Pioneer Cement Limited

We evaluate the potential impact of raising the limestone royalty for KPK-based cement plants to 6% of the ex-factory cement price (following the increase in Punjab) from the current Rs250/ton. This increase is expected to weigh on earnings of companies located in Khyber Pakhtunkhwa (KPK). The final notification by the KPK government for the proposed increase is however still awaited.The potential increase in royalty will have an impact on four cement players among our cement ...

Minerals Development Department of Khyber Pakhtunkhwa (KPK) in its latest meeting has proposed to increase royalty charges in KPK province by shifting the weight-based royalty charge per ton to 6% on the ex-factory price (similar mechanism as applied in Punjab w.e.f. July 01, 2024)As per our analysis, KPK cement manufacturers are currently paying royalty of PKR 12.5 per 50 kg bag, translating into PKR 250 per ton of cement production. However, the new royalty charge will refl ...

In a major development, royalty on cement for KPK province is considered to be shifted from ore-based to bag-based calculation with a minimum of 6% of ex-factory sale value as prevalent in Punjab province.To recall that previously royalty on limestone and argillaceous clay used for cement manufacturing was fixed at Rs250/ton for plants based in KPK.This would have a negative impact on profits of KPK based manufacturers since the royalty on raw material which currently stands ...