IRD Swiss,engineering company for developing cement plant locations as Brownfield or Greenfield projects has been asked by Mr. Jumma Khalifa Ali, main shareholder of ALHEDAB Cement Company Libya to submit an offer for a new double line cement plant, to be set-up in the Municipality of Nalut. We further got the information that the authority license holder is ALHEDAB Cement Co. owned by 90% shares of Mr. Jumma Khalifa Ali and 10% shares to be held by 4 local Berberian people. The asked cement capacity was 12,000 TPD, and it was mentioned, that the current license is issued for 12,000 TPD daily capacity. The owners have convinced us that they will get the approval to increase the capacity by licence up to 12,000 TPD within the next 5 years, if needed. So, there is no doubt that the licence for the ordered capacity performance has been issued.

IRD Swiss has further been informed that a former cement project was started in the Years 2007 by the Libyan company Al Hadena, worked out by FL Smith Denmark and a feasibility was done there by FLS. This project run down during start of civil war in Libya. In meantime this company went bankruptcy, so the rumours. We suggested doing a new feasibility study by our own in order to be safe, that all financial and technical related matters are correct and valid, verifiable by every bank house or other investors. After getting the agreement from ALHEDAB we started with site inspection at Nalut in week 40. The team of inspectors consisted of 3 Geologists, Mr. Jumma Khalifa Ali, 4 shareholders and my person. The list of all joining people can be seen at the end of the study. We were pleasantly surprised at the good site situation, very closed to the main roads and water and gas pipelines as well as the very sufficient raw materials as only Clay and some Iron Ore has to be supplied from outside. All the other raw materials like good limestone, excellent Gypsum and sand as silicate source are available very closed to the planned installation site, so can be transported into the plant by short overland belt conveyors easily.

 During a full questionnaire under presence of all prospectively suppliers, energy specialists, local engineers, traffic masters and local cement experts, IRD Swiss could collected in that week all important information like distances to sea ports, main roads, cities, got all supplier information and made an overview about the most important prices for purchasing fuel, additives, water, electrical power as well as labour wages to run and operate the plant. Simultaneously we found the prices confirmed for selling cement on the domestic market, got some figures about export releases and have seen and well noted that the promised exposed situation why to set-up this plant in this region can be an outstanding and future oriented choice for ALHEDAB Cement. We are not completely sure about final pricing of all given and called prices. So, we recommend ALHEDAB negotiating all purchase prices in a later stage of the project. Nevertheless, we feel this project has the right to become true for ALHEDAB Cement.

ALHEDAB Cement and IRD Swiss agreed to start the project under following schedule:

1.      Months 0 – 3    → Completion of entire layout and plant design, developing and preparing all drawings and site plans;

2.      Months 4 – 12  → Ordering and manufacturing of all technical equipment;

3.      Months 13 – 23  → Completion of Civil Work and equipment erection for the first section of 6000 TPD line;

4.      Months 24 – 26 → Run-up the first line of 6000 TPD;

5.      Months 24 – 26 → Run-up the GAS Power Plant 65 MW;

6.      Months 25 – 36 → Finalizing the entire plant equipment erection and Civil Work by taking in function of the second 6000 TPD line;

7.      Months 36 – 38 → Run-up the plant to its fully capacity of 2* 6000 TPD = 12,000 TPD daily cement production.

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