Dangote group plans to invest in the development of the Mbinga coal mine in southwest Tanzania. This was disclosed in a meeting between Aliko Dangote- C.E.O. of the group and Mohammed Gharib Bilal- Tanzania’s Vice President at the Africa Global Business Forum in Dubai.
The coal produced from the mine will be used to power Mtwara Cement plant, located in the same region in the country. It will also be used to finance transportation of cement across the borders of Tanzania. Mtwara cement plant will have a production capacity of 3 million tpa of cement when completed.
According to the company’s’ group website, Tanzanian economy which is expected to increase to about 7% in the next five years has experienced a surge in cement demand fueled by improved economic performance. The sole aim of this investment is to take advantage of this surge in local demand for cement amidst increased construction activity in the region. Asides powering the Mtwara cement plant, investment in the Mbinga coal mine will help generate about 3000 employment opportunities.
Construction of the 1.5 Integrated Cement plant in Mtwara is in progress, and the plant is expected for commissioning later in the year. The group has declared intentions to expand in other parts of Africa where it has not been operational, and also in Latin America and Middle East.