RE: Maybe we are screwed ?old article , but hopefully true
Uganda: Rio Tinto to Build Bigger Vermiculite Plant
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East African Business Week (Kampala)
16 April 2007
Posted to the web 17 April 2007
Kampala
Mining giant Rio Tinto is set to build a big plant to mine vermiculite in Tororo (eastern Uganda) following its takeover of the business from Canmin Resources of Canada recently.
In December last year, Canmin Resources' mother company IBI of Canada entered into a sales agreement with Rio Tinto. That agreement stipulated that Rio Tinto would take-over the business at the end of March 2007.
Uganda Investment Authority's (UIA) executive director, Dr. Maggie Kigozi told the press in Kampala last week that Rio Tinto were thinking afresh.
"Rio Tinto want to scrap the small plant that is there and replace it with a big one because the vermiculite deposits are huge," Kigozi said. There are six million metric tonnes of vermiculite deposits at the mine.
She said the company is still carrying out feasibility studies and preparing a business plan and initial interactions with them have showed that the company is going to expand the business.
Rio Tinto, however, have not said how much money they will invest in the venture.
Kigozi was last week talking to the press about Uganda's investment performance in the first quarter of 2007.
The vermiculite mine initially produced asbestos roofing sheets for construction until the sheets were banned because of health concerns.
Regionally, there is demand for vermiculite especially in Kenya after Kenmag Investments Limited mined and exhausted vermiculite at Lodosoit in the Makueni district. In 2000, the value of vermiculite exported from Kenya amounted to $713,000.
Kenya was expected to import vermiculite from Uganda's new mine at Namekhela for use in horticulture and construction.
Now that Rio Tinto is taking over the mine, this prospect should become real given Kenya's demand for the product. Production is set to rise to 20,000 metric tonnes this year from last year's 5,000.
In South Africa, Rio Tinto produces over 200,000 tonnes of vermiculite annually.
This year, UIA hope to attract more investment in the mining sector in places in the country that have iron ore, copper, gold and cement.
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Towards the end of last year, the Uganda government commissioned a South African firm to carry out a mining survey, which should inform government of the new mining prospects.
Vermiculite is used in the construction, agricultural, horticultural and industrial markets.
It is used for insulation, building of swimming pools, fireproofing of structural steel and pipes and is a soil additive.