Lafarge Cement suspends output since May 12
Wednesday, 6 June 2007
FE Report
Lafarge Surma Cement, the country's largest cement manufacturing company, has suspended production since May 12 due to stoppage of its lime stone mining in India's Meghalaya state, company sources said.
However, the cement company is supplying a little quantity of cement from its stock affecting the availability of the building material in the local market.
The mining of lime stone at Shela in Meghalaya by a company's sister concern has been stopped by India's forest department citing the reason that the quarrying is affecting the ecological balance in the area.
Sources said Lafarge Surma Cement needs 'no objection certificate' (NOC) from the Indian forest department for further exploration of lime.
The company produces clinker, the only raw material for manufacturing cement, from the lime stone.
Mohiuddin Babar, Head of Communications of the Lafarge Surma Cement, told the FE Sunday that his company was officially proceeding to resolve the issue with the Indian government.
"We will look for other alternatives if our official move fails to bring any result," Babar said.
Lafarge had a lease agreement with the state government for a period of 90 years to explore lime at Shela, seven kilometres away from border and export it to Bangladesh through conveyer belts.
Sources claimed that the Lafarge's sister concern involved in quarrying at Shela had all required permissions from different Indian departments for mining lime there.
Lafarge official statement claimed that it also had NOC from the forest department, but unfortunately it now requires another NOC from the same department.
Sources also said either the company have to compensate for destroying forest in the state or have to afforest the same area in India, which requires forestation for preservation of environment.
The supreme court of India will usually decide such arbitration and it will take few months' time to resolve the issue.
The Lafarge Surma Cement has, in the meantime, applied for taking back limes that are in stock at Shela in Meghalaya to resume production at the plant, official sources said.
The sources said there are around 600,000 tonnes of limes lifted from the mines in stock.