South Africa: PPC to fund Slurry Kiln 9 project from B-BBEE deal

JSE-listed cement maker PPC says it has started structuring its new broad-based black economic empowerment (B-BBEE) agreement, after it had concluded subscription agreements of another B-BBEE deal, from which the firm received ZAR1bn (US$73.7m).

Sibonginkosi Nyanga, an analyst at Momentum SP Reid Securities, said the introduction of the new B-BBEE codes meant that companies had to relook at their empowerment deals.

“The issue of the changing of the codes meant most companies, especially in the mining sector, would not be compliant. This means companies must structure new deals to comply,” Nyanga said.

PPC said it would use the ZAR1bn to reduce its debt and fund capital expenditure, with its primary focus its Slurry Kiln 9 Project.

The company’s Slurry project, situated in the North West, will see the introduction of a new clinker production line at a cost of ZAR1.5b to ZA R1.7bn, to boost overall output to 5500tpd by next year.