Apr 02, 2010
Development of Sephaku Cement plant expected to start before JuneBack
© 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
Creamer Media Senior Deputy Editor
To subscribe email email@example.com or click here
To advertise email firstname.lastname@example.org or click here
Other News This Week News
Recent Research Reports
Construction 2016: A review of South Africa's construction industry (PDF Report)
Creamer Media’s Construction 2016 Report examines South Africa’s construction industry over the past 12 months. The report provides insight into the business environment; key participants; local demand; geographic diversification; corporate activity; black economic...
Energy Roundup – February 2016 (PDF Report)
The February 2016 roundup covers activities across South Africa for December 2015 and January 2016 and includes details of a Government Gazette notice that confirms Cabinet’s decision to move ahead with the 9 600 MW nuclear procurement programme; State-owned power...
Energy Roundup - December 2015 (PDF Report)
The December 2015 roundup includes details of State-owned utility Eskom’s application to claw back R22.8-billion; South Africa’s ranking as an investment destination for renewable energy; and a nuclear expert’s thoughts on reactor designs for South Africa’s nuclear...
Water 2015: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2015 Report considers the aforementioned issues, not only in the South African context but also in the African and global context in terms of supply and demand, water stress and insecurity, and access to water and sanitation, besides others.
Input Sector Review: Pumps 2015 (PDF Report)
Creamer Media’s 2015 Input Sector Review on Pumps provides an overview of South Africa’s pumps industry with particular focus on pump manufacture and supply, aftermarket services, marketing strategies, local and export demand, imports, sector support, investment...
Liquid Fuels 2015: A review of South Africa's liquid fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2015 Report examines these issues in the context of South Africa’s business environment; oil and gas exploration; fuel pricing; the development of the country’s biofuels industry; the logistics of transporting liquid fuels; and...
This Week's Magazine
Lifting, transporting, installing and ballasting solutions provider Ale has expanded its global fleet of trailers and invested in the latest range of widening trailers that can be mechanically widened from 3 m to the desired width for any project. Ale ordered 48 axle...
The market for the BMW 7 Series in South Africa differs quite significantly from the rest of the world. China, the US and the Middle East almost exclusively buy the long-wheel-base version, using the German manufacturer’s luxury high-end sedan as a chaffeur-driven...
January new-vehicle sales fell by 6.9%, to 48 615 units, compared with the same month last year. Statistics released by the Department of Trade and Industry show that the domestic new passenger-car market declined by 6.1%, to 34 936 units, compared with 12 months ago.
Information technology (IT) equipment and infrastructure multinational Dell is providing open infrastructure systems for clients so that they can use any systems, including innovative new systems, that suit their business needs, says Dell Europe, Middle East and...
South Africa’s State-owned defence industrial group, Denel, has set up another international partnership, based in Hong Kong. This new subsidiary is Denel Asia and it is a joint venture (JV) with South African private sector company VR Laser.