketing be-cause the current political crisis has hin-dered construction projects and impeded transportation networks. In addition, ce-ment prices are up due to high fuel costs.

AFRiCAIn Egypt, product transport vehicles have returned to full work capacity, bringing cement prices down 50 pounds per ton after the price rose to 650-700 pounds previously. Nevertheless, cement produc-tion at the Ain Sukhna cement plants has fallen by 50 percent as a result of securi-ty concerns in conjunction with political protests.


gALiLEi-hEiDELbERgCEMENT/ANgoLA

Galilei partnered with HeidelbergCement and Angola National Cement for the construction of a 2 million tons cement plant in the exchange of a total investment of EUR 284 million.

hEiDELbERgCEMENT/LibERiA

HeidelbergCement commissioned a new cement mill at its grinding plant in the capital city of Monrovia. The 0.5 million tons mill represented an investment of US$ 14 million.

TANgA CEMENT/TANzANiA Tanga Cement plans to invest US$ 165 million for the construction of a second kiln at its plant, investment that will lift the clinker capacity by 0.6 million tons.

DANgoTE/TANzANiA The ground breaking ceremony of Dangote's three million tons cement factory took place in the end of May, 2013 in Tanzania.

CiMAF gAboN/gAboN Morocco's CIMAF group laid the foundation stone of its new cement plant worth CFA 9.67 billion. Located in Owendo, 15 km south of Libreville, the cement plant will have an initial capacity of 0.5 million tons.

LAFARgE/ziMbAbwE Lafarge Cement Zimbabwe announced plans to invest US$ 200 million within the next 10 years towards setting up a new one million tons cement manufacturing plant.

SoCiéTé SAoURA CiMENT/ALgERiA

The Société Saoura Ciment (SSC), a subsidiary of Algeria's GICA, launched a tender for the realization of a cement plant with a capacity of 3,200 tons of clinker per day in Bechar.

LAFARgE/NigERiA The Enugu State Government has signed a Memorandum of Understanding with Lafarge for the establishment of a cement factory in the region.

LUCKy CEMENT/DEMoCRATiC REPUbLiC oF CoNgo

Lucky Cement starts construction at its US$ 240 million factory in Democratic Republic of Congo. Lucky Cement entered into a 50-50 agreement with the Rawji Group for a company called Nyumba Ya Akiba (NYA).

SELECT PROJECTS IN THE WORkS: AfRICA






CW Group Coal Week

New cement developments are emerging across the African continent. In Tanza-nia, the Tanga Cement Company plans to invest US$165 million to construct a second, 0.6-million-ton kiln and dou-ble clinker production. Meanwhile, the Confederation of Tanzania Industries (CTI) has called on the government to increase taxes on imported cement. Gal-ilei and HeidelbergCement will partner to construct a 2-million-ton capacity plant in Benguela, Angola, at the cost of 284 million euros. Commissioning a new 0.5-million-ton, US$14-million mill at its grinding plant in Monrovia, Heidel-bergCement has expanded its presence in Liberia. A booming construction sector has prompted Zambezi Portland Cement to increase production capacity from 1,000 to 1,400 tons per day. In Zimba-bwe, Lafarge will invest US$200 million in a new cement manufacturing plant, elevating Lafarge Cement Zimbabwe’s production from 0.45 million tons per year to 1.45 million tons. Construction is

regional report: europe, Middle eaSt, afriCa

underway on a FCFA 35-billion cement factory in Issongo-Bakingili, Limbe, Fako Division of Cameroon. The plant is expected to produce between 0.8 and 1 million metric tons of cement per year. The Gabon-based company Cimaf (Afri-ca Group Moroccan Cement) has begun construction on a second clinker grind-ing plant with anticipated capacity of 0.5 million tons and potential to expand to 1 million tons.

Nigeria’s cement market is also attract-ing new developments. Lafarge has an-nounced plans to establish a new cement factory to process limestone from large deposits in Enugu State. Meanwhile, the Public Investment Corporation has invested US$289.3 million in Nigeria’s Dangote Cement and is considering ad-ditional Dangote investments.

The rebuilding of destroyed infrastruc-ture in the Democratic Republic of Con-go (DRC) is attracting cement makers,

including Pretoria Portland Cement Company Limited (PPC Ltd.). PPC will raise 1.3 billion rand this year from bond sales and expects to build a US$200-mil-lion plant near Kinshasa to address a 1 million-ton shortage of cement in the country.

Algerian cement imports rose 102 per-cent between 2012 and 2013, reaching US$159.39 million between January and May 2013. Import quantities increased more than 105 percent to 1.791 mil-lion tons. The Algerian firm GICA is set to construct a new multi-batch, 3,200-ton-capacity clinker plant in Be-char. GICA’s development plan, aiming to increase production from 11.5 million tons to 25.7 million tons by 2017, includes the construction of three other plants at Salah, Yellel, and Sigus.

Elsewhere, the cement sector is hampered by a more negative outlook. Under high transportation costs, the price of cement has increased from K65 to K75 in Zam-bia. In Senegal, accusations that President Macky Sall blocked commissioning of a Dangote Cement plant due to pressure from a French business lobby were de-nied.

In Morocco, sales have registered their largest decline in 35 years, finishing the first half of 2013 down 13.5 percent. The drastic decrease is of concern to econo-mists, who view cement consumption as an indicator of a country’s development. Morocco registered a decline in housing starts of 11.5 percent in 2012 and a de-crease in cement demand of 14.5 percent as of May 2013. In all, 2013 consumption is expected to come in at 8 percent below 2012 levels. Morocco’s cement overcapac-ity reached 5 million tons in 2012.

Similarly, poor performance in the con-struction market in Madagascar leaves the cement industry on uneasy footing. With 0.5 million tons of cement available in the local market in 2013 and private construction responsible for 80 percent of purchasing, oversupply with associat-ed price declines (already down 6 percent this year) are likely.




CW Group Coal Week

REGIONAL REPORT:

CoMPANy (LoCATioN)

ovERviEw

oRiENT CEMENT/iNDiA Orient Cement received environmental clearance for its cement plant at Chittapur in Gulbarga district of Karnataka. The Rs 1.75 crore project is expected to be commissioned by the end of December 2015.

MADRAS CEMENT/iNDiA

The company is pledging Rs 360 crore for the construction of a new grinding unit in Andhra Pradesh and another Rs 55 crore to boost its power generation capacity. The grinding unit will be supplied with clinker from the Jayanthipuram cement plant and is expected to come online in the second quarter of FY 2014-2015.

DAL TEKNiK MAKiNA TiCARET vE SANAyi/UzbEKiSTAN

The Turkish contractor, Dal Teknik Makina Ticaret Ve Sanayi, signed a contract with German Pfeiffer for the supply of a MPS 3350 cement mill. The delivery of the equipment is scheduled for late 2013 - early 2014.

