| Mon 15 Sep 2008, 9:00 | | PPC - Pretoria Portland Cement Company Limited - Proposed new PPC Western Cape |
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PPC
PPC
PPC - Pretoria Portland Cement Company Limited - Proposed new PPC Western Cape
cement factory to meet growing demand
PRETORIA PORTLAND CEMENT COMPANY LIMITED
Incorporated in the Republic of South Africa
(Registration number 1892/000667/06)
("PPC" or "the company")
JSE code: PPC
ISIN code: ZAE000096475
Proposed new PPC Western Cape cement factory to meet growing demand
PPC today released a final Environmental Impact Report, the next step in a
process that could see it invest more than R4 billion in a new cement factory
with a capacity of around 1.3Mt/yr to both replace and expand its aging plant at
Riebeeck in the Western Cape.
The existing plant which dates back to 1959, produces around 550 000 tons of
cement a year and is reaching the end of its economic life. Orrie Fenn, PPC`s
Chief Operating Officer, says that with the strong growth in South African
cement demand, which has grown by nearly 60% over the past five years, coupled
with Government`s focus on infrastructure development, the Western Cape could
face a shortage of cement in the next five years if production capacity is not
increased.
"Cement is a strategic commodity and if there is a shortfall it will have to be
imported to the Western Cape from overseas, which would drive up the cost. The
new factory will ensure that there will be sufficient supply to meet projected
demand into the future."
The plant will employ the latest technology, making it considerably more
efficient than the existing facility, using less water, energy and 30% less coal
per ton of cement produced. Bag filters will control dust emissions from the
kiln stacks limiting dust concentration in the cleaned gas to well below the
level of 50 milligrams per cubic metre required by International and European
Standards, thus comfortably meeting the expected requirements of the new South
African Air Quality Act.
The estimated project cost includes R20 million predominantly aimed at uplifting
the quality of life for the Riebeek West and Riebeek Kasteel communities, and up
to R100 million in a Public Private Partnership with the regional authorities
for a possible much-needed upgrade of the existing road system to alleviate
traffic flow through both towns.
"Every effort has been made to minimize the environmental impact of the new
factory on the surrounding area, ranging from positioning of the factory to
reduce its visual impact, to capping PPC`s heavy vehicle traffic through both
Riebeek West and Riebeek Kasteel at current levels," says Fenn.
The environmental impact assessment has been conducted by independent
consultants Ninham Shand and is the culmination of more than two-and-a-half
years of intensive consultation and research. The 1 200-page report includes the
results of 14 specialist studies into aspects such as noise, air quality,
traffic, social impacts, water, visual impact and health.
The public has 60 days to comment before the report is presented to the Western
Cape Department of Environmental Affairs and Planning.
If the project is approved, construction will start mid 2009 and will take
approximately three years to complete.
Ends
Issued by: Meropa Communications
Contact: Johan du Toit
(021) 683 6464
On Behalf of: Pretoria Portland Cement
Contact: Nomzamo Basson
011 386 9309 cell 082 870 4235
Contact: Orrie Fenn Chief Operating Officer
(011) 386 9069
15 September 2008
Sponsor
Merrill Lynch South Africa (Pty) Limited
Date: 15/09/2008 09:00:04 Produced by the JSE SENS Department.
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