The carbonate industry, particularly limestone producers, has noted a general increase in demand over the last few years.
This is according to mining consulting group Snowden’s senior mining analyst, Vince Agnellom, who adds that this demand and increase in production are a result of growth in cement manufacturing, steel manufacturing, calcium nitrate manufacturing, and the plastics and rubber industries.
He says that there has been much change in the cement industry in the last five years – in particular, the unprecedented levels of cement demand, leading to a surge in imports, vertirock sand production process pricescal integration in the cement and concrete industries, a global consolidation of major producers as well as major plant upgrades and refurbishments locally.
Examples provided include the R4-mil- lion spent by local cement producer Lafarge at its Lichtenburg plant, and the buying of Egypt’s ball mill flake aluminumOrascom Cement for €8,8-billion, together with local cement group Pretoria Portland Cement’s (PPC’s) R600-million upgrade of its Pretoria-based Hercules milling facility, and its one-million-ton- a-year capacity expansion project, Batsweledi.
According to PPC, there was a 50% increase in cement demand during the period frorock sand production process pricesm 2002 to 2006 and this was expected to double by 2010.
Agnello says that the cement producers in South Africa have indicated that the importing of cement is expected to cease in the next 12 months. According to the South African Concrete and Cement Institute, there was a decline in the buying of cementitious products by the mining industry from 2006 to 2007.
“Carbonate markets, in general, will show moderate growth, in line with the gross domestic product and, to a lesser extent, growth forecasts of the manufacturing and construction industry,” explains Agnello.
Meanwhile, the limestone market is saturated locally. Agnello says that while growth is expected in this market in the future, importing of the product has occurred where the market has not been cost competitive, not aggressive enough, and where deposits are medium to low grade, adding that more research and development is required by local producers to upgrade their products.
“Lime and limestone demand for use in platinum roasting is little and declining. However, growth in lime consumption is expected in the gold and uranium sector, in steelmaking and in ferrochrome processing. “The growth in the local lime industry is not important as long as sustainable consumption is maintained. “The demand for lime has been shrinking over the last 20 years; however, in the next few years, local lime markets are set to experience some growth,” concludes Agnello.