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Dangote Cement Shuts Operations In Tanzania


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.

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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.

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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.”

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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.

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Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan.

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