Tanzania President John Magufuli has directed the country’s National Development Corporation (NDC) to allocate Dangote Cement a section of Ngaka coal mine in Mbinga District, Ruvuma Region.
Magufuli issued the directive before commissioning 580 heavy-duty lorries that will be used to ferry cement from the factory to other parts of the country.
President Magufuli said he was aware that production at the plant has been facing a number of challenges, including bureaucracy in obtaining coal from Ngaka.
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He added that coal production under Tancoal Energy Limited, which has been contracted by NDC, was “very poor”. “Under the current arrangement, it is very difficult to ensure that the investor gets enough coal for cement production because of poor produc tion capacity. You should therefore give Dangote a piece of land at the mine so that he can produce coal for his factory,” said President Magufuli, referring to Nigerian billionaire Aliko Dangote, who attended the ceremony. Mr Dangote owns manufacturing conglomerate Dangote Group, which operates the Mtwara cement plant. Dr Magufuli also directed the relevant state agencies to investigate the deal between Tancoal and NDC.
“NDC and Tancoal should understand that the coal doesn’t belong to them, but Tanzanians. If this company gets enough coal, it will help to lower cement prices. This, in turn, will make the lives of the majority of Tanzanians better.”
Dr Magufuli also directed the Minister of Energy and Minerals, Prof Sospeter Muhongo, to make sure that natural gas was directly delivered to Dangote Cement Company through a mains line, adding that there should be no intermediaries in the work.
Daily News TZ
