Investor Site Visit. Dwaalboom Factory

Transcription

1 Investor Site Visit Dwaalboom Factory 8 September 2009

2 Welcome Introduction Programme 09h30 Presentation 11h00 Q & A 11h20 Safety induction 11h30 Site tour 13h00 Q & A 13h30 Lunch 14h30 Departure 2

3 Objectives Objectives for today Investors experience the most modern cement operation in southern Africa see first hand PPC s capital expansions (past & future) meet a wider group of PPC s senior management and operational staff PPC demonstrate what we are proud & capable of constructing & operating meet and interact with a very important stakeholder group 3

4 Orientation Zimbabwe Namibia Botswana Gaborone Slurry Bulawayo Colleen Bawn Dwaalboom Hercules Mozambique Jupiter Saldanha De Hoek Riebeeck PPC Cement Sites Port Elizabeth 4

5 Orientation Zimbabwe Namibia Botswana Gaborone Mill Botswana Dwaalboom Sun City Road 220km Gaborone Slurry Thabazimbi Rail 250km Medupi Power Station Limpopo Bulawayo Dwaalboom Colleen Polokwane Bawn Hercules Jupiter Mozambique Rail 320km Slurry Hercules Pretoria Johannesburg Jupiter North West De Hoek Riebeeck Gauteng Port Elizabeth 5

6 Orientation 6

7 Southern Africa Cement Industry Industry Capacity 2010/11* 7.4mt 4.2mt 3.1mt 1.5mt 3 rd Party Extenders 1.3mt Total 17.5mt Botswana Gaborone (Mill) Harare Zimbabwe Bulawayo (Mill) Colleen Bawn Dwaalboom Slurry Lichtenburg Hercules Dudfield Jupiter Mills Ulco Mozambique Matola Durban (Mill) Simuma * Note: PPC estimate (assuming no kiln retirements) Excludes capacities of PPC Zimbabwe (~750kt) Lafarge Zimbabwe Cimpor Mozambique Saldanha (Mill) De Hoek Riebeeck Port Elizabeth 7

8 Regional Supply and Demand Mt 22 Revision: August Industry demand Industry maximum capacity Completed Contracted / Building Imports PPC 1.25Mt/yr, Cimpor 0.6Mt/Yr: (2009) Lafarge 1Mt/yr PPC Mill 0.3Mt/yr, Afrisam Mill 0.4Mt/yr (2010) Growth 7.4% -3.9% -10%? 0%? 6%? 8

9 Dwaalboom 9

10 Introduction 1908, a Surveyor, Mr Muhl, got lost and overnighted in a marula tree. Called it Verdwaalboom Rainfall: mm per annum Temp: -2 deg 44 deg C. Ave 21 deg C Coordinates: 24 43' 0" South, 26 49' 0" East Industry: Farming, mining, tourism 10

11 Overview Dwaalboom cement manufacturing plant located in Limpopo Province Newest plant within PPC Group Produce OPC and Surebuild cement Limestone, shale and lava mined at quarry adjacent to factory Iron ore and coal brought in 235 permanent employees ISO 9001, ISO 14001, OHSAS 18001, SANS 1841 and AMS

12 Overview Dwaalboom mining property covers ha; reserves > 100 years Kiln 1 commissioned 1985; mothballed soon thereafter due to market downturn Re-commissioned 1996 along with new cement mill, packaging and dispatch facility Kiln 2 commissioned Sept 2008 Supplies northern SA, Gauteng region, Botswana & Mozambique. 12

13 Organisational structure Mining Operations Engineering Administration Production Quality Assurance Packaging & Logistics Risk Environment and Sustainability Organisational Performance (HR) 13

14 Passionate People: Vital Elements of a Performing Organisation Clear Purpose Vision Strategy Communication Understood Journey maps Inspiring Climate Fairness, order, rules of the game Communication, information, influence Management style Recognition Code of conduct Remuneration and benefits Effective HR administration Alignment Value drivers Structure Job model Purpose Scorecard Competencies Invocom Communication Reviewing progress Stretching targets Solving problems Education Learning for Growth Career development Skills development Succession planning NQF alignment Performance Improvement (Organisational/Individual) Role and function clarity Accountability Scorecards, targets & action plans Performance measurement Performance reviews Recognition Action plans for under performance Continuous Performance Improvement Create Energy Structure/Harness Energy Direct/Focus Energy Release Energy/Reward 14

