Dangote Industries Tanzania Thermal Power Station is a 45-megawatt (60,000 hp), natural-gas-powered thermal power facility in Tanzania. The power plant is situated in Mtwara, which is about 565 kilometers (351 miles) south of Dar es Salaam, the country’s largest city and commercial center. The power plant was initially intended to be a 75-megawatt (101,000 hp), coal-fired power plant.
Dangote Industries Tanzania Limited owns and runs the power plant. It is situated close to the Dangote Group’s $500 million cement factory. The cement factory and the surrounding residential and commercial development complex are both powered by the power plant.
Reported on 13 October 2014
Dangote to invest in coal to power cement plant in Tanzania
Aliko Dangote is planning to invest in developing the Mbinga coal mine in the southwest of Tanzania. This was disclosed during a meeting between Dangote and Tanzania’s Vice President Mohammed Gharib Bilal at the Africa Global Business Forum in Dubai.
Dangote is expecting that the coal from the mine will be used to power the Mtwara Cement plant, located in the same region in the country. The amount of investment for the new coal plant is, however, undisclosed. The coal will be utilized to finance the transportation of cement across the borders of Tanzania, according to reports.
Dangote Cement is targeting to take advantage of the surge in local demand for cement amidst increased construction activity in the region. Mtwara cement plant will have a production capacity of 3 million tpa of cement when complete.
According to the company group website, the Tanzanian economy – which is expected to grow at 7.0% in five years to come – has experienced a surge in cement demand fueled by improved economic performance. Tanzania’s economy is expected to grow at this rate, supported by the manufacturing, mining, and tourism sectors.
Apart from helping power the Mtwara cement plant, investment in the Mbinga coal mine will also help generate about 3000 employment opportunities. Tanzania also has good limestone and Gypsum deposits and is attractive to good investment opportunities in the mining sector. By having a cement plant in the country, Dangote is banking on these opportunities.
Dangote is also planning to venture into more cement production in the region and has already announced plans to increase its production capacity for a planned cement plant in Mombasa Kenya. Construction at the 1.5 MTPA Integrated Cement plant in Mtwara is already in progress, and the plant is expected for commissioning in Q2 of 2014.
Dangote’s other cement plants in the region include the proposed plant in Kenya to have 3MTA, and their plant in Nigeria and Ghana, among others. The company has declared intentions to expand in other parts of Africa where it has not been operational, and also in Latin America and the Middle East.
Dangote seeks license to build a coal power plant in Tanzania
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 rotary kiln parts.
The new cement factory is expected to be commissioned sometime next year and will have the capacity to produce 3 million tonnes of cement per year.
Dangote Cement is, at present, the largest manufacturer of cement in Africa with an 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 become 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 neighboring 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 southwest of Tanzania adjacent to the company’s cement plant.