The Osukuru Industrial Complex, sometimes referred to as Sukulu Industrial Complex, is a set of related industries, in the mining and manufacturing sectors, under construction in Uganda, the third-largest economy in the East African Community.
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Location
The factories of Osukuru Industrial Complex are located in the Sukulu Hills in Osukuru County, Tororo District, Eastern Region of Uganda, just outside the town of Tororo and approximately 230 kilometres (140 mi), by road, east of Kampala, the capital and largest city of Uganda. The approximate coordinates of the Osukuru Industrial Complex are 0°39'00.0"N, 34°09'59.0"E (Latitude:0.650000; Longitude:34.166389).
Overview
The industrial complex will consist of a phosphate fertilizer factory , a steel manufacturing factory, a sulphuric acid manufacturing factory, a rare earth minerals mining plant, and the Osukuru Thermal Power Station with capacity generation of 12 megawatts. The industrial complex sits on 26.5 square kilometres (6,500 acres) of land in Osukuru sub-county and in neighboring Rubongi sub-county, Tororo District, close to the international border with Kenya.
History
A considerable amount of minerals, particularly phosphorus and iron, have been known to exist in the Sukulu Hills south-west of the town of Tororo as far back as 1954.
Starting around 2008, the government of Uganda, began engaging various investors, including a local firm Nilefos Limited, a subsidiary of the Madhvani Group, to commercially exploit the deposits. Local landowners in the mining area, however, filed a lawsuit against the government, protesting the development. The landowners lost that case in 2010.
In 2013, the government began negotiations with Guangzhou Dong Song Energy Company Limited from China to set up a mining and manufacturing operation at Osukuru. In 2014, the government and landowners agreed that exploration and construction should begin.
Construction timeline
The project will cost an estimated US$560 million to US$620 million and will be jointly owned by the Government of Uganda and Guangzhou Dong Song Energy Company Limited, a private Chinese company. Construction began in 2014 and is expected to last two years. Commissioning is expected during the fourth quarter of 2016. After delays, construction resumed in October 2015, starting with office blocks and staff housing. Construction is by the 23rd Metallurgical Construction Group Company Limited. When fully operational, the industrial complex is expected to employ 1,000 people. Funding is provided by China Export & Credit Insurance Corporation (SINOSURE) and Industrial and Commercial Bank of China (ICBC).
In February 2016, the developers reached financial closure with ICBC for a loan worth US$240 million.