Plans for a new clinker and grinding plant in Kitui, Kenya are being postponed by the local Athi River Mining (ARM).
Works on the project will begin after the company streamlines its business in Tanzania; increases its EBITDA margins by 2016/17 to 29%, and pays off some debts in US dollars.
The plant was to be built with US$150 million (€136.25 million) under a two-phase capital spending plan during 2017-2020 with stage two to involve $100 million.
Works on the new plant were due to start in late-2014, 12 months after plans were announced by ARM.
The yearly grinding capacity of the company in the region is expected to reach 5 million tonnes by 2020.
ARM, which is targeting banks in Kenya for a loan of US$75 million (€68.13 million), saw revenues in July-September 2015 grow year-on-year by 10% from KES 10.9 billion (€97.17 million/US$106.97 million) to KES 11.7 billion, while the previous profit of KES 1.1 billion was erased with a KES 469 million loss.
Meanwhile, ARM is said to be intending to issue five-year bonds to generate $75 million to pay off a portion of its debt of $230 million.
