Modern Quarrying Q4 2021

The designation of cement will assist in protecting the local cement industry from unfair competition.

Quarrying that National Treasury has issued a circular to all relevant state departments of the new ruling in terms of the Preferential Procurement Regulations. The designation of cement will apply to all projects entered into by state entities, including national, provincial and local authorities, as well as state-owned enterprises (SOEs). The designation prescribes that all organs of state must, from 4 November, stipulate in tender invitations that only SA-produced cement, produced with locally- sourced raw materials, will be allowed for use on all public sector construction projects. National Treasury has stipulated a 100% threshold for both common and masonry cements. Elsie Snyman, CEO of Industry Insight, says that with over 1-million t (Mt) of cement and 330 000 t of clinker imported each year, the ban will definitely help cement producers increase their sales volumes, capacity utilisation, profitability and, more importantly, protect jobs.

KEY TAKEAWAYS

From 4 November this year, National Treasury has designated cement, meaning that the use of imported cement on all government-funded projects is prohibited

The designation of cement will apply to all projects entered into by state entities, including national, provincial and local authorities, as well as state-owned enterprises

With over 1-million t of cement and 330 000 t of clinker imported each year, the ban will definitely help cement producers increase their sales volumes, capacity utilisation, profitability and, more importantly, protect jobs

Cement imports increased to 79 509 t in July and 75 775 t in August, from just under 60 000 t in June 2021

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QUARTER 4 - 2021 MODERN QUARRYING