Register for important updates:


Sephaku Cement all set to produce clinker at Aganang

SEPHAKU Cement, an associate of listed Sephaku Holdings, has completed the commissioning of the Aganang clinker facility in Lichtenburg in the North West and is ready to commence with production.

Lelau Mohuba, the chief executive of Sephaku Holdings, said yesterday that the first consignment of clinker would be delivered to the Delmas milling plant by the end of this month.

Commercial production at its Delmas milling plant commenced in January following a successful commissioning phase. Once it is operating at full capacity, it will be capable of producing 1.4 million tons of cement a year.

About R3.3 billion has been invested in establishing these new cement plants, which will have a total annual capacity of 2.2 million tons once they are fully operational.

Sephaku Holdings has a 36 percent stake in Sephaku Cement, with the remaining 64 percent owned by Dangote Cement, Africa’s largest producer. Mohuba said that the production of its own clinker was an important step for Sephaku Cement in enabling it to become a fully integrated producer of cement.

“We are confident that it will soon become a strong and profitable competitor in the local market,” he said.

Mohuba said Sephaku Cement had to date been purchasing clinker to mill at Delmas where the company had achieved more than 60 percent capacity utilisation. He said this had enabled Sephaku Cement to enter the market while strengthening its sales function in preparation for increasing volumes.

Mohuba said consistent cement quality and exceptional service had enabled Sephaku Cement to successfully penetrate both the bag and bulk markets.

He said the targeted clinker production date at Aganang was the end of last month but the process had been slightly delayed because of minor problems identified on the plant fan system as part of the normal hot commissioning.

Aganang has an annual cement production capacity of about 1.1 million tons and the Delmas plant 1.4 million tons a year at a steady state. But Mohuba said that the ramp-up of production at both plants would be based on market demand.

Sephaku Cement is the biggest new entrant to the South Africa cement market since 1934.

A R1.8bn greenfields pure cement plant with a capacity of more than 1 million tons a year is to be built at an established limestone deposit near Northam in Limpopo by the Jidong Development Group, one of the largest enterprises in China’s building materials industry and one of the world’s top five cement groups.

The new entrants to the market led to Ketso Gordhan, the chief executive of listed cement and lime producer PPC, to claim in May that the domestic cement market was oversupplied.

By Roy Cokayne
View article

Full Financial Analysis


Bodibeng Trading Proprietary Limited

Founded by Mr Gaopalelwe Olebogeng from the Verdwaal Village in the North West province who is the sole managing member of Bodibeng Trading Proprietary Limited. Mr Gaopalelwe has previous experience in plant cleaning that he acquired during his tenure as a plant cleaner at another cement company in Lichtenburg. Bodibeng Trading Proprietary Limited employs 36 employees from the local community and currently has a short-term contract with SepCem which includes mentorship to ensure that it effectively provides the plant cleaning services at Aganang.


Mancamane Trading Enterprise

Mancamane is a black female-owned enterprise that started operating in 2010 as a plant cleaning, construction and mining supply company. Ms Daisy Maseko, a renowned entrepreneur, founded the enterprise in the Delmas area, Mpumalanga province and currently employs 28 permanent staff. SepCem adopted Mancamane into the enterprise development programme in 2014. The company is currently supplying plant cleaning services to the Delmas grinding plant and has demonstrated the ability to grow sustainably.


MM&JK Cleaning Projects Proprietary Limited

In 2014, SepCem contracted the cleaning services of MM&JK Cleaning Projects, an enterprise established in 2013 by Mr Sipho Mazibuko from a village called Springbokpan in the North West province. SepCem identified MM&JK Cleaning Projects as a well-managed enterprise that is appropriately suited to benefit from the programme. In the case of MM&JK, SepCem has partnered with another major industrial organisation to mentor Sipho.

The partner’s role is to assist MM&JK Cleaning Projects with inproving its cleaning skills through training, providing cleaning equipment and required detergents. SepCem’s role is to develop Sipho’s business management skills including cost management, record keeping and negotiation. SepCem is assisting MM&JK to develop a marketing strategy to increase its customer base to reduce the single-customer dependency risk and ensure that the company is sustainable. MM&JK Cleaning Projects currently has a three-year contract with SepCem for general cleaning at Aganang and employs 14 permanent staff.



Millicent’s Enterprise

Millicent’s Enterprise is 100% black female-owned and was founded by Ms Millicent Mahlabe, an entrepreneur from Delmas in the Mpumalanga province. The company was selected for the programme because it has historically demonstrated the ability to supply large contracts but lacks administration skills. Millicent’s has a good reputation and positive track record of being able to cater for large provincial government events.

SepCem secured Millicent’s catering services in 2013 for its canteen at the Delmas plant that provides meals to 150 employees. Millicent’s currently has seven permanent employees and several contract employees who are sourced as and when required.