Africa’s largest cement producer, Dangote Cement, with presence in 14 African countries, which had suspended production in its Zambian plant due to some technical hitches, would be resuming production next week.
When contacted through a telephone call, the management said that the temporal closure was to enable the company attend to the technical faults associated with the company’s production system.
Earlier report stated that the 500 million dollars cement factory in the south-eastern Tanzanian town of Mtwara, set up last year with an annual capacity of three million tonnes, runs on expensive independent power generation plant which has sought government support to reduce costs.
The company, whose majority owner and Chairman is Africa’s richest man, Aliko Dangote, halted production at the plant last week over technical issues.
State-run Tanzania Petroleum Development Corporation (TPDC) said talks were expected to conclude in January, with price disagreements yet to be resolved.
“Dangote has held protracted talks with TPDC on the pricing of natural gas.
The Dangote Cement factory has asked for gas supply at below market prices, equivalent to the price of raw natural gas from producing wells,’’ TPDC said in a statement.
“TPDC cannot sell natural gas to final consumers on at-the-well price because there are additional costs incurred in processing and transporting the gas,” it said.