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SUSTAINABILITY REPORT 2017

29

MATERIALS MANAGEMENT

CMS does not believe in wastage when it comes to the management of

materials. With the aim of reducing the use of natural resources in our

operations where possible, we continue to research and innovate so as

to find more ways in which we can replace raw materials with recycled

resources.

Revitalising the Industrialised Building System (IBS) Business

The Group is endeavouring to revitalise the Industrialised Building

System (IBS) business through the Cement Division. IBS construction

underpins sustainable construction because it is able to address several

prevalent issues in some parts of the industry such as poor quality

of construction work, low productivity, a relatively long construction

period and too much dependency on foreign labour.

IBS construction was introduced somewhere in the 1960s by foreign

contractors for housing projects. i.e. landed and multi storey buildings.

However, several problems especially jointing issues and leakage at

the jointing caused poor uptake by the local industry players. Over the

years, with the advancement of technology some of these problems

have been solved. Despite this advancement, the level of acceptance of

IBS by local industry is still low.

IBS is the way forward for future construction projects. The Government

has shown its commitment in pushing the agenda on IBS through

making it mandatory for government projects to utilise at least 70%

IBS components. One of the measures to facilitate the industry and to

advocate IBS construction, which is where we will start, is to enhance

the level of knowledge among the professional fraternity in construction.

Cement Division’s Alternative Fuel and RawMaterials Committee

During the year in review, the Cement Division’s Alternative Fuel and

Raw Materials Committee held six meetings in which they focused

primarily on the suitability of the conversion of waste into a cement

raw material. In line with their discussions, all waste from Samalaju and

Samajaya Industries have been tested and research and development

(R&D) processes have taken place.

Reusing Waste in the Production of Clinker

For the first time in 2017, a total of 259.54 tonnes of Calcium Hydroxide

Ca(OH)² sludge was incorporated in the raw mix preparation. Future

volumes are subject to the availability of the sludge from various waste

generators. We are also continually looking into additional sourcing of

sludge from within the industry.

Following extensive research into using Phosphogypsum (PG) as a

replacement for limestone, our clinker plant has come to the conclusion

that the waste material is viable as a material replacement. We have plans

to purchase the waste material from an identified source. The plant has

also considered replacing its Light Fuel Oil (LFO) with Residual Fuel Oil

(RFO). We are in discussion with PETRONAS and have sourced several

recycled oil suppliers in the Kuching area.

The plant is also looking to substitute its use of limestone by up to 3%

by replacing this with sludge, old kiln bricks and ash. In line with this

initiative, our Cement Division’s environmental team contacted the

waste generators from the Samalaju Industrial Park (SIP) and Samajaya

Industrial areas. During the year, R&D in the laboratory, and then on

an industrial scale, on waste generated within SIP was conducted and

subsequently, the applications were submitted to and approved by the

Department of the Environment (DOE) in Putrajaya. Scheduled Wastes

Transportation licences especially on the sea route are being negotiated

with the DOE.

The Cement Division’s Alternative Fuel and Raw Materials Committee is

working with the DOE in Putrajaya and the plant teams to actualise the

3% substitution target. In 2018, the alternative raw materials’ usage will

increase significantly with the future approval of waste usage from the

waste generators at the SIP and at the Samajaya Free Industrial Zone.

Tyre-derived Fuel

In an effort to create sustainable energy through the recycling of

waste materials, CMS Cement Industries Sdn Bhd

(formerly known

as CMS Clinker Sdn Bhd)

, under its clinker operation, began to process

tyre-derived-fuel (TDF) in 2015 by burning small quantities of shredded

tyres purchased from a local-based supplier to manufacture clinker.

TDF is a fuel derived from scrap tyres of all kinds and it produces the

same energy as petrol and approximately 25% more energy than sub-

bituminous coal.

As the trials did not produce any significant negative effects at the

clinker plant, the Company is seeking the relevant approvals from

the governmental authorities like the Department of Environment,

Sarawak (DOE Sarawak) and the Natural Resources and Environment

Board, Sarawak (NREB) for the commercial usage of TDF. The DOE had

asked for the installation of a CEMS-Gas Analyser as a prerequisite for

the trial burn which was successfully carried out in December 2017.

As a trial, we will burn 300 tonnes of TDF in February or March 2018 and

once licensed, will co-process another 300 tonnes under a strict watch.

The Company has also established a long-term TDF supply contract with

ZHA Sdn Bhd, a Sarawakian-based company.

Manganese Slag Premix Aggregates Replacement for Road-based

Materials

CMS Pavement Tech Sdn Bhd from our Construction & Road

Maintenance Division has been researching the possibility of using

by-products of smelting plants in SIP as material in its road base.

The initiative aims to recycle the waste material which would otherwise

go into landfills, while at the same time exploring a potentially cheaper

source of input material. Silica fume is a by-product of producing

ferrosilicon alloys in smelting plants and is commonly used to

strengthen Portland Cement concrete due to its extreme fineness and

high silica content.

Environment