Following last year’s deal by Tanzania’s government to supply natural gas to Dangote Cement in the southeastern town of Mtwara, the state has offered land to the Nigerian company to mine coal for its operations. Tanzania’s Ministry of Energy and Minerals handed a 10km2 plot of land to the 3Mta cement factory set up in 2015.
According to local sources, the move was sanctioned by President John Magufuli to allow the company get a reliable supply of coal to fuel its activities. Tanzania has banned coal imports from South Africa, but Tancoal, the only coal producing company in the country, cannot meet the entire demand.
Dangote runs on expensive diesel generators and requested Tanzanian government support last year to supply natural gas at a reduced price. President Magufuli said that Dangote “will now buy natural gas directly from the state-run TPDC (Tanzania Petroleum Development Corporation)”.
