Batsweledi Expansion Project ‘Growing into the Future’ expansion - Intercem Conference... ·...
Transcript of Batsweledi Expansion Project ‘Growing into the Future’ expansion - Intercem Conference... ·...
INTERCEM CONFERENCECape Town: 20 Sept 2007
Batsweledi Expansion Project
‘Growing into the Future’
Dr. Orrie Fenn
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Presentation Outline
Industry overviewPPC background Project considerations
OptionsTimelineTender allocation
Project overview & technologyHighlights to date
Preheater towerCommunity involvement Other projects in pipelineSummary
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Industry Overview
Four producers (including PPC)AfriSam/Holcim (85% owned by BEE investor Afrisam)Lafarge acquired Blue Circle (South Africa) 1998Cimpor acquired NPC in 2002
PPC leading player with 34-39% market shareAfriSam (30-33%), Lafarge (20-24%), Cimpor (8-10%)
AfriSam & Lafarge have interests in fly ash & slag extendersPPC & Cimpor have alternative slag sources
Producers involved in readymix & aggregates Average age of plant around 30 years (some upgrades)
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24 - 34
21 - 34
21 - 47
Age (Years)
0.6
0.8 - 1.2
0.8 - 1.3
0.2 - 0.9
Capacity (Mt/yr)**
FLSmidth
Polysius; KHD
Polysius; FLSmidth (2)
Polysius; FLSmidth (12)
Supplier
11NPC
21Lafarge
32AfriSam
137PPC
KilnsPlants*Producer
*South Africa: **Clinker (PPC estimate)
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PPC Background
Founded 1892; listed on Johannesburg Stock Exchange 1910Largest cement company in southern Africa (6.9Mt capacity)Market leader in South Africa, Botswana & ZimbabweFirst to introduce branded cement (Surebuild) 1996Aggregates business (largest SA quarry)Largest lime producer in southern AfricaMaterials handling & slag facility at Mittal Steel operationBuilder of last cement line in South Africa (Dwaalboom 1985)
39.7%Operating Margin
3025 (including Zimbabwe)Number of Employees
€ 2.55 billion Market Capitalisation (JSE)
€473 million (excluding Zimbabwe)Revenue
PPC Results 2006 (SA & Botswana)
Note: Figures based on 13 Sept 2007 ZAR/€ exchange rate & share price
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Riebeeck
De Hoek
Port Elizabeth
SlurryLichtenburg
Dudfield HerculesJupiter
Ulco
Dwaalboom
’
Simuma
Cement Capacity SA (Mt/yr)PPC 6.1AfriSam 3.8Lafarge 2.7NPC (Cimpor) 1.0
Zimbabwe
Botswana
Colleen Bawn
Bulawayo
Factory Location
Total: 14.8*
Namibia
Moz
ambi
que
* PPC estimate
3rd party extenders 1.2
Plant
Commissioning
Scope Fix
Achieved
Construction
Commenced
Contracts
Awarded
Board
Approval
Batsweledi Project: Considerations & Timeline
Feasibility
Commenced
May 04 Aug 05 Nov 05 March 06 Aug 06 April 08
Project Duration 48 months
Tim
elin
e
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Project Feasibility Commenced May 2004
Increasing cement demand drove investment decision50% increase in cement demand during 2002-2006Forecast >15.5Mt in 2007 (demand to remain strong post 2010)
Extensive investigation & analysis conductedSeveral key decisions had to be made
Greenfield or brownfield expansion?Cost & timing implicationsLimestone reserves & availability
Best location Dwaalboom or Slurry?Dwaalboom in Limpopo ProvinceLogistics (road/rail infrastructure)
New kiln line or existing line upgrade?Avoid protracted kiln shutdown during peak sales cycleOff-the-shelf proven designMore manufacturing flexibility (not reliant on one production unit)
Minimise capital cost & maximise cement production Use existing storage, milling & despatch facilities Use extenders available near to market
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Project Approved in August 2005
After 15 months feasibility study Batsweledi Project approved1Mt/yr clinker manufacturing line (DK2)Upgrade of existing cement milling infrastructure (Jupiter)
Total capital cost €139mIncluding escalation, currency, project management, contingency
Project cost split between two sitesDwaalboom ~€128m: Jupiter~€11m
Commissioning of DK2 scheduled for April 2008Jupiter milling upgrade commissioned March 2006Ramped-up project management capabilities
Limited in-house skills at start of projectBatsweledi first stage of PPC’s 20 year modernisation plan
Caters for retirement of 3 old kilns (capacity ~600kt/yr)
Batsweledi Project PPC’s first new kiln line in nearly 25 yearsBatsweledi Project PPC’s first new kiln line in nearly 25 years
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Dwaalboom Preferred Location
Most financially attractive optionIndependently verified during planning stage
PPC’s most modern plant (excluding PPC Zimbabwe)Most advanced control systems (neural network-based)
One of South Africa’s lowest cost-producing plants Original plant design ‘space planned’ for future expansion
Plant layout ideally suited for additional capacityExisting equipment sized to accommodate higher volumes
Raw meal silo & clinker transfer system can serve two kiln linesQuarry crushing train adequate capacity Existing quarry fleet to operate another shift
