The Hindu Business Line : `ACC plant in TN has adequate limestone reserves'

THE Madukkarai unit of Associated Cement Companies Ltd (ACC) has enough limestone reserves that will last for the next few decades and there is no cause for concern, said a senior executive of the company.

Speaking to presspersons at the plant on the outskirts of Coimbatore, Mr A. K. Saxena, Vice President-Works, ACC Madukkarai plant, said when the plant was established in 1934, it was estimated that the limestone reserves of the company, both in Madukkarai and in Walayar in Kerala, would last for a few decades. But the company has been finding adequate limestone deposits to carry on its operations for close to seven decades now, despite the substantial increase in production capacity.

Asked about the concern over the remaining deposits not lasting for long, he said the company was reviewing the estimates of the limestone reserves every year.

According to a 2004 estimate, the `proven reserves' would be sufficient to keep the factory running for the next two decades.

The estimated reserves have kept on increasing because of the increase in the depth of mining. Asked what would happen beyond 20 years when the present `proven reserves' might have been fully exploited, Mr Saxena said one could go deeper for mining but that would push up the cost.

There is an anticipated reserve (apart from the 20-year final indicative reserve) that might last for a further period of 18 years, taking the total limestone availability for the factory to the next 38 years. Asked whether the company would consider re-locating the plant or choose to source limestone from elsewhere if the reserves were found to be inadequate, he replied in the negative.

Even when the Madukkarai plant was commissioned, the limestone deposits then were estimated to last 30 years but the factory has been functioning for more than 70 years now.

The Madukkarai factory's production capacity has gone up from 250 tonnes a day at the time of commissioning to 2,700 tonnes a day at present.

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