PEG’s role started with the study and evaluation of the existing plant, we started with an appraisal of the raw materials requirements and existing reserves. Then we proceeded to a complete technical study for the rehabilitation of line No 5 (3'500 tpd dry line) which was carried out with a cost estimate and financial profitability analysis.
  PEG arranged for a number of its engineers to go out on site in order to do a thorough examination of the entire plant installations. This mission was carried out with the idea in mind of possibly reconditioning and respectively replacing warned and damaged equipment in order to revamp line No5 back into operation.

  The aim of the project is to use, as much as feasibly possible, the already existing structures and equipment which include the following:
                         *A new coal blending storage and additive reception and storage equipment.
                         *The electrical distribution is fully renovated from the 110 kV substations up to a discharge into the clinker silos. 
                         *A new centralised control system is provided.
  The civil works include demolition, repair and construction of new buildings. Among the new buildings the following are foreseen:
                         *A large rectangular hall for the pre-mix of raw materials, 
                         *A clinker cooler structure,
  A coal blending circular dome and a rectangular hall for slag and gypsum storage.

  Once the revamping work has taken place the performances of the renovated plant are expected to be much improved. The calorie consumption should be around 850 kcal/kg clinker and around 1'500 kcal/kg for the wet kilns and the overall electric consumption should be less than 117 kWh/t of cement.
  Technical basic characteristics of the various sections have been studied and redefined.
  The budget has been established with a construction programme spread over two years.
  A profitability calculation was made for the entire revamping and modernization of CAC’s Aktau line No 5. And it is foreseen that the profitability will be very high.
  This result is reflected by a low investment (existing equipment, buildings and facilities are to be reused) and a lower operating cost is also foreseen due to the level of the average salary, price of the electrical energy as well as coal prices all this compared to a high selling price for cement.
  The Internal Rate of Return (IRR) remains high even with pessimistic assumptions. A sensitivity analysis was carried out in order to calculate the IRR under the most pessimistic assumptions (decrease of sales by 30%) and increase of operating costs.
  The revamped plant break-even point will be very low which will in its turn guarantee that the project remains profitable even with the most pessimistic market assumptions.