Cement units 100% on coal: Table 13 shows the cement units converted to coal. In north zone, from 14.332 Million Tons, 12.086 Million Tons capacity is on coal. In south zone, 2.816 Million Tons capacity is on coal from total 4.948 Million Tons. Out of the 25 cement units of the country with total production capacity of 19.28 Million Tons per annum, 17 units aggregating capacity of 14.9 Million Tons, representing 77% of the industry, have already converted to coal.
CLASSIFICATION OF PAKISTANI COAL: Based on the characteristics and quality of Pakistani coal mentioned in Table No 5, we can classify it in terms of Sulphur, Moisture and Ash contents as below.
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(i) SULPHUR CONTENT:
Measured reserves having Sulphur within 3%: 4.68 %
Measured reserves having Sulphur more than 3% : 95.32 %
(ii) MOISTURE CONTENT:
Measured reserves having moisture within 10%: 19.06%
Measured reserves having moisture more than 10%: 80.94%
(iii) ASH CONTENT
Measured reserves having Ash within 15%: 6.25%
Measured reserves having Ash more than 15%: 93.75%
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The above classification shows that 95% of Pakistani coal has more than 3% sulphur. 80% has more than 10% moisture and 93% contains more than 15% Ash. This classification also indicates that bulk of measured coal reserves in Pakistan are in Lakhra, Sindh which has, on average.
-- 28% MOISTURE
-- 5.5% SULPHUR
-- 20% ASH
-- 3,600 K. CAL/ KG HEAT VALUE
Additionally Lakhra coal also has high volatile matter giving rise to spontaneous combustion problems.
Sulphur in indigenous coal vs. furnace oil: Let us see the Sulphur induction in system by use of Lakhra coal in place of furnace oil. Furnace oil has a Sulphur content of maximum 3.5%. As compared to it, Lakhra Coal has average Sulphur content of 5.5%. If we calculate the Sulphur introduced in clinker by use of Lakhra coal, it comes to 12.24 Kg as against 2.97 Kg per ton of clinker being introduced by furnace oil as calculated below.
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FURNACE OIL
Approximately furnace oil required per ton of Clinker: 85 Kg Sulphur
Content in furnace oil (by mass): 3.5% (max)
Sulphur induced per ton of Clinker [85 x 3.5%]: 2.97 KgLAKHRA COAL
Requirement of Lakhra Coal per ton of Clinker: 223 Kg
[85 x 9,600/ 3,662] Sulphur content in Lakhra Coal (by mass): 5.49%
(average)
Sulphur induced per ton of Clinker [223 x 5.49%]: 12.24 Kg
Increase in sulphur per ton of clinker: 9.27 Kg
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BY USE OF LAKHRA COAL IN PLACE OF FURANCE OIL: Such a high percentage of Sulphur will not allow a cement plant to operate smoothly. There will be sticking in inner surface of the kiln and within the ducts and cyclone vessels of pre-heater. This will choke the entire process. The productivity will be reduced substantially because of subsequent shut downs and the costs will increase further by the necessity of employing additional manpower to remove the chocking. Its hazards to the environment are also of significant nature.
MAJOR PROBLEMS ASSOCIATED WITH USE OF PAKISTANI COAL:
THE FACTORS WHICH PREVENT CEMENT INDUSTRY FROM DEPENDING UPON INDIGENOUS COAL ALONE ARE FOLLOWING:
-- High Sulphur
-- High Moisture
-- High Ash
-- High Sulphur induction in cement manufacturing process results in;
-- Increase in deposition and growth of build-ups of sticky solid reactant particles on the inner surface of the Kiln and within the ducts and cyclone vessels of Preheater, resulting in choking and other chronic operating problems.
-- Increased emission of Sulphur Oxides, predominantly SO2 - Sulphur dioxide, resulting in increased pollution.
-- Reduced life of Refractory bricks.
-- Deterioration in quality of cement.
-- Increase in cost of production because due to increase of Sulphur in clinker, gypsum addition while grinding is to be reduced in order to maintain the total gypsum %age in cement within the prescribed limits. Use of more clinker in place of gypsum increases the cost of production of cement as clinker is at least 6 times costlier than Gypsum.
HIGH ASH INDUCTION IN CEMENT MANUFACTURING PROCESS:
-- In modern Kilns, all the coal Ash is captured by the pyro processing process.
-- After mixing with the reactants, Ash forms part of Clinker
-- Chemical composition of coal Ash is quite different from the other raw materials used in clinker/ cement manufacturing. Properties of Ash vary for different types of Coal as well as from consignment to consignment, even if that consignment belong to the same mine.
-- The production process gets disturbed time and again mainly because of varying chemical properties of Ash.
-- Quality of clinker & as a result the quality of cement and the stable plant operation can be upset significantly due to variations in chemical composition of coal ash.
HIGH MOISTURE IN COAL:
-- Modern coal mills normally allow a maximum moisture content of 12% in the raw coal.
-- Old Ball Mills may accept high moisture but their production capacity gets significantly reduced with increase in power consumption.
-- The ground coal, contains high moisture that can not be fed into the firing system due to its sticky behaviour. The firing systems need ground coal with free flown characteristics other wise the firing will not be on required rates resulting in production problems and plant shut downs.
COAL FROM SOR-RANGE - GOOD BUT VERY LIMITED: From the available data, we can see that only the coal Available from Sor-range, Balochistan is suitable for use by the cement industry. This coal, on average, has;
-- Sulphur 2.55%
-- Ash 7.42%
-- But its availability is very limited because ;
-- daily production - approx. 1,000 ~ 2,000 tpd.
