20 September 2013

Uganda: Exploration of Sukulu Phosphates Starts

The government has entered a joint venture with China to see the implementation of the long awaited US$560m Sukulu Phosphates project in Tororo district in Eastern Uganda.

"I welcome the Guangzhou Dongsong Energy group of China for choosing Uganda as their investment destination. I pledge government support for the successful implementation of the Sukulu Phosphates project," President Yoweri Museveni said.

President Museveni poses for a photograph with the president of teh Guang Zhou Dong Song Energy Mr. Lv Werdong , Fang Min and the interpreter Guo Yaqiong (extreem left) shortly after signing the Memorundum of Understanding to open up Sukulu Carbonatite Comprehensive Development Project valued $560m in Tororo district.

He said that if the project is successfully implemented, it will contribute to the development of the country.

"The huge phosphate deposits at Tororo, if linked with the huge natural gas deposits in Tanzania, would enable the region to forget about the importation of fertilizers like Nitrogen, phosphates and potassium among others," Museveni said.

He made the remarks during the signing of a memorandum of understanding between Uganda and China government at State House Entebbe on Tuesday Sept 18.

Eng. Frank Sebbowa, the Executive Director of Uganda Investment Authority signed on behalf of government and the President of Guangzhou Dongsong Energy Group Company, LV Weidong signed for the People's Republic of China.

Attorney general Peter Nyombi and the chairman of the standing committee of the National People's Congress of the People's Republic of China Zhang Dejiang witnessed the signing ceremony before Museveni saw him off after a day visit to Uganda.

The Executive Director ,Uganda Investment Authority Frank Ssebowa and the president of the Guang Zhou Dong Song Energy Mr. Lv Werdong exchange files after signing the MOU at State house Entebbe.PHOTO: Abu Mwesigwa

Dejiang pledged to support the implementation of Sukulu Phosphates project in particular in addition to other infrastructural development in Uganda.

Guangzhou Dongsong Energy Group is a registered company in Uganda as Uganda Hui Neng Mining Ltd under the mining act. It has already injected up to US dollar 560m in the integration of Sukulu project.

This carbonatite comprehensive Development Project in Sukulu, Uganda is one of the Key projects reached between one of the key projects reached between president Museveni and President XI JINPING of China in Durban, South Africa in March 2013.

Weidong said that the company is determined to ensure the success of the Sukulu Project and to ensure that the resource benefits the indigenous people of Sukulu area and Uganda as a whole.

The signing of the MOU between the Executive Director,Uganda Investment Authority Frank Ssebowa and the president of the Guang Zhou Dong Song Energy Mr. Lv Werdong while Mrs. Fang Min looks on at State house Entebbe.

Under the Project, the Chinese company will utilize the Tororo Phosphate reserve to produce 300,000 tons of phosphates fertilizers, 300,000 tons of steel and 2million tons of residual soil.

They will also establish of a sulfuric acid plant with a capacity of 200,000 tons annually and also build a 5MW power plant in the area.

Weidong assured the President that in implementing the project, the company will put in consideration the social responsibility factor and the environmental considerations.

He further said that his company was interested in investing in the manufacturing of steel as well as in the manufacturing of affordable human medicines which meet the international standards.

Weidong said their company has received financial support from both China Africa Fund and China Development bank to ensure the implementation of a number of projects including the Carbonatite comprehensive development in Sukulu.

He further said that the company has offered 20 scholarships to Ugandan students annually to train in China in the fields of oil and gas production, management, agriculture, engineering and mining among others.

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