The Developer Madhvani International (MISA) was established in 1979 to recover assets of Madhvani Group in Uganda, confiscated by Idi Amin. Madhvani Group and MISA manage, develop and invest in major agricultural, industrial, infrastructure and energy projects in Africa, Europe and India. The Madhvani Family owns and operates more than 25 business in 12 countries with 10,000 employees. Total assets exceed $500m with annual turnover of over $250 million. Please visit www.kakirasugar.com and www.madhvani-misa.com . MISA's affiliate Nilefos Minerals Ltd, a Uganda company, is developing the Sukulu deposit and secured an Investment License in December 2002.
Nilefos Minerals Ltd has a retention licence over Uganda's largest phosphate deposit. 230Mt carbonatite phosphate resource at 12.8% P205 and 40% magnetite at 63% Fe. Nilefos has been working to develop this project for several years. Feasibility study is to produce in 2 Phases 100 Ktonnes SSP/TSP and 1 million tonnes rock is finalised. IRR>18%. Nilefos has an experienced management team with strong local and international relationships. Nilefos has made good progress in 2010-2011 and is now ready to make the next step. Phase 1 Capital cost $180 million incl. working capital. Project financing is in advanced stage. Total expenditure to-date $10 million.
Preliminary feasibility 1999/2001.
- Sampling and analyses: Initially done in 2001-02 with the help of Foskor (12 tonnes) and thereafter with SRK-USA (16 tonnes) in 2006.
- Pilot and industrial trials: With Foskor: 2002-2003; SRK-RDI 2007-2008.
- Pilot plant set up in Tororo.
- Transportation Study completed in 2003-2005. Conclusion: investment $95 million for locomotives and wagons.
- 2005-2006 Boundary Opening, Demarcation area and Surveying of site Pitting of 25 pits at an average depth of 20 meters completed in 2006.
- Port handling: Logistics survey concluded by 2007.
- Wet beneficiation process technology: unique process developed to provide mine life >35 years and highest quality phosphate rock.
- Fertilizer market study for East African region conducted in conjunction with USAID in 2007-2008.
- Studies for iron beneficiation.
Bankable Feasibility Study:
- Analysis of Bearden and Potter studies Logistics studies
Preliminary feasibility study
- Bench scale and pilot flow-sheets evaluated and finalized
- Fertilizer market study for East Africa region
- Publishing of pilot trials
- Purchase and delivery of pilot plant
- Slimes recovery study and optimization
- Scoping study for the final BFS 12.
- EIA Enumeration/sensitization activities 2006- to-date
- Study on Socio-Economic Aspects Completed in June 2008.
- Data collection for 90% of the residents at the site is completed in August 2008.
Positives: Near surface, and soft oxide core. Low mining strip ratios. Ore body geometry and grade are relatively uniform. Beneficiation process for high quality value addition Sufficient resources for >30 years mine life Access to power, road, and water. Government has agreed to re-locate and pay for re-settlement of residents. Approx. $20 million Project financing can be completed end 2012
Challenges: Balance Equity: $20-40 million. Distribution network for SSP/TSP fertilisers in East and Central Africa. Complete financing Phase 2: Railway locomotives and wagons for export of volumes of rock.
Sukulu Hills are located adjacent to the town of Tororo in Eastern Uganda. The site is 10km from the Kenya border The main highway from Mombasa to Kampala joins the Northern edge of the site. The main railway line also runs adjacent to the site. The main power line is next to the site. Ample good labour is assured.
