PPC finanlises Zim plant feasibility study

via PPC finanlises Zim plant feasibility study – DailyNews Live by Kudzai Chawafambira  29 NOVEMBER 2013

South Africa-based Pretoria Portland Cement (PPC) says it is finalising a feasibility study on the construction of a $200 million clinker production plant in Zimbabwe.

The group, which owns local unit Portland Holdings Limited (PHL), plans to build the facility — with a 1, 2 million clinker tonnes per annum capacity — in the north eastern region.

“We expect to be on the ground building in the second half of next year,” said chief executive Ketso Gordhan while presenting the group’s financials for the year ended September 2013.

“We intend to build two grinding facilities…where we will transport 800 000 tonnes while 400 000 tonnes will be delivered to Tete,” he said, adding that the group still required a couple of regulatory approvals.

The group expects the new plant to supply the Zimbabwean market and also export to neighbouring Mozambique.

The new plant will complement PHL’s two manufacturing plants in Bulawayo and Collen Bawn, which are producing nearly one million tonnes of cement per year.

On completion, the group’s Zimbabwe cement output is expected to increase two-fold to approximately two million tonnes per annum.

Early this year, Gordan said PHL, together with PPC’s non-South African subsidiaries, would also increase its revenue contribution to the group to 40 percent from the current 21 percent by 2016.

In 2011, PPC acquired a 27 percent stake in Harbesha Cement in Ethiopia and a 51 percent stake in Cimerwa Cement in Rwanda.

The increased capacity will enable PHL to increase its exports in the region.

Gordhan added that a significant investment had already been made in exploration and drilling at two locations in Rushinga and another one in Mashonaland Central.

“We will choose the best spot with quality limestone within the area.

“Furthermore our plan is to create an ultra-modern plant design so that we realise optimal efficiency. Our plans involve a lot of things like licensing, access to reliable power generation and supply and other essential utilities,” said Gordhan.

He said the process could take up to 10 months before construction commences.

“Not only will this investment address the expected future increase in cement demand in Zimbabwe, but create employment opportunities, beneficiation of the country’s mineral reserves and a significant growth opportunity for PHL’s indigenisation partners,” said Gordhan.



  • comment-avatar

    I read the above news item in our local newspaper with great interest in such a massive project which will produce not only more cement for Zimbabwe and the region ‘but create employment opportunities, beneficiation of the country’s mineral reserves and a significant growth opportunities for PHL’s indigenisation partners’ according to Mr.K.Gordhan. I represent PHL’s potential indigenisation partner, Volcano Freight Services (Pvt) Ltd whose interests are to participate in PPC projects by providing seamless logistics solutions to your freight requirements throughout the supply chain, managed from source to final destination. Please may our freight company be considered for your shipping, forwarding and customs clearing of imports & exports by road, rail, sea and air transport. Cargo is our business! Big or small, we move it from anywhere to everywhere worldwide through our international network of reputable agents and carriers.Between August and October 2013 we have handled the freight logistics of 102 buses for ZUPCO from FAW in China to Harare via Maputo Port and Forbes border post to the total satisfaction of both the supplier and the importer. The contract runs for the next 3 years with 102 buses yearly and please feel free to check with FAW and ZUPCO for references.

  • comment-avatar

    Good Luck! Just make sure you get 51% of your capital up front from either the government or a government approved partner; or you’ll be handing over 51% of your investment later.