Uganda approves mining licence for Karamoja cement plant

The Ugandan government has granted a 21-year large-scale mining licence to Sunbird Resources Ltd to build a cement plant in Moroto district, Karamojo region, northeastern Uganda. Sunbird will produce 6000tpd and 1Mta of cement at the plant.

The licence will enable Sunbird Resources to mine 8000tpd of limestone in Rupa sub-county. Systematic exploration work had been carried out over six years, resulting in the discovery of over 67Mt of limestone that is suitable for cement production. Royalty payments to the consolidated fund of over UGX160m (US$40,758.29)/day are forecast.

The company will be required to employ Karimojong and other Uganda people, purchasing local goods and services as well as undertaking corporate social responsibility as a condition of the licence.

The new plant is expected to support a reduction of retail prices and clinker imports into Uganda from countries such as Kenya, Egypt and other countries. The cost of importing clinker is US$150/t and Ambrose Bonya, director of Sunbird Resources, expects following start of clinker production in the new plant, import volumes will drop by 45 per cent.

President Yoweri Museveni broke ground for construction in September 2023.

“The factory, on completion, will be the largest cement factory in Uganda. There will be import substitution for the 2.4Mta of clinker imported valued at US$700m (UGX2.7trn) per year,” said Ugandan Energy and Mineral Development Minister, Ruth Nankabirwa.