AKKoRD CoRPoRATioN/AzERbAijAN

The International Bank of Azerbaijan (IBA) announced the success of its program to finance the development of the sector of construction materials through the finalization of the construction process of a second cement plant in the country, funded by the World Bank and built in partnership with Akkord Corporation.

hEiDELbERgCEMENT/KAzAKhSTAN

The new 1.8 million tons cement plant in the village of Shepte is on track to start production by the end of the year.

SELECT PROJECTS IN THE WORkS: CENTRAL AND SOUTHEAST ASIAIn India, the first quarter of 2014 is ex-pected to be the third consecutive weak quarter for cement companies. Industry volumes are likely to be up 4 percent year-over-year and down 8 percent quarter-over-quarter to 61.7 million tons, while average all-India cement realizations are likely to be down 4 percent year-over-year and broadly flat quarter-over-quar-ter. Average EBITDA per ton is expected to decline by 27 percent year-over-year and to remain broadly flat quarter-over-quarter. The earnings downgrade cycle is likely to continue through the quarter. Positive outlooks on the sector hinge on demand recovery in the second half of 2014, a scenario predicated upon a hous-ing upswing after a normal monsoon,

reversal in the interest rate cycle, a pick-up in infrastructure expenditures due to governmental elections, and the low-base effect.

Cement prices rose in June 2013 across India. Over one month, the all-India av-erage increased Rs 14/bag to Rs 308/bag. Prices are up year-over-year by Rs 15/bag. Greatest gains occurred in the south-ern region, with an average price hike of Rs 30/bag. Prices increased by Rs 15-20/bag in the east and west regions, yielding average prices of Rs 333/bag in the east and Rs 306/bag in the west. In the north-ern and central regions, prices increased by Rs 5-10/bag, bringing the northern and central price averages to Rs 296/bag and Rs 293/bag, respectively. Demand fell across the country, as a result of early monsoon arrival and a slowdown in in-frastructure.

Meanwhile, Holcim plans to carry out a substantial restructuring and optimiza-tion of Indian operations, perhaps includ-ing a much-anticipated merger between its local subsidiaries Ambuja Cements and ACC. Madras Cements plans to in-vest Rs 360 crore to set up a new grind-ing unit in Andhra Pradesh and another Rs 55 crore to increase its power genera-tion capacity. The new unit will open in the second quarter of FY2014-2015. The clinker for this plant would be transport-ed from its Jayanthipuram plant. The out-






CW Group Coal Week

put from the new unit would be marketed in coastal Andhra Pradesh and in Odisha and Chattisgarh. The company currently operates three grinding units.

Several notable sales are also on the ho-rizon in India. Jaiprakash Associates (JP) will sell its Gujarat cement unit stake by the end of the year. The 4.8 million ton cement plant has been valued at Rs 4,000 crore. French cement major Lafarge re-ceived approval from Competition regu-lator CCI for its 14 percent stake sale in its Indian subsidiary to Paris Cement In-vestment Holdings, a subsidiary of Bar-ing, while CRH and Vicat are in a race to acquire Shree Jayajothi Cements, the cement unit of Shriram Group. Shree Jayajothi Cements is valued at US$250 million.

In Pakistan, total cement sales declined 6.44 percent over one month to a June 2013 total of 2.702 million tons. Local sales declined 1.4 percent to 2.07 million tons. In northern Pakistan, sales declined 2.8 percent over one month to 1.665 mil-lion tons, but in southern Pakistan sales

were up 4.8 percent to 0.408 million tons. Exports registered a steep monthly de-cline of 20 percent to 0.63 million tons in June.

Beginning July 1, cement prices in Paki-stan will increase Rs 25-30 per 50-kg bag, as a consequence of a new 19 per-cent federal sales tax. The tax includes a 17 percent general sales tax, as well as a 2 percent tax on retailers and distributors.

By contrast, Pakistani manufacturers have slashed the price of cement exports to Afghanistan by around Rs 300 per ton in order to compete in the Afghan mar-ket. Cement exports to Afghanistan via the Torkhum border had been halted due to high availability of cheaper Iranian ce-ment.

In Nepal, the value of cement imports rose by 15.5 percent to Rs 3.34 billion in the first 10 months of the fiscal year, and seven new cement factories were brought online. Domestic manufacturers argue that local production can meet the Nep-alese market demand and call for the gov-

ernment to support local production by rolling back fee waivers on imports from India.

The Ghorahi Cement Industry of Nepal has launched its new Sagarmatha OPC (Ordinary Portland Cement) cement, which complies with Nepal Standards NS 49-2041. Aiming to substitute its product for imports from India and China, the company is now seeking to obtain ISO 9001 certification for the new cement. The new product’s strength ranges from 55-60 MPa, while 53 MPa is considered high-grade. Sagarmatha cement is manu-factured at a plant equipped with state-of-the-art technology from KHD Hum-boldt of Germany.

Sri Lanka plans to protect local manu-facturers and traders by banning foreign investments in steel, cement and super-markets. Previously-approved projects will not be affected by the new investment ban.

A proposal to abolish the import duty on cement in Kyrgyzstan has been rejected by the Parliamentary Committee on Eco-nomic and Fiscal Policy. The proposal argued that high cement prices increase construction costs and harm Kyrgyzstan’s markets. However, the committee reject-ed the proposal because the import duties do not apply to the CIS countries.

The Yuzhnokyrgyzsky cement plant in Kyrgyzstan plans to produce 0.6 million tons in 2013, up from 0.5 million tons in 2012 and 0.335 million tons in 2011, but down from 0.922 million tons in 2010.

Natural gas shortages have cut Tajikistan’s cement production significantly. In the first five months of this year, the country produced only 0.017 million tons of ce-ment, down from 0.09 million tons dur-ing the same period in 2012. The largest cement plant in the country, a facility of Tajikcement, has been dormant since mid-November of last year. Tajikistan’s cement industry is working to shift equip-ment from gas-powered to coal-powered in an effort to restart production.

regional report: SoutH aSia




CW Group Coal Week

REGIONAL REPORT:

Because of unfavorable market condi-tions, Brazilian cement company Vo-torantim Cimentos has postponed until September 11 its sale of US$3.7 billion in shares. The deal would have been the world’s second-largest this year, after Brazilian insurer BB Seguridade Partici-pacoes’s US$5.7 billion sale in April. Vo-torantim’s postponement follows six Bra-zilian IPOs, worth a combined US$7.3 million, since January. Although IPOs are down 4.2 percent globally and 31 per-cent in the U.S. over the same period last year, Brazilian IPOs this year have been the highest for the period since 2002 and have tripled 2012 levels.