-- variation in quality from consignment to consignment.
-- can not cater the cement industry's requirement of around 8,000 to 10,000 tons per day.
-- no mining development activity.
-- total measured reserves only 15 million tons.
PRESENT SOLUTION TO CEMENT INDUSTRY: The characteristics of indigenous coal as mentioned on previous pages and the reasons for its not being suitable for use in cement industry has left only one option for the manufacturers ie to import good quality coal from other countries, till the mining industry of Pakistan develops and is able to provide appropriate quality coal.
The major suppliers of good quality imported coal are Indonesia, South Africa and China. The following table - Table No 14 shows quality parameters of imported coal.
RISE IN PRICES OF IMPORTED COAL: The prices of imported coal have shown substantial increase during the last two years. The freight market has also jumped up many folds. The Richards Bay - RB Index of imported coal from South Africa shows the following FOB Prices of imported coal since July, 02.
The current C&F Karachi , Pakistan price of imported Indonesian coal is US $67.5 per ton. This price constitutes US $41.50 per ton FOB and US $26.00 per ton freight from Indonesian port to Karachi port. This freight which was around US $8~ 10 per ton till the year 2003 has jumped by 200~300%. Projected cement demand in next 5 years
The first half of current financial year has shown a 22% increase in cement demand over the previous year. If this growth rate is maintained during the current year, the total cement demand in current year will by 16.6 Million Tons compared to 13.6 Million Tons during previous year.
The industry is also foreseeing substantial increase in cement demand in coming years due to increase in construction activities in the country as well as mass requirement from Dubai, Afghanistan and other Middle Eastern countries.
Table No 17 shows a conservative estimation of the cement demand in next five years.
PROJECTED REQUIREMENT OF IMPORTED COAL: Based on the projected cement demand calculated in previous sheet, we can calculate the estimated demand of imported coal as follows. The demand has been calculated on basis of 850 K. Cal per Kg of Clinker and on the basis of four options of usage of imported coal - 90%, 80%, 70% and 60% in total heat requirement.
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TABLE 13
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Name of Production
Unit Capacity
per annum
[300 days]
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NORTH ZONE
1) A.C. WAH CEMENT 945,000
2) A.C. NIZAMPUR CEMENT 1,260,000
3) BESTWAY CEMENT 1,039,500
4) CHERAT CEMENT 787,500
5) D.G. CEMENT 1,732,500
6) DANDOT CEMENT 504,000
7) FAUJI CEMENT 945,000
8) FECTO CEMENT 630,000
9) KOHAT CEMENT 567,000
10) LUCKY CEMENT 1,512,000
11) MAPLE LEAF CEMENT 1,534,050
12) PIONEER CEMENT 630,000
TOTAL NORTH UNITS 12,086,550 TONS
SOUTH ZONE
14) ATTOCK CEMENT 756,000
15) DADABHOY CEMENT 530,000
16) ESSA CEMENT 472,500
17) ZEALPAK CEMENT 1,058,400
TOTAL SOUTH UNITS 2,816,900 TONS
TOTAL NORTH + SOUTH 14,903,450 TONS
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TABLE 15
RB INDEX [SOUTH AFRICAN COAL]
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FOR PRICE
PERIOD US$/TON
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JUL 02-DEC 02 20.82-27.19
JAN 03-JUN 03 23.05-28.31
JUL 03-DEC 03 29.62-40.89
JAN 04-JUN 04 42.71-63.62
JUL 04-DEC 04 49.24-59.29
PRESENT FOB US$/T 51-55
[MORE THAN 100% INCREASE
COMPARED TO PRICES
DURING JULY 02-DEC 02]
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TABLE 14
QUALITY OF IMPORTED COAL
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Origin Indonesia South China
Africa
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Total Moisture % Max 12% 9% 10%
Ash % Max 15% 15% 12%
Sulphur % Max 1% 0.80% 1%
Volatile Matter % Max 42% 29% 32%
Heat Value K.Cal/Kg Min 6,500 6,500 6,800
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TABLE 17
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FINANCIAL CAPACITY CAPACITY EXPECTED PROJECTED PROJECTED
YEAR AT EXPECTED TOTAL CEMENT CAPACITY
BEGINNING TO BE PRODUCTIOIN DEMAND UTILIZATION
OF THE YEAR ADDED CAPACITY
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2004-05 19,280,450 864,000 20,144,450 16,600,000 82%
2005-06 20,144,450 11,169,000 31,313,450 20,750,000 66%
2006-07 31,313,450 5,100,000 36,413,450 24,900,000 68%
2007-08 36,413,450 - 36,413,450 27,390,000 75%
2008-09 36,413,450 - 36,413,450 28,000,000 77%
TOTAL 143,565,250 17,133,000 160,698,250 117,640,000 73%
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PROJECTED REQUIREMENT OF IMPORTED COAL: Based on the projected cement demand calculated in previous sheet, we can calculate the estimated demand of imported coal as follows. The demand has been calculated on basis of 850 K. Cal per Kg of Clinker and on the basis of four options of usage of imported coal - 90%, 80%, 70% and 60% in total heat requirement.
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Based on 90% usage of imported coal : Total demand from 2004-05 - 2008-09 : 14,651,136 Tons
Based on 80% usage of imported coal : Total demand from 2004-05 - 2008-09 : 13,023,232 Tons
Based on 70% usage of imported coal : Total demand from 2004-05 - 2008-09 : 11,395,328 Tons
Based on 60% usage of imported coal : Total demand from 2004-05 - 2008-09 : 9,767,424 Tons
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(To be concluded)
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