Sephaku Cement projects, South Africa

29th November 2013

By: Creamer Media Reporter

  

Font size: - +

Name and Location
Sephaku Cement projects, South Africa.

Client
Sephaku Cement, a subsidiary of Nigeria-listed Dangote Cement (64%) and associate of JSE-listed Sephaku Holdings (36%).

Project Description
The projects entail the construction of the Aganang integrated cement production facility, 35 km west of Lichtenburg, in the North West; a cement-grinding facility, in Delmas, Mpumalanga; and a 3 000 t/d clinker and cement production facility, near Dwaalboom, in Limpopo.

It is estimated that the Aganang and Delmas cement plants will collectively deliver about 2.5-million tons a year of cement.

The Aganang operations will include limestone mining and the chemical processing of raw materials to produce clinker. The limestone deposit is located on the Stiglingspan, Verdwaal and Klein Westerford farms, 7 km south-west of Itsoseng. Half of the clinker will be ground, milled and blended to produce cement. The rest will be transported to the Delmas plant for further processing using fly ash produced at the fly ash classification plant at Kendal power station as an extender to produce the final cement.

The limestone quarry and the cement project have an expected life of between 30 and 40 years, depending on the availability of the delineated mineral resources and the guaranteed kiln production figures.

Value
Construction of the Aganang and Delmas plants will cost R3.3-billion. Funding of the project is through secured shareholder equity of R1.2-billion and loan funding secured from Nedbank and Standard Bank.

The value of the clinker and cement production facility, in Limpopo, has not been disclosed.

Duration
Sephaku started construction on the Aganang and Delmas cement production facility in late 2011, with first production scheduled for January 2014.

Latest Developments
A new limestone operation that will supply Sephaku is scheduled to get under way early next year near Lichtenburg, in the North West.

The company says that mining will be outsourced to a contractor yet to be named.

The first limestone will be produced in March 2014.

Work has begun on the main haul road and mining will take place on three faces to assure the correct quality limestone mix for the cement-manufacturing operation.

Mining will take place at a rate of 2-million tons to 2.5-million tons of limestone a year for the next 30 years.

The first bag of cement will be produced in January, with cement production expected to be at steady state in 2015.

Every ton of cement requires 1.6 t of limestone, and some of the clinker produced at Aganang will be used at Delmas, where Sephaku has a grinding plant.

The company, which will use fly ash as an extender, expects to be South Africa’s lowest-cost producer, as the country’s first new entrant since 1934.

Key Contracts and Suppliers
Nedbank Capital (lead financial arranger), Sinoma International Engineering (construction), Eskom (power-supply agreement for the plant in the North West) and Africa Geo-Environmental Services (environmental consultant for Limpopo plant).

On Budget and on Time?
Construction of the 1.2-million-ton-a-year cement production facility near Lichtenburg, and the 1.4-million-ton-a-year grinding facility, in Delmas, are proceeding according to plan and both are within budget to start production at the end of the year.

Contact Details for Project Information
Dangote Cement, Anthony Chijiena, cell +234 807 049 0149.
Sephaku Cement, tel +27 1861 555 2020 or fax +27 12 665 4391/+27 12 684 6402; or CEO Pieter Fourie, tel +27 12 686 4800 or email pfourie@sepcem.co.za; or Shalini Ammon, email sammon@sepcem.co.za.
Sinoma International Engineering, tel +86 10 6439 9518, fax +86 10 6439 9510 or email zcb@sinoma.com.cn.

Edited by Creamer Media Reporter

Comments

The content you are trying to access is only available to subscribers.

If you are already a subscriber, you can Login Here.

If you are not a subscriber, you can subscribe now, by selecting one of the below options.

For more information or assistance, please contact us at subscriptions@creamermedia.co.za.

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION