Uganda
could lose up to US$ 250 million (over Shillings 930.5Billion ) investment by
Hima Cement Ltd to Kenya, the Chief Executive Officer, Nicolas George has
revealed.
Hima Cement Ltd. is a subsidiary of Bamburi Cement Ltd, a member of
LafargeHolcim Group, a Swiss multinational company that manufactures building
materials.
According to George, LafargeHolcim has a plan to invest US$ 250 million in any
of the East African countries and Zambia and Malawi.
He explains that Uganda was on top of the list as an investment destination but
the tedious land acquisition process has crippled the plan.
George told the Justice Catherine Bamugemereire Land Commission on Thursday
that the company has been trying to acquire land in Uganda for the past one
year to set up a new cement factory in vain.
He explained that as a result, LafargeHolcim is considering diverting the investment
to Kenya.
To be able to open up another cement factory, Hima would have to go through the
process of acquiring a prospecting license, which allows them to explore for
minerals.
Then, they would need an exploration license to quantify the minerals available
and ascertain the machinery required for excavation.
The company would then process a mining lease that would permit the company to
acquire land inform of surface rights for production.
George says the company has failed to acquire licenses to prospect and explore.
He says there are multiple speculators who own licenses and want to transfer
them to Hima Cement Ltd at about US$ 2 million.
He says that procrastination by officials in the Directorate of Geological
Survey and Mines has made it impossible to meet with them and hence left them
to work with agents who own licenses.
He disclosed that Hima could go out of business with its Hima plant in just
eight years. George says that the limestone deposits in Hima are likely to be
extinct within eight years.
Hima had decided to look for more reserves but has failed due to failure to
secure a license. The company had decided to open up another factory in Moroto
District.
However, he says the challenges in land acquisition are still the same and
hence, prompting them to transfer the funds to Kenya.
Earlier this week, the former Commissioner of Geological Survey and Mines
Edward Kato also alluded to the challenge of multiple speculators who own
licenses.
It costs about Shillings 1.85 million to acquire a license, One Million
Shillings as application or preparation fees, 500,000 Shillings is for
Registration, Shillings 50.000 Mineral rent and Shillings 300,000 for Gazetting
grant of Exploration License.
The speculators acquire licenses and transfer to other companies that have the
capacity to use the licenses to explore minerals.
The transfer is done at a cost set by the speculators, which Kato said had
become a common business. He suggested the introduction of levy a
high tax on transfers to eliminate speculators.
Hima Considers Diverting Shs930.5bn Investment To Kenya
