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Tororo phosphate project to create over 1,700 jobs

By Ronald Kato

Added 24th April 2017 11:13 AM

The U.S. $620m venture by Guangzhou Dongsong Energy Group, a Chinese firm, will create over 1,700 jobs and earn the country billions of shillings annually.

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The U.S. $620m venture by Guangzhou Dongsong Energy Group, a Chinese firm, will create over 1,700 jobs and earn the country billions of shillings annually.

Energy Minister Irene Muloni (M) showing President Yoweri Museveni (2nd R) the plan of Sukulu Phosphates Project on bill boards after the ground breaking ceremony of the phosphates project in Tororo in 2015. Looking on is Dr. Lv Weidong (L) the President of Guangzhou Dongsong Energy Group Ltd.

The Tororo phosphates project is due to commence production of fertilizer this year, three years after commissioning by President Yoweri Museveni.

The U.S. $620m venture by Guangzhou Dongsong Energy Group, a Chinese firm, will create over 1,700 jobs and earn the country billions of shillings annually. Located in the sub-counties of Rubongi and Osukuru in Tororo district, the project will process phosphates into fertiliser and other products.

According to Wen Xiaohuan, the deputy director of the investment promotion division of Guangdong province, Dongsong Energy has put in place the necessary machinery, human resource and facilities to commence production. Guangdong is the mother province of Guangzhou Dongsong Energy Group.

Wen said that the company has so far committed U.S. $47.6m in paid in capital for the project. ‘Guangdong province will give full support to the project’, she added.

Once completed, the Sukuru industrial complex will house a phosphate fertiliser plant, a steel mill, a power plant, sulphuric acid factory and a glass making plant. The industrial park is being built on 26.47 square kilometres of land.

The project was expected to commence production at the end of 2016. A disagreement over compensation for land with the locals however slowed down construction progress.

In 2013, government awarded a mining lease to Guangzhou Dongsong Energy Group Company Ltd to mine and process phosphates in Sukulu hill.

Zhong Ming, the deputy director general of Guangdong province Development and Reform Commission said more companies from the province were looking at investing in Uganda. He said Uganda’s improving investment climate and a reform of business laws were making the country attractive for Chinese investors.

‘We have built the necessary equipment, technology, capital and talent to invest in Uganda’s agriculture, mineral and tourism sectors’, Zhong added.

 

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