• Covering global developments in the heavy bulk sector, including mining, minerals, iron and steel, cement, chemicals, ports and terminals, shipping and power generation.

Mining contracts
Australia. Downer EDI Ltd’s Mining Division has signed contracts with BHP Billiton Mitsubishi Alliance (BMA) at Goonyella Riverside and Norwich Park Mines in the Bowen Basin, Central Queensland.
   Valued at approximately A$2 bn, the contracts are for load and haul of prestrip material and drill and blast services at Goonyella Riverside Mine, and for load and haul of prestrip material at Norwich Park Mine.
   The contracts are designed to provide better utilisation of equipment and resources across both mine sites and will result in substantially improved productivity and returns for Downer. New equipment for the contracts totalling approximately A$190 m will be deployed progressively over the next 12 months.
   |   13:49 28/07/2010

Cement supply agreement
Panama. Cement maker Cemex has announced the signing of a supply contract with Consorcio Grupo Unidos por el Canal, primary contractor for constructing the third set of locks of the Panama canal expansion project, for 500,000 tons of cement.
   The project represents an integral phase of the canal expansion project, which includes two locks, the excavation of access channels to the new locks and widening and deepening of navigational channels.
   Jesus Gonzalez, president of Cemex Central America, said that the project promised to be a catalyst for development in Panama. “As part of the contract, Cemex will provide specially designed products for the engineering requirements of the work and ensure supply, a result of investing in expanding our production capacity since 2008.”
   Over the past two years, Cemex has invested approximately $300m in its Panamanian operations, including a tripling of cement production capacity at its plant. The expansion will ensure that the company is able to satisfy the needs of building materials for canal expansion as well as the requirements of projects initiated by the Panamanian government's investment plan.
   |   10:51 27/07/2010

Five lines for Brazil
Brazil. FLSmidth has been awarded a $44m contract from Brazilian company Votorantim Cimentos for the supply of five processing lines for five different cement plants in Brazil.
   The order is part of Votorantim's ongoing modernisation of production facilities.and includes delivery of equipment for three 3,000 t per day production lines and two 5,000 t per day lines as well as related engineering and commissioning support. Each line includes a kiln, cooler and preheater.
   FLSmidth has a strong local presence in Brazil and a long relationship with Votorantim, one of the ten largest cement producers in the world. Recent growth in demand for cement in the country has made Brazil the world's fifth largest consumer of concrete with the World Cup in 2014 and Olympic Games in 2016 further boosting cement consumption, said Group CEO Jørgen Huno Rasmussen. Commissioning is set for mid 2013.
   |   13:30 20/07/2010

Joint venture in Saudi Arabia
Saudi Arabia. Saudi Arabian Mining Company Ma'aden and Alcoa have commenced work on what will become the world's largest fully integrated aluminium complex at Ras az Zawr. This follows the announcement of a joint venture to develop a worldclass aluminum industry in the Kingdom.
   The initial phases will see the development of an industrial complex, consisting of a bauxite mine at Al Ba'aitha and alumina refinery, aluminum smelter and rolling mill on the Arabian Gulf, destined to become a regional hub to serve the growing markets of the Middle East and beyond.
   The complex will utilise low cost and clean power generation, as well as port and rail facilities, developed by the Kingdom's government. Bauxite feedstock for the planned alumina refinery will be transported by rail from the new Al Ba'itha mine near Quiba in the north. The smelter and rolling mill will begin operations in 2013 with mine and refinery coming on stream in 2014.
   Ma'aden has been set up to facilitate the development of Saudi Arabia's non-petroleum mineral resources and to diversify the Kingdom's economy away from petroleum-related sectors.
   Ras Az Zawr is also the location for Ma'aden's minerals industry complex, a 77 square km site, 90km north of Al Jubail on the Arabian Gulf coast. In addition to housing the new aluminium development, it is also the site for Ma'aden Phosphate Company's chemical and fertiliser facility, due to begin operation in 2010.
   This consists of phosphoric acid, sulphuric acid, ammonia, granulation, co-generation and desalination plants, as well as related infrastructure for processing phosphate concentrate brought in by rail from Al Jalamid. The production rate is 2.92 mt per year of granular DAP (Diammonium phosphate).
   |   10:54 21/06/2010

