Dangote Industries has responded to allegations levelled against it by BUA group. BUA had accused the company of allegedly sending armed men to disrupt operations at its cement factory in Okpella, Edo state. At a press conference held in Lagos, Group Executive Director Edwin Devakumar accused BUA of illegally mining on its site, despite instructions from the Ministry of Solid Minerals to desist.
How Dangote Industries acquired the site
According to Devakumar, Dangote Industries had acquired Mining Lease No. 2541 from AICO Ado Ibrahim & Company Limited sometime in 2014. The ministry in 2016 give all necessary approvals regarding the transfer of the mining title from AICO Ado Ibrahim to Dangote Industries.
Behind all this
Limestone is a key raw material in the manufacture of cement. The South-South region is also a strategic one for all cement companies in the country. Lafarge Cement has its Mmfamosing plant in Calabar. Dangote cement runs the Obajana plant in Kogi State which is in close proximity to the South South region. There exists an obvious disagreement on boundaries. While Dangote group maintains its mining licence covers Okene, Kogi State, BUA maintains by mining in Okpella, Edo State has broken no law.
BUA cement is a member of the BUA Group founded by Abdulsamad Rabiu. The company was originally known as Edo Cement when it was incorporated by the Edo State government and several indigenous investors. The BUA Group bought a majority stake in the company when it was privatized by the Federal Government in 2008.
Dangote Cement Plc was incorporated as a public limited liability company on 4th November, 1992 and commenced operations in January 2007 under the name Obajana Cement Plc. The company was listed on the Nigerian Stock Exchange on the 26th of October, 2010. Principal activities of the company are the preparation, manufacture and distribution of cement and cement related products.
