Global Slag News

UK: Mineral resources company Francis Flower has announced the acquisition of the Scunthorpe ground granulated blast furnace slag (GGBS) plant from Hanson Cement.

The business is capable of producing more than 500,000t/yr of GGBS and supplies customers in the Midlands and north of England. GGBS complements Francis Flower's existing range of high quality powdered minerals, which originate as by-products from various industries. This reduces the need for mineral extraction and landfill, delivering sustainable environmental solutions for its customers. The acquisition reflects both Francis Flower's commitment to developing its range of products and services in this sector and the credibility it has for making the most of mineral resources.

"We are absolutely delighted and very excited to announce this new acquisition. GGBS is an excellent fit to our existing product range and will help further our longstanding relationships in this sector," said Adrian Willmott, Chairman and CEO of Francis Flower. "We have a proven track record of making the most of mineral resources, reducing the need for mineral extraction as well as landfill and delivering sustainable solutions for our customers. We are very much looking forward to working with the team in Scunthorpe and developing the opportunities in the GGBS market as the UK construction sector continues to grow."

France: The slag heaps or 'terrils' of northern France, including the Loos-en-Gohelle terrils that are now recognised as a world heritage site by Unesco, are being transformed for alternative uses like nature trails or heritage sites. At Noeux-les-Mines, there is an artificial ski-slope, according to the BBC.

At the village of Rieulay, the Chevrerie des Terrils, Julien Graf grazes his flock of 40 animals in the biodiverse terril brush. "This is what they call a 'pioneer' environment; an ecosystem in which vegetation is just beginning to re-appear. It's very rare. The goats prevent the terril from being completely taken over by trees and brush. That has happened in a lot of other terrils, where you can no longer see the black soil," said Graf. "Being black, the soil retains the warmth which encourages growth. The vegetation is tough and fibrous and that is perfect for goats. Goats don't like grazing on grass. They prefer shrubs and bushes like we have here."

A few miles to the west, France's most northerly vineyard was established in 2011 on a slag heap. In 2013, it produced 150 bottles and in 2014 it produced 300. Wine-grower Henri Jammet explained that much depends on the age of the slag: "The earlier the terril, the more is likely to grow on it. In the 18th and 19th centuries, they sorted by hand, so a lot of what got chucked aside still contained elements of coal and other minerals. Often the slag continued to combust quietly over the years, which ultimately created a soil which, while not exactly rich, contains fertile elements," said Jammet. "Obviously the soil is poor, but that is good. Vines need to struggle in order to bring out the best in the grape. Our wine is sharp because they don't have the sun up here to reduce the acidity and it's got the proper Chardonnay citrus notes."

US: Essroc, part of Italcementi, has acquired the Holcim (US) slag cement grinding plant in Camden, New Jersey, according to MarketLine. As part of the transaction, Essroc will also obtain Holcim's cement terminal in Everett, Massachusetts, US. Upon completion of the transaction, Holcim's staff in Camden and Everett will join Essroc. The transaction is expected to be completed later in 2015. The acquisition will allow Essroc to strengthen its position in the sustainable building products market.

South Africa: Evraz Highveld Steel and Vanadium has issued a proposed restructuring notice in terms of Section 189 that could see it potentially cutting half of its workforce, according to Engineering News.

The group, which initiated voluntary business rescue proceedings in April 2015, will now enter a 60-day Commission for Conciliation, Mediation and Arbitration-facilitated consultation process with employees and trade unions.

Responding to the announcement, trade union Solidarity, which claims to represent around 400 of Evraz Highveld's 2242 employees, said that it would participate in the consultation process to mitigate the impact on its members. The union said it had already sent a letter to South Africa's largest commercial banks requesting them to 'show consideration' for the financial difficulties currently being experienced by Evraz employees. It further called for, an urgent industry-wide intervention in the metals industry to avoid the retrenchment of 'thousands of workers.'

"In the coming weeks, the trade union will hold probing discussions with various players in the metals industry to explore solutions for the crises currently experienced in the industry. Among other things, we will propose that the local manufacturing sector and construction industry make use only of domestic steel to support the local steel industry. In addition, we will also propose that the steel industry should be exempted from winter electricity tariffs while the industry is recovering," said Solidarity deputy general secretary Johan Kruger.

Evraz confirmed that it had received a number of offers to invest in the company, with prospective bidders required to provide the necessary guarantees by 27 July 2015 to proceed to the next stage of the bidding process. The vertically integrated steel and vanadium slag producer cited its inability to meet its short-term obligations as a result of historical operating difficulties and sustained financial losses within a capital-constrained operating environment as the catalysts for it entering business rescue proceedings earlier in 2015.

South Africa: Evraz Highveld Steel and Vanadium has temporarily ceased steel production at its steelworks, citing working capital constraints and reduced domestic demand mainly owing to a 'significant' increase in steel imports from China.

Evraz said in a statement that it was currently communicating with its employees and it intends to resume production once adequate funding has been secured and steel trading conditions have improved to ensure the company's sustained future financial viability.

The decision to halt production at the company's iron-making division was brought about by delayed debtors payments, inadequate cash to procure the required raw materials to continue with manufacturing operations, difficulties experienced with access to funding and a continued inability to pay major creditors on time. The company added that the feeding of raw materials into the iron-making kilns had been halted to enable the furnaces to be safely drained and switched out, ready for a future start-up.

"The steel plant will be stopped and made safe once all the hot metal has been processed. The two mills will continue operating until all the available stocks have been rolled into saleable products, whereafter these operations will also be safely stopped. The plant and equipment will, for the moment, be placed on care and maintenance and prepared for future start up," said Evraz in a statement.

South Africa's largest steel producer ArcelorMittal South Africa (AMSA) had also recently spoken out about the difficult conditions facing local steel producers. AMSA CEO Paul O'Flaherty recently confirmed that the industry was seeking greater protection from steel imports through the implementation of a 10% ad valorem duty on such imports. Further, the sector had also called for regulations stipulating that locally-produced steel be used in public infrastructure projects.