The Tororo based Sukulu Phosphate Project has received US$ 240m (sh820b) to boost the project that is expected to produce fertilisers, sulphuric acid, steel and power.
Industrial and Commercial Bank of China (ICBC) in cooperation with the Standard Bank Group will disburse the money in tranches to Guangzhou DongSong Energy Group Company Ltd which is the project developer.
Lv Weidong Chairman of Guangzhou DongSong Energy Group Company Ltd and Lie Jianchang the ICBC deputy general manager for Global Banking Department signed the deal.
Peter Lokeris minister of state for minerals and Fred Kabagambe Kaliisa, the permanent secretary ministry of energy and mineral development witnessed the signing of the agreement recently in South Africa.
"The project will boost Agriculture production through the provision of fertilizers, support infrastructure development through the iron and steel production, offer jobs to the region, support other industries and boost our export earnings through value addition of the primary commodities," Kaliisa said.
Guangzhou DongSong Energy Group Company Ltd, will construct a mine, a value addition plant with annual capacity of two million tons and a phosphate fertilizer plant of annual production of 300,000 tons, a sulfuric acid plant of annual production of 400,000, a 12MW waste heat based power generation plant and a steel mill of annual production of 300,000 tons.
The plant will create employment for about 1200 local people. The corporate social responsibility for the project includes investing in schools, hospitals and other public welfare projects.
Kaliisa explained that government has granted Mining Rights to the investor in form of a Mining Lease for 21 years, and other Exploration Licenses to finalize additional exploration work. He said that Government has further provided 600 acres of land to facilitate the development of the industrial complex, the construction of staff residences and the administration block.
"This support has helped to reduce the displacement effect, as more people would have been displaced if land in the license area were to be used for this purpose," Kaliisa said.
Government has provided technical support in the compensation and resettlement of project-affected persons in the initial mining area. "This included sensitization of the project affected persons, systematic survey of affected land, as well as valuation of affected assets and assessment of compensation," he said.