Newly commissioned Chinese company dragged to court over "stealing' mining licence

A battle over Phosphate mining rights at Sukuru industrial park in Tororo rages on between Fang Fang hotel owner Fang Min and the company currently doing the mining, Guangzhou DongSong Energy Group Owner LV Weidong.

The two Chinese nationals are before the Commercial court after the Fang Fang owner sued arguing she was duped and her money lost in the process of acquiring a mining license.

Fang Min now wants to be compensated with over $12M from LV Weidong on accusations that he fraudulently took over the exploration license of the Sukuru Phosphate reserve inclusive of the complainant’s rights.

According to the suit Fang Min and LV Weidongo partnered in 2012 in a joint venture that saw them buy off of a company by the names “Uganda Hui Nenge Mining Ltd” from Madvhani Group of Companies

Although the Company was able to win the mining bid and license, Min is aggrieved that she was duped saying just months after the acquisition, the license was altered by other shareholders.

Fang Min claims that without her consent, LV Weidong transferred the duo's mining license into his names and company- Guanzou Dong Song which is now solely managing the mines.

“Weidong, Jie and Jinjia without my knowledge passed a board resolution dated December 12, 2013, they transferred the exploration license which was the most valuable asset of the joint venture company to Guangzhou Dongsong Energy Group,” contends Min.

Min says she was holder of absolute powers of attorney but was surprised when Ministry of Energy and Mineral Development accepted and endorsed the transfer to Weidong’s company.

Fang Min now wants LV Weidong ordered to compensate her for the loss and damages suffered since 2016 because she had injected a lot of money in the joint phosphate mining company.

She also wants Court to cancel the exploration and mining license that was fraudulently awarded to LV Weidong because no due diligence was done before issuing the same.

The two are before justice David Wangututsi where an expert witness in the valuation of minerals ; Munyaradzi Cherisa gave evidence confirming that had Fang Min's exploration license not been cancelled , she would have been able to make a profit of not less than 15m US dollars by now .

In October last year, president Museveni commissioned the 12 factory park under the Guangzhou Dongsong Energy Group in Tororo District.

The industries in the park include; Mineral dressing, phosphate fertiliser plant, steel plant, Glass plant, Tin smelting and Shea processing factory among others.