By Dipo Olowookere
Business Post has reliably learnt that the cement factory of Dangote in Tanzania has been shut down due to some issues.
According to reports from that country, the management of Dangote Cement located in Mtwara is having issues the Tanzania Petroleum Development Corporation (TPDC).
It was gathered that the main problem is concerning the high cost of natural gas, which is affecting the overhead cost of running the factory in Tanzania.
Reacting to the issue, Chief Executive Officer (CEO) of Dangote in Tanzania, Mr Harpreet Duggal, confirmed that the company has shut down its operations, but said it is due to technical problems.
Also speaking on the issue at a press conference in Dar es Salaam, the acting Managing Director of TPDC, Mr Kapulia Msomba, noted that the national petroleum body was in the final stages of approving a request by Dangote Cement Company to supply gas at the plant so that it saves millions of shillings it spends on diesel purchases.
Mr Msomba stated that TPDC has been holding negotiations with Dangote since October on iron things out amicably.
He said, “TPDC is guided by laws, rules and regulations in serving investors, including Mr Aliko Dangote.
“We expect that until January 2017, we will have completed the natural gas infrastructure at the plant. We believe that the electricity turbines will be ready at the Mtwara plant.”
Dangote Cement in Tanzania is the largest cement investment in East Africa, producing three million tonnes of cement annually and directly employing over 1,000 Tanzanians.
The company is believed to worth about $600 million.
more recommended stories
Court Adjourns CBN, MTN Hearing to January 22
By Modupe Gbadeyanka A Federal High.
Heirs Holdings Secures $600m Loan for Energy Investments
By Modupe Gbadeyanka A credit facility.
Caution in Credit Extension
By FBNQuest Capital Research The NBS.
Nigeria’s Trade Surplus at N681.3b in Q3
By United Capital Research The National.