The Portuguese company Semapa-Socie-dade de Investimento e Gestao purchased a 50 percent stake in Supremo Cimento in 2012 and is building a cement plant in the Brazilian state of Parana. The new plant will increase Supremo’s cement capacity from 0.4 million tons to 1.7 million tons. Portuguese cement and building compa-nies are focused on Brazil in anticipation of the 2014 soccer World Cup and 2016 Olympic Games. Additionally, cement consumption in Portugal has slowed con-siderably after the country’s 2011 bailout.In other developments, the port of Para-naguá on the coast of Paraná is receiv-ing parts for the R$340 million Margem cement plant, located in Adrianopole in the Metropolitan Region of Curitiba and expected to generate 150 direct jobs in 2014. Parts arriving at the port originate from 15 countries and a large number of companies, including FLSmidth.

The Colombian market is poised for ex-pansion as a result of a government pro-gram slated to build 100,000 new homes.

Construction has prompted Holcim, Ce-mex and Cementos Argos to together in-vest more than US$700 million to build new plants and expand existing facilities. Cemex, which has a 2.7 million-ton ca-pacity plant near Ibague, another in the city of Cúcuta, and two mills located in Bucaramanga and La Calera, will invest about US$75 million in Colombia in 2013, building a new mill in Bolivar.

Overall, gray cement production in Co-lombia increased slightly year over year in May, reaching 929,100 tons, but sales declined. A total of 901,600 tons of gray cement were shipped to the domestic market, down 0.3 percent from the same

month last year. The decrease was mainly due to marketing sector losses, which subtracted 3.2 percent from the total. By contrast, there were increases in ship-ments to builders and contractors and cement trucks, which together contrib-uted 2.9 percent. Shipment reductions occurred in Bogotá (-15.5 percent), Nari-ño (-38.2 percent), and Cesar (-20.5 per-cent), combining to subtract 3.9 percent from the total. Meanwhile, Córdoba (54.7 percent), Atlantic (22.4 percent) and Bo-livar (25.8 percent) summed to a gain of 3.4 percent overall.

Notable among individual companies, Cementos Argos has recently raised US$1.4 billion in capital. In the first fund-ing round, the company earned 1.4 tril-lion paisa and awarded 182 million pre-ferred shares. U.S. investment banks JP Morgan Securities and HSBC Securities purchased 27.2 million preferred shares for 209,423,000 pesos. With an invest-ment of US$93 million, Cementos Argos then began to expand plant capacity in Rioclaro, Nare, and Cairo, increasing by 0.9 million tons the central Colombian cement production capacity.




CW Group Coal Week

regional report: aMeriCaS

Cement Group, anticipate completion in 2016 of a US$160 million cement plant with a production capacity of 0.7 million tons in Peru.

Between January and March of this year, 671,078 metric tons of cement were sold in Bolivia, an increase of 6.6 percent over 2012’s first quarter. Overall, 2.4 million metric tons were sold in the country in 2010, 2.6 million tons in 2011, and 2.7 million tons in 2012. Demand is expected to grow by at least 10 percent until De-cember of this year.

Expansion of the Bolivian cement mar-ket is illustrated by the recent opening of the Cooperative Boliviana de Cemento, Industries and Services (COBOCE)’s sec-ond modern cement plant, in the town of Irpa Irpa. The furnace currently produces 1,600 tons of clinker and is expected to double capacity.

In late 2012, Bolivia imported about 10,000 metric tons of cement to supply the domestic market. However, recent ex-pansion of domestic production capacity via the cement factories Viachan Soboce (La Paz), Fancesa (Sucre), and Coboce of Irpa Irpa (Cochabamba) ensures that

In Argentina, a factory gas compression plant is slated to open in the northern province of San Juan, enabling a new gas pipeline investment of US$250 million by cement firm Loma Negra. Loma Negra will open its tenth cement unit this year. Additionally, the company has invested US$45 million this year in the new plant and a coal grinding unit.

The Argentinian port of Comodoro Rivadavia will ship 6,000 tons of ce-ment to Ecuador. Shipment will occur on the Brazilian merchant vessel HC Opal and represents an exporting batch from Petroquímica de Comodoro Rivadavia.

Between January and April 2013, sales of concrete and local cement dispatches in Peru grew by 90.7 percent and 0.5 per-cent, respectively. Combined year over year growth was 8.7 percent. Public sector consumption was stimulated by US$38 million in construction at public facili-ties. Tax works construction (US$3 mil-lion) on the Mansiche Road interchange began in the same period.

The Chilean company Bio Bio and its Bra-zilian partner Vatorantim, working with the Local Ipsa and the Hispanic World

domestic supplies will meet current de-mand. Construction experienced no ce-ment shortage during the recent busy construction season. However, construc-tion on a priority installation of a cement plant in Oruro, spurred by the presence of a rich deposit of limestone in North Caracollo, has stalled.

In the Dominican Republic, new en-trants like Grupo Estrella have recently joined the fast-growing market, while foreign investments in the cement in-dustry have totaled over US$1 billion. Local companies include Cementos An-dino Dominican with a milling capacity of 0.475 million tons, Cemex with 2.4 million tons, Cementos Cibao with 1.3 million tons, Domicem with 1.1 million tons, Cementos Colon (Argos) with 0.5 million tons and Santo Domingo with 0.35 million tons. The seventh Domini-can cement plant, belonging to Grupo Estrella, is currently under construction. The country’s installed capacity is esti-mated at 6.1 million tons per year.

In 2012, the Dominican Republic ex-ported 1.37 million tons of cement, 36 percent more than the previous year. Ex-ports to markets in South America, the




CW Group Coal Week

Caribbean, and Central America have been strong enough to partially offset a 6 percent reduction in the domestic mar-ket.

The Colombian cement company Argos arrived in the Dominican market in 1996 with a stake in Cementos Colon, gaining control of the company in 2009. In the in-tegration process that followed, Argos has made investments to increase production capacity and has already launched a con-crete plant to add to the Dominican mar-ket.

Of additional interest in the growing Do-minican Republic market is the launch of a new cement variant, known as Titan ce-ment, by Cemex. A high efficiency (HE) product available in bulk quantities for industrial use, Titan exhibits enhanced resistance and performance and is ex-pected to raise the quality of buildings in the country.

The cement industry in Venezuela has shown recent signs of stabilization after the country invested US$458 million to improve operations. Production from April 2012 to April 2013 amounted to 8.4 million tons. The domestic industry’s production capital consists of 10 cement plants with a total of 23 kilns for clinker production and a capacity of 8.8 million tons per year, as well as 20 cement pro-duction lines with total capacity of 9.09 million tons per year.

