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 Comment Guidelines (150 word limit)
Creamer Media Senior Deputy Editor
Other News This Week News
Recent Research Reports
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...
Road and Rail 2015: A review of South Africa's road and rail sectors (PDF Report)
Creamer Media’s Road and Rail 2015 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 infrastructure and network, the funding and maintenance of these respective networks, and...
Defence 2015: A review of South Africa's defence sector (PDF Report)
Creamer Media’s Coal 2015 report examines South Africa’s coal industry with regards to the business environment, the key participants in the sector, local demand, export sales and coal logistics, projects being undertaken by the large and smaller participants in the...
Real Economy Year Book 2015 (PDF Report)
There are very few beacons of hope on South Africa’s economic horizon. Economic growth is weak, unemployment is rising, electricity supply is insufficient to meet demand and/or spur growth, with poor prospects for many of the commodities mined and exported. However,...
This Week's Magazine
The BMW Group will invest R6-billion at BMW Group South Africa’s (BMW SA’s) Rosslyn plant to produce the next-generation X3 sports-activity vehicle (SAV) for the local and export markets. Rosslyn will continue production of the current 3 Series through its lifecycle,...
The lack of consequences for poor performance and transgressions on the part of contractors remains a significant hurdle to tackling South Africa’s service delivery challenges, delegates heard at the Consulting Engineers South Africa Infrastructure Indaba, on...
City of Ekurhuleni executive mayor Mondli Gungubele earlier this month officially named the city’s bus rapid transit (BRT) system, Harambee.
About 58% of unstructured data stored by companies is dark data, which means that the value or regulatory importance of the data has not been determined. Subsequently, most of the stored data add costs, rather than increasing revenue or reduce regulatory risks, says...
Effective logistics, import/export and manufacturing consulting services require detailed industry knowledge and experience, but can add significant value to these industries by providing expert advice on various technical elements in their value chains, says...