| Mon 9 Nov 2009, 12:00 | | SEP - Sephaku Cement launches Sephaku Ash to corner Eastern Gauteng market with |
|
SEP
SEP
SEP - Sephaku Cement launches Sephaku Ash to corner Eastern Gauteng market with
cement extender product
Sephaku Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration number: 2005/003306/06)
Share code: SEP
ISIN: ZAE000138459
("Sephaku Holdings")
Sephaku Cement launches Sephaku Ash to corner Eastern Gauteng market with cement
extender product
Sephaku Cement (Pty) Limited ("Sephaku Cement"), an 80.2% held subsidiary of
Sephaku Holdings, recently received approval for an Environmental Impact
Assessment from the Mpumalanga Department of Agriculture and Land Administration
by way of a Record of Decision ("ROD") for the Delmas milling plant.
The ROD provides Sephaku Cement with the final go ahead to commence with
construction on its proposed cement milling plant in Delmas, subject to raising
the necessary funding.
Sephaku Ash, a division of Sephaku Cement, has concurrently commissioned phase 2
of the Fly Ash Facility at Eskom`s Kendal power station. Raw ash received from
the power station can now be reclassified into finer particles known as
unclassified Hard Ash and classified Smart Ash. The Hard Ash will be supplied to
Sephaku Cement`s Delmas milling plant, where it will be added to the milling
process producing extended cement. Sephaku Ash will also supply fly ash directly
to the construction and ready mix markets, where a healthy initial interest for
the product has been received.
Pieter Fourie, CEO of Sephaku Cement, commented, "The benefits from the Delmas
milling plant, combined with the commissioning of the Fly Ash Facility, are two-
fold. The cement product produced at the plant will have the extender element to
it which improves the cost and quality of the cement and, secondly, the Fly Ash
Facility becomes the second supplier of fly ash into the market. This should
improve service and quality levels to the clients."
At the Delmas plant, preliminary geotechnical studies have been completed to
ascertain whether ground conditions are suitable for the construction of a
milling plant. Additional geotechnical drilling and analysis are underway to
determine the optimal positioning for the major structures of the plant. The
site establishment is anticipated to begin in early 2010, subject to the
conclusion of final funding agreements.
Management expects the plant to come into production within two years and to
produce 1.2 million tonnes a year. Labour for the plant will sourced locally.
It is anticipated that 150 temporary jobs will be created during the
construction phase and 80 permanent jobs thereafter.
The increased supply of cement into the market in two years is in line with
Sephaku Holdings` expectations of growth in the South African market, where
Government is expected to continue the building of low cost housing as well as
investing in increased infrastructure in areas such as power and water.
"We are well positioned to supply the eastern side of Gauteng, where currently
we have a substantial logistics advantage over our competitors. Supplying on our
door step will reduce our transport costs of the product," Fourie concluded.
9 November 2009
Pretoria
Sponsor: QuestCo Sponsors
Notes to Editors
About Sephaku Holdings
Sephaku Holdings is an HDSA-controlled, industrial mineral exploration,
development and investment company, with a range of exploration projects
including limestone, fluorspar, coal, tin, gold and nickel.
The business is primarily focused on the identification and acquisition of
economically viable mineral projects and development of these prospects into
full-scale mining projects.
The goal is to maintain an HDSA shareholding in excess of 50% in the long term.
The company is therefore well placed to apply directly for new order mining
rights and to partner with entities that do not have the requisite HDSA
participation.
Sephaku Holdings` most advanced project, the `cement project`, is held by
Sephaku Cement, an 80.2% subsidiary of Sephaku Holdings.
Date: 09/11/2009 12:00:05 Produced by the JSE SENS Department.
The SENS service is an information dissemination service administered by the
JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or
implicitly, represent, warrant or in any way guarantee the truth, accuracy or
completeness of the information published on SENS. The JSE, their officers,
employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature,
howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
