Mozambique: Rehabilitation of Nacala cement factory cost 110 million dollars

CM was set up under the Portuguese colonial regime in 1924. After Mozambican independence, in 1975, it became a state owned enterprise. In the wave of privatisations of the late 1980s, Cimentos de Moçambique was purchased by the Portuguese cement giant, Cimpor.

Cimpor is now part of InterCement Trading, and Huaxin has acquired 100 per cent of the shares held by InterCement in the Nepal Portland Cement Company (NPC). According to Fernando Barreto, Executive Director of the company, the facility has increased its workforce from 150 to 700, and now ensures supply for the country’s entire northern region, in addition to exporting cement to the Comoros and Madagascar. Barreto explained that the industrial unit is a sound investment for the region’s economic development and the strengthening of national production capacity.

It enables the country to locally produce clinker, the cement industry’s primary raw material, thereby eliminating the need for imports. “This entire process creates jobs that have a positive impact on communities here in the North, which is very important. Furthermore, by utilizing the wharf, we have begun exporting cement to the Indian Ocean islands.

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Today, Mozambican cement reaches the Comoros and Madagascar in significant volumes, generating foreign currency for Mozambique”, he said. “With the new kiln and the investment made, we have begun producing clinker. It is a historic milestone for the region, as we are guaranteeing supply for the entire northern zone and boosting the country’s production capacity”, he added.

According to the director, the plant will also play a key role in supplying cement to the liquefied natural gas (LNG) project in Afungi, in Cabo Delgado province. “In addition to the plant, we built a jetty that will allow cement to be transported directly to the gas project. We estimate consumption of close to 120,000 tonnes in the coming year during the initial phase, ensuring local content for one of the largest ongoing investments in the country,” he explained.

According to Barreto, local clinker production brings significant economic benefits by reducing production costs, stabilizing supply, and easing pressure on foreign currency reserves. “Two years ago, we sometimes experienced cement shortages in the North. “The price of cement in the northern region has dropped by about 80 meticais per bag in recent months, making the product more affordable for families and the construction sector. The company also stopped importing approximately 300,000 tons of clinker annually, an operation that represented an estimated yearly cost of 50 million dollars”, he added.

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