$108 million at stake as Hima battles activists Print
Business
Written by John Vianney Nsimbe   
Wednesday, 10 September 2008 13:41

Hima Cement heads to court on September 12 aware that a ruling in favour of environmental activists could see their $108 million planned investment to mine limestone in Queen Elizabeth National Park over the next two years slip away.

The National Association of Professional Environmentalists (NAPE) mid this year dragged Hima Cement to court contesting the company's contract to mine limestone at Dura, inside the park. NAPE alleges that the planned 20-year activity in the game park will have a negative impact to the area's tourism potential.
 
The Weekly Observer has been told that if court revokes Hima's license to mine at Dura, the country could miss planned investment of $108 million that the company planned to inject in cement production there between 2008 - 2010.

David Njoroge, Hima Cement Managing Director, said that the company has set aside $108 million which will be sunk into the project within the first two years of mining. He added that much of this money would create more than 100 jobs for the people in the area. Hima also points out that the project will provide additional income to the people of Kamwenge through the purchase of their food.
 
But the matter, which is currently before the High Court, and is expected to be heard tomorrow, September 12, has thrown that investment in doubt, with environmentalists arguing that Hima's activities are bound to have a more devastating impact on the area's potential in attracting tourists.
 
The environmentalists, who have engaged Hima in a battle for more than a year after the idea of mining at Dura came up, continue to argue that Hima's activities are a risk to the livelihood of elephants and chimpanzees in the area. Tourism is currently Uganda's second biggest foreign exchange earner, bringing in close to $450 million a year.

In fact, Joel Musaasizi of the Wildlife Clubs of Uganda, does not buy the job creation campaign. "How many jobs and how much will the people of Kamwenge be earning to change their lives? Just working as porters? If the government had wanted the people of Kasese and Kamwenge to be well, they would not have stifled the railway line that enabled them trade their ground nuts in Kampala. This is what made them rich, among other businesses. This was aided by the railway that is not working now," he said.
 
The controversy has caught the attention of Larfarge Eco-systems, Hima's parent company, sending jitters within Hima management in Uganda. A Hima official who preferred anonymity due to the sensitivity of the matter told The Weekly Observer that Lafarge is sensitive abut its international image, and that the court case questions the company's ethics in the area where it operates.
 
Events in the court are expected to determine the trend in the construction sector, which, at 13%, has the highest growth rate. Officials at Hima note that its activities in Dura are expected to cut importation of limestone from Kenya by $1million annually.

But Frank Muramuzi, the executive director of NAPE, played down this point, explaining that "Prices of produce now do not just depend on increase in production, and therefore it is not true that Hima is going to sell cement cheaper than it is now if they get limestone from Dura."
 
Hima currently produces about 300,000 tons of cement per year compared to the 1 million tons from its sister company, Bamburi Cement Limited in Kenya. Matching Bamburi's production levels is one of Hima's main targets.

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