Ethiopia’s Petroleum Enterprise is seeking a supplier for anthracite coal to power furnaces for smaller cement factories with vertical kilns. The factories are allegedly unable to utilize the steam coal being imported from South Africa as it could undermine the quality of their product. 
Six smaller cement factories in Ethiopia, Abyssinia Cement, CH Clinker, Debresina Cement, Enchini Medrock Cement, Hungh Shun Cement, and Jemma Cement lodged complaints with the Ministry of Trade claiming that they would not be able to use the steam coal being imported for use by cement factories in Ethiopia.
A decision was reached by the ministry to import anthracite coal to meet the specific demands of the smaller factories and relayed to the Ethiopian Petroleum Enterprise which is handling the closed tender for selected manufactures it contacted.The EPE may launch a competitive bid if it is not convinced of the urgency of the smaller factories to procure coal according to sources.
Anthracite coal costs more than steam coal with a ton being sold for 205 US dollars on the international market this month. steam coal was being sold at 115 US dollars in the same time period.
It is to be remembered that The Ethiopian Petroleum Enterprise awarded a 29.5 million US dollar contract to Huyton Inc Company. The contract is for the supply of coal to realize Ethiopia’s plan to use coal as fuel in cement factories.
The move to use coal has been welcomed by cement factories in Ethiopia, some of whom have been importing coal for their own use. The decision to replace coal for the heavy furnace oil used by cement factories is expected to reduce foreign exchange costs.
Source: Addis Fortune
