The clamour for the reduction of the price of cement can only be achieved when the manufacturing companies attain a reasonable stability in the supply of the product, the Minister of Mines and Steel Development, Mr. Musa Sada, has said.
Sada said this in Abuja on Tuesday when he received the Managing Director and Chief Executive Officer of Lafarge WAPCO Cement Company Plc, Mr. Samy Abdelkader, who paid a working visit to him.
Answering questions from newsmen, Sada said that stability in supply would give manufacturers the pedestal to work on price reduction, adding that this position was true for industries that depended on mined raw materials.
He said the ministry had opened a line of discussion with cement manufacturers to ensure better compliance with mining regulations, adding that many people did not know the relationship between mining and cement manufacturing.
The minister also disclosed that a team of ministry officials had been visiting the manufacturing companies to examine the extent of their compliance with the rules.
He also said that the ministry was ready to work with the companies in order to achieve better compliance without bullying anybody.
Speaking before the meeting went into a closed door session, Abdelkader said the industry would be in a position to offer better prices when it achieved stability in supply.
He said that WAPCO was currently producing two million metric tonnes of cement yearly, adding that the target of the company was to raise production to 4.2 million MT per annum.
According to him, one of the reasons his team visited the ministry was to explore the possibilities of alternative inputs into the production of cement.
Abdelkader said the cost of privately generating electricity was taking a toll on the industry, just as the cost of firing the plants with gas.
He gave a hint that the company might explore coal as an alternative since there was abundant deposit of the mineral in the country.
The WAPCO boss said, “Let me be frank with you, we are working with the government to ensure first, stability in supply, before we talk about price reduction. We are trying to ensure availability.
“Our objective is to reach a level where we can say it is available and affordable. It is not only our company, but the whole industry and the government.
“Energy and power have been major issues. Again, gas was a huge problem last year. That is why we are here today, to explore alternative sources of local raw materials. When I go to the headquarters of our group, I need to present a strong case for additional investment.”
He also added that the company had been doing its best to comply with environmental regulations.
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