Cartagena plant, Colombia CEMENTOS ARGOS S.A. Visit to the Cartagena plant May 2014
Storage yard for grinding process Access and transport of reserves
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
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
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
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
Line 4, Cartagena plant Line 4 At the forefront of cement production
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
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
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
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
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: 105.27 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
Line 4: Analysis and process control system 1 2 3 4 13
Direct loading system (Caricamat) Plant of Cementos Argos, Cartagena Dispatching Center
New dispatching center at the Cartagena plant Design and construction of a dispatching center to supply the Colombian market more efficiently: Item Executed 2011-2013 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 2014 98% 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 2014. Progress The 2 silos for the dispatching of cement in bulk, with a capacity of 2,500 MT each, started operating in April 2014. 15
Equipment 1 2 Ventomatic packaging machine, 4,200 bags/hr Ventomatic palletizing machine, 4,200 bags/hr 16
Storage 3 4 Finished goods warehouse Bulk silos 5 and 6 17
Power generation engines energy plant of Cementos Argos, Cartagena Self-generation of electricity
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
Port facilities
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
CONTACT INFORMATION GUSTAVO URIBE guribe@argos.com.co MANUELA RAMIREZ mramirezm@argos.com.co DAVID OLANO dolano@argos.com.co www.argos.co/ir 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.