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The Uganda government has granted a 21-year largescale mining license to Sunbird Resources Limited to set up a cement factory in Karamoja region's Moroto district.

More specifically, this factory will be built in Nadunget sub-county.

The government has been pushing for increased production of cement from local materials in a bid to lower the retail cost of cement, which in turn makes construction cheaper.

On Thursday, energy and mineral development minister Ruth Nankabirwa said the license will enable Sunbird to mine 8,000 tonnes per day of vital limestone in Rupa sub-county.

Speaking in Kampala, the minister said one of the conditions of granting the license was the provision of local content through employing the Karimojong and other Ugandans, purchasing local goods and services and undertaking corporate social responsibility.

The other conditions are developing the communities and in-country value addition against the background that many cement companies have been importing clinker especially from Kenya, Egypt and other countries.

Limestone is a crucial raw material for making clinker, which is finally used in the manufacture of cement. 

Nankabirwa said they expect royalty payments to the consolidated fund of over sh160 million per day from the company.

Sunbird will produce 6,000 tonnes of clinker per day and one million tonnes of cement per year at the factory. 

President Yoweri Museveni broke the ground for the construction of the plant in September 2023.

“The factory, on completion, will be the largest cement factory in Uganda. There will be import substitution for the 2.4 million tonnes of clinker imported annually valued at $700 million (sh2.7 trillion) per year,” said Nankabirwa.

She said systematic exploration work has been done spanning a period of six years, resultng in the discovery of over 67 million tonnes of limestone that can be turned into clinker (clinkerable limestone) in the area.

Ambrose Byona, the director Sunbird Resources Limited, said they are to support artisanal miners in the area by obtaining for them a location license to mine limestone and sell it.

He said they have worked towards obtaining the social mining license by working closely with the communities.

Byona said the cost of importing clinker is $150 (sh583,000) per tonne and expressed hope that when they can begin producing clinker, the quantities imported into the country can drop by 45%.

He said they plan to also build a technical school in the area and a health centre, as well as support education of Karimojong into universities.

'Big change'

Tang Sheng Hui, Sunbird's general manager, said that by next July, they will be commissioning the factory on schedule. 

“We shall fulfil the social responsibility and provide local employment opportunities. We hope to make a big change in the clinker and cement industry landscape in Uganda. We hope to export our products,” he said.

First factory

Minerals state minister Peter Lokeris said there has been mineral exploration in Karamoja for a long time yet no factories were set up. 

He said that a 13kVA high voltage transmission line has now been set up in Karamoja that enables factories to operate in the region. He said water and roads are available.

“Some Karimojong have never crossed up to Mbale where there are factories. Some will be seeing the factory for the first time. Some are seeing light bulbs. The Karimojong are happy that the surface rights for their hand has been paid for,” said Lokeris.

“This will be the first factor in Karamoja that will change the face of Karamoja. People are demanding for more factories in Karamoja where there are raw materials. 

"We expect the factories to come with other services such as schools, roads, education."

The minister said they expect the Karimojong to supply food to the project and to be recruited as drivers, security guards, among others. 

The requirement for getting a large scale mining licence include;

▪️  Application fee of sh20m

▪️  Sh1m for registration fees

▪️  Sh150,000 per hectare or part of a hectare mineral rent annually

▪️  Sh345,000 for gazetting grant of the license