UGANDA VERMICULITE MINE OPENED

 
 











Canmin Resources Limited, a local Uganda company and wholly-owned subsidiary of IBI Corporation, with offices in Kampala, is actively engaged in developing the first vermiculite mine in Uganda, in Mbale district very close to the Kenyan border .


Vermiculite is a member of the silicate family of materials, and resembles mica in appearance, but the difference is that vermiculite holds water between its microscopic layers. When vermiculite is heated with a flame, usually at temperatures of approximately 1,000 degrees, the layers are pushed apart by the steam created (a process called exfoliation) and form something akin to small popcorn. It is a low-cost industrial mineral, in the same category as materials such as limestone, kaolin, slate and even clay and sand. Therefore, it must be sold in large quantities to make it profitable.

Beginnings of Namekara vermiculite mine.

It all began some years ago when Dr. Peter van Straaten, a professor from Canada, came across reports on prospective vermiculite at the Geological Survey and Mines Department in Entebbe. He was not actively looking for vermiculite, but was investigating and prospecting for phosphate (his specialty as an agrogeologist), which is plentiful in the Busumbu hills.

A year earlier he had met Mr. Hans Hansen in Zimbabwe who had just completed building and installing a new vermiculite benification plant for Shawa Vermiculite Mine, and was active in expanding and improving the operations.

Because of Hansen's extensive specialized knowledge of vermiculite, Dr. van Straaten invited him to Uganda to assess and evaluate the Bukusu vermiculite deposit and its potential for commercialization.

In 1998, van Straaten and his partner Dr. Mark Doidge, a medical doctor by profession, and IBI Corporation, a Canadian-based international investment company and the sole financier of the project, formed Canmin Resources Limited in Uganda. The mandate of the new company was to be totally responsible for all activities in Uganda; i.e., site exploration work, development of the vermiculite mine, marketing of the vermiculite, and later development of the phosphate resource.

In accordance with the project plan, nearly all exploration work was completed in 1999 with findings indicating a reserve in excess of 5 million tonnes of vermiculite. Senior Technical Assistant and Geologist, Mr.Wilson Ongom, seconded to Canmin from the Geological Survey and Mines Department, oversaw and recorded all exploration work. Canmin certainly values and appreciates his expertise, guidance, and excellent work.

Local residents benefit.

Today, a visitor to the site would see that a mine is in existence. What was bush and maize fields four months ago is now the start of a thriving enterprise. A new wide murram road passes through fields of beans and other crops to the mining site where a container is neatly placed for bulk sample storage. The new road has been welcomed by the villagers who can now drive to their home in a taxi.

At the mining site, eight workers are presently engaged in sun drying vermiculite samples, which come from a large open pit. The workers are indeed very happy: "Since when does work come to you" they say. "Normally you have to leave your villages to find paid work".

A borehole has been sunk in Namekara village for the mutual benefit of all. Canmin will pump and share fresh well-water on tap, as soon as electric power is installed. The Ministry of Mines and Energy is also investigating the possibility of extending power lines to the area, and providing the vermiculite mine and facilities with electric power.

The people involved are fully aware of the spin-off benefit the mine will bring to the area -- new shops, clinic, bars, electric maize mill, etc. -- and therefore enthusiastically support the project. The wages and salaries paid by Canmin will circulate and create a local economy, and thus improve the standard of living for many residents in the Mbale District.

It is expected that the mine will employ all local villagers when in full operation in 2001.


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