Risk for shortage of cement in Sweden

The Land and Environment court of Appeal has, on the 6th of July 2021, decided to reject an application from Cementa AB (“Cementa”) for a permit to continue and expand their mining and manufacturing in Slite, Gotland. Three quarters of all cement on the Swedish market is manufactured in Cementa's factory in Slite.

Following the decision to deny Cementa a review by the Supreme Land and Environmental Court this summer and following talks with the business community, the Swedish government has drafted a bill that would give Cementa the opportunity to continue mining the remaining volume of limestone within the framework of the current mining permit. The Swedish parliament approved the bill on September 29th. The government announced on November 18th that it is granting Cementa a just over one-year permission to continue their limestone quarrying operations in Slite. The government’s permission is
valid until December 2022.

The government’s decision may be subject to an appeal by the Supreme Administrative Court. According to information from Cementa, it is at this stage of the process no trustworthy way to value the risk for a suspension of the government’s decision. An appeal must be submitted no later than three months following the government’s decision. There is no prediction about when the Supreme Administrative Court will announce its decision. According to Cementa, the court process might take up to 18 months.

The Supreme Administrative Court also has the authority to inhibit the approval (i.e.,suspend the right to continue the quarrying during the appeal). If so, the permission to quarry limestone will be suspended immediately in that case, Cementa’s quarrying operations will be stopped until the court has decided on the case. According to Cementa, it is likely that cement quotas will become necessary as a consequence of such a ituation. Even with the temporary permission in place, there is still a significant uncertainty connected to Cementa’s production. The risk for a shortage of cement consequently remains.

Notification of possible delays and other disruptions

Should a general lack of concrete available on the market become a reality, projects and work places may be directly or indirectly affected, e.g. through adjustment of time schedules and being unable to receive deliveries.

Skanska, who couldn’t have foreseen nor influence the issue, is taking the situation seriously and is in contact with suppliers of concrete as well as relevant industry associations.

More information:
Svensk Betong
https://www.svenskbetong.se/cementbrist (in Swedish)

https://www.cementa.se/sv/taktansokanslite (in Swedish)


Last updated: 12/15/2021