DANGOTE Cement has said that it is investing $300 million in additional coal facilities across all plants.
The Group Managing Director (GMD) of the company, Mr Edwin Devakumar, said this was imperative because of the pace at which company was growing in Africa, in addition to constraints in gas supply, hence the need for alternative sources of energy.
“Gas supply was a major constraint. The entire system is converting to coal. We’re investing in coal mine to improve margins versus LPFO use. The mining activities will begin in the next four months,” he disclosed.
Mr Devakumar noted that $80 million had already been invested in coal facilities at gas-fired plants and additional $300 million is being invested to enable 100 per cent use of coal, if necessary.
The GMD, during the company’s ‘Facts Behind the Figures’ at Exchange at the weekend, also disclosed that state of the art plants have been installed to deliver integrated capacity across 13 countries whiles new capacities/plants will be commissioned this year.
He said: “New Nigerian lines have started producing clinker/cement. Sephaku Cement is already selling cement from Delmas. Zambia is on track for opening in 2014. Cameroon is to begin operations soon. Senegal plant commissioning has commenced.
“Ethiopia will commence before the end of the year. Sierra Leone will open in fourth quarter (Q4) 2014. We are reviewing scope of Kenya in light of finding good limestone deposits. South Sudan is on the hold owing to conflict,” he noted.
The company posted a 5.3 per cent increase in revenue to N208.9bn, while gross profit stood at N133.5bn, up 1.1 per cent when compared to the same period of 2013.
Source : Tribune