Demand fuels production increases
India. ACC Ltd, one of India’s largest cement manufacturers, is setting up what they describe as a mega cement project to realise a capacity of 3 mt per annum at Ghughus in the Chandrapur district of Maharashtra. The scheme is expected to be completed in the third quarter of 2010.
   Azeez Khan, Principal Secretary (Industries) for the Maharashtra Government, highlighted the fact that the company is establishing the unit in a backward area of the state and thereby supporting the government’s objective of achieving balanced growth and further consolidating the company’s long presence in the region.
   Sumit Banerjee, MD of ACC Ltd, said that it would be an environmentally friendly plant with considerable resources invested to ensure that the highest standards are met. The central control room is designed as a ‘Green Building’ and there is a new power plant.
   Back in January 2010, ACC acquired Encore Cements & Additives Private Ltd which has a slag grinding unit in Vishakapatnam and the acquisition will help ACC build its presence in Andhra Pradesh, and in particular the fast developing region of Bellary. ACC has also recently inaugurated the Kudithini Cement Works, the sixteenth cement plant in its national network - a greenfield project with a fully automated cement grinding plant which offers an annual capacity of 1.2 mt.
   Clinker is supplied by ACC’s cement plants at Wadi in Gulbarga district and despatched by rail and road. Kudithini also has its own railhead and siding with sophisticated unloading and handling facilities and is strategically located to allow easy access to all important markets and regions.
   ACC Kudithini produces Portland Slag Cement (PSC) using slag from Bellary region which is now an important source of iron and steel. The plant has strong environmental credentials with a zero discharge and zero solid waste policy in place. Cement will be made available in special tamper-proof and seepage-proof 50-kg bags, with the option to supply cement in bulk tankers.
   |   13:06 15/06/2010

Coal handling project
India. FLSmidth has been awarded a contract worth approximately €36m by Korba West Power Corp Ltd to supply and install a 1,800 tph coal handling plant for their 2 x 600 MW power plant, currently under construction at Raigarh, Chhattisgarh. Korba is a wholly owned subsidiary of Avantha Power & Infrastructure Ltd.
   The order involves track hoppers, paddle feeders, stacker, reclaimers and pipe conveyors as well as a belt conveyor system, ring granulators, vibrating grizzly feeders and trippers. FLSmidth electrical and air pollution control equipment is also included in the contract.
   Group CEO Jørgen Huno Rasmussen said that the coal handling package is the sixth material handling order awarded to FLSmidth in just seven months. It illustrates the company’s strength as a ‘One Source’ supplier, providing advanced technology and complete solutions in material handling, as well as reinforcing the Indian organisation's capability to execute large turnkey projects. Commissioning is due in early 2013.
   |   12:22 14/06/2010

Material handling order
Kuwait. FLSmidth has received a € 34m order from Kuwait Cement Company for in-plant material handling equipment for a second production line at its Shuaiba Port cement plant.
   The first production line, with a capacity of 5,500 t per day, was supplied by FLSmidth in 1998 and the second 5,500 t per day line is currently being supplied by the company.
   Included in the order is the complete design, engineering, manufacture and supply of all mechanical and electrical equipment. The material handling system includes belt conveyors, belt/weigh feeders, stackers, reclaimers, crushers, screens, bucket elevators, deep pan conveyors, air pollution control filters and revamping of an existing ship unloader, as well as the respective transportation system.
   FLSmidth says that the order is an example of the one source solutions it is now able to offer customers in the cement and minerals industries from its global material handling technology centre in Wadgassen, Germany. The contract is the first raw material handling facility for a cement plant in Kuwait and is an important material handling order for the growing Middle Eastern market, said Group CEO Jørgen Huno Rasmussen.
   |   13:01 02/06/2010

Outlook for dry bulk
UK. The 7th Annual Dry Bulk Shipping Market Outlook conference in London on 6 - 7 October 2010 is a global event, bringing together a distinguished panel of experts to analyse market drivers and assess demand and supply fundamentals in this sector.
   Dry bulk demand, particularly iron ore, coking and thermal coal demand from China and India, remains strong and is set to surge in the second half of 2010. Rapid recovery of freight rates from a catastrophic collapse in 2008 has seen fixtures for Capesize, Panamax, Handysize and Handymax vessels rebound and remain firm. With China's appetite for steelmaking raw materials expected to peak by 2020 with imports of iron ore of 1.3bn t a year, the outlook is for cautious optimism.
   Finance experts, including Ted Jadick, Executive Director and Head of International Section, HSH Nordbank and Evan Cohen, MD and Global Head Dry Bulk Group, DVB Group Merchant Bank (Asia), will give their insights into the global economy and how the dry bulk shipping sector is adapting. They will be joined by Jeremy Penn - Chief Executive, The Baltic Exchange and Bill Scotting - Executive Vice President, Head of Strategy, ArcelorMittal during two days of analysis as the sector tries to reap rewards from buoyant demand whilst avoiding the threat of oversupply.
www.immevents.com/drybulkshipping
   |   14:09 01/06/2010

