CBI Ghana LC3

hold

IFC is considering up to US$ 20 million (m) A loan facility to Continental Blue Investment Ghana Limited (CBI Ghana or CBIG or the company) to support the completion and operation of its Limestone Calcined Clay Cement (LC3) plant in Tema, Ghana (the project). Established in 2017, CBI https://cbighana.com/ is one of the leading cement producers in Ghana expanding its capacity from the current 0.6 million tons per year (mtpy) to 1.4 mtpy. CBI is building the world’s largest LC3 plant with a capacity of 0.4 mtpy expected to be commissioned in 2025. The project will lead to significant production cost savings by substituting more than 30% of clinker, thereby reducing CO2 emissions. This is the first project where IFC will finance LC3 cement technology that can reduce the carbon footprint by 40% compared to Portland cement.Shareholders include CBI SA, IFU, Norfund and FLSmidth. The project’s cement grinding plant is located in Tema, Accra. The company also owns the rights to calcined clay deposits in Togorme, North Tongu District, Volta Region, with a proven reserve of over 8.0 million ton for 50 years which is adequate for its operations. Currently, CBI buys clinker from Egypt, Turkey, Morocco, and Pakistan, as available, and obtains energy from Enclave Power Company (EPC). Other essential raw materials such as clay and iron ore are readily available in Ghana, while gypsum is imported from Morocco and Spain. At the time of this appraisal, construction of the LC3 cement plant was at 90% completion and early exploitation of the clay quarry had begun.