Rubanda District conditionally approves Shs5.6t iron ore factory

The Rubanda District Council on Wednesday approved the proposal of establishing an iron ore processing factory worth $1.5 billion (over Shs5 trillion) on condition that it employs local residents besides paying royalties directly to its bank accounts.

“We thank President Museveni for identifying for us the investors from Steam Investment Ltd that will process steel equipment from our locally available iron ore deposits,” Rubanda District chairperson Stephen Kasyaba said.

“This company must employ our people and also pay royalties directly to our [district] bank accounts. As long as this company incorporates the existing artisanal miners in its operations, we pledge our total support,” he added.

The firm’s managing director, Adams Kyeyune, who was accompanied by the Rubanda MP Moses Kamuntu, addressed the district council meeting on Wednesday, detailing plans to construct the iron ore processing plant at Rugarambiro Village in Muko Sub County, next to Lake Bunyonyi.

“Government has allocated us about 420 acres of land where the iron ore processing equipment will soon be constructed. We are investing about $1.5 billion (over Shs5 trillion) in this factory that will be employing about 7,000 direct employees while about 35,000 people will be employed indirectly,” Kyeyune said.

According to him, documentation for the plant’s establishment is now at 90% and installation of equipment on the site expected to start by July 2023.

‘Dust free plant’

Kyeyune although government has accepted to give them 70 megawatts of hydroelectric power from its 350-megawatt substation in the district, plans are under way to tap into the existing thermal energy in the area which is expected to generate about 200megawatts and an extra 50 megawatts from wind turbines that will be erected in the area.

“The iron ore processing plant we are constructing here is dust free because we shall be using a process of hydrogen whereby the steam produced shall always consume the dust,” Kyeyune explained.

Monitor has learnt that under its corporate social responsibility, Steam Investment Ltd will also construct a new Rubanda District council hall, Rubanda police station, schools and health centers.

Rubanda District MP Moses Kamuntu appealed to the people in the area to work with the investor for the success of the project.

He also asked Steam Investment Ltd to adequately compensate the people in the mining areas instead of grabbing their properties and leaving them landless.

“Whereas it is public information that all minerals in Uganda belong to the government, we do not expect issues of grabbing people’s land as the iron ore processing factory begins. I’m sure that this investment will deliver our people to the cash economy,” Kamuntu observed.