Africa’s indigenous cement maker, Dangote Cement Plc has announced its plan to begin mining coal in Kogi State.
Dangote Cement, which is a subsidiary of the Dangote Group, disclosed that it will start mining coal at Ankpa, Kogi State, in November.
Speaking on the development, Chief Executive Officer of Dangote Cement, Onne van der Weijde, said that this was due to disruption in gas supply.
Activities of militant groups in the Niger Delta region in recent times have seriously affected gas supplies.
This has necessitated the move to seek for alternative energy sources other than Gas, or LPFO.
Dangote Cement CEO, Onne van der Weijde informed:
“These are challenging times for Nigeria and Dangote Cement. But we are taking strong actions that will position the company for continuing success.
“Our coal mining initiative will benefit both the company and the Nigerian economy by reducing the need for foreign exchange and helping us to both protect existing jobs and create new ones.
“Although we have indicated a more measured approach to our expansion across Africa, we have new operations opening soon in Congo and Sierra Leone and these will strengthen the company’s profitability and generate additional foreign currency earnings.
“Despite the challenges we are facing, we continue to focus on becoming a global force in cement production.”
The company said that many of its production lines were now capable of running entirely on coal.
Dangote Cement Plc Facilities To Run On Coal
This will completely eliminate the company’s dependence on gas supplies, imported coal and LPFO.
Dangote Cement Plc is Nigeria’s largest cement producer with three plants in Nigeria and plans to expand in 13 other African countries.
The Dangote Cement plant in Obajana, Kogi, is the largest in Sub-Saharan Africa.
The plant has an operating capacity of 10.25mmtpa across three lines and a further 3mmtpa capacity currently being built.
Dangote Cement is investing several billion dollars in building manufacturing plants and import terminals across Africa.