Looking to boost the cement industry, Venezuela may spend as much as US$1.2 billion to increase domestic cement pro-duction to 500 kg per person per year. Venezuela currently produces about 280 kilos per person per year.

To further bolster supplies, Venezuela has begun importing cement, with the port of Puerto Cabello recently receiving 23,991 tons of cement from Cuba. These supply changes may impact fluctuating prices of cement in Venezuela. Bulk cement prices in the country increased by 40 percent in recent weeks, affecting the final price of works by about 8 percent.

In Texas, demand in a market led mainly by the oil and gas industry has fueled Ce-mex’s plans to expand production capac-ity at its Odessa, Texas, cement plant by 62 percent to nearly 0.9 million tons per year. Meanwhile, Texas Industries reports that the second kiln at its Hunter cement plant is now operational. In combination, the two TXI kilns will produce and ship approximately 2.3 million tons of cement per year.

To settle allegations of air pollution, the U.S. company Ash Grove Cement will pay a US$2.5 million penalty and invest about US$30 million in pollution-control tech-

CoMPANy (LoCATioN)

ovERviEw

CEMENToS yURA/PERU

Cementos Yura is expecting high-tech equipment from Germany for the expansion of its cement plant.

CEMENToS bio bio/PERU

All permissions have been obtained for Cementos Bio Bio's Peruvian projects. The Chilean cement company is partnering with the Brazilian Votorantim for the construction of the 0.7 million tons cement plant. The expectation is that the unit will be operational by 2016.

LoMA NEgRA/ARgENTiNA

Loma Negra is currently preparing the Environmental Impact Statement (EIS) for its US$ 250 million Pocito cement project announced two years ago. Once approved, the company can start the construction process at the plant.

CEMEX/USA Cemex plans to expand the production capacity at its Odessa, Texas cement plant with the objective to reach a total capacity of 0.9 million tons per year.

SELECT PROJECTS IN THE WORkS: AMERICAS

nology at its nine cement manufactur-ing plants. The nine plants are located in Foreman, Ark.; Inkom, Idaho; Chanute, Kan.; Clancy, Mont.; Louisville, Neb.; Durkee, Ore.; Leamington, Utah; Seattle, Wash.; and Midlothian, Texas.

In the first three months of 2013, cement demand plummeted 10 percent in Mexi-co, placing the 2013 first quarter among the worst in the past decade. However, the Mexican unit of Swiss cement gi-ant Holcim expects demand for cement in the country to grow by 1-2 percent in 2013, once the government initiates a public works plan.

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CW Group Coal Week

REGIONAL REPORT:

The Chinese cement market is expected to grow by about 6 percent in 2013, up from 5.74 percent in 2012. Urbanization and strong infrastructure demand will sustain the Chinese market in a stable development phase.

In the first five months of 2013, national cement production has maintained rapid growth, with output reaching 866.35 million tons, up 8.9 percent year-over-year. Over the same period, national investment in fixed assets (excluding farmers) was 13.1211 trillion yuan, up by 20.4 percent nominal growth. May fixed

asset investment (excluding farmers) increased 1.43 percent. The national real estate development and investment over the period was 2.6798 trillion yuan, up by 20.6 percent nominal growth. Residential investment equaled 1.8363 trillion yuan, up 21.6 percent.

From January to April, Chinese exports of cement and cement clinker amounted to 4.07 million tons, an increase of 31.5 percent. Exports were valued at $230 million, an increase of 21.1 percent. April was the best month, with 1.23 million tons of cement and clinker exported.

Cement and clinker FOB prices were at about $55 per ton, $4 lower than the same period last year. Industry-wide, total profit in China for the period was 8.23 billion yuan, a decrease of 12.1 percent year-over-year.

Losses were reported in 12 provinces, with greatest declines for the northern and northeastern regions. Better earnings occurred in the southwest, with substantial growth in Sichuan, registering total gross profit of 1.043 billion yuan (up 156 percent year-over-year), and in Guizhou (up 189 percent year-over-year) and Yunnan (up 192 percent year-over-year).

The Chinese cement market has entered its off season, with national cement market prices down 0.67 percent in the past week to 320 yuan per ton. Local prices have dropped 10-30 yuan per ton. In northern and central China, the price of P.O42.5 fell 0.6 percent. For large enterprises, P.O42.5 fell from 350-360 yuan per ton to 340-350 yuan per ton, with other SMEs remaining in the 300-330 yuan per ton range. Beijing market prices are expected to remain stable. The regions of Handan and Xingtai have been affected by reduced housing starts. In east-central China, P.O42.5 cement prices fell 0.8 percent over the period as demand weakened. Jiangsu and Zhejiang Provinces registered declines of 20-30 yuan per ton, and local cement prices dropped 20 yuan per ton in Hefei, Wuhu, and Lu’an.

Lafarge (Lincang) Cement is installing a new 2,000t/d dry process cement clinker production line in China. The project represents a total investment of 460 million yuan, and is expected to come online in July. Once operational, the line will earn 5 billion yuan annually.

Two Taiwanese cement makers have announced plans for expansion programs in mainland China. Taiwan Cement Corp. will invest 109 million Chinese yuan (US$17.41 million) in Liaoning province, and Asia Cement Corp. will invest more than US$20 million to expand production facilities in mainland China.




CW Group Coal Week

In Indonesia, cement sales between January and May 2013 rose 6.9 percent to 23 million tons, but monthly growth rates are slowing. May sales increased to 4.7 million tons, an increase of 2.1 percent. This was the lowest monthly growth rate in recent years. Before May, 2013 sales grew at 8.6 percent year-over-year.

Cement consumption contracted between January and May 2013 on all islands except Java and Sulawesi. About 55 percent of Indonesia’s total cement consumption occurs on Java, which experienced cement sale increases of 5.3 percent to 2.8 million tons.

Contributing to cement price hikes, fuel prices have risen in Indonesia, with premium oil up 44.4 percent, from Rp 4,500 per liter to Rp 6,500 per liter, and diesel up 22.2 percent, from Rp 4,500 per liter to Rp 5,500 per liter. Fuel costs account for approximately 15 percent of the cement market’s total cost of good sold (COGS).

On the individual company front, Semen Indonesia will seek to raise as much as US$200 million of a total Rp 4 trillion in capital funds this year. In addition, the company is aiming to meet 10 percent of its total energy needs with alternative energy sources, up from 5-8 percent. Along with these developments, Semen Indonesia is actively looking to expand into Myanmar, and is reviewing partnership opportunities. The planned investment in Myanmar will total US$200 million. The resulting joint ventures will generate production capacity of 0.3 million tons per year. Semen Indonesia itself is aiming for production capacity of 1-1.5 million tons per year.