Cement plant contract
Tunisia. FLSmidth has signed a contract worth €107m with Tunisian-owned Carthage Cement to supply equipment and services for a 5,800 t per day state-of-the-art cement plant, located southwest of Tunis.
   The plant, which will be the most technologically advanced in the country, is designed for possible future use of alternative fuels. FSL’s work includes the supply of a pyro processing line, mills, silos, automated ECS (Expert Control and Supervision) system as well as a packing plant. To meet the strictest environmental performance targets, the plant also features a QCX quality control system, gas analysing equipment and air pollution control filters.
   The contract was signed in close cooperation with Turkish building contractors EKON and PROKON who are responsible for all construction work, buildings and structures as well as installation of equipment supplied by FLSmidth.
   FLSmidth has also been awarded an operation and maintenance contract for the new plant which is worth more than €65m over a period of five years. The contract includes complete staffing of the plant for operation and maintenance of the equipment, training of staff as well as sourcing and inventory control of spare parts and lubricants.
   |   10:42 29/05/2010

Rail and port infrastructure development
Guinea. Bellzone Mining plc, the iron ore company developing the 24 bnt Kalia iron project in Guinea, West Africa, has signed a deal with China International Fund Ltd (CIF) for financing the infrastructure that is required.
   This involves a rail system (including rolling stock), bulk storage, port facilities and power requirements for producing and transporting a minimum of 50 mt of iron ore per annum from the project. The deal is subject to final agreements between the parties.
   Nik Zuks, MD, Bellzone Mining plc, said that under the terms of the deal, CIF will fund and construct the 286km rail and port facilities for the Kalia project in return for the right to purchase 100 per cent of the production of the development. In addition, Bellzone will gain a 50 per cent interest in the highly prospective Forecariah permits located on the proposed rail alignment and in close proximity to the coast.
   CIF has a proven track record of developing large infrastructure projects in Africa to feed China’s consumption of metals. Project value is estimated at $27 bn and is intended to form the first development stage of a multi-user railway and port that will help to unlock Guinea’s mineral deposits.
   The strategic link in the transport network puts two mines on line within four years instead of one and multiplies annual mining revenue tenfold in a short time scale.
   |   16:53 27/05/2010

Arrangement for Central Europe
Lafarge and STRABAG, a leading construction group in Central and Eastern Europe, are combining their cement activities in several countries of Central Europe.
   The companies have signed an agreement creating a holding company, Lafarge Cement CE Holding GmbH, with headquarters in Austria. Lafarge will bring its cement plants at Mannersdorf and Retznei in Austria, Cížkovice in Czech Republic and Trbovlje in Slovenia into the holding, while STRABAG will contribute a plant it is currently building in Pécs, Hungary.
   Under the arrangement, Lafarge will have a 70 per cent interest in the new company, with STRABAG holding the remaining 30 per cent. As a result of the transaction, Lafarge debt will be reduced by €77.5 m. The new holding company's annual cement production capacity will total 4.8 mt, with construction materials sold under the Lafarge brand name in all countries.
   The move is expected to create significant synergies in terms of investment and cost by joining activities within the Austrian, Czech, Slovak, Slovenian and Hungarian markets. Explaining the strategy, STRABAG CEO Dr Hans Peter Haselsteiner said,"The deal helps us to secure exactly the amount of cement we need in a year, namely 1.5 mt, in just those countries in which we need it. It also allows us to achieve economies of scale in procurement and administration and to profit from the know-how of the global cement market leader."
   Bruno Lafont, Chairman and CEO of Lafarge commented, “Thanks to the larger industrial network created, we will also have value creation opportunities, notably through logistics optimisation." The company becomes operational on 1 January 2011 pending approval by the competition authorities.
   |   10:12 26/05/2010

Phosphate terminal award
Jordan. FLSmidth has won a contract worth approximately €70m from Afcons Infrastructure Ltd, India following the award of an order worth around $200m by Jordan Phosphate Mines Co, Jordan, for a new phosphate rock terminal located south of Aqaba, Jordan.
   The work involves a land terminal where phosphate rock is unloaded at a truck unloading facility, suitable for self-tipping or bottom-discharge trucks and comprising tippling platforms for fixed trailer trucks. From here, phosphate rock is conveyed by chain conveyors, trough belt conveyors and reversible shuttle belt conveyors with a capacity of 1,800 tph into a 240,000 t capacity covered bulk flat store. Material is subsequently discharged and transported by belt conveyors and two overhead parallel pipe conveyors to a marine terminal with two rail mounted ship loaders with a loading capacity of 2,200 tph each.
   The project includes design, engineering, manufacture, supply, transportation of mechanical and electrical equipment to the site, fabrication, erection, testing, commissioning as well as training of terminal personnel and performance testing.
   International demand for phosphate is high and Group CEO Jørgen Huno Rasmussen commented that this order highlights the company’s capability as a single source solutions provider, not only within metal mining but in markets such as steel, port facilities, energy and industrial water treatment.
   |   20:58 16/05/2010

