📋 Tender Overview
Sector: Mining
Financing Type Equity and Debt
Project Site/ Location: Kabale District
Project Description:
Kabale district is located in South Western Uganda.
Deposit Quality and Quantity:
Muko hosts hematite deposits of iron ore with 150 million tonnes. This haematite Iron Ore, show characteristics of high-quality iron ore (55-68% Fe). Surficial investigations display thin beds of mineralization ranging from 5 to +/-100m.
Demand Drivers
• A minimum of 800,000t/y of iron ore mining is required to satisfy the Ugandan Market, while 4 million t/year is required in the East African Region (Uganda, Kenya, Tanzania).
• Construction and infrastructure contribute 12% and 11% respectively to GDP with a growth rate of 8.1%and 71%. The two sectors are biggest consumers of iron and steel. Heavy profiles and structural steel products are almost absent in Uganda due to unavailability of special steel products (High Alloy) that require dedicated production plants.
• Uganda has several steel players of varying production capacities and operating at different stages of the downstream Iron and Steel (l&S) value chain. The key players in Uganda are steel processors using semi-finished steel sourced from abroad.
• Existing opportunity to produce 0.5Mt/y of iron ingots/briquettes/sponge from its iron ore resource to feed into the existing steel industry.
• Uganda's iron ore targets the East African Community region. Uganda's intra trade is currently at 40% and expected to grow due to Africa Free Continental Trade Area and existing common markets.
Market Size
Local Market: Uganda's import bill for steel products currently valued at USD350 million.
