Dangote Cement confirms plan to start coal mining in Kogi State

Dangote Cement, a subsidiary of Dangote Group, says it will start mining for coal at Ankpa, Kogi State, in November 2016.

This is to reduce the company’s dependence on gas whose supply has been hit by the disruptions caused by militants in the Niger Delta region. It also said that the switch of its plant lines to coal would minimise cost.

According to the Chief Executive Officer of the Dangote Cement, Onne, van der Weijde, “These are challenging times for Nigeria and Dangote Cement but we are taking strong actions that will position the company for continuing success. Our coal mining initiative will benefit both the company and the Nigerian economy by reducing the need for foreign exchange and helping us to both protect existing jobs and create new ones.
“Although we have indicated a more measured approach to our expansion across Africa, we have new operations opening soon in Congo and Sierra Leone and these will strengthen the company’s profitability and generate additional foreign currency earnings. Despite the challenges we are facing, we continue to focus on becoming a global force in cement production.”

The company said that many of its production lines were now capable of running entirely on coal, hoping that this development would eliminate the company’s dependence on gas supplies, imported coal and, more significantly, LPFO.