The Dangote Group, controlled by Africa’s richest man Aliko Dangote is close to sealing a final investment decision (FID) to double the capacity of Dangote Fertiliser Limited (DFL).
Dangote Fertiliser Limited is the largest Granulated Urea Fertiliser complex in Africa, with an investment of $2.5 Billion, the plant has a capacity of 3 million metric tonnes per annum (MMTPA). Doubling the plant capacity will take it to 6 MMTPA.
“We have already decided to double the capacity. We are closing the deal on engineering, we are not stopping with Urea, but also adding diammonium phosphate, Ammonium Nitrate, NPK (Potash), for a complete bouquet of Fertiliser,” Devakumar Edwin, Vice President, Oil and Gas, Dangote Industries Limited, said in an interview seen by MoneyCentral.
Final Investment Decision or FID means the Board has affirmatively voted or consented to undertake construction of the Project and the Company has given a full notice to proceed under an Engineering, Procurement, and Construction or EPC Contract.
It represents the point at which a company or investor commits significant financial resources to proceed with the project’s execution.
The plant as it is today is meeting local demand of about 1 million tonnes/year and has a large surplus for export. Those exports are taking place with Fertiliser already shipped to Brazil and Argentina in Latin America, the United States, some West African countries, Europe, Brazil, and India according to Vishwajit Sinha, Managing Director, Dangote Fertiliser.
Peoplesmind