The chairman and president of the Dangote Group, Alhaji Aliko Dangote, is set to invest in developing the Mbinga Coal Mine in West Tanzania to power the Mtwara cement plant.
This was revealed during a meeting between Dangote and Tanzania’s vice president, Mohammed Gharib Bilal, at the Africa Global Business Forum in Dubai, even though the amount of investment for the new coal plant was undisclosed.
Bilal revealed that “Dangote is expecting that the coal from the mine will be used to power the Mtwara cement plant located in the same region of the country, adding that the coal was to be also utilised to finance transportation of cement across the borders of Tanzania.”
According to reports, Dangote Cement is targeting to take advantage of the surge in local demand for cement amidst increased construction activity in the region. Mtwara cement plant will have a production capacity of three million tpa of cement when complete. According to the company group website, Tanzanian economy, which is expected to grow at seven per cent in five years to come, has experienced a surge in cement demand fueled by improved economic performance. Tanzania economy is expected to grow at this rate, supported by manufacturing, mining and tourism sectors. Apart from helping to power the Mtwara cement plant, the report also revealed that investment in the Mbinga coal mine will also help generate about 3,000 employment opportunities.
Tanzania also has good limestone and gypsum deposits which is an attraction for good investment opportunities in the mining sector. By having a cement plant in the country, Dangote is banking on these opportunities.
The report further revealed that the business mogul is also planning to venture into more cement production in the region, and has already announced plans to increase its production capacity for a planned cement plant in Mombasa, Kenya. Construction at the 1.5 mtpa Integrated Cement Plant in Mtwara is already in progress, and the plant is expected for commissioning in Q2 of 2014. Dangote’s other cement plants in the region include the proposed 3mta plant in Kenya, their plants in Nigeria and Ghana, among others.
Source : Leadership