Court to decide on fight over multibillion Osukuru mineral deposits

Justice David Wangutusi of the Commercial Division of the High Court will today (Thursday) deliver judgment in the legal battle between two Chinese investors over ownership of a multimillion dollar minerals deposit at Sukulu Hills in Tororo District.

Businesswoman Fang Min is accusing Guangzhou Dong Song Energy Group Limited together with Uganda Hui Neng Mining Limited, Mao Jie and Yang Junjia for fraudulent and unlawful expropriation of 26 square Kilometre mineral site.

“If no appearance is made on your behalf, by yourself or by your pleader or by someone by law authorized to act for you, the same will be heard and decided in your absence,” reads the judgment notice.

Guangzhou Dong Song Energy Group Limited was launched in October last year to implement the $620 million (more than 2.2trillion) Sukulu Phosphate Comprehensive project to manufacture fertilisers.

Through her lawyers led by Mr Ebert Byenkya, Ms Min is seeking $25m (94.2b) as compensation for loss of her business interest in terms of general and exemplary damages to cater for her shares in the assets of Uganda Hui Neng Mining Limited which were illegally transferred to Guangzhou Dong Song Energy Group Limited.

Ms Min who is also the proprietor of Fang Fang Hotel claims that the amount sought is the valuation of his client as per the 2018 expert valuation report that shows that the value of her shares increased from $9.7m in 2013.

Court documents indicate that the resolution that formed a basis for transfer of the shares were made without the knowledge and consent of Ms Min who owned 35 per cent shares in the initial company.

READ: Shs1 trillion spent on Osukuru mining project, says developer

Ms Min also alleges that government granted six exploration licenses in respect of the Osukulu phosphate reserves measuring 26.6 Sq Km to Uganda Hui Neng Mining Limited where she was a shareholder.

According to the complaint, the exploration area is of immense economic value and contains many valuable minerals including large deposits whose value is estimated at $5,223,990,000 (Shs19,197,640,851,000) but in December 2013, LV Weidong in collusion with Mao Jie and Yang Junjia fraudulently passed a board resolution of Uganda Hui Neng Mining Limited to transfer its exploration license to Guangzhou Dong Song Energy Group Limited.

Defence

In defence, Mr LV Weidong, the proprietor of Guangzhou Dong Song Energy Group Limited denies any wrong doing stating that the money was deposited onto Ms Min’s bank account in China and that her interests in Osukuru are no more.

Mr LV Weidong admitted that he has not paid $9.7 million to Ms Min which arises from both investment and interest, from her investment in the Tororo based Sukuru Phosphate project reasoning that she failed to account for the $5 million used while setting up the company, Uganda Hui Neng Mining Limited and processing of the six mineral exploration licenses.

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Utility

February 2013 – incorporation of Uganda Hui Neng Mining Limited May-July 2013 – Processing and Acquisition of six mineral exploration licenses November 2013 – Transfer of Uganda Hui Neng Mining Limited to Guangzhou Dong Song Energy Group Limited December 2013 - Guangzhou Dong Song Energy Group Limited blocks Ms Min’s bank accounts in China December 2013 – Dong Song opens criminal charges against Ms Min in China

2016 – Min files case against Guangzhou Dong Song Energy Group Limited and others in the Commercial Court in Kampala April 24, 2019 – Ms Sylvia Chelangat, a document examiner of the Uganda Police tenders report March 12, 2019 - Canada-based mineral and valuation expert Chirisa Munyaradzi testified April 24, 2019  - Mr LV Weidong testifies in court July 23, 2019 – Court issues judgement notice

35 percent shares – claim for loss business interests

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