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KABALE, UGANDA | THE INDEPENDENT | 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.
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.
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.
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.
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.
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