Cartagena plant, Colombia CEMENTOS ARGOS S.A.
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1 Cartagena plant, Colombia CEMENTOS ARGOS S.A. Visit to the Cartagena plant May 2014
2 Storage yard for grinding process Access and transport of reserves
3 Limestone reserves 1 Main quarry for the supply of limestone and alumina corrector Located in the municipality of Turbaco, 7 km from the plant Reserves of silica corrector in quarries located in Arroyo Hondo (20 m MT) and Tolú (18 m MT) View of the limestone quarry 2 Limestone reserves: Annual consumption: Limestone reserves: 513 m MT 4.8 m MT 106 years Conveyer belt from the quarry to Line 4 3
4 Equipment 1 2 Loading and transport at the quarries Truck fleet of the quarries 3 4 View of the first section of the conveyer belt Conveyer belt at the plant 4
5 Crushers 1 2 Loading of raw materials into the crusher We have two crushing systems to meet the limestone and correctors needs of the plant: A LARON system with a capacity of 700 TPH A ABON system with a capacity of 1650 TPH 5 Top view of crusher and conveyer belt to Line 4
6 Conveyer belt 1 Characteristics 5.4 km long Connects the quarry with the plant Makes the transport of the total volume of limestone required by the new line possible (capacity of 2,500 TPH at a speed of 4 m/s) Conveyer belt connecting the quarries with the plant 2 Benefits Conveyer belt that is covered along its entire length: avoids emissions of dust All transition points are points for the collection of particulate matter Rolling system with minimal noise Savings Conveyer belt from the quarry to Line 4 Transportation costs of USD 3.35/MT Replaces dump trucks that would have to cross neighboring streets and communities 6
7 Line 4, Cartagena plant Line 4 At the forefront of cement production
8 Line 4: Assembly 1 Beginning of the assembly of project Columbus Line 4: 2007 Main suppliers: Supply of equipment: FLSmidth Construction: Consortium Conconcreto HL Ingenieros Construction of clinker storage silos of Line 4 2 Total investment: USD 450 m Installed capacity of clinker: 1.8 m MTPA (5,250 MTPD) First clinker ever produced: July 27, 2010 Jobs created during the construction: 3,500 Time necessary to complete the project: 36 months Raw materials storage halls of Line 4 8
9 Line 4: Assembly Key figures Total length of the production line 7 km (including crushing and transport) 3 Height of the preheating tower Local manufacturing Imported material Total construction Earthmoving 121 m building 142 m chimney attached to this building 18,400 t (equipment and structure) 7,000 t 28,900 t of equipment and structures, 700 km of cables and 100,000 m 3 of concrete 420,000 m 3 General panoramic view of the project 4 Installation of the kiln 9
10 Line 4: Storage 1 Storage halls for limestone and correctors with a capacity that meets the current needs of Line 4 On average, the current storage halls can hold 75,000 MT each Angular view of the storage hall 2 The main materials used in the cement production at the Free Trade Zone are limestone, silica corrector, iron corrector, gypsum and active additions (slag and pozzolana) 2 clinker storage silos with a capacity of 37,000 MT each Interior view of the storage hall 10
11 Line 4: Dry process 3 Designed for a clinker production of 5,250 MTPD (1.8 m MTPA) and currently registering daily peaks of 5,600 MTPD Caloric consumption* has decreased by 38% compared to the traditional method (wet process) Preheating tower of Line 4 Water consumption has dropped 80% compared to a wet production line 4 Control of particulate matter emissions by far exceeds any American or European international standards, with maximum values of 20 mmg/nm 3, whereas even the strictest norms allow up to 50 mmg/nm 3 Clinker storage silos of Line 4 * Fuel consumption per unit of clinker that is produced 11
12 Line 4: State-of-the-art Most advanced technology in terms of design and assembly/installation Highest standards for control of emissions and energy consumption Strategic location of the plant, with outstanding port installations Self-generation of electricity Indicators: Achievement Cartagena plant Industry Emissions of particulate matter Electrical energy consumption Total water consumption 20 mmg/nm 3 for 24 hours Standard UE norm: 50 mmg/nm 3 for 24 hours and 40 mmg/nm 3 for a year 93 kwh/mt Average of the industry according to 2011 benchmarking by Whitehopleman: kwh/mt 430 lt/mt Average wet plant (design of 500 lt/ton): between1500 and 2000 lt/mt Caloric energy consumption 735 kcal/kg (design: 785 kcal/kg) Average of the industry for kilns of similar size: 770 kcal/kg Consumption of a wet production line: close to 1400 kcal/kg 12
13 Line 4: Analysis and process control system
14 Direct loading system (Caricamat) Plant of Cementos Argos, Cartagena Dispatching Center
15 New dispatching center at the Cartagena plant Design and construction of a dispatching center to supply the Colombian market more efficiently: Item Executed Value (in m USD) 18,99 Increase of the use of the capacity of the Cartagena plant Increase in efficiency of distribution and logistics Cement in bags: from 0.3 m to 1.3 m TPA Cement in bulk: from 0.2 m to 1 m TPA Executed 2014 Commitments 6,20 3,45 Available 6,56 Total budget 35,2 Start of operations: April % The start of the operations of the Ventomatic packaging and palletizing machine was in April 2014 (capacity of 4,200 bags/hour), which was on schedule and within budget. Caricamat, the system for automatically loading the trucks, which is fed directly by the current packaging system, started operations in 2013, with a capacity of 1,800 bags/hour. The construction of the warehouse for bagged cement, with a capacity of 6,900 MT, was finished and it was brought into service in April Progress The 2 silos for the dispatching of cement in bulk, with a capacity of 2,500 MT each, started operating in April
16 Equipment 1 2 Ventomatic packaging machine, 4,200 bags/hr Ventomatic palletizing machine, 4,200 bags/hr 16
17 Storage 3 4 Finished goods warehouse Bulk silos 5 and 6 17
18 Power generation engines energy plant of Cementos Argos, Cartagena Self-generation of electricity
19 Energy generation plant Five Wartsila generation engines (from Finland) 1 Supply of 42 megawatt In operation since December 2010 Generation costs of COP 120/kW (through the public grid, the cost is close to COP 205/kW) View of the area of the energy plant if Cementos Argos, Cartagena 2 Facade of the energy plant of Cementos Argos, Cartagena 19
20 Port facilities
21 Operational flexibility trough port access 1 Draft: 43 feet Capacity: Panamax ships Loading rate: 12,000 TPD Products: clinker, bulk cement, cement in bags Strengthens regional interconnectivity with wide distribution and logistics network (terminals, ports and ship fleet) in other regional divisions, increasing the company s operational flexibility Port on the Caribbean Sea 2 3 Ship being loaded in the port Plans of the port, including expansion option 21
22 CONTACT INFORMATION GUSTAVO URIBE MANUELA RAMIREZ DAVID OLANO This recognition, called Reconocimiento Emisores IR is given by the Colombian Stock Exchange, Bolsa de Valores de Colombia S.A. It is not a recognition that certifies the quality of registered stock, nor does it guarantee the solvency of the issuer.
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