|
|
Namibia: Cement Becomes Gold As Uranium Mines Take Shape
 |
 |
|||||||||
|
||||||||||
|
|
|||||||||
|
||||||||||
Namibia Economist (Windhoek)
18 July 2008
Posted to the web 18 July 2008
Chamwe Kaira
Windhoek
The government is trying to attract cement companies into the country, as it responds to a growing demand from uranium mines and to a backlog in housing, Steve Motinga, Director of Industrial Development in the Ministry of Trade and Industry, says.
Namibia consumes 350 000 tonnes of cement, all of which is imported from South Africa. Motinga told the Economist this week that cement from South Africa is fast becoming scarce due to construction projects associated with the 2010 FIFA World Cup.
He said three companies have so far responded to the appeal, which was placed in the local media and on the ministry's website.
"We want them to produce for the local market and also target Angola, the Democratic Republic of the Congo and Zambia," Motinga said. "We, as Namibia, are just a small fry in the pan."
Namibia should not just be used as springboard to neighbouring countries, he added.
But most cement companies willing to invest in Namibia usually demand infant industry protection.
"We won't give them that because we want everybody to have the same chance," he said, adding that another demand from cement companies was for the government to guarantee that it would buy the cement.
"Again we tell them No. They should use tenders like everybody else," Motinga said.
He believes competition will drive down the prices of cement as witnessed two years ago when Cheetah Cement started importing cement from Brazil and the prices dropped to less then N$30 per bag. However this was short-lived as Cheetah Cement later accused Holcim Cement of dumping to push it out of the market.
"We don't have a Competition Commission, so we can't prove the dumping accusations," Motinga said.
Motinga said the three companies that have made presentations to the ministry include the German-based Schwenk Pty Limited, which plans to open a cement factory called Ohorongo Cement between the towns of Tsumeb and Otavi in northern Namibia.
Schwenk Zement will own 60% of Ohorongo Holdings (Pty) Ltd with a Namibian investor group owning 40%. Ohorongo plans to set up a factory that will produce 600 000 tonnes of cement per year, with a total investment of N$1.2 billion being spent during the construction phase of the factory, which will take 27 months to complete. The cement factory is expected to be fully operational by 2010. Motinga said Cheetah Cement, which now has Chinese investors Beijing Vibroflotation Engineering after the Brazilians pulled out, plans to open a cement plant at Otjiwarongo in partnership with the municipality and local company Whale Rock Cement. This week, Portuguese company C+PA-Cimentos e Produtos Associados, S.A, which is part of the Teixeira Duarte Group, also announced that it plans to invest N$1.8 billion building a cement factory in Karibib.
|
C+PA owns Karibib Portland Cement through a joint venture with local company Siren Investment, which holds 40%. Production of cement is expected to begin by mid 2011. "The government stands to listen to other companies," Motinga said.
| |||||||||||||||||||||||||||||
| |||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||
| Copyright © 2008 Namibia Economist. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections -- or for permission to republish or make other authorized use of this material, click here. | |||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||
| Make allAfrica.com your home page | RSS Feed | |||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||
| Top | Site Guide | Who We Are | Advertising | Search | Subscribe | |||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||
| Questions or Comments? Contact us. Read our Privacy Statement. | |||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||
