UGANDA REPORTED TO HAVE US$1 BILLION IN RARE MINERAL
FEATURE ARTICLE FROM UGANDA NEWSPAPER THE NEW VISION ON SATURDAY, OCTOBER 14, 2000
Uganda may become a leading exporter of vermiculite during the next six to twelve months. Until now, major finds of vermiculite are only found in the US, South Africa and Zimbabwe. The mineral is used as a soil conditioner, in electrical insulation and the hydroponic industry.
A Canadian firm, Canmin Resources Limited, has so far invested US$600,000 in developing the Namekara site in Mbale district.The firm plans to start exporting before the end of this month.
The Company's Managing Director, Hans I.M. Hansen said Thursday the Company would initially sell off 20,000 tonnes of processed and refined mineral to the international market.
"The ultimate life span of the Namekara mine is a big and interesting questionmark. Known proven reserves are enough for over 100 years producing over 40,000 tonnes every year", Hansen explained. "But vermiculite exists to the south, west, east and north of the present explored and defined site. If this is all interconnected, then 500 years of supply at 40,000 tonnes every year is realistic
enough."
He said the mineral potential is worth US$1 billion.
Dr Ulrich Kretschmar, the consulting geologist for the project said, "Namekara is clearly a world class deposit of vermiculite."
Hansen said the success to date was a reflection of the co-operation of employees, local and district administrators, the Uganda Department of Geological Survey and Mines and the Uganda Investment Authority.
"Our Company is confident that it has a quality product that will provide a competitive advantage to allow it to compete and even develop new opportunities as a major vermiculite supplier on the world market." he explained in a fax message to the Commissioner of the Geological Survey and Mines.
Transportation to Mombasa will be by either truck or rail using sea freight shipping containers.
He said the initial focus will be on nearby markets in the Middle East and Europe. He said substantial revenue will be offered to Government and 10% of the profits will be the Company's contribution to local community development. "It will depend on production and market forces, but apparently we shall be paying to Uganda Revenue Agency US$2 for every tonne we produce. And this will be a direct royalty to the government", he explained. |
