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Cemex Latam to limit capacity after Colombia denies output request

BOGOTA, March 30 Cemex Latam Holdings, a unit of Mexican cement company Cemex, said on Thursday it would use only a portion of capacity at a new cement plant after Colombian environmental authorities denied the company permission for bigger output.

Cemex had asked the regional environmental authority of Antioquia, in north western Colombia, for a license to build a plant with production capacity of 950,000 tonnes, but the request was denied.

Still, Cemex said in a statement that it would continue construction of the $340-million plant, near Maceo in Antioquia province, but keep output at only 250,000 tonnes a year.

"I will continue our project to finish the plant with the capacity to produce 250,000 tonnes of cement, but in the future we will request authorization again through a new delimitation of the current mining title," a company source told Reuters. (Reporting by Luis Jaime Acosta; Writing by Helen Murphy; editing by Diane Craft)

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