Starting this month, Dangote Cement in Tanzania will start using its own gas-powered plant to reduce its reliance on diesel and reduce its operational costs.
Dangote says that it has invested $90 million in the construction of the coal/gas-fired power station to be fed with natural gas at a negotiated rate by the Tanzania Petroleum Development Corporation.
In its first half-year results, Dangote announced that the Mtwara plant increased volumes by more than 64 per cent to nearly 388,000 tonnes in the first half of 2017, pushing the six months sales to more than 400,000 tonnes.
“The factory is still reliant on diesel generators which results in net income losses that weigh on our operations outside of Nigeria” the firm said.
“However, we expect to have gas turbines installed by September, which will immediately bring the plant into profitability.”
The firm is now banking on the construction of the Dar es Salaam-Morogoro standard gauge railway and the construction boom in the administrative capital Dodoma to accommodate government departments to boost its second half earnings.
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