Lafarge’s approach to ash

Bulk Materials International

Jean-Francois DelaireManaging Director - BMI

Contents

� Some background on Lafarge

� Lafarge’s use of ash and other cementitious materials

� The role of BMI within the Lafarge network

� The seaborne ash trading market

� Future challenges

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A Global supplier of building materials

� Leading positions in key construction sectorsN°1 worldwide in CementN°2 worldwide in AggregatesN°4 worldwide in Concrete

� €15.8 billion of sales

� Operations in 64 countries

� 65,000 employees

� A commitment to “green” initiatives, including increased usage of cementitious materials

WWF Conservation Partner, including initiatives on:n Sustainable constructionn Climate changen Water conservationn Biodiversity

Usage of cementitious materials by Lafarge

By usage MT

Raw mix 2

Blended cements 30

Direct sales 6

Total 38

By product MT

Slag 10

Fly ash 12

Pozzolan 4

Limestone 12

Total 38

NB : Fly ash competes with other materials

Main involvement and experience of Lafarge in fly ash

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• France : 0,5 MT

• Deposits / Drying

• USA : 2 MT

• Disposal sites

• Blending terminals

• UK : 0,5 MT

• Ash beneficiation

• Poland : 1 MT• Deposits / Drying

• Use in raw mix

• Ash beneficiation

• South Africa : 1,5 MT

• Classification

• China : 2 MT

• FGD gypsum off-take

• India : 1 MT

Ash benefication

• Carbon removal + reburn• Lafarge UK

• Lafarge Poland

• Ammonia removal

• Lafarge UK• Ash classification

• Lafarge UK

• Lafarge South- Africa

The scope of our business interests makes Lafarge an ideal partner for coal fired power stations

Limestone in

(by sea, rail or

road)

Construction

materials in

during

building

(aggregates &

concrete)

Gypsum

for cement

production

Ash for

cement

production

FBA to

aggregates

end use

Expertise and involvement in design of process plant including

handling, storage and ash beneficiation technology

Total Ash

management

For non

cementitious

applications

Ash for

clinker

production

FBA to

clinker

production

The role of BMI within Lafarge

� BMI is the Lafarge trading entity for cementitious materials

• Seaborne trading only

• Supplying both Lafarge and non-Lafarge customers

– Third-party sales account for around 30% of volumes and this is expected to grow in the future

� BMI also provides technical, commercial and strategic support to

Lafarge operating businesses

• Advising on best sourcing options, contract-making, quality control

• Providing benchmarks thanks to global coverage

� BMI develops long term partnerships with both suppliers and

customers

• Logistics and marketing support

• Infrastructure design

• Product analysis

• Beneficiation technologies

Support from Lafarge

Network and partners

BMI is organized along a regional network

A network of Partners has been developed to provide credible solutions to the power industry

The seaborne ash trading market : about 2 MT/year

Main flows :

� From East India

• To Bangladesh (bulk)

� From West India

• To the Middle-East (big bags)

� From Japan

• To Korea (bulk)

� From Italy

• To Europe (bulk)

Modest compared to slag (17 MT) and cement (120 MT)

Key challenges for developing seaborne ash trading

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� Logistics constraints

� Silo capacity at loading/unloading points

� Berthing and unloading capabilities

� Categorisation as a “waste”

� Restrictions to trading

� Bureaucratic authorisation process

� Ash Quality

� Carbon levels

� Ammonia levels

� Increased use of biomass

� Mercury treatment

� Ash Availability

� Increased market share of gas/renewables

� Seasonality of production

Lafarge Poland

Summary

� Ash plays a key role in Lafarge’s product strategy, although it is

competing with other cementitious materials.

� There is room for an even stronger role, however :

� The “easiest” sources, in terms of quality and logistics, are already consumed.

� Untapped opportunities exist, but require processing and development of logistic

infrastructure… meaning capex

� Seaborne trading of ash has become an essential element of Lafarge’s

strategy regarding ash

� BMI is in charge of implementing this strategy

� The role requires managing ash quality, waste regulations, reliability of service, and

optimum logistics

� Lafarge believes in long term partnerships with power utilities

ensuring mutual understanding, investment in infrastructure and

processing technologies.

� Successful partnerships require a fair sharing of the value chain (win-win

philosophy)

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