Song Lam Cement Factory needs new sources of raw materials

Great contribution
Song Lam Cement Plant Project is divided into 2 phases. Phase 1 produces 4 million tons of clinker/year, invested according to the investment policy of Nghe An Provincial People's Committee with a total investment of 12,500 billion VND. By early 2017, both kilns were in operation, this is one of the largest and most modern cement plants in the country.

Song Lam Cement Factory in Do Luong (Nghe An) started stable operation to produce clinker at the end of November 2016. Photo: Document

Although the first two years of operation encountered many difficulties (cement market prices fell, N5 road was not completed at that time, Nghi Thiet port was behind schedule due to difficulties in site clearance, had to rent another port for transportation, production and consumption management systems were not synchronized...), the company suffered huge losses.

However, with the direction of the group and the efforts of the staff and workers of the whole company, the production and business of Song Lam Cement Joint Stock Company have stabilized and improved efficiency, the lives of employees are gradually improving, protecting the environment better and better, fully performing all obligations according to the regulations of the State, and participating in many social security contributions in the area. Goods exported and imported through Nghi Thiet port in 2018 reached nearly 5 million tons, accounting for more than 50% of the total imported and exported goods through the province's ports.

Production activities at the Song Lam Cement Factory's operating area. Photo: Lam Tung

Risk of raw material shortage

Regarding the phase 2 project, Nghe An Provincial People's Committee has issued Decision No. 922/2016 approving the investment policy with 2 clinker production lines with a capacity of 12,000 tons/day, 2 synchronous cement grinding and packaging lines with a capacity of 3,800,000 tons of cement/year at Nghi Thiet Grinding Station along with a 45 km long clinker conveyor line, with a total investment of 9,449 billion VND. However, in this decision, the Provincial People's Committee has not yet determined the limestone mine for the project.

Responding to the investment call and following the drastic direction of the Provincial Party Committee and People's Committee of Nghe An province, Vissai Group received the transfer of 2 cement projects that the old investors were no longer able to invest in, and had been stopped for many years to invest synchronously and modernly. With enthusiastic support from the province, the Group has focused all resources so that the investors, Song Lam Cement Joint Stock Company and Song Lam 2 Cement Joint Stock Company, after a short time (just over 18 months), have put 2 factories into stable production and business operations, bringing high economic efficiency to the locality. However, the alarming problem now is that the source of raw materials is not guaranteed for the factory's operation.

Mr. Nguyen Ngoc Oanh - Chairman of the Board of Directors of Song Lam Cement Joint Stock Company.

Specifically: Song Lam Cement Factory has a demand for 4 million tons of limestone clinker. The company has been licensed to exploit (License No. 1698/2017) on an area of ​​36.8 hectares with exploited reserves of 46,735,020 tons, only enough for the factory to operate for 9 years. The company is submitting a request for additional planning of 64.5 hectares in Bai Son (Do Luong).

However, according to survey data from a consulting company, the limestone reserves in this area that meet cement production standards are very low because there are many small sawtooth outcrops mixed with soil mountains, caster caves and many dolomite rock ranges that cannot produce cement, estimated to only reach 64,163,000 tons.

Limestone quarry of Song Lam Cement Factory in Do Luong district. Photo: PV

Both of these mining areas cannot provide enough raw materials for phase 1, so there is no quarry for phase 2 with the same capacity as phase 1. Currently, Song Lam Cement Joint Stock Company has prepared all internal conditions to implement phase 2 of the project such as capital, training of human resources, negotiating and signing supply contracts with international contractors, etc.

In phase 2 of the project, the group intends to invest in the latest technology, ensuring high quality standards of products serving key national projects according to US and European standards. Accordingly, construction, installation, measuring and environmental protection control equipment will be optimized and synchronized according to the highest standards.

Clinker production line. Photo archive

Mr. Nguyen Ngoc Oanh added: Currently, the company has to submit a request for a survey of the Tan Ky quarry to serve phase 2 and supplement phase 1 with some missing materials. This is also a big loss for the investor because it also has to build a 20 km long limestone conveyor line from the Tan Ky quarry to the factory.

Clinker products coming out of the kiln. Photo: Archive

Currently, Song Lam Cement Joint Stock Company has been carrying out procedures to survey the limestone mine in Tan Ky, however, the problem is that the limestone planning in Tan Ky has been reserved for another project. The company hopes that the province will pay attention to recommending the cancellation of the old planning because the Tan Ky cement project has not been implemented anymore. At the same time, it is recommended that the Provincial People's Committee establish a steering committee or working group to act as a focal point to direct and help investors promptly resolve investment procedures and issues of investors.