F E D E R AT I O N C E M E N T INDUSTRY

2017StatisticsAUSTRALIAN CEMENT INDUSTRY

2

In 2016—17 the Australian cement industry recorded a turnover of A$2.4 billion, employing more than 1,300 people directly and more than 5,000 indirectly — many based in regional Australia.

INTRODUCTION

3 » The Australian cement industry

is an important contributor to regional employment, and to the growth and sustainability of the Australian economy.

» Our industry provides high quality cement products essential to Australia’s building and construction sector, as well as major infrastructure projects.

» Cement is the key ingredient in concrete, the most consumed material on earth after water.

» CIF member companies operated five integrated clinker and cement facilities and nine grinding plants in 2016-17.

» Our product is delivered to market through around 20 distribution terminals.

4 CEMENT & CLINKER PRODUCTION

4

5

6

7

8

9

10

15-1613-1411-1209-1007-0805-0603-0401-0299-0097-9895-9693-9491-9289-90

ClinkerCement

89-90 91-92 93-94 95-96 97-98 99-00 01-02 03-04 05-06 07-08 09-10 11-12 13-14 15-164mt

5mt

6mt

7mt

8mt

9mt

10mt

5Cement & clinker production (million tonnes)

» Since 1990 the industry has moved towards more energy efficient clinker production technology.

» Efficient, precalciner kilns now account for over 97 per cent of clinker production in Australia.

» Australian cement producers continue to utilise leading edge practices to reduce costs as well as emissions.

6 CEMENT & CLINKER PRODUCTION

0mt

1mt

2mt

3mt

4mt

5mt

6mt

7mt

8mt

15-1613-1411-1209-1007-0805-0603-0401-0299-0097-9895-9693-9491-9289-90

Long wet kilns Suspension preheater Semi wet kilns Precalciner kilns

89-90 91-92 93-94 95-96 97-98 99-00 01-02 03-04 05-06 07-08 09-10 11-12 13-14 15-16

1mt

0mt

2mt

3mt

4mt

5mt

6mt

7mt

8mt

7Clinker production by kiln type (million tonnes)

» The emissions profile of Portland cement manufacturing has three main components:

1. Process emissions2. Thermal (fuel) emissions3. Electricity emissions

» Process emissions involve the chemical transformation of limestone to produce lime and carbon dioxide. These are unavoidable.

» Thermal and electricity-related emissions are associated with fuel use (e.g. coal and gas) and general facility operations (e.g. grinding plant).

8 CEMENT AND EMISSONS

5mt

6mt

7mt

8mt

16-1715-1614-1513-1412-1311-1210-1109-1008-0907-0806-0705-0604-0503-0402-0301-0200-0199-0098-9997-9896-9795-9694-9593-9492-9391-9290-9189-90

8mt

7mt

6mt

5mt89-90 91-92 93-94 95-96 97-98 99-00 01-02 03-04 05-06 07-08 09-10 11-12 13-14 15-16

0% 20% 40% 60% 80% 100%

Limestone Clinker + Carbon Dioxide Heat (fuels) Electricity

59% 30% 11%

0% 20% 40% 60% 80% 100%

9 Total CO2 and Emissions Profile

» Since 1990 the increased use of alternative fuels in the cement manufacturing process has resulted in a significant reduction in both fuel and power use.

» Increased fuel efficiency can sometimes come at the expense of power efficiency.

» The continued focus on phasing out inefficient production technologies will increase the electrical and thermal efficiency of the industry overall.

10 ENERGY & FUEL USE

% Fuel reduction since 1990 Per tonne of cement produced

% Power reduction since 1990 Per tonne of cement produced

-5%

5%

15%

25%

35%

45%

55%

16-1714-1512-1310-1108-0906-0704-0502-0300-0198-9996-9794-9592-9390-91

93-94 95-96 97-98 99-00 01-02 03-04 05-06 07-08 09-10 11-12 13-14 15-16-5%

5%

15%

25%

35%

45%

50%

11Fuel and power efficiency gains

» The Australian cement industry continues to focus on the increased use of alternative fuels - lowering the industry’s greenhouse gas emissions as well as reducing waste from other industries going to landfill.

» In 2016—17 over 10 per cent of all fuels used in the Australian cement industry were derived from alternative sources. These include used oil, demolition timber and solvent fuels.

» Significant scope exists to increase the safe use of alternative fuels in Australian cement kilns. Addressing adverse waste management policies is the first step towards increasing the uptake of alternative fuels in our industry.

12 ENERGY & FUEL USE

90-91 92-93 94-95 96-97 98-99 00-01 02-03 04-05 06-07 08-09 10-11 12-13 14-15 16-17 0%

2%

4%

6%

8%

10%

12%

13Alternative fuel as a percentage of total energy use

» Cement extenders (SCMs) are materials that can be used to offset a portion of the clinker in cement, without compromising performance. The use of SCMs is one of the most effective ways to reduce emissions.

» Many SCMs originate as high volume by-products of other industrial processes. Examples include limestone, granulated blast furnace slag from iron and steel production, as well as fly ash from the power generation industry.

14 SUPPLEMENTARY CEMENTITIOUS MATERIALS

Fly Ash Slag Limestone Total Extenders

15 Cement Extenders used in production and sold (‘000 tonnes)

0.5mt

1.0mt

1.5mt

2.0mt

2.5mt

3.0mt

3.5mt

16-1714-1512-1310-1108-0906-0704-0502-0300-0198-9996-9794-9592-9390-91

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