15 Corporate Social Investment Social and Labour Plan submitted MOA local municipality agricultural feedlot (R5m) Supplied government pension pay-out centre (R500,000) Support for several local care centres Dwaalboom-Koedoeskop road surfacing project (R60m PPP*) (* Public Private Partnership) 15

16 Geology 16

17 Geology Formation of calcrete 17

18 Mining Factory Crushing Mine 18

19 Mining Large calcrete deposit is exploited as major component in cement manufacture Shale and lava deposit exploited for correcting silica and aluminium Iron obtained from by-products of local iron ore mine or from magnetite Shallow open cast mine: Q1, Q2: <15m Q3: shale / <40m 19

20 Cement manufacturing 20

21 Cement manufacturing process mining limestone crushing plant limestone blending coal stockpile coal mill raw mill pre-heater, kiln line & cooler clinker storage cement milling & dispatch 21

22 Cement manufacturing - detail mining limestone crushing plant limestone blending coal stockpile coal mill raw mill pre-heater, kiln line & cooler clinker storage cement milling & dispatch 22

23 Cement manufacturing - detail mining limestone crushing plant limestone blending coal stockpile coal mill raw mill pre-heater, kiln line & cooler clinker storage cement milling & dispatch 23

24 Cement manufacturing - detail mining limestone crushing plant limestone blending coal stockpile coal mill raw mill pre-heater, kiln line & cooler clinker storage cement milling & dispatch 24

25 Cement manufacturing - detail mining limestone crushing plant limestone blending coal stockpile coal mill raw mill pre-heater, kiln line & cooler clinker storage cement milling & dispatch 25

26 Cement manufacturing - detail mining limestone crushing plant limestone blending coal stockpile coal mill raw mill pre-heater, kiln line & cooler clinker storage cement milling & dispatch 26

27 Cement manufacturing - detail mining limestone crushing plant limestone blending coal stockpile coal mill raw mill pre-heater, kiln line & cooler clinker storage cement milling & dispatch 27

28 Products Clinker Onsite manufacture of cement Dispatched to Hercules and Jupiter for cement manufacture Cement CEM I 42.5N (OPC*) CEM II 32.5R (Surebuild) * Ordinary Portland Cement 28

29 The heart of the operation : The kilns Kiln 1 (DK1) 5 stage suspension pre-heater kiln ~750kt/annum of clinker supplied by FL Smidth Kiln 2 (DK2) 6 stage in line calciner, low NOx kiln ~1mt/annum of clinker supplied by FL Smidth DK 2 29

30 DK2: world class Main plant t machinery Total plant t structural steel Total plant m 3 concrete Total plant 318 km electrical cable Installed power: 10MW (Raw Mill, Coal Mill and kiln only) Investment: R1 400 million (2008) 30

31 DK2: world class Contractors on site peaked at 1500 Local labour contingent averaged ± 30% 800 benefitted from formal on the job training 650 housed in R24m contractor camp Every person onsite received a lunch 7 lost time injuries in 5.5million man hours Most severe was fractured arm Formal safety training for every person 640 containers and bundles shipped to site 31

32 DK2: world class Flame-in 26 September 08 First clinker is produced! 32

33 DK2: world class energy efficiency JK3* Thermal 5.7 MJ/kg clinker DK1 Thermal 3.5 MJ/kg clinker DK2 Thermal 3.1 MJ/kg clinker Electrical RM # - 34 kwh/ton Kiln - 35 kwh/ton Electrical RM - 22 kwh/ton Kiln - 49 kwh/ton Electrical RM - 14 kwh/ton Kiln - 35 kwh/ton Total operational cost reduction of DK2 vs DK1 ~20-30% on R/ton basis * Jupiter Kiln 3 # Raw mill 33

34 DK2: Word class emissions CO2 35% unavoidable (CaCO3 CaO + CO2) Reduced through efficient fuel use Cement manufacturing NOx Reduced through in-line calciner technology Dust Reduced through electrostatic precipitator, bag filter (Emissions within European standards) 34

