Sitting on 2000 hectares of Land in Ibese, Yewa South Local government of Ogun State, Dangote Group's Dangote Cement Works Limited, Ibese would by July start churning out some 7,200 metric tonnes of cement per day or 6 million metric tonnes per annum from two production lines of 3 million metric tonnes each. More concretely, the plant is expected to produce some 240,000 (50kg) bags of cement per day. Also some 800 trucks of 600 bags would be lifted from the plant per day.
The massive plant, mainly being handled by Sinoma International Engineering Company, a Chinese firm, is worth $680 million about N102 billion. A breakdown of the figure shows that while the infrastructure, equipment and construction is billed to cost $400 million, the remaining $280 million is being invested in a 105-mega watts power plant, which would be run on bio-fuel(natural gas and coal). The power plant will soon be completed and the 22km long gas pipeline will also be completed soon, says the deputy director project Ved Prakash Sarkari.
Dangote Industries Cement division earlier signed a $95 million contract with Siemens International Turbomachinery for the production and supply of three gas turbines to power the Ibese Cement plant. Alhaji Aliko Dangote, the Chairman Dangote Group had explained that the contract was to enable him deliver the plant in record time.
Dangote had said at the signing ceremony: "We are pleased to partner with Siemens, a globally recognised company in power plant construction. This contract is a signpost to our desire and determination to meet our target of completing the Ibese plant in record time, and achieving the 20 million metric tonnes annual production target our cement division has set this year. But the ultimate goal in a few years is to achieve a 26million metric tonnes annual production capacity in Nigeria, whilst also expanding its presence on the continent by acquiring and developing several cement producing assets where it sees opportunities."
Sarkari who conducted journalists round the factory also said the plant should be completed between June and July, 2011 as the Klinker is ready and the major installations are ready, adding that 95 percent of the raw materials are sourced locally.
The plant would directly employ 600 people comprising at least 70 percent Nigerians after six months of handing over the plant to Dangote he noted.
A trip to the mining sites located some three kilometers from the plant and about 1000 meters to the crusher shows some huge excavation work as mining sites are already been developed. For now, one is completed and covers 1.5 kilometers and it is expected to deliver limestone to the factory for three years. Geological survey shows the factory environment has a deposit of some 240 million metric tonnes of Limestone and would last the next 90 years if exploited daily. The developers say the mines are being done to meet the concerns of the environment.
Also the conveyor belt, running through over 2.5 kilometer distance from the crusher to the storage tank is almost complete. The storage capacity of the tank is 300,000 metric tonnes.
The plant also has six cement silos, roto packers that can pack 2,400 (50kg) bags per hour and about 18 trucks at a time says Sarkari.
"The plant is expected to achieve low fuel consumption, while dust emission control is taken very seriously. A total of 30mg/Nm3 maximum is the target, representing just 10 per cent of the Federal Government's 300mg/Nm3 benchmark for dust emissions" Sarkari explained.
The Ibese factory capacity is also expected to add to the current production levels of the other cement production facilities in the Dangote Group.
The project, when fully operational will provide direct employment for about 200 Nigeria.
There is a very cordial relationship between the company and the host community. Besides bringing development to the community, the company plans to provide two boreholes for the community, as well as schools and hospitals to cater for the welfare of residence of the community, as is being done in Obajana and Gboko (BCC).
Beyond dust emission control using ultra-modern equipments, there are also plans to ensure that there is no waste as all materials will be recycled and reused.
Dangote said his commitment to building the Ibese plant is defined by his resolved to crash cement prices in Nigeria. Currently, cement prices hover been a band of N1850 to N2200 in the open market. But in Dangote plants; in Lagos plant, the price of a bag of cement is still N1,450, in BCC Gboko it is N1,250 and in Obajana a bag goes for N1,330.
"We have made a pledge to ensure that the price of cement in Nigeria comes down, but that can only be possible if the product is available in the market through increased supply. We intend to keep this pledge. Our cement division is expanding in various countries within Africa," he noted.
Just last week, Dangote told journalists in an interactive session that in order to ensure that the price of cement is within reach, Dangote group has acquired 1,500 new trucks for distribution purposes, adding that consumption is on the increase hence urgent need to meet the demand must be taken.
Industry watchers have lauded Dangote's investment in the Ibese plant. For isnatnce, speaking to Daily Trust in Lagos, the Director General Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) Mr. John Isemede said "Dangote is doing a good job else, you and I can't live in good houses. He has invested so much, putting Obajana in place. If Ibese comes on stream, prices of cement will surely reduce."
He also said when Obajana gets to the second and third phases, we would have good supply of cement locally and the prices will go down further.
But beyond all of these he however noted that for the prices of cement to be less than N1,000 per bag, government must take deliberate steps to reduce the cost of doing business by providing power and other infrastructure so the importation of cement can stop.
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