New reports indicates that a subsidiary of Aliko Dangote's conglomerate is set to start mining coal in Kogi State by November.
The Dangote Cement Plc, a subsidiary of the Aliko Dangote owned Dangote Group, has concluded plans to start mining coal at Ankpa, Kogi State, in November 2016.
According to a report by Daily Trust, the company revealed that it had switched its plant lines to coal to minimise cost following the shortage of gas as a result of militants’ actions in the Niger Delta.
Speaking on the move, the Chief Executive Officer of the Dangote Cement, Onne, van der Weijde, said: “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,” he said.
The company also said devaluation of the Naira had increased costs in the production of its product, forcing it to jerk the ex-factory price of the product by N600 per bag.