Tanzania: Dangote prepares for coal extraction in Ngaka

Tanzanian President, John Magufuli, has taken action to enable Dangote Cement to start mining its own coal to power its new US$650m Mtwara cement factory.

Speaking at the official launch of the 580 trucks, which will be used by Dangote to transport cement from the southern region of Mtwara to the rest of the country, Mr Magufuli gave a seven-day ultimatum for the Ministry of Energy and Minerals to ensure that the coal mining area in Ngaka is available to the cement producer to start mining its own coal.

He also directed the ministry to ensure it links the cement plant with natural gas as soon as possible, to help produce cheaper cement.

He assured the Nigerian and other investors in Tanzania that his government was ready to assist them any time they need assistance.

Aliko Dangote said his plant will create more than 20,000 job opportunities and the price of cement will also go down from US$6.71/50kg bag to US$4.47/bag.

Dangote used to  import coal from South Africa as it is less expensive than natural gas. However, the move met with disapproval of top government official in Tanzania as the country has substantial coal deposits. In August the government banned coal imports from South Africa

The new development will be a relief to the investor who in the past used to import coal from South Africa, which is cheaper than natural gas, a move that has greatly upset top government officials in the Magufuli-led government, primarily because Tanzania also possesses substantial deposits of coal. In August, the government banned the importation of coal from South Africa.