37
The Year in Review
Group CEO’s Report and Management Discussion 2012 (continued)
In 2012, CCCL produced 652,600 MT of clinker, which was 4% above the 628,300
MT in 2011. Kiln #5 operated at an efficiency of 94% but an uptime of only 68%.
While the lack of critical spares plagued the kiln’s operations in 2012, improved cash
inflows as a result of the additional sales resulting fromtheTCLstrike, and an advance
deposit on a major contract, allowed for the purchase of critical components, some
of which were installed in 2012. The major kiln stop to restore the kiln to acceptable
operational standards is being undertaken in May 2013.
In Barbados, ACCL’s Kiln produced 159,700MT of clinker, 13%below the 184,100MT
for 2011. The plant had a disastrous production year caused by the lack of working
capital to undertake critical maintenance programmes. Corrective action was
taken during a major stop in October 2012, upon completion of the Group’s debt
restructuring programme and receipt of an advance deposit for a major cement
supply contract.
In Trinidad, TCL produced 494,200 MT of clinker, 25% below the 656,400 MT
for 2011. With the service of strike notice on the company at the end of February
2012, the entire plant was shut down. However, plant operations slowly resumed
as employees, contractors and casuals from Mayo and Claxton Bay returned to
work in the packing plant, cement mill and eventually in the quarrying and clinker
manufacturing areas. By the end of the strike, the entire plant was operational
and the commitment displayed by those who worked during the period must be
commended.
Concrete Operations
Operating in an extremely competitive industry, RMLcontinued itsmarket leadership
largely through its reputation for quality and after-sales service. During the year,
the company continued to maintain high batching plant availability at all eight (8)
operating locations in Trinidad. A new/refurbished state-of-the-art wash plant was
acquired in the latter part of 2012 and was commissioned and handed over for
operation by March 2013. This is expected to significantly reduce its aggregate
production costs and further improve its quality.
Packaging Operations
Besides being adversely affected by the strike, TPL experienced a breakdown of its
tuber main drive motor in the last quarter of 2012, resulting in the non-fulfilment of
orders for approximately 264,000 paper sacks.
Gypsum and Lime Operations
The Group’s gypsum mining operation in Jamaica was considerably scaled back
compared to previous years and the mining effort was concentrated on winning the
remaining acceptable quality gypsum in the Bito area as reported in the last annual
report.
Exploratory drilling was completed in the new Halberstadt Quarry and so too, the
geochemical analysis. The investigation revealed reserves of approximately 6.0
million tonnes of gypsum/anhydrite. In 2013, a detailed mining plan to economically
exploit these resources will be developed.
In 2012, no production was undertaken at ACCL’s Lime Division in Barbados. The
plant will be re-started in 2013 upon the signing of firm contracts.
A new/refurbished
state-of-the-art wash
plant was acquired
by RML in the latter
part of 2012 and
was commissioned
and handed over
for operation by
March 2013. This
is expected to
significantly reduce
its aggregate
production costs and
further improve its
quality.
