Name and Location
Cement plant project, Tanzania.

Client
Dangote Cement.

Project Description
The project involves the construction of a cement plant with a production capacity of three-million tons a year. The plant will double the country's output of cement to six-million tonnes a year.

In a separate project, Dangote plans to build a 75 MW coal-fired captive power plant adjacent to the cement manufacturing plant.

The establishment of the cement plant is in line with the Dangote’s aim of expanding across Africa and increasing its capacity to 29-million tonnes a year by 2015.

Value
The project involves an investment of $500-million.

Duration
The foundation stone was laid in May 2013 and the project is expected to take 22 months to complete.

Latest Developments
Dangote has reported that it will begin production at its cement plant, in southern Tanzania, in August this year.

However, Dangote has said that it faces challenges in accessing coal and natural gas as sources of cheap electricity to operate the factory.

Dangote's factory is being built in the Mtwara region, but there is no infrastructure to connect the plant to gas reserves from the nearby offshore natural gasfields.

Dangote applied for a licence in 2014 to build a 75 MW coal-fired plant in Tanzania that would power the cement factory.

Initially it will power the plant from electricity on the grid.

Dangote’s plant will supply the domestic market and export to landlocked countries in the region. It will compete with other Tanzanian cement producers including Tanzania Portland Cement, owned by a subsidiary of Germany's Heidelberg Cement AG; Tanga Cement, majority owned by Afrisam Mauritius Investment Holdings Limited; and Mbeya Cement, owned by France's Lafarge SA.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Dangote Cement, tel +234 1 448 0815, fax + 234 1 463 0316 or email enquiries.nigeria@dangotecement.com.