Apr 02, 2010
Development of Sephaku Cement plant expected to start before JuneBack
Construction|Engineering|Cement|Components|Eskom|Nedbank Capital|PROJECT|Projects|Roads|Sephaku Cement|Sinoma International Engineering|Water|Delmas Plant|Cement|Cement Grinding Facility|Cement Plant|Cement Plant Supplier|Cement Producer|Electricity|Electricity Supply|Mining|Project Finance Facilities|Environmental|Duncan Leith|Infrastructure|Power|Water
© Reuse this
Sephaku Cement commercial manager Duncan Leith says that construction of the plant is expected to begin in the first half of this year.
The construction of the Aganang project, in the North West province, as well as construction of a new cement grinding facility, in Delmas, Mpumalanga, has been contracted out to Chinese cement plant supplier Sinoma International Engineering on a fixed-price turnkey basis.
Sephaku Cement reported earlier this year that it had appointed Nedbank Capital as the lead arranger of the project finance facilities for the new developments. Leith says that the company has ensured that all other project components are in place so that, once funding has been finalised, construction can begin. The company is in the final stages of securing the required equity.
Supporting infrastructure for the plants, such as roads, water supply and electricity supply, has been developed. Most notably, a power supply agreement for the plant in the North West province has been reached with State-owned power utility Eskom, which will start installing a power line for the plant in the very near future. The plant will require 35 MW of the 45 MW of electricity supplied through the line and, Leith says, the excess capacity can be used to supply power to surrounding communities.
He adds that all the required regulatory approvals are in place for the projects, including the environmental-impact assessments, new-order mining rights and the corporate work permits for Chinese workers being brought in by Sinoma for the project.
Both projects will have the capacity to produce 2,2-million tons a year of cement, with roughly half the cement grinding taking place at the Delmas plant. Leith says that, although industry cement volumes are not currently being made public, it is likely that demand for cement will exceed supply capacity in the next few years.
He adds that the company calculates its capacity based on clinker production combined with extender volumes, which is a more accurate appraisal of actual cement capacity than basing total capacity on milling only, which tends to be the figure quoted in the public domain. This said, the 2,2-million-ton-a-year capacity at the Sephaku plants will have considerable “overtaking” milling capacity.
Engineering News reported earlier this year that Sephaku Cement forecast that cement demand would grow by between 3,5% and 4% a year from 2011 onwards, resulting in a total local demand of between 16-million and 17-million tons a year by 2015.
“Our entry into the market is going to contribute positively to the industry, and it is going to add value to the economy because demand will be there, which would otherwise have to be satisfied through uneconomical imports,” concludes Leith.
Edited by: Martin Zhuwakinyu© Reuse this Comment Guidelines (150 word limit)
Other News This Week News
Recent Research Reports
Liquid Fuels 2014 - A review of South Africa's Liquid Fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2014 Report examines these issues, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing, competition in the sector, the...
Water 2014: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2014 report considers the aforementioned issues, not only in the South African context, but also in the African and global context, and examines the issues of water and sanitation, water quality and the demand for water, among others.
Defence 2014: A review of South Africa's defence industry (PDF Report)
Creamer Media’s Defence 2014 report examines South Africa’s defence industry, with particular focus on the key participants in the sector, the innovations that have come out of the sector, local and export demand, South Africa’s controversial multibillion-rand...
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
This Week's Magazine
South Africa remains an important manufacturing and export platform for Ford Motor Company, says executive chairperson Bill Ford. However, he adds that other countries on the continent are “becoming interesting”, and that the US carmaker is casting its net wider for...
Germany’s Max-Planck-Society (MPG) and the Max-Planck-Institute for Radio Astronomy (MPlfR) are investing €11-million (about R150-million) into South Africa’s MeerKAT radio telescope array programme. The money will be used to design, build and install S-band radio...
Infrastructure spend in sub-Saharan Africa will grow from $70-billion in 2013 to $180-billion by 2025, says PwC capital projects and infrastructure Africa leader Jonathan Cawood. This is one of the findings of PwC’s Capital Projects & Infrastructure report on East...
Private-owned defence and aerospace manufacturer Paramount Group and the Ichikowitz Family Foundation unveiled its Anti-Poaching Skills and K9 Training Academy in Magaliesburg last month.
The inclusion of Bluetooth to provide sub-three meter accuracy and heightened functionality for users is one of the ways to change existing wireless networks into engagement networks. An engagement network differs from common wireless networks in that it enables the...