Vanguard (Lagos)

Nigeria: Obajana Cement Plant: a Looming Industrial Revolution

Obajana — NIGERIA is set to have the biggest cement plant in Africa and the second biggest in the world. That plant is the Obajana Cement Plant being built by the Dangote Group. The plant has a capacity of five million metric tonnes per month, about 50 per cent of the nation's current annual consumption of cement. Obajana is also the most mordern cement plant in the world. In addition, new technologies in the art of cement making that have not been deployed elsewhere are being employed in its construction.

With this latest technology, the plant can achieve a pollution free environment. For example, its dust emission is estimated at 30 mg/ Mm3, far below the Nigerian regulatory limit of 250 mg/Mm3. Also due to high efficiency of its equipment, the plant consumes less fuel and power compared to cement plants elsewhere.

In every ramification, the Obajana Cement Plant is a wonder to behold. For example, the plant has an eight kilometre conveyor belt which transports raw materials from the limestone mine to the plant. It also has a gas based power generating plant of 135 megawatt capacity. This is designed to supply power to the plant and the mines through a 1,000 kilometre cable network. To supply gas to the power plant is 90 kilometre pipeline of 96,000 CV.M/HR, from Ajaokuta.

To supply the water needs of the plant is a water dam constructed nearby, and a housing estate for the accommodation needs of its workforce. Located in the sleepy Obajana village, the decision to establish the plant was prompted by the huge limestone deposit between Obajana and Jakoro village. This limestone mine has all the required raw material for producing cement except gypsium. These raw materials include limestone, clay, marl, laterite soil, and laterite iron.

The mine has an average depth of 30 to 60 metres and an estimated life of 75 years. Constructed near the mine is a crusher facility of 2400 tonnes per hour (TPH) crushing capacity. Also constructed at the mine is a covered storage that can store up to 165,000 metric tonnes of the crushed raw materials. The conveyor belt transports the raw materials from the crushing location to the cement plant.

The belt transports 2,400 metric tonnes of materials per hour at an operating speed of five metres per second. The plant consists of 450 metric tonnes capacity grinder, raw material storage and blending silo of 25,800 metric tonnes capacity. It also has a rotary kiln for burning the raw materials at 1400 degree to form clinker, a clinker storage for 75,000 buffer stock. The plant also has a clinker grinder built to operate at 140 tonnes per hour. This helps the cement produced to achieve 3,200 blaine fineness and stores the cement produced are two buffer stocks each with a capacity of 20,000 tonnes. To pack the cement is a packing machine with five outlets operating at 180 tonnes per hour. In addition is a 15 automatic bag placer which loads the packed cement into trucks.

Another unique feature of the plant is the loading facility which has the capacity to load 50 trailers simultaneously. Also is the central control room, from which the whole process, from the mine to the loading point is monitored and controlled. This includes a process automation system to ensure seamless production in the absence of the workers.

The Obajana plant has two production lines which are near completion. One of them is 90 per cent completed and is expected to commence production by May, while the other is 60 per cent completed and is expected to commence production by June or early July. By the time the plant is completed, it would have consumed 200,000 metric tonnes of concrete, 25,000 metric tonnes of steel bars and 37,800 metric tonnes of fabricated structural steel. Total wight of equipment on the plant is estimated at 45,000 metric tonnes.

In terms of finance, president, Dangote Group, Alhaji Aliko Dangote disclosed that about $750 million had been spent on the project. The total cost, he said, is estimated at $870 million, adding that this could exceeded.

The Obajana Cement Plant is a big boost to the country's economy in many respects. First, it is a huge plus for the nation's industrialisation effort. It is such industrial projects that transformed the developed countries into industrial powers from mere agrarian economies. A project like Obajana will help unleash some of the economic potentials of the country for rapid economic development and growth.

The executive vice-president, International Finance Cooperation (IFC), Mr. Lars Thunnel, while commending the plant, said it is important for the sustainable development of the country. The importance of the plant is best appreciated when the necessity of its product - cement in housing construction is considered.

Rapid depreciation

Indeed Obajana Cement Plant is a great succour to the housing needs of the country. The country presently consumes 10 million metric tonnes of cement annually. Local production is just 2.7 million, hence the country imports about 7.3 million metric tonnes annually.

With the rapid depreciation of the naira in the last 10 years, the huge dependance on import for cement, led to constant increase in the price of cement. This increase has contributed significantly to the astronomical rise in the cost of housing - far beyond what the ordinary man in the street can afford.

But, Nigeria, with 150 million people to house, cannot but do something that will make housing affordable for its people. This is because housing, according to the president, Mortgage Banking Association of Nigeria (MBAN), Mr. Bassey Effiong, is key to stability. To achieve affordable housing requires efforts to make cement readily available at cheaper prices. And this means increasing local production. The importance of Obajana Cement Plant is best appreciated against this background.

With an output of five million tonnes, it will reduce the country's dependence on importation of cement by more than half. And according to Dangote, by this, the plant will be saving the country $350 million annually from cement imports. Furthermore, the plant is located in the middle of the country. Hence it will ensure an even supply of its products to the various part of the country at almost the same price. In fact, its impact on prices will be more felt in the Northern part of the country, where cement is sold at prohibitive prices.

Besides its impact on supply of cement, the cement plant will also boost the nation's employment generating capacity. Dangote disclosed that it will create at least 10,000 jobs. He said, for example, that the company will purchase 500 trucks for the distribution of its product and each truck will be manned by three persons. Hence, the fleet of trucks will yield 1500 jobs. This of course is besides engineers, mechanics and other technicians that would be employed to maintain the trucks.

The multiplier effect of the income from 10,000 new jobs on the economy will enhance the growth of the nation's gross domestic product. In addition, part of the 135 mm that will be produced by its power plant will be sold to the Power Holding Company of Nigeria (PHCM), thus contributing to power output of the country.

Obajana plant is also a big boost to the nation's quest to eliminate gas flaring. The plant will be consuming 68 million SCF/day.

Already, the plant has started affecting lives in its surrounding communities. It has embarked on community development projects aimed at facilitating those of the surrounding communities. The plant has provided schools, boreholes and jobs to the immediate villages of Oyo,Iwa, Obajana, Ohuene and Apata while it will provide vocational skills training and micro credit programs in the future. Though a big boost to the nation's economy, the Obajana plant however is a child of circumstance, an indirect product of the privatisation programme- the privatisation of the Benue Cement Company (BCC) in Gboko.

In 2001, the Dangote Group won the bid to acquire the federal government shares in BCC. But the people of the state opposed the transaction, and did everything to frustrate the group from taking over the cement company. This prompted the Group to look elsewhere to fulfil its vision of producing cement locally.

Hence, the Group visited the Obajana limestone mine in 2002 to ascertain its commercial viability. The result of the visit is one of the biggest and perhaps the most modern cement plant which has translated an obscured Obajana village into an industrial city. For the Dangote Group, the cement plant is a classical example of what happens when crisis confronts vision.


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