Mine and plant deal signed

UGANDA had signed a deal with a Chinese company to develop a phosphate mine and fertiliser plant as part of a broader agreement that would see the firm spend at least $620 million (R7.2 billion), the country’s minerals minister said yesterday. Uganda currently imports all its fertiliser ingredients, making them costly and beyond the reach of most smallholder farmers, who make up most of the agricultural sector. Minister for Minerals and Energy Peter Lokeris said the Chinese investment would sharply cut the cost of fertiliser in Uganda, widen usage at farms and potentially increase yields of crops including coffee, tea and tobacco. The Chinese firm, Guangzhou Dongsong Energy Group, will develop the project – which will also include a steel plant – in Tororo district. – Reuters