Kiganda Ssonko
12 May 2008
Kampala — NILEFOS Minerals Ltd, a subsidiary of the Madhvani Group, is to invest over $535m (about sh893b) into phosphate mining in Tororo district.
Nilesh Kanabar, the vice president of Madhvani International, told MPs on natural resources and national economy committees who toured eastern region mining areas recently that the five-year investment plan would exploit the rich phosphate deposits in Osukuru Hills near Tororo town. The deposits, covering 26sqkms, stand at over 230 million metric tonnes.
Nilesh said arrangements to set up a pilot plant for phosphate processing, had been finalised. The plant, he said, would be operational in three months.
"It would guide our future phosphate mining activities," Nilesh emphasised.
In a few weeks, Nilesh, said a complete environment impact assessment for the project would be presented to the National Environment Management Authority (NEMA) for scrutiny. "We have also done public sensitisation about the project and undertaken all the necessary compensations of the people on the area of our mining lease," he said.
Nilesh disclosed that the locals were "very cooperative and happy with the development in their area."
He said the project would be implemented in two phases effective this year.
The second phase, he said, would depend on the success of the first one.
"Once NEMA approves our report, we shall go straight to establishing a production plant.
"We shall begin by producing triple super phosphate fertilisers," Nilesh said.
He said phosphoric and sulphuric acids would be produced when the second phase kicks off.
Nilesh said they target regional markets including the Common Market for East and Southern Africa market. If the project goes as planned, it would create up to 2,000 jobs, Nilesh asserted. Joshua Tuhumwire, the commissioner for geological surveys and mines, said the Government would agree with Nilefos to ensure that there is no wasting of other important minerals co-existing with phosphates.
"We shall either tell them to consider other minerals by getting licenses to mine them or we give licenses to other investors to exploit them.
"These hills have minerals like magnetite, niobium, atrium and fica, which could be exposed during phosphates mining," the commissioner said.
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