Dangote to Get Tanzanian Coal and Gas for its Cement Factory

dangote-mtwara-cement-plant

The President of Tanzania, Hon. Dr. John Magufuli, has instructed the Ministry of Energy and Minerals to award Dangote with a coal mining license for the Ngaka coal basin, allowing the company to supply its cement factory in the Mtwara Region.

In addition, President Magufuli instructed the Tanzania Petroleum Development Corporation (TPDC) to agree on the right tariffs to supply Dangote cement factory with natural gas as soon as possible.

Dangote started operations at its new USD 500 million cement plant in Mtwara district, Tanzania’s south eastern region, in November 2016.

However, in December 2016 the cement maker suspended production, citing technical problems and high production and energy costs.

Dangote was importing coal from South Africa to supply its Tanzanian cement factory.

Tanzania has since then banned the importation of coal from South Africa, forcing the factory to run on fuel power generators.

The new measure are expected to allow Dangote Cemenet to reach it potential capacity of of 3,000 metric tonnes per day (TPD) of clinker output.

In addition, President Magufuli urged Dangote to communicate directly with the Government for any further need.