Nigeria: Ashaka Cement signs NGN11bn coal power agreement

Nigeria: Ashaka Cement signs NGN11bn coal power agreement
Published: 26 July 2016


Ashaka Cement plc has signed a NGN11bn (US$35m) contract with China-based RUNH Power Corp Ltd for the construction of a 16MW lignite-fired coal power plant at its cement plant in Gombe State, Nigeria. 

The power plant will be operated by firing coal from Ashaka Cement-owned local coal mine reserves located in Maigana, 140km distance from the cement works.

Scheduled for completion in 2018, the facility would enable the cement plant to reduce its reliance on the national grid and diesel-powered generating sets.  

Ashaka Cement’s Chairman, Suleiman Yahyah, said the company would be financing the project from its NGN15bn reserves and is a reflection of its commitment to the growth and development of the Nigerian economy.

The power station would be the first of its kind in the Northeast region. Mr Yahyah said: “The North Eastern region is a strategic region where Ashaka is supporting the reconstruction programme of the government. This project will further strengthen the relationship with Gombe State as well as the communities and reinforce the importance of Ashaka as the major manufacturing company in that part of the country.”

He added the power plant would supply consistent energy and help the cement producer to not only improve operational efficiency and lower energy costs but also contribute to lifting production capacity to 1Mta. In the longer term and given favourable conditions, Ashaka Cement plans to raise its production capacity to 2.5Mta, Mr Yahyah said.