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Sinai Cement Company is latest to pursue switch to coal

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World Cement,

According to a statement filed to the Egyptian Stock Exchange, Sinai Cement Company has contracted FLSmidth to provide the necessary equipment to set the plant up to use coal. The company will also be working with local contractors and suppliers to switch from natural gas and Mazut fuel oil to coal use.

Energy has been a major concern for Egyptian cement producers whose production was severely impacted by a shortage of natural gas. The government has recently increased prices from US$6 to US$8 per million BTUs for has and from EGP1500 to EGP2250 per tonne for fuel oil. The Federation of Egyptian Industries has reportedly said it will bear the cost of the price increase, given that the current economic situation ‘doesn’t allow for any alternative’.

There has been some backlash regarding the use of coal in cement plants, which was approved in April as a means to address the energy shortage. ‘Egyptians Against Coal’ have expressed concern over the environmental impact of the fuel switch, but the government has said it will tighten penalties for the violation of environmental standards. Meanwhile, Suez Cement Company and Arabian Cement Company are both pursuing a shift to coal.

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