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This development is anticipated to lead to a decline in cement prices, which have risen from Shs 28,000 in 2018 to currently exceed Shs 33,000, varying by manufacturer and application
Kampala, Uganda | JULIUS BUSINGE | Uganda has granted a 21-year Large-Scale Mining License LML0344 to Sunbird Resources Limited to mine 8000 tonnes per day of vital limestone at Rupa Sub-County, Moroto District, Karamoja Sub-region.
This is the second large-scale mining license to be issued by the Ministry under the newly enacted Mining and Minerals Act 2022. The first license was given to Rwenzori Rare Metals Limited, a 21-year mining license to develop the Makuutu rare earth elements mining project in Eastern Uganda.
Sunbird started the exploration works of limestone at Rupa in 2015, uncovering 67 million tonnes of clinkerable limestone reserves, that not only enhances Uganda’s cement production capacity but also solidifies its standing in the global market.
Sunbird Resources Ltd has partnered with West International Holdings Ltd, a subsidiary of Hong Kong-listed West China Cement Ltd in this investment.
Together, they are establishing a 6000 Tonnes Per Day Clinker Lime & 1 million Tonnes Per Year Cement Factory at Nadunget Sub-County, Moroto District.
Ruth Nankabirwa, the minister for Energy and Mineral Development said this new development aligns with the government’s vision for sustainable resource utilization, economic growth, and job creation.
“This initiative is not just a milestone in Uganda’s industrial capability but also a strategic step towards achieving self-sufficiency in cement production, potentially saving the nation over US$700 million annually in import costs,” she said, adding that the government is poised to earn daily royalty of Shs 160 million.
This comes barely five months after President Yoweri Museveni laid the foundation for Sunbird cement factory in Moroto District in September last year.
Sunbird Managing Director Ambrose Byona said the project is set to generate 600 direct and 3000 indirect jobs, contributing to Uganda’s economic growth agenda.
He said the clinker factory operational tests will begin early next year and official commissioning will happen in July 2025.
Byona said clinker accounts for 80% of the raw materials used to make cement and that local production will cut off imports of the raw material hence bringing down the price of cement for builders.
“We have carefully planned our journey and we shall deliver the project according to the timelines,” he said. “We want to see Ugandans buy cement at cheaper prices and that has a positive contribution to the economy.”
Over recent years, cement prices have escalated from Shs 28,000 in 2018 to upwards of Shs 33,000, subject to differences in manufacturer and intended use.
Peter Lokeris, the junior minister for energy and mineral development and who hails from Karamoja sub-region, hailed the new project saying it will give the natives jobs and facilitate provision of other social amenities.
“We have many Karamojong people who are educated and have no jobs,” he said, “This is their time to get what to do,” he said.
Lokeris urged Sunbird executives to do other corporate social investment activities in education, health, capacity building, and training programmes for the communities in the Karamoja region, an idea that company executives welcomed.
