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DTEK to Supply Coal to Ethiopia

Ukraine’s largest private power and coal producer DTEK is to supply coal to Ethiopia this year. The company will deliver coal to Ethiopia to be used in cement production as part of its bid to increase its presence in forign markets.

The export potential to African markets is estimated at least 300, 000 tons of anthracite coal according to Andrev Favorov, Commercial Director with DTEK in a statement.

There is significant demand for high quality anthracite coal on the African continent he noted.

It is to be remembered that the Ethiopian Petroleum Enterprise was seeking a supplier for anthracite coal earlier this year 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.

DTEK will also be supplying 50,000 tons of anthracite coal to South America by the end of the year to be used in steel and iron production according to the same statement. It is able to import above 1.2 million metric tons of anthracite in a year according to Favorov. 

Source: Bloomberg