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Pakistan Cement News

Pakistan Cement News

Punjab government implements groundwater charge for cement producers

The government of the Punjab will charge cement producers in the state up to US$0.93/m3 for ground water used in their cement production. The Dawn newspaper has reported that the charge will depend on water availability, and be US$0.6/m3 in water secure areas, US$0.85/m3 in semi-critical areas and US$0.93/m3 in critical areas most affected by drought. The measure aims to encourage rainwater harvesting in order to preserve water tables. The charges will fall upon Maple Leaf Cement, Gharibwal Cement, Dandot Cement, Flying Cement, Askari Cement and Fauji Cement. They will remain in force until the establishment of a Punjab Water Services Regulatory Authority and its enactment of water extraction rates.

Cement dispatches drop by 12.17pc in Sept 2021Cement dispatches drop by 12.17pc in Sept 2021

Cement dispatches declined by 12.17 percent in September 2021 with dispatches during September 2021 recorded at 4.589 million tons against 5.225 million tons during the same month of last fiscal year.

The cement manufacturers are worried regarding continued increase in input cost as coal FOB prices have increased from around US $68 per ton in September 2020 to over US $210 per ton during September 2021.

According to the data released by All Pakistan Cement Manufacturers Association (APCMA), local cement dispatches by the industry during the month of September 2021 were 4.018 million tons compared to 4.095 million tons in September 2020, showing a reduction of 1.88 percent.

Exports dispatches suffered massive decline by 49.45 percent as the volumes reduced from 1.131 million tons in September 2020 to 0.572 million tons in September 2021.

During September 2021, North based cement mills dispatched 3.451 million tons cement in domestic markets showing a decline of 2.04 percent over 3.523 million tons dispatches in September 2020. South based mills dispatched 567,445 tons cement in local markets during September 2021 that was slightly less compared to the dispatches of 571,639 tons during September 2020.

Exports from North based mills massively declined by 61.63 percent as the quantities reduced from 287,287 tons in September 2020 to 110,245 tons in September 2021. Exports from South also decreased by 45.29 percent to 461,340 tons in September 2021 from 843,334 tons during the same month last year.

During the first quarter of current fiscal year, total cement dispatches (domestic and exports) were 12.825 million tons that calculates to 5.67 percent lower than 13.596 million tons dispatched during the corresponding period of last fiscal year.

Further analysis indicate that domestic uptake of the commodity increased by 3.92 percent to 11.279 million tons from 10.853 million tons during July-September 2020 whereas exports during the same period declined by a massive 43.64 percent to 1.546 million tons from 2.743 million tons during July-September 2020.

North based Mills dispatched 9.483 million tons cement domestically during the first quarter of current fiscal year showing a slight increase of 0.22 percent than cement dispatches of 9.463 million tons during July-September 2020. Exports from North declined by 37.69 percent to 387,667 tons during July- September 2021 compared with 622,186 tons exported during the same period last year.

Domestic dispatches by South based Mills during July – September 2021 were 1.795 million tons showing healthy increase of 29.15 percent over 1.39 million tons cement dispatched during the same period of last fiscal year. There was however massive decline of around 45.38 percent in exports from south zone as the volumes reduced to 1.158 million tons in the first three months of current fiscal year from 2.12 million tons during corresponding period of last fiscal year.

Askari Cement orders three Gebr. Pfeiffer MVR vertical roller mills for Nizampur cement plant

Pakistan: Askari Cement has awarded a contract to Germany-based Gebr. Pfeiffer for the supply of three of its MVR vertical roller mills to replace the existing mills at its Nizampur cement plant.

Two of the mills will be MVR 5000 C-4 cement mills with the capacity to grind 360t/hr of clinker to a fineness of 3250 blaine. The other mill, an MVR 5000 R-4 raw meal mill, will grind 520t/hr of clinker to a fineness of 12% R90µm.

The Chinese contractor Hefei Cement Research & Design Institute will install an SLS V high-efficiency classifier on each of the mills.

The upgraded plant is scheduled for commissioning in mid-late 2022.

Minister Seeks Timeline For Setting Up New Cement Plants

Pakistan: Provincial Minister for Industries and Commerce Mian Aslam Iqbal Monday asked the companies obtaining the No Objections Certificate (NOC) to give a timeline for setting up a new cement plant.
He was discussing the matter with representatives of companies obtaining the NOC for setting up new cement plants at the Civil Secretariat on Monday.

They discussed in details the progress regarding the timeline for setting up of new cement factories after the issuance of the NOC.

Some of the companies apprised the minister the reasons for the delay in establishment of new plants. The minister said that the company was bound to start work on establishing cement plant within six months after obtaining the NOC. He said that the provincial government had issued 10 NOCs for setting up of new cement factories to promote the construction sector and increase employment opportunities.

He said more NOCs would be issued after the approval by the cabinet.

The minister said that never in the history of the country had so many NOCs been issued in such a short span of time.

Mian Aslam Iqbal said that with the setting up of new cement factories, billions of rupees would be invested in Punjab. It is great that new industries were being set up in the province due to the government’s pro-industry policies.

