MARKETS

Coal's price tag too big for South Valley

The $US19.8 million ($A21.1 million) proposed bill to use coal as an energy source has proven too costly for South Valley Cement Company, which says it will opt for the cheaper mazut to power its expanding cement factories.

Sadie Davidson
Coal's price tag too big for South Valley

SVCC said it would be indifferent if the Egyptian government decided not to follow through with the coal usage plan because it could rely on mazut, a low-quality fuel oil, in addition to gas, in order to produce cement.

It did say that the availability and sustainability of the alternative energy sources remains a big challenge.

The company said that only coal could ensure the company reached 100% of its production targets, but it would be forced to use the less efficient mazut or agricultural waste to reduce costs.

SVCC officials said that its application for alternative energy sources, suggested by the Egyptian government, could take up to 12 months to be approved.

The company is seeking to double its production capacity and is currently constructing two new cement plants, which are expected to be complete within 17 months

The company plans to increase its production capacity to reach 3.75 million tonnes a year by 2017.

TOPICS:

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining Monthly Intelligence team.

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining Monthly Intelligence team.

editions

Mining Magazine Intelligence Future Fleets Report 2024

The report paints a picture of the equipment landscape and includes detailed profiles of mines that are employing these fleets

editions

Mining Magazine Intelligence Digitalisation Report 2023

An in-depth review of operations that use digitalisation technology to drive improvements across all areas of mining production

editions

Mining Magazine Intelligence Automation Report 2023

An in-depth review of operations using autonomous solutions in every region and sector, including analysis of the factors driving investment decisions

editions

Mining Magazine Intelligence Exploration Report 2023 (feat. Opaxe data)

A comprehensive review of current exploration rates, trending exploration technologies, a ranking of top drill intercepts and a catalogue of 2022 Initial Resource Estimates and recent discovery successes.