Ashakacem, Lafarge Africa seal N11b power plant deal

To boost electricity supply in the North-Eastern part of Nigeria, Lafarge Africa Plc at the weekend, signed an N11 billion deal to build a captive power plant at its Ashaka cement plant in Gombe State.

The deal is for the construction o 16 megawatts Lignite-Fired Plant, which is to be handled by a Chinese contractor, Runh Power Corp.

The Board Chairman, Ashakacem Plc, Mallam Suleiman Yahyah said the power supply transformation is first step in the development of the cement plant to recover cost leadership in the North-East region of Nigeria, which is ranked amongst the most expensive energy costs in the LafargeHolcim Group.

‘’The Northeast is a strategic region where Ashaka is supporting the reconstruction programme of the government, this project will further strengthen the relationship with Gombe State as well as the communities while reinforcing the importance of Ashaka as the major manufacturing company in that part of Nigeria.”

Yahyah revealed that Askakacem has a plant in Ashaka works, Gombe State with an installed capacity of c.1mt, even as plans are underway to add additional 3mt of capacity over the next three years.

He expressed optimism that the captive power plant will supply constant energy to boost the plant operational efficiency that will transform Ashaka production capacity to one million metric tonnes per annum.

Also speaking, the Managing Director of Ashakacem Plc, Mallam Umar Rabiu, said the power plant, when completed, will not only add to the national grid, but also create the needed employment for the people of the region in particular and Nigeria in general, stressing, ‘’we will no longer depend on diesel and unstable import regime, with sustained efforts going on in the company, Ashakacem Plc will be one of the most efficient cement producers in Nigeria.’’

Responding, the Project Director of Runh power Corp Ltd, Bruno Bayet, recalled that the company had been relying on the power from the grid and generating sets running on diesel since its inception in 1974.

He described the construction of the power plant as a laudable initiative that would enable the company to significantly reduce its power costs and become independent.

‘’The power plant which will secure long term reliable power and improve the reliability of our production will be operated by firing owned local coal mine reserves located in Maiganga, 140 km distance from the plant and will supply consistent energy to boost the plant’s operational efficiency’’, he noted.

The signing ceremony was witnessed by stakeholders in the power sector.