Capacity increase for Java
Indonesia. Holcim is planning to construct a new cement plant on Java, reflecting the continuous economic growth that Indonesia has experienced since the devastating Asian financial crisis of 1997-98.
   The plant, to be situated in the eastern part of the main island of Java, will represent an investment of around $450 m and will have an annual capacity of 1.6 mt. It will have sea loading and unloading facilities and will go into service in the first half of 2013, providing all necessary local licenses are granted in time.
   The development is expected to allow Holcim Indonesia to keep up with expected market growth and complement an existing production and distribution network. This consists of two cement plants and a grinding station with an annual capacity of 8.6 mt, as well as activities in the areas of aggregates and ready-mix concrete.
   Holcim's existing cement plants are situated in West and Central Java and the new plant will help to optimise logistics costs and open up markets cost efficiently in East Java, Kalimantan and eastern islands.
   After the Asian crisis, cement consumption has risen positively, with consumption in February rising 13.4 percent compared to a year ago. The highest volume growth has been on the main island of Java. Forecasts indicate that growth in the construction industry will further accelerate in coming years.
  Holcim Indonesia achieved a turnover of around $500 m in 2009 and currently employs a workforce of some 2,500.
   |   17:12 12/05/2010

World's largest pipe conveyor
India. FLSmidth has been awarded its second coal handling order from NTPC this year. The contract from M/s NTPC - Tamil Nadu Energy Company Ltd. (a joint venture company between National Thermal Power Corp Ltd and Tamil Nadu Electricity Board) has a value of around $20.4m and covers engineering, supply and installation of an external coal handling system at Vallur thermal power plant, approximately 20 km from Chennai in southern India.
   A 4.4 km long pipe conveyor is included in the coal handling system with a capacity of 4,000 tph - making it the world's largest pipe conveyor. The system will convey coal from an adjoining port to an internal coal handling stockpile.
   The design uses a well proven system that FLSmidth has previously utilised on the world's longest pipe conveyor, 8.2 km long and operating in Peru, as well as the highest capacity coal pipe conveyor with a capacity of 2,000 tph, operating in Colombia. The pipe conveyor is spillage free with a dust control system at end transfer stations, ensuring environmentally friendly material handling.
   This coal handling package is part of an expansion of the 1,500 MW mega power project. Following the Indian Government's ‘Power for all’ policy, NTPC has formed joint ventures with state owned electricity boards to produce power to meet local demand.
   |   09:12 05/05/2010

Indian success
India. FLSmidth has won an order worth around €48m from Heidelberg Cement India Ltd to supply equipment to its Indian capacity expansion project against competition from Chinese and other international players.
   The work involves a 5,000 t per day pyro process line at an existing plant in Narsingarh, Madhya Pradesh, a new clinker grinding system at a grinding unit in Imlai, Madhya Pradesh, and material handling system at a grinding unit in Jhansi, Uttar Pradesh.
   The contract covers supply of crushers for coal and additives, storage facilities for limestone, additives and coal, raw mill and coal mill. Also included is a complete pyro line with cooler, cement mill, silo, air pollution control equipment and gears for three grinding mills. All electrical and control equipment will also be supplied by FLSmidth.
   |   10:06 11/03/2010

Cement plant order
China. FLSmidth has signed a contract with Chinese cement producer Conch to supply a 12,000 t per day cement kiln for the Tongling plant in Anhui province.
   With an annual production capacity in excess of 100 mt, Conch is the largest cement producer in the country and Tongling plant's two existing kilns, each with a capacity of 10,000 t per day, were delivered by FLSmidth in 2002/3.
   The new kiln is said to have the maximum capacity available on the world market today, benefiting from expertise and knowledge gained by FLSmidth during the installation of a similar pyroprocessing line at Holcim Ste. Genevieve on the banks of the Mississippi, USA.
   In conjunction with this contract, FLSmidth is embarking on a strategy to strengthen its presence and competitive edge in the country with the long term goal of becoming a competitive supplier of cement plants and selected types of minerals machinery and services. Using a Chinese sales organisation and production facilities, the company will launch equipment designed for the Chinese market.
   There is currently a sales office in Beijing and 13,000-sq m manufacturing plant in Qingdao producing both cement and minerals equipment. To handle increasing production for international projects and stronger focus on the local market, Qingdao will be expanded to double its size this year.
   |   17:00 25/01/2010

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