Sufficient limestone reservesGood quality limestoneTwo component mix design (includes lava)Not a complex mining operation
Dedicated rail line & ring-fenced wagon fleet
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Dwaalboom Planned in Early 1980’s
Commissioned in 1985FLSmidth equipment supplierImmediately mothballed
Re-commissioned in 1996 as a clinker grinding plant
Supplied JupiterControl & operating systems upgradedCement mill/despatch facilities 1998Cement capacity increased to ~900kt/yrServes Limpopo Province & exports
Supplies clinker to Hercules factory CEM 1 (42.5 & 52.5) & CEM 2 (32.5)
70% bagsEmploys 163 peopleISO 9002, ISO 14001 & ISO 18000 Plant altitude 1100 metres
Dwaalboom compares very favourably against global benchmarksDwaalboom compares very favourably against global benchmarks
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Unique Stacker Reclaimer Setup
FLS stacker & disc re-claimer
Two 68 000 ton stockpiles
Coal & gypsum re-claimer
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Lava SP L/SLava
Coal HG Coal LG Coal HGCoal LG
SP L/S
LEGEND
Raw Materials Handling
Main Plant
Clinker Handling
Electrical
Limestone
Gypsum
Limestone
Gypsum
DWAALBOOM SITE LAYOUT
Plant Split Into Sections For Tendering
Allowed PPC to utilise ‘best-of-breed’ in each discipline/area of plantAllowed PPC to utilise ‘best-of-breed’ in each discipline/area of plant
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Major Contracts Awarded in November 2005
FLSmidth main equipment supplier (~€23m)Atox raw & coal mills, Rotax 3300t/d kiln Upgrade of disc reclaimer to 500t/h
Standby apron feeder (fed by front-end loader) installed as back-upInstallation of kiln line FFE Minerals-Vecor (FLSmidth Minerals)
Subcontracted to DMCEBateman Africa supply & installation of raw material handlingequipment, & clinker transport/handling & load-out station (~€10m)
New 250t/hr & 200t/hr scraper-reclaimers for coal & additivesIron ore offloading & storage facility (3 component mix)Proportioning station equipped with 2 x 330t/hr apron feedersTwo 400t/hr conveyors to feed new raw mill
Concor Civils major civils contractor (>85%)Electrical installations managed by Kentz Automation & Drives
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Factors Affecting Choice of Technology
Future increasing trends in energy costs consideredCoal costs approaching export parity pricesHighest kiln system thermal efficiency required
Dwaalboom water availability & consumption a concernParticularly in summer months (>15kl/hr required for DK2)
Lack of water ruled out conditioning tower Technical option requiring lowest water consumption a prerequisite
Water & emission levels dictated use of bag filter technologyExhaust gas temperature <270°C to prevent damage to bag filters
Six-stage cyclone preheater with in-line calciner preferred solutionOperating temperature at bag house inlet of ~2000C ~10kcal/kg clinker less energy (compared to 5 stage system)
Improved heat efficiency & water saving >€100k/yrOffsets increased capital cost ~€2m
Energy efficient vertical roller mill technology used for raw & coal millingEnergy efficient vertical roller mill technology used for raw & coal milling
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DK2 Based on Latest Design & Technology
Six-stage cyclone pre-heater with in-line calciner
115m high preheater tower (DK1 at 80m)South African first
Lowest thermal energy consumption>10% better than next best PPC plant
Kiln dimensions 4.55m x 54mCapacity 3300tpd FLS Rotax kiln
Electric drive via two support stationsNo girth gear to maintain
Latest generation grate coolerFLS Multiple-Moving Cross-Bar cooler (MMC)Clinker on clinker (wear minimised)
Kiln feed controlled by x-ray spectrometerIncreases kiln stability & efficiency
Burn secondary fuels & lower grade coal Operating staff trained on kiln simulator
Focus on minimising energy consumption & maximising environmental benefitsFocus on minimising energy consumption & maximising environmental benefits
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Clinker transferred to Hercules & Jupiter plants for milling Constructing facility designed to load block trains
50 rail trucks totaling 3 200 tons clinkerLoaded out within one eight hour shift
In-house designNo existing rail load plants to use as guidance
Peak loading rate 1 000 tons per hour (ship loaders ~300tph)Dust free loading operation
1 160 m³/minute dust collection capacitySpecial 80 ton radio controlled ‘train mover’ to be used
Rapid Clinker Load-Out Facility
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Dwaalboom Upgrade Statistics
Clinker capacity increased to 1.75MtLimestone requirement 2.5MtCoal usage 250ktInstalled power 34 MegawattsPower usage 230 million kWh Diesel consumption 1.7 million litres1Mt clinker transported by rail to Gauteng
Milled at Jupiter & Hercules facilitiesAdditional 28 people employed Construction workforce peaks at >1000
Including overseas complementPlant erection technical skills
Note: All figures quoted are on an annual basis