The company Semen Padang has installed a Rp 197 billion cement mill in conjunction with its packing plant facilities in Aceh Village.

January to May 2013 cement consumption in Vietnam was up 19 percent year-over-year, to 23.8 million tons. Domestic cement production was up 109 percent year-over-year, reaching 19.15 million tons. Vietnam’s exports (primarily to

Taiwan, Singapore, and Indonesia) have also increased in recent months. The country exported nearly 5.2 million tons between January and June 2013, up 170 percent year-over-year.

The Vietnamese company Quang Ninh (QNC) will close two branches: the cement factory branch Hatu and the Uong Enterprise building. The closures occur amid difficult market conditions in Quang Ninh Province.

Filipino cement companies report mixed activities in recent weeks. Siam Cement Group of Companies (SCG) expects to grow its Philippine operations by up to 15 percent this year, in light of both

private and government construction activity. Meanwhile, the 8990 Group has made the mandatory tender offer (priced at P0.4083, a 67 percent discount) to the minority shareholders of Southeast Asia Cement Holdings after buying out the controlling shareholders. Previous shareholders include Calumboyan Holdings, Lafarge Holdings Philippines, and Seacem Silos.

Cemex in the Philippines is installing a new P2.5 billion vertical cement mill for its Naga-based plant. The new mill will increase the Naga plant capacity by 1.5 million metric tons per year, and will come online in the second quarter of next year.

CoMPANy (LoCATioN)

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SEMEN PADANg/iNDoNESiA

In order to meet the cement demand in the East Coast of Sumatra, Semen Padang installed a cement mill in Aceh Village with an investment of as much as Rp 197 billion. The location also benefits from a packaging plant opened in December 2010.

SEMEN iNDoNESiA/iNDoNESiA

The company is pledging Rp 7 trillion for the construction of two cement plants in West Sumatra and Central Java. Both cement plants are expected to be completed in 2016.

ThANh My CEMENT/viETNAM

Thanh My Cement Plant (Quang Nam) announced that by mid-December the company will start operations at its new cement plant, targeting to supply cement to the central region market. At this point, the construction is 95 percent completed.

KAMPoT CEMENT/CAMboDiA

Kampot Cement has accelerated works on the second factory after signing an agreement to buy technology and machinery from the Chinese company CITIC Heavy Industries. The plant start-up is scheduled for late 2015.

CAhyA MATA SARAwAK/MALAySiA

Cahya Mata Sarawak is investing RM150 million in a new grinding plant. The one million tons cement unit will commence production in late 2015.

CEMEX APo/PhiLiPPiNES

Cemex intends to install a new mill at its Naga based cement plant. The 1.5 million tons vertical mill is expected to be commissioned in Q2 2014 and will require a total investment of P2.5 billion.

LAFARgE REPUbLiC/PhiLiPPiNES

Lafarge Republic is building a new 0.85 million tons cement mill at Teresa, Rizal. Commercial operations are scheduled to start in 2015.

SELECT PROJECTS IN THE WORkS: ASIA PACIfIC

regional report: aSia paCifiC






CW Group Coal Week

SECTOR COVERAGE:

CoNSTRUCTioNThe construction sector has grown in several regions in the past months. In Bangladesh, infrastructure projects and continued urbanization have boosted the industry. In illustration of this, authori-ties recently floated a tender for the main infrastructure of a proposed US$3.0 bil-lion Padma Bridge. Marginal construc-tion expansion in Germany brings pos-itive growth in May for the first time in over a year. The Markit Germany Con-struction Purchasing Managers’ Index (PMI) posted 50.6 in May, up from 48.8 in April. Values over 50 signify positive growth. Housing in Russia is up by 10.9 percent year-over-year, with completion of 17.5 million m² of new residences.

The value of new housing is down by 0.1 percent year-over-year, however, totaling RUB 1.729 trillion (€40.13 billion). In all, 212,200 apartments were completed be-tween January and May.

Total construction spending in the U.S. rose to a seasonally adjusted annual rate of US$874.9 billion in May, up 5.4 per-cent year-over-year. Total residential housing spending rose to the highest lev-el in 4.5 years, up 0.5 percent from April. Public construction rose 1.8 percent, with state and local activity up 1.6 percent and federal spending up 0.6 percent. Private residential construction rose 1.2 percent. By contrast, spending on nonresidential projects fell by 1.4 percent.

From March to May 2013, the number of housing starts in France was up 6.7 per-cent to 86,700. Multi-unit housing was up 15.5 percent. Housing residence starts increased 5.3 percent and individual housing rose 1.3 percent, while individ-ual dwellings grouped fell 4.4 percent. In Spain, residential construction is expect-ed to grow by 5 percent in 2014 and 15 percent in 2015, signifying modest recov-ery after a 20 percent decrease in 2013. New housing starts in 2012 numbered 45,000 and are projected to reach 60,000 in 2015, far below the 250,000 starts re-corded between 1991 and 1993.

Infrastructure remains the strongest area of construction industry growth in Ro-mania. Poor weather conditions and lim-ited infrastructure funding reduced con-struction in the first half of 2013 to well below 2012 levels. Safe forms of industrial development include work supported by European funding, public-private part-nerships, and foreign investors. Market volume in 2013 is expected to be similar to or slightly up from 2012.

In other nations, construction slow-downs have been in evidence. In India, the infrastructure sector reflects a general downturn in the economy. Infrastructure output registered growth of 3.2 percent in the last fiscal year after 5 percent the previous year. Nevertheless, the country is projected to become the world’s third largest construction market by 2025. In Ireland, the construction sector contin-ued to contract in May. The Ulster Bank Construction Purchasing Managers’ In-dex (PMI) posted 42 in May and 41.9 in April. The construction sector has now posted monthly declines for six straight years, and a general lack of confidence in the sector is pervasive.

In the EU, construction fell by 5.9 per-cent and in the Eurozone by 6.6 percent from January to April. April construction registered a slight increase of 0.9 percent in the EU and 2 percent in the Eurozone over March, with building construction up 1.1 percent in the Eurozone and 0.7 percent in the EU. By contrast, construc-




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SeCtor Coverage: ConStruCtion MaterialS

tion in March declined from February by 1.8 percent in the EU and 1.3 percent in the Eurozone, and building construction dropped by 1.2 and 0.9 percent, respec-tively. Civil engineering rose by 3.9 per-cent in the Eurozone and by 0.8 percent in the EU27, after -3.9 percent and -2.2 percent, respectively, in February. Con-struction rose in eight and fell in seven of the EU member states in April, with highest increases in Germany (6.7 per-cent), Portugal (5.9 percent) and Italy (5.5 percent), and largest decreases in Poland (5.2 percent), Romania (3.7 percent) and Spain (3.1 percent).

