Dangote shuts down cement factory in Tanzania

  • Dangote shuts down cement factory in Tanzania

  • High cost of production indicated as cause of closure

  • Tanzanian government refuse to sell fuel at cheap rates to Dangote

The Dangote group has closed down its cement factory in Tanzania due to a high costs of production.The $500 million factory was shut down a few days ago after executives revealed that the Tanzanian government refused to furnish the company with Natural gas at subsidized rates.

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The factory is strategically situated in the south eastern city of Mtwara, which is rich in natural gas. Reliable sources reveal that the Dangote group spends over $3 million on diesel every month to power the factory.

According to the CEO of Dangote cement Tanzania,Duggal Harpeet, the plant uses 6 million liters of diesel every month to power its generators. Before its closure, the group resorted to importing cheap coal from South-africa.

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This development was not welcomed by Tanzanian government officials as the country was also rich in coal and in August, a ban was placed on the importation of coal. Dangote group defended their actions by revealing that Tanzanian coal was substandard and expensive.



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