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Last week's announcement on the
revival of the local cement industry by a German company did little to arouse
public interest. No politician pitched up for the launch, much to the
disappointment of the investors who, according to sources, had specifically
asked for such presence in their brief to the organisers of the function.
The lack of excitement was well
summed up by the director of industrial development at the Ministry of Trade
and Industry, Steve Motinga.
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From left (seated): Gerhard Hirth, chief executive officer
of Schwenk Zement, Ranga Haikali, lawyer Peter Koep, Klaus Bauer board member
of Schwenk Zement. Standing: Jan-Karsten Meier, business development manager
for Ohorong Cement, Andre Neethling, and Uwe Muller, general manager for
Ohorongo Cement.
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Schwenk Zement KG, the German
company, is not the first investors to discover reserves of limestone in
Otjiwarongo district. There has been the Indian TATA group, a Chinese group and
an avalanche of local investors. “Nothing came out of all those interests,”
said Motinga.
Indeed Namibia has plenty of
limestone, the raw material needed to make cement, predicted to last for 100
years. Yet the extraction and manufacturing of cement, as well as the selling
of the final product, has eluded investors for decades.
Otjiwarongo Cement did try but
with mixed results -they could not guarantee the quality standard of the cement
manufactured and critics also says the plant was a hazard to the nearby
environment. No other investor was brave enough as Cheetah Cement was in
reviving the cement industry in Namibia.
The last attempt by local
businessman Zedekias Gowaseb and Brazilian Cemento Pintu through Cheetah Cement
came to nothing.
Ohorongo Cement has got to prove
to the public that it is serious by wanting to set up a local cement factory.
Ohorongo Cement is 60% owned by the family business, Schwenk Zement KG, with
the 40% owned by Haikali, lawyer Peter Koep, and the former chief executive of
the former OMP, Andre Neethling.
It is envisaged that it will go on
line by 2010 producing 600,000 tons of cement per year.
Ohorongo Cement will mine limestone in the Otavi mountainous
area. Initial drilling tests have already been conducted with positive results,
said the chief executive officer of Schwenk Zement, Gerhard Hirth.
Hirth said the factory will be ideally located since Namibia
is the only country with limestone deposits that has no cement factory. And if
established the factory will supply southern regions of Angola, Botswana and
Zambia through the Trans Caprivi Highway.
The company is currently doing more drilling tests at a cost
of N$30 million, to evaluate whether the quality is indeed as established in
the first finding. The final results are expected by the year end or early next
year. The construction of the factory will commence thereafter. Current
estimates put the bill of the factory at N$1.2 billion. A kiln will be station
at Otavi while the grinding plant is to be strategically set up at Walvis Bay.
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