Among the representative who called on the minister included Brig (retd) Syed Kausar Hussain of Bestway Cement, Asim Khawas Khan of Pioneer Cement, Syed Ahsanuddin of Fatima Cement, Muhammad Tariq of Fauji Cement Limited, Muhammad Ashraf of Maple Leaf, Khurram Shahzad of Kohat Cement, Annan Khan of DG Khan Cement and others.

Secretary Industry and Commerce Dr Wasif Khurshid, Additional Secretary Commerce and officers were also present.

Punjab issues 22 NOCs for setting up cement factories

LAHORE: The Punjab government has regulated the cement sector and issued 22 no-objection certificates (NOCs) for the setting up of new cement factories while ensuring that no more unit is established in the areas declared “negative”.

A study earlier conducted declared areas around Kallar Kahar as “negative” for the setting up of cement factories as the underground water had fast depleted.

Mines and Minerals Department Secretary Amir Ijaz Akbar told Dawn the salt range had been found as an ideal location for the setting up of cement factories as almost all raw material including limestone, clay and gypsum potential was available.

Since the Punjab government had lifted restrictions on cement industries for the development of construction sector, the revenue collection by the mines and minerals department surged to Rs10.19 billion in FY21 from just Rs4bn a couple of years ago. Besides, Mr Akbar said, Rs40bn was being collected annually under the head of federal excise duty.

Answering a question, the mines secretary said that the NOCs were being given for the establishment of cement factories after complete environment impact assessment and involved all line departments including industries and irrigation departments for all around permission.

Meanwhile, Chief Minister Usman Buzdar says the new cement factories will generate jobs for millions of people and result in uplifting and ensure economic development in the backward areas.

Mr Buzdar stated that the steps taken by the government for the development of salt and coal industries were also yielding positive results. He said the Punjab Mineral Development Corporation had collected Rs1.64bn. He said as many as 21 rock salt exploration licences had been issued for the promotion of the salt industry. The department’s production capacity has been increased with the launch of four coal and eight salt mines.

The chief minister says the ban on coal mining has been lifted and transparency ensured in the public auction of 20 blocks of coal. The Mineral Cadastral System has been introduced to provide timely information.

The chief minister says e-Fighting & Office Automation System has been implemented with the cooperation of PITB, while Human Resource Management Information System (HRMIS) has also been introduced in the mines and minerals department.

The mines and minerals department has established a state-of-the-art in-service training academy in the Punjab School of Mines, Katas, wherein some 3,000 workers have been provided professional training.

Similarly, the Mine Sample Testing Laboratory, Khushab, was being restored with better facilities. New offices of Deputy Director Mines and Minerals have been set up at Khushab, and Mianwali.

The chief minister says steps are being taken for ensuring welfare, betterment and safety of miners across Punjab adding that the inspection system has been digitalised to ensure the safety of miners. A rescue squad has been set up at Sargodha Bridge 111 to deal with emergencies and untoward incident during mining.

Scholarships for miners’ children have been increased by 300 per cent and Rs80.5 million has been distributed. A special grant of Rs6,000 per month is being given to the disabled miners. A 10-bed minesabour welfare hospital has been set up in Makarwal, Mianwali.

Six mines labour welfare dispensaries are also being set up in the remote areas for providing medical facilities to the miners. A mobile health unit has also been set up for the miners in Chakwal district. Three water supply schemes and RO plants are being set up in Basti Daher, Makarwala and Chowasidan Shah.

Pakistan is entering a new cement capacity expansion phase

In a cement conference, conducted by AKD Securities Ltd CEO, Muhammad Farid Alam, on 15 September 2021, Pakistan’s cement industry producers confirmed that the country has entered another expansion phase. The total installed capacity of the cement industry in Pakistan is currently at 69Mta, and a further 18Mta of capacity is in the pipeline. This will take total production capacity to 87Mta by FY24.

Atif Kaludi, CFO of Lucky Cement Ltd, Muhammad Rehan, CFO at Attock Cement Pakistan Ltd, Shamail Javed, CFO at Gharibwal Cement Ltd, and Inayatullah Niazi, CFO at DG Khan Cement Ltd verified that the next expansion phase was imminent.

In FY21 Pakistan’s cement sales grew by 20 per cent YoY to 57.4Mt. For FY22 experts expect demand to grow by 10 per cent YoY. They estimated that if demand continues to increase by 10 per cent each year, the industry will reach 100 per cent capacity utilisation by FY26.

Lucky Cement

Lucky will incur capex of PKR23bn (US$136.99m) for its upcoming cement expansion, of which approximately 50 per cent is funded through Temporary Economic Relief Financing (TERF) and Long Term Financing Facility (LTFF) facilities. The development is expected to commence operations by December 2022, Atif Kaludi added.

Attock Cement

Cement expansion of 4250tpd is expected to come online by January 2024. Similarly, a solar plant of 20MW is expected to go online by October 2021, said Muhammad Rehan.

Garibwal Cement

According to Shamail Javed, GWLC’s announced expansion is subject to board approval. If the board approves, it will take two years to start commercial production.

DG Khan Cement

The company is expected to start construction of a project from next year. The 10,000-14,000tpd is expected to come online by FY25. The total cost of the project is expected to be US$250m and will be financed through a combination of debt and equity, said Inayatullah Niazi.