35 World class management systems QUALITY ISO 9001 C&CI zero findings CORPORATE GOVERNANCE Continuous improvement Internal audit (excellent rating) JAP audit SANS 1841 ENVIRONMENT ISO Wildlife protection Internalisation of process waste Concurrent rehabilitation Recycling of all domestic waste EMP: Water, Ecology, Rehabilitation HEALTH / SAFETY OSHAS AMS Dekra 5 Shield OTHER Maintenance Optimisation Programme (MOP) Transformation strategy 35

36 Hercules Established 1892 Opened by Paul Kruger Beginning of PPC Location Pretoria 235 employees Existing plant 2 kiln lines 3 cement mills 36

37 Hercules Orientation Zimbabwe Namibia Botswana Gaborone Mill Botswana Dwaalboom Sun City Road 220km Gaborone Slurry Thabazimbi Rail 250km Medupi Power Station Limpopo Bulawayo Dwaalboom Colleen Polokwane Bawn Hercules Jupiter Mozambique Rail 320km Slurry Hercules Jupiter North West De Hoek Riebeeck Gauteng Port Elizabeth 37

38 Ntšhafatso ( Re-birth ) New Mill Project Why Hercules? Increases flexibility and shorter delivery to key market Ideally located to cement extenders (slag & ash sources) Need for capacity replacement, expansion and product flexibility New 1mt/annum Vertical Roller Mill (VRM) Latest proven milling technology Approximately 30% less power consumption Able to produce a wider range of extended cements (CEM IV & V) reduces energy consumption & CO 2 emissions per ton of cement 30% of capacity is for replacement of 2 existing mills 38

39 Ntšhafatso: Overview Loesche Vertical Roller Mill New materials handling and storage New automated quality control system Upgrade of plant s electricity supply Municipal substation erected by PPC Total plant Concrete 15000m 3 Geology required extensive piling Investment - R700million(2009) 39

40 Ntšhafatso: Efficiency Existing Mill 1 Output 15 t/h Electrical 65 kwh/ton Existing Mill 2 Output 20 t/h Electrical 55 kwh/ton New VRM Mill* Output 120 t/h Electrical 31 kwh/ton Figures are based on milling OPC (CEM I) only * Figures based on contractual performance guarantees 40

41 Ntšhafatso: Project Status Project progress 80% Commissioning early 2010 Operational Readiness in parallel Training in progress at Dwaalboom Contractors employed to date contractors on site at the peak Safety 1.4million man hours worked without a lost time injury Site congestion a significant challenge 41

42 Ntšhafatso: Environmental Considerations Clinker handling Transport and silo Dust free transport system New dual cement silo and Bulk dispatch Laboratory Automation VRM 42

43 Thank you 43

44 Dwaalboom Site Visit Annexures: Other PPC Sites 44

45 Manufacturing sites: De Hoek Established employees Manufactures clinker and cement 45

46 Manufacturing sites: Jupiter Established: employees Manufactures clinker and cement 46

47 Manufacturing sites: Port Elizabeth Established employees Manufactures clinker and cement 47

48 Manufacturing sites: Riebeeck Established employees Manufactures clinker and cement 48

49 Manufacturing sites: Slurry Established employees Manufactures clinker and cement 49

50 Manufacturing sites: Zimbabwe Acquired in employees Manufactures clinker and cement 50

51 Manufacturing sites: Botswana Established employees Cement milling 51

52 Manufacturing sites: Saldanha Established employees Materials handling and slag milling 52

53 Aggregate quarries: Mooiplaas / Laezonia/ Kgale 150 employees Supplies construction aggregates and metallurgical stone 53

54 Manufacturing sites: Lime Acres Established employees Supplies lime stone and burnt lime products 54

55 Disclaimer This document including, without limitation, those statements concerning the demand outlook, PPC s expansion projects and its capital resources and expenditure, contain certain forward-looking views. By their nature, forward-looking statements involve risk and uncertainty and although PPC believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. Accordingly, results could differ materially from those set out in the forward-looking statements as a result of, among other factors, changes in economic and market conditions, success of business and operating initiatives, changes in the regulatory environment and other government action and business and operational risk management. While PPC takes reasonable care to ensure the accuracy of the information presented, PPC accepts no responsibility for any consequential, indirect, special or incidental damages, whether foreseeable or unforeseeable, based on claims arising out of misrepresentation or negligence arising in connection with a forward-looking statement. This document is not intended to contain any profit forecasts or profit estimates, and the information published in this document is unaudited. 55