Tanzania: Dangote Cement has signed two agreements that will enable its US$600m cement plant in Tanzania to generate 150MW from coal.
One agreement is with Tancoal. Dangote Cement has also signed a coal prospecting licence for a site in Mbinga. However, the plant will first run on diesel until it is able to generate its own electricity from coal.
The deals ends a year-long dispute between the government and the cement plant after Tanesco failed to provide electricity. The plant was considering importing coal from South Africa, which was a cheaper option than buying it from the area.
The cement plant is expected to reduce cement prices by 50% once production commences in early 2016. It will take advantage of the growing construction industry, which contributes 12.5% to the country's GDP. It will offer more than 1500 direct jobs and 9000 indirectly.