CoNCRETEIn Russia, production of precast concrete structures and parts declined 10.7 percent month-over-month to 2.2 million cubic meters in May 2013, a drop of 0.6 percent from May 2012. Production so far in 2013 has reached 10.4 million cubic meters, rising each month from January to April. An even sharper May drop occurred in the Ukraine, where concrete production in May 2013 experienced a 1.6 percent monthly drop and came in 16.5 percent

lower than May 2012, whereas April 2013 had registered 9.5 percent above April 2012, a 49.8 percent rise from March. The net January-May production level was roughly equivalent between 2012 and 2013 (4.2 million tons).

New acquisitions, plants, and contracts have stimulated the concrete sector in several regions. Major improvements to Riga International Airport in Latvia have required over 80,000 m³ of a CEMEX specialty ready-mix concrete.

So far in 2013, the Irish company CRH has logged £400 million in acquisitions across North America and Europe. CRH’s Northstone branch has acquired the ready-mixed concrete, aggregates, and

block operations of Cemex in Northern Ireland. The deal generates 24 million tons of reserve. In addition, CRH has acquired the import facilities of the Dud-man group in mainland Britain.

The company Guizhou Qinglong Panji-ang Cement is building a new concrete plant in Qinglong County, China. The plant, priced at 80 million yuan, is pro-jected to produce an annual output of 800,000 cubic meters. Lafarge has opened a new concrete manufacturing plant in Gorzów, Poland, and predicts daily pro-duction of more than 600 m3 of concrete. Meanwhile, the German company Som-mer Anlagentechnik GmbH will supply Tajikistan’s KDSK with equipment to up-grade the former KPD-3 concrete plant, elevating production to 150 thousand square meters.

gyPSUM AND LiMESeveral companies have logged new in-vestments in gypsum and lime in recent months. Metso has acquired a Copen-hagen, Denmark, lime kiln and Karls-tad, Sweden, recausticizing technology from the Danish equipment maker FLS-midth. VKG Energia company has began construction of a new lime plant, slated to produce 24,000 tons of lime annual-ly using waste rock from the company’s Ojamaa mine. Bulgaria’s Calcit has con-tracted Pfeiffer to supply its Asenovgrad quicklime works with an MPS 112 B ver-tical roller mill and other equipment. The MPS mill yields 5 tons/hour of quicklime, ground to a product fineness of 1% resi-due 0.090 mm.

Nordkalk Corporation’s Louhi limestone plant in Savonlinna, eastern Finland, is restarting production after being placed on stand-by in 2009. In light of positive

Source: U.S. Census Bureau, New Residential Construction Statistics

MAR-13 APR-13 MAY-13

AUThoRizED UNiTS 890 1,005 974

STARTED UNiTS 1,005 856 914

UNiTS UNDER CoNSTRUCTioN 594 606 620

UNiTS CoMPLETED 810 696 690

NEW RESIDENTIAL CONSTRUCTION IN THE U.S. (THOUSANDS Of UNITS)






CW Group Coal Week

sales and demand projections, limestone quarrying will restart in August 2013 and the quicklime kiln will restart. The loca-tion’s slaking and grinding plants have been running continuously.

The French company Lafarge will sell its North American gypsum business to U.S. private equity firm Lone Star for US$700 million, as part of an effort to cut debt and help restore Lafarge’s investment grade rating. The rating was lost in 2011 as a consequence of debt accrued through Lafarge’s purchase of Orascom in 2007.

Several new gypsum production facili-ties have entered the worldwide pipeline. The Spanish company Xella, through its subsidiary Fermacell, has opened a new gypsum fiber board manufacturing facil-ity in Orejo, northern Spain. The facility is expected to produce 12 million square meters annually, and represents a EUR 30 million investment. The Bank Sohar SAOG and USG-Zawawi Group will es-tablish a US$45 million gypsum quarry and gypsum board manufacturing plant in the Salalah Free Zone in the Dhofar Governorate of Oman.

Research by Tecnalia-Construction in Spain aims to assess the feasibility of a gypsum recycling processing plant, lo-cated in the Basque town of Urtuella, ca-pable of removing gypsum particles from construction and demolition waste.

AggREgATESTo improve efficiency and alignment with its strategic plan, Vulcan Materials has disposed of its four remaining quarries in the cities of Franklin, Dousman, Ra-cine, and Sussex, Wisconsin. Meanwhile, a new Lafarge quarry in Aldermaston, West Berkshire, England, is expected to yield 2.5 million tons of sand and gravel over the next 12 years. By contrast, con-sumption of aggregates for construction in Andalusia, Spain, registered a heavy decline in 2012, coming in at 17 million tons or 37.8 percent below 2011. The in-dustry is now down 81.3 percent since 2005.

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gREEN AND iNNovATivE bUiLDiNgIn Nantes, France, Lafarge has begun using recycled construction aggregates, comprising layers of sand, Agneo, grav-el natural, bitumen, and asphalt. Italian scientists in Salerno have added rubber strips from shredded waste tires to wa-ter and cement as part of concrete pro-

duction. Bio-Brick, an innovative new concrete product utilizing bacteria in production, is capable of reducing green-house gas emissions over those of tradi-tional clay bricks by at least 800,000 tons of CO2.

A subsidiary of the corporation Trans-stroi has applied for a patent for a new Inzhtransstroy-developed concrete mix incorporating fine mineral powder to re-duce the amount of required cement and utilize limestone dust.

The firm Saint-Gobain, in partnership with Akron Summit Community Ac-tion, Inc., and YouthBuild Akron, has completed an Akron, Ohio, home reno-vation expected to achieve the city’s first U.S. Green Building Council’s (USGBC) Leadership in Energy and Environmental Design LEED Platinum certification. The building will be the seventh LEED Plati-num-certified home in Ohio.Source: Eurostat

Country MAR-13 APR-13

CzECh REPUbLiC 79.0 81.1

gERMANy 99.5 106.2

FRANCE 95.0 95.2

iTALy 70.3 74.2

hUNgARy 91.2 92.5

PoLAND 95.7 90.1

PoRTUgAL 58.1 61.5

SwEDEN 124.7 121.7

PRODUCTION IN CONSTRUCTION INDEx (2010 = 100)

table avaIlable In the cemWeek magazIne prInt

edItIon. www.cemweek.com/subscribe




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peopLe

Strategic Sourcing of Lafarge since 2012, Hoddinott was responsible for worldwide energy strategy and sourcing of Lafarge’s externally sourced inputs.

