Dangote seeks license to build a coal power plant in Tanzania

Integrated-Cement-plant-Mtwara
Construction works at the Dangote cement plant in Mtwara

Africa’s richest man Aliko Dangote is seeking to be awarded a license for a 75 megawatt (MW) coal power plant in Tanzania.

Energy from the coal power plant will be used to power up the US$ 500m cement factory that is currently under construction in Mtwara Tanzania. The plant will also power the residential and commercial development complex around the factory. This is due to the fact that interruption of power supply or unstable voltage causes s extensive damage to the refractory, and also to the rotary kiln parts.

The new cement factory is expected to be commissioned sometime next year, and will have capacity to produce 3 million tonnes of cement per year.

Dangote cement is, at present, the largest manufacturer of cement in Africa with estimated production of 47 metric tonnes annually. The company is already operational in 13 African countries with revenues worth US$2.45bn last year.

Tanzania is positioning itself to becoming a major exporter of cement by next year. The current production capacity in the country is 3.8 million tonnes per annum, but it is expected to more than double to 8.3 million tonnes per annum in the near future. Domestic consumption is also projected to increase to 3.9 million tonnes per annum from 2.25 mtpa. Most of its cement will be exported to its neighbouring countries which largely depend on imports. These countries include Rwanda, Burundi and East DRC.

The plans to construct the new coal power plant were made public recently by Dangote, and the Mbinga coal mine will be located at the southwest of Tanzania adjacent to the company’s cement plant.

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