A leading news agency in Johannesburg, South Africa, reports that Sephaku Cement, an 80.2% held subsidiary of Sephaku Holdings, has appointed Nedbank Capital to be lead arranger of project finance facilities for new cement projects in the North West of the country and at Mpumalanga. Sephaku Holdings is a minerals exploration, development and investment company, with a range of mining and exploration projects.
It is understood that the company will be the biggest new entrant in South Africa’s cement market place since 1934, with the total capital cost of two projects at R3.3 billion, and project finance facilities likely to exceed R1.8 billion. Sephaku Cement’s CEO Pieter Fourie indicated that the arranging mandate paved the way for funding the construction of the Aganang project in the North West, and the cement milling plant in Mpumalanga, the Delmas project. One year ago the company entered into a full turnkey agreement for these projects with Sinoma International Engineering Company on a fixed price basis.
In August 2009 Sephaku completed the commissioning of the 1.2 million t flyash beneficiation plant at Kendal power station. Last month Sephaku Holdings said it was in advanced negotiations with a global financial institution about an equity investment in Sephaku Cement. Fourie commented, “our biggest strength is our intellectual capacity. We have an excellent contingent of cement professionals with significant experience in all areas of the industry”. He said that construction of the Aganang and Delmas projects would start within the next few months, with a target completion by the third quarter of 2012.
Read the article online at: https://www.worldcement.com/africa-middle-east/11032010/sephaku_cement_to_enter_south_african_cement_market-/