Future Developments

by
Frank Gad
International Cement Production Seminar
June 2002

What drives future

developments ?

Demand for VALUE CREATION

and a
sustainable FUTURE

Value creation

NOPAT
WACC <
CAPITAL EMPLOYED
Note:
WACC =
NOPAT =

Weighted Average Cost of Capital

Net Operating Profit After Tax

What improves your NOPAT?

Higher sales price

More volume
Quality products
Lower costs:
- fuel
- electricity
- man power
- maintenance costs
- raw material costs
- training and systems

Key numbers for

1.0 m mtpy (3000mtpd)

Example

BASIS: 105 KWH/MT, 700 KCAL/KG, .05 $/KWH, 40 $/T

COAL @ 6500 KCAL/KG

POWER COST
FUEL COST
GROSS PROFIT
LOSS PER 1 DAY STOP
LOSS PER 1 HOUR STOP

GAIN IN SAVING 10 KWH/MT

GAIN IN SAVING 20 KCAL/KG

5.25 US $/MT
4.30 US $/MT
40.00 US $/MT
120,000 US $/DAY
5,000 US $/HOUR
500,000 US $/YEAR
123,000 US $/YEAR

Operating Costs

Example

US $ / MT OF CEMENT

BASIS: .O5 US $/KWH, 105 KWH/MT,

700 KCAL/KG, 40 US $/MT OF COAL @ 6,500

KCAL/KG

RAW MATERIALS :
FUEL (700 KCAL/KG):
POWER (105 KWH/MT + DEMAND) :
MANPOWER :
SPARES & SUPPLIES :

TOTAL:

4.50 US $ / MT
4.30 US $ / MT
7.40 US $ / MT
4.30 US $ / MT
3.50 US $ / MT

24.00 US $ / MT

Fuel & power usage on a

modern plant @ 300m2/mt

QUARRY
CRUSHERS
PREBL.+TRANSP.
RAW MILL DEPT.
RAW MEAL SILO
KILN FEED
KILN & COOLER
COAL MILL
CEMENT MILL
PACK HOUSE
OTHER
TOTAL

Example

FUEL CONSUMPTION POWER CONSUMPTION

0 KCAL/KG
0 KWH/MT
0 ---2.5 ---0 ---1.5 ---0-100 ---27.0 ---0 ---0.5 ---0 ---1.5 ---690 ---20.0 ---0 ---2.5 ---0 ---32.0 ---0 ---1.0 ---0 ---2.5 ---690 KCAL/KG
90.0 KWH/MT

Sustainable future
Respect for the environment
(emission)
Safety (people)
Limited resources (substitute fuel
and raw materials)

Usage of waste materials

in cement manufacturing

SOLID WASTE BURNING (HOT-DISC)

FLUID WASTE BURNING (OBA-BURNER)
ADDING OF FLYASH TO CEMENT
USE OF POZZOLAN
USE OF SLAG
USE OF INCINERATOR ASH
USE OF BONEMEAL

HOTDISC

Trimming with
Raw Meal

Hot Combustion Air

Waste Inlet
Cold Raw Meal Inlet

Raw Meal
Outlet for:
Combustion Gases
Hot Raw Meal
Ashes

Kiln Gases

Ashes
Rotating Disc
Scraper
Burning Material

Inlet for:
Waste
Hot Air
Hot Raw Meal

HOTDISC

Example only

HOTDISC
HOTDISC ECONOMY FOR A 3600 MTPD CEMENT PLANT
Fuel Heat Value

6500 Kcal/kg fuel

Operating days per year

330 days

Kiln Fuel

310 Kcal/kg clinker

Calciner Fuel

430 Kcal/kg clinker

Total Fuel Consumption

740 Kcal/kg clinker

Hotdisc Fuel Substitution

215 Kcal/kg clinker

(50% of calciner fuel)

Equipment price on installed basis (approx.)

720,000 EUR

Storage and feeding (semi automatic) approx.

700,000 EUR
Total investment

PAY BACK TIME = 0.8 YEARS BASED ON 40 EURO/T PRICE DIFFERENTIAL

1,420,000 EUR

The environment
SO2, NOx, and CO
VOCs, Dioxins/Furans, HCl,
heavy metals, etc.
Dust emissions
Hazardous Waste
Bypass Dust
Regeneration of Dust
Permitting
Environmental Groups
Public Pressure

CO Reduction

Separate Air Calciner

Higher Retention Times
Regenerative Thermal Oxidizer (RTO)
Feed High Carbon Component(s)
Directly to Calciner

SO2 Reduction

DeSOx System
Lime Injection
Gas Suspension Absorber (GSA)
Micromist ML System
Wet Scrubber

Particulate emission reduction

Use of Baghouses
Ventless Cooler Systems
Use of GSA Bypass System
Heat Exchangers
Dust Recovery System

Safety

Safety during plant construction

Design safe plants
Design for easy maintenance
Reduce local noise, dust, vibrations, etc.
Automate repetitive work (packing etc.)

Capital employed
Built cement plants better, faster
and cheaper
De-bottleneck existing plants
Improve efficiency (e-stocking,
consultancy, training, systems, people)

Total Installed Cost

Example only

(Country specific)

280
260
240

RECENT JOBS

US$/MTPY

220
200
180

NORMAL COST

160
140

LOW COST

120
100
80
60
1000

2000

3000

4000

5000

6000

Capacity (MTPD)

7000

8000

9000

10000

Cost distribution
Typical cost distribution new plant
Mechanical
36 %
Electrical
7%
Construction
57 %
Total
100 %
Engineering
Mechanical

aprox. 6 % in each dicipline

the distribution is aprox. 40/60 propriatary/auxiliary equip

Construction /
equipment costs
F=CONSTRUCTION/EQUIPMENT

2.5
2
1.5
F=C/E

1
0.5
0
0

1000

2000

3000

4000

5000

6000

Equipment cost
US$/MTPY
90
80
70
60
50
40
30
20
10
0

US$/MTPY

MTPD
0

1000

2000

3000

4000

5000

6000

Cost of extended schedule

Power saving in cement

grinding @ 300m2/mt
By installing an ok-mill instead
of a ball mill for cement
grinding a substancial power
saving can be obtained

Comparison Ball Mill vs Roller Mill

cement grinding 150 MTPH
System
Clinker
Gypsum
Blaine
Spec. energy
Mill Drive
Separator
Fans
System

Ball mill

OK Roller Mill

%
%
cm 2/g

95
5
4,000

95
5
4,000

kWh/t
kWh/t
kWh/t
kWh/t

38.0
0.4
4.5
42.9

20.0
0.4
8.0
28.4

Power Savings:

14.5 kWh/Mt cement

Cost Savings:

$725,000 USD/yr

Pyroprocessing System

Tailor Made Systems

High Production Lines
Cogeneration of Electricity
Waste Management
Low Pressure Drop
High Efficiency
Low NOx, SO2, and CO
Computer Control

Production Increase

Cyclone Modifications
High Efficiency Separators
New Calciners
High Efficiency Fans
Roller Presses
Vertical Pregrinders
Cooler Upgrade/Cross-bar Cooler

Automation

Information
Trouble Shooting/Plant Guide
Quality
Smooth Operation
Energy Control
Refractory Control
Manpower

WACC
Source of capital
Tax
New financial
solutions (BOT, etc.)

What do F.L.Smidth do?

Customer focus
Cost efficiency
Technological
leadership
Global team work

Our mission

We want to be your preferred

supplier of service,
technology and equipment

Thank you
and
Good luck!