| Tue 3 Aug 2010, 9:00 | | PPC - PPC opts for lower impact Western Cape expansion |
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PPC
PPC
PPC - PPC opts for lower impact Western Cape expansion
Pretoria Portland Cement Company Limited
(Incorporated in the Republic of South Africa)
(Company registration number: 1892/000667/06)
JSE Code: PPC
ISIN: ZAE000125886
("PPC" or "the company")
PPC OPTS FOR LOWER IMPACT WESTERN CAPE EXPANSION
Pretoria Portland Cement (PPC) has announced a review of its Western Cape
capacity expansion programme and the resultant withdrawal of its
environmental application for the original programme. The revised programme
will see PPC upgrading and increasing capacity at its existing Riebeeck
operation and its De Hoek operation near Piketberg instead of building a
single new factory.
The upgrade of existing plant will increase capacity in the Western Cape by
approximately 50% up to 2016. The upgrade plan will allow PPC to increase
capacity with lower impact on the surrounding communities and the environment
and at a lower capital outlay. The new plan requires phased expenditure of
R3 billion over 6 years as opposed to the original plans` R4.5 billion over 4
years.
"The original design was done during a period of peak demand and cement
shortages. The economic landscape and capacity requirements have changed
significantly since then. Pending legislative changes will make it more
onerous to withdraw environmental applications in future, hence our
withdrawal of the original application now. With the revised plan we will
still achieve our original objectives with regard to environmental standards,
energy efficiency and capacity expansion in the Western Cape region but in
phases and over a longer time" said PPC CEO, Paul Stuiver. "Our dedication to
our surrounding communities remains unchanged and we will continue to
champion local employment and skills development as part of our ongoing
commitment and as part of the new plan."
The new expansion programme would not result in any job losses at the PPC
operations. Additionally, PPC`s commitment to Social and Labour projects the
Western Cape remains unchanged. Recently the company completed construction
of a creche and of classrooms at the Meiring and Riebeeck West primary
schools in Riebeeck West and a number of classrooms at the Steytlerville
Primary school in De Hoek. During August the company will be unveiling the
completion of a Water Works at the Wittewater community near Piketberg.
Commenting on the impact that the new programme will have, Stuiver said: "The
new phased approach will still incorporate best available technology to meet
World-class Environmental Standards with specific focus on energy efficiency.
The programme will also result in more traffic being routed onto the national
road and therefore have less impact on the smaller surrounding towns. There
will also be less visual impact."
PPC will commence with a new environmental authorization process and will
continue to engage with all the affected communities in the Riebeeck West and
Piketberg regions regarding the new programme.
ENDS
Notes to editors:
PPC has 8 million tons of cement manufacturing capacity and 12 major
operating sites across South Africa, Botswana and Zimbabwe. Two of the
operations, Riebeeck and De Hoek, near Piketberg, are situated in the Western
Cape Province.
During 2006, when demand was growing rapidly in the province, PPC
commissioned a study for the expansion of its cement manufacturing capacity
in the Western Cape. As a result of this process an environmental impact
assessment process commenced in 2006.
The original project, named Se Kika, involved the construction of a new, 1.4
million ton per annum cement plant on a new site located a short distance
from the existing 50 year old operation at Riebeeck West. Part of this new
capacity was planned as a replacement for the existing factory.
Cement demand in the province peaked during 2007/2008 and exceeded PPC`s
manufacturing capacity. Since then there has been a 40% decrease in
provincial demand causing PPC to reconsider its Se Kika expansion programme.
As there are pending changes to environmental legislation that will make it
more onerous to withdraw environmental authorisations in future, and it is
clear that the programme will need to change substantially, a decision was
made withdraw the original environmental application.
A revised expansion plan is now being proposed which involves expansion of
capacity at the existing Riebeeck plant near Riebeeck West and the expansion
of capacity at one of the production lines at PPC`s De Hoek plant near
Piketberg. The combined capacity of the two sites, after expansion, will be
the same as that of the original Se Kika project.
For further information contact:
College Hill +27 11 447 3030
Jacques de Bie +27 82 691 5384
PPC +27 11 386 9000
Kevin Odendaal +27 11 386 9024
kodendaal@ppc.co.za
3 August 2010
Sponsor
Merrill Lynch South Africa (Proprietary) Limited
Date: 03/08/2010 09:00:01 Produced by the JSE SENS Department.
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