One agreement is with Tancoal, to supply coal to the Dangote factory. The cement factory has also signed a coal prospecting licence for a site in Mbinga, southern Tanzania. However, the factory will first run on diesel until it is able to generate its own electricity from coal.

 

The deals ends a yearlong tug-of-war between the government and the factory after Tanesco failed to provide electricity. The factory was considering importing coal from South Africa, which was a cheaper option than buying it from the area.

 

The cement factory is expected to reduce cement prices by 50 per cent once production commences early next year.

 

The factory will take advantage of the growing construction industry, which contributes 12.5 per cent to the country's GDP. It will offer more than 1,500 direct jobs and 9,000 indirectly.

Source : allafrica.com