Tim Surridge, CFO of Dangote Cement, has resigned his position because of family reasons. A global search for a replacement is expected. In the interim, CFO duties will be performed by Kuzhiyil Ravindran, currently CFO of Dangote industries and former CFO of Dangote Cement.

Notable resignations are also reported at Cimpor, where Luís Sequeira Martins and Manuel Luís Barata de Faria Blanc have stepped down from the board of directors. Sequeira Martins, aged 65, has been a member of the Cimpor board of directors since 1987. Barata de Faria Blanc, aged 68, has been administrator of Cimpor since 2001. The resignations

a variety of notable personnel shifts have occurred across the cement industry in the past two months. In a controversial move at TCL,

five new nominees for directorship have been proposed by a group of institutional investors from Trinidad and Tobago. The TCL board opposes the nominations.

Meanwhile, company executive Djelal Hamid has been installed as general manager of Sour El Ghozlane. Hamid, formerly technical assistant, was selected by industry group Cements Algeria (IPAC)’s CEO, Bachir Yahia, to replace Ahcène Rezzagui following disappointing cement production levels.

Carlos Gonzalez, president of Cemex in the Dominican Republic, has been named president of the Dominican Association of Cement Producers (Adocem) for 2013-2014. He will be supported at Adocem by Gabriel Ballestas Agros as treasurer and Jose Caceres de Cementos Cibao as secretary.

Independent director Tom Ransdell will take over as chairman of the board at Texas Industries. Ransdell replaces as chairman recently deceased Bob Rogers.After 39 years in the business, general manager Jorge Matus has resigned from Chile’s Cementos Bio Bio. Iñaki Otegui, current manager of the cement division, has been appointed new general manager of corporate business. Hernán Briones Goich has been appointed the new Cementos Bio Bio chairman, Alfonzo Rozas Ossa the vice president, and Jose Ramon Valente Routes the third member of the Audit Committee. Board of Directors members include Luiz Alberto de Castro Santos, Eduardo Novoa and Jose Ramon Valente Castellón.

The CEMBUREAU General Assembly elected former vice president Peter Hoddinott to succeed Ignacio Madridejos as CEMBUREAU president. Daniel Gauthier has been elected vice president. As Executive Vice-President of Energy &

arrive at a time when the cement industry undergoes changes under the tender offer (OPA) launched by InterCement, a division of Brazil’s Camargo Corrêa Group.

At Votorantim Cement, the largest cement producer in Brazil, executive Markus Akermann has been elected to the board of directors. Akermann served as CEO of the Swiss giant Holcim between 2002 and 2012. After 11 years with Votorantim, executive Fábio Faria will transfer to CSN to head the latter’s corporate IT Group. He will report directly to CSN president Benjamin Steinbruch.

Isidoro Miranda, CEO of Lafarge in Spain, has been appointed president of Oficemen. He will replace José Luis Sáenz de Miera, president of Cementos Portland.

Source: ADOCEM




CW Group Coal Week

eQUIpment & NOTABLE PROJECTS

NEw oRDERS PLACED by iNDiAN CoMPANiESOn June 5, 2013, FLSmidth received a new DKK 200 million order from Ori-ent Cement for the supply of a greenfield cement plant to be located in the state of Karnataka. The 6,000 ton per day line follows the 4,000 ton per day brownfield project that was supplied by FLSmidth in 2007. The new order covers engineer-ing and supply of main equipment from limestone crusher to packing plant and will contribute to FLSmidth’s earnings until the end of 2014.

Sinoma Energy successfully signed a co-generation contract with HeidelbergCe-ment India for its Damoh cement plant. The Waste Heat Power Generation Pro-ject is dedicated to the three cement pro-duction lines of Damoh cement plant that own 1,700 ton per day, 2,350 ton per day and 6,000 ton per day, respectively, in ce-

ment capacity. The installed capacity of the cogeneration project is estimated at 15MW.

HeidelbergCement India also reported that the Loesche mill installed in Jhansi, Uttar Pradesh, already exceeded its guar-anteed performance. The mill type LM 53.3+3 C was guaranteed for 215 tph. Following the performance tests run in March 2013, results revealed that the mill was already operating at 235 tph. Hei-delbergCement supplies its clinker needs from the Narsingarh unit situated in Madhya Pradesh. The current cement ca-pacity of the company in India has been thus boosted to 6 million tons per year.

ThySSENKRUPP wiNS LARgE CoNTRACT iN ThAiLANDThailand’s TPI Polene Public Company has awarded a 150-million euro contract to ThyssenKrupp for the construction

of a greenfield cement plant located in Saraburi, near the capital Bangkok. The 10,000 ton per day clinker line is expected to be commissioned in 2015. According to the awarded contract, ThyssenKrupp will supply major components for raw material preparation, clinker production, cement grinding and fuel preparation.

FLSMiDTh To SUPPLy CEMENT PLANT iN EQUAToRiAL gUiNEAFLSmidth won an order worth DKK 505 million (approximately EUR 68 million) from Grupo Abayak AKOGA Cemento for the supply of an integrated cement plant in Akoga, Equatorial Guinea. The contract includes engineering and main equipment, such as jaw crusher, cone crusher, ATOX® raw mill, OK cement mill, pyroline with cross bar cooler, dos-ing systems, filters, packing plant and au-tomation control system. The 3,000 ton per day line is expected to be commis-




CW Group Coal Week

sioned by the end of 2016 and will serve the currently undersupplied local market, as well as neighboring countries.

FiRST PFEiFFER RAw MiLL REAChES UzbEKiSTANThe Turkish company DAL Teknik Maki-na has ordered a Pfeiffer MPS 3350 B ver-tical roller mill for raw mill to be installed as early as next year in Uzbekistan. The grinding plant will benefit from a grey ce-ment raw meal capacity of 200 tons per hour and a white cement raw meal capac-ity of 160 tons per hour.

ChiNA’S CiTiC hiC ENTERS bRAziLThe Chinese company CITIC HIC is looking to build a 2,500 ton per day ce-ment plant in Adrianópolis, the metro-politan region of Curitiba. The project represents the first Brazilian cement plant of the company and will be built in partnership with CVR. Another three cement plant projects are found in dif-ferent construction stages in Adrianópo-lis. Margem Cimentos already pledged R$340 million for the construction of a cement plant, while two other cement companies are negotiating the installa-tion of cement producing units in the re-gion. With an aggregated investment of over US$1 billion, the projects will create 10,000 direct and indirect jobs.

CEMEX iNvESTS iN EgyPTCemex has reinforced its commitment to Egypt’s development, while setting aside approximately US$100 million for opera-tional enhancements. The largest part of the investment is expected to counteract the fuel subsidies elimination scheduled for 2014. Following the investment, the Assiut cement plant is expected to in-crease the capacity to use coke, coal and alternative fuels. Since 2000, Cemex has co-processed over 0.25 million tons of waste in Egypt. The company will also install new waste co-processing and ad-ditional environmental equipment, thus reducing its emissions. Cemex inaugu-rated back in 2010 a new US$12 million dust filter.

