The government of Uganda and a Chinese investor enterprise, the Guangzhou Dongsong Group Co. Ltd, on Tuesday signed an agreement for the development of the Sukulu Phosphate and Steel project that is located in eastern Uganda’s Tororo district.
Uganda’s Minister of Energy and Minerals Development, Irene Muloni signed the agreement on behalf of the government of Uganda while the Chief Executive Officer of the enterprise Mao Jie, signed on behalf of Guangzhou Dongsong Energy Group Co. Ltd.
The signing ceremony was witnessed by President Yoweri Museveni at State House Entebbe on Tuesday.
The construction phase of the Sukulu Phosphate project is estimated to cost US$620 million.
Speaking at the signing ceremony, President Museveni noted that the agreement provides that the non-primary minerals should be semi-processed into concentrates and stockpiled until the government has satisfied itself with the updated feasibility study and taken a decision on the issue of value addition to non-primary minerals.
Uganda’s Minister of Energy and Minerals Development, Irene Muloni, reported that when completed, the project would include a phosphate fertilizer plant with a production capacity of at least 300,000 tons per annum.
She revealed that the steel mill would have a capacity of not less than 300,000 tons per year.
She also said that a power plant of 12 megawatts would be set up and that a sulphuric acid plant, with a capacity of 400,000 tons per year, would be established.
Source: en.starafrica.com