Sephaku Cement projects, South Africa

6th December 2013

By: Creamer Media Reporter

  

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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
Sephaku Cement’s cement milling plant, in Delmas, Mpumalanga, is 95% complete and on track for production to start early in the new year.

Cold commissioning of the Aganang plant has started, with the mill motor, induced draft fan and mill separator currently being tested.

Clinker offloading is “in full swing” and in the stage of final setting optimisation, with gypsum offloading commissioned and the first gypsum having been offloaded in mid-November.

In addition, the packing plant is nearing hot commissioning with cement, while the palletiser and stretch hood machines have been cold and hot commissioned.

The first stack of pallets has been wrapped and the full sequential start-up and commissioning of the packing plant are on the cards for the coming days.

Further, the development of the supporting infrastructure is progressing well, with roads and intersections on target for completion before the end of December and weighbridge systems being implemented.

In addition, Telkom is expected to finalise communication infrastructure installation in the next two weeks.

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

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