Iron and Steel Sector

Uganda currently has four steel mills, which use scrap as their basic raw material. Steel scrap supplies are erratic and scattered all over the country. National demand for steel products is estimated at 60,000 to 80,000 metric tons per annum while the current production level is estimated at only 7,000 metric tons per annum. Iron ore reserves in Uganda occur in the southwestern and eastern parts of the country having total reserves of 80-100 million tons. The Government of Uganda undertook a drilling programme at two of the 12 known iron ore occurrences (Butare) and proved about 4 Mt of the ore. Specifically, iron ore occurs mainly in two areas; the hematite ore of Muko Kabale/Kisoro area and the magnetite ore at Sukulu and Bukusu in Tororo. Hematite ore is also known to occur at Mugabuzi, Ssembabule District.

Conservatively, given the local consumption capacity of 60,000 tons of steel and using 100,000 of raw ore, the above resource would supply the local industry for at least 40 years. The above operation would then act as a nucleus for further evaluation of other occurrences to delineate more resources for the regional market.

·         Iron ore mining to supply the established steel mills;

·         Production of sponge iron as stock feed for steel mills;

·         Establishment of more steel mills to enable the production of a wide array of products; and

·        Upgrading existing steel mills to diversify into the production of steel sheets and plates, stainless steel and galvanized products.