Another area the company is exploring is the promotion of concrete roads con-struction, which is viewed as a more du-rable and cost-effective building solution. Cemex already announced that it intends to support four major concrete paving projects in the country during 2013.

MCiNNiS CEMENT LAUNChES NEw wEbSiTE The website launched by McInnis Cement on June 12, 2013, contains a broad array of information, including a 3D animation showcasing the Port-Daniel-Gascons ce-ment plant project in its setting.

The total investment pledged for the ce-ment plant project reaches $1 billion, in-cluding $700 million to be invested in the Gaspé region of Quebec. The project is expected to create up to 600 jobs during the construction phase and provide per-manent direct and indirect employment for another 400 people after commission-

ing. The company benefits from a de-posit of 450 million tons of high-quality limestone, ideal for cement production. In addition to the purchase of the prop-erty, significant development work on the project has already been undertaken in-cluding site preparation, the access road and maritime terminal, engineering and necessary environmental upgrades.

SiNoMA-LoESChE PARTNERiNg FoR SAUDi CEMENT PRojECTSinoma International Engineering, Nan-jing, ordered a Loesche LM 56.4 mill for Southern Province Cement’s Tahamah plant. The Vertical Roller Mill is de-signed with 400 tons per hour, a product fineness of RMI 8% R 0.09 mm and 1% residue on 212 µm. Additionally, Loesche will supply metal detector, magnetic sep-arator, slide gates and rotary valves below Cyclones. The delivery will be performed in October and December 2013 through FOB North Sea Port.




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fLasHbaCK(darker red shows higher news volume)neWs floW on cemWeek.com last tWo months

gLobAL SPoTLighTTracking the news flow of the global cement sector.

cW group meetIng agendaThe CW Group will be hosting and participating in a number of webinars and conferences. We

invite you to join us on-line or in person at the events to discuss our views of the industry.

CW Research & Analytics Webinars: CW Group Hosted Executive Summits:

Conferences where the CW Group will be presenting:

Alternative fuels and power as a new business model

August 6, 2013 at 2:00 PM GMT

Caribbean Rim Cement Finance, Strategy & Trade Summit 2013

Fall, 2013Panama City, Panama

Alternative fuels and power as a new business model

December 10-11, 2013

Dubai, UAE

Solid Fuel Summit (SFS) India 2013

October 7-8, 2013

• Hilton Mumbai International Airport Hotel

• Mumbai, India

Cement Business & Industry (CBI) India 2013

October 9-10, 2013

• Hilton Mumbai International Airport Hotel

• Mumbai, India

CBI Brazil & LatAm 2014 Cement & Lime Conference

February 5-6, 2014

• Hilton Morumbi• Sao Paulo, Brazil




CW Group Coal Week

bmWeek.com

cemWeek.comtop 15 storIes

top 15 storIes

bUZZ

1. Lafarge CEO in Algeria to discuss cement market

2. New mining projects in Spain discussed in European Parliament

3. ThyssenKrupp may sell off rail, construction units

4. Mexico mining production declined in March 5. New railway system for Saudi Arabia 6. Vulcan set to mine in Azusa 7. Saudi traders say Nitaqat hurting construction 8. India: Minister bats for sustainable construc-

tion 9. China: Gezhouba inks deal with XCMG

Concrete 10. Concrete production increased in Ukraine 11. Sandvik sets sights on India 12. Equipment sales slow for CAT 13. Quarry proposal turned down in Spain 14. Italy: Construction materials market tumbles15. US: Builders express supply concerns

1. HeidelbergCement unit on track in Togo 2. Votorantim elects former Holcim exec to its

board 3. India: HeidelbergCement sells Raigad grinding

unit 4. Cement prices on the rise in Zambia 5. Uzbekistan plans to put up new cement plant

by end of 2013 6. FLSmidth bags fresh order from Indian firm 7. India: Opposition questions cement plant

project 8. FLSmidth receives order for cement plant in

Africa 9. Cementos Molins buys Cemex plant in Spain 10. HeidelbergCement to continue expansion

plans 11. India: Vasavdatta Cement to burn plastic waste

to power unit 12. India: Jaypee to sell cement unit by year’s end13. Turkey: Cargotec wins contract for two

road-mobile unloaders 14. Holcim to slash spending in Spain 15. India: MCL looking to build new cement plant

alternative area association average bags

case cements cemex cent center chairman china competition completed concrete consumption continue

court crore data development digits director domestic economic energy equipment expand expansion export exports factory

fiscal fourth fuel fuels general global growth holcim impact imported imports investment building government project increased materials india indonesia infrastructure

installed iran lafarge likely madras manufacturers morocco national operations output pakistan phase plans plants port power previous

producers product profits program quality rate rates reached region regional remain research results rise russia safety saudi sector

shares stop support thousand times training transport value work working

activity aggregate aggregates agreement

assets average board builders caterpillar cemex central chief china coal contract costs county deal decline

department development director economic energy engineering environmental equipment europe executive expansion facility firm firms france general

global government gravel growth gypsum home housing india industries

infrastructure investment jobs concrete knauf lafarge limestone located long loss management manufacturing meters mining minister national operating

operations orders output people plans plants port previous price process product products project public qatar quality quarry rate ready region

research rise road sales sand saudi says sector services share spain spending technology times value work

workers working world




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OctOber 7-8, 2013 | MuMbai, indiaHiltOn MuMbai internatiOnal airpOrt HOtel

the Solid Fuels Summit india 2013 is a focused executive-oriented meeting and networking opportunity for coal and petcoke industry professionals who are involved in the indian coal and petcoke sectors. the Summit will bring a special dual focus on business and industrial issues and the program will include topics such as:

» assessing india’s solid fuel needs: coal & petcoke » Solid fuel opportunities beyond today – trinity of sectors » Mining technology & maximizing productivity for coal » reducing costs through better technology » petcoke – a threat to indian coal? » Fuel waste – trash or treasure? » the international trade & bulk handling perspective

Organized by gMi glObal witH tHe great SuppOrt FrOM cOalweek tHe event iS expected tO bring a FOcuSed grOup OF cOal and petcOke induStry prOFeSSiOnalS.

regiSter On-line at www.gMiFOruM.cOM Or eMail [email protected]. yOu May alSO call uS in tHe uS at +1-203-516-7424

GMI GLOBAL

Mumbai, India

October 7-8, 2013

Register Today!

COal * PeTCOke * alTeRnaTIve Fuels * Fly ash

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