Godfrey Nyakahuma, Kabale Resident District Commissioner, says that the company has been granted permission to establish the plant in Kyaase village, Buhara sub-county, where it already has a crushing plant.
The government has
granted permission to Sino Minerals Investments Company Limited, a Chinese
company, to establish a Pig iron factory in Kabale district.
A pig iron plant is a facility where molten iron, also known as pig iron, is produced from iron ore. Pig iron is a high-carbon iron alloy that is used as an intermediate product in steel production. Currently, Uganda majorly imports pig
iron from India.
Godfrey Nyakahuma, Kabale Resident District Commissioner, says that the company has been granted permission to establish the plant in
Kyaase village, Buhara sub-county, where it already has a crushing plant.
Nyakahuma says that his office has already received instructions from the State House to provide necessary guidance and help so that the establishment of the
plant starts in May.
Flavia Nyinakiiza
Kangyizi, Kabale District Speaker and Baker Turyamureeba, secretary for
production, natural resources, trade, industry and local development committee
in Kabale district council say that the council has already passed a resolution
welcoming the plant since it is aimed at creating value addition in the iron
ore as well as creating revenue for the district.
//Cue in: “Sino
minerals investments…
Cue out: …been
mining.”//
Brian Munanura, the
Deputy General Manager for Sino Minerals Investments Company Limited, says that
the company is set to invest USD 13 million into the establishment of the plant. Munanura
says that once the plant starts operations, the company is projected to employ
1,080 workers, from 150 workers who are currently employed at the crushing
plant.
Munanura, however, expressed optimism, saying that the government recently
launched a high-voltage power substation in Hamurwa sub-county in Rubanda
district.
//Cue in: “we have
done…
Cue out: ..been
stable.”//
Munanura also says
that the company is set to use a new technology for producing pig iron known as
Core technology, which is environmentally friendly and consumes less electricity
compared to using blast furnaces. Munanura adds that the company and
district authorities will hold a meeting on Tuesday to draw plans for
sensitizing locals about the factory.
//Cue in: “you heat
iron ore…
Cue out: …steel
billets.”//
Ezra Nabaasa, a
resident of Kasheregyenyi in Kamuganguzi sub-county, Kabale district, says that
the establishment of a pig iron factory is long overdue. He also says that the factory will boost
business in the area.
//Cue in: “turaza
kushemererwa munonga…
Cue out: …kutuyamba
munonga.”//
A Geological survey
conducted by the Ministry of Energy and Mineral Development between 2006-2008
indicates the existence of 250 million tons of Iron ore deposits in the Kigezi
region pending extraction. Data indicate that Iron ore deposits were mostly
discovered in Kanungu District, Bukimbiri in Kisoro District, Muko, Nyamiringa,
and Nyamweru sub-counties in Rubanda District and Buhara Sub-County in Kabale
District.
Despite the region having huge deposits, the establishment of a plant by
investors has hit a dead end.
During the 2016
presidential election campaigns, President Yoweri Museveni promised to
establish a steel processing factory in Rubanda district. In
2019, the Devki Group of Companies from India, led by its chairman Raval Guru
Narendra, expressed interest in establishing the plant on a 250-acre piece of
land located in Kabirizi, Kanyamatembe, and Kishaki villages in Rubanda town
council.
However, construction of the plant stalled after a section of
Catholics from Kabale Diocese accused the then-district officials of giving out
land that belonged to the church. The investor also requested a high-voltage
power line and said that the construction of the factory couldn't commence due to the lack of enough coal in Uganda.
In June 2023,
investors under Steam Investments Limited expressed interest in establishing the
plant at Heisesero, adjacent to Lake Bunyonyi in Muko sub-county.
The investors, however, did not show up again. While meeting leaders from Kigezi and
Ankole regions in Ntungamo recently, Museveni hinted on establishing the
plant in Ntungamo district.
