The Ethiopian Petroleum Enterprise (EPE) is going to import coal from South Africa to secure sustainable supply of coal as an alternative source of energy for cement factories.

The move follows the unsuccessful bid by the Ethiopian government to acquire pet coke for cement factories.

All 12 cement factories have the infrastructure for using coal while Mugher and East are expected to finish installing infrastructure to use coal power sources by 2013.

The United States, China and Russia are the leading coal producers with proven recoverable coal reserves of 237.2 million tonnes, 114.5 million tonnes and 157 million tonnes respectively.

Considering proximity and cost effective prices, South Africa was chosen as a supplier to Ethiopia.

The factories require about 694 million tonnes of coal over the coming four years. Over the next twelve months the factories demand 896,500 tonnes of coal.

Ethiopia has about 628 tonnes of coal reserves in Semen Shoa, Amhara Regional State and Illubabur, Oromia Regional State.

Source: Fortune