Tuesday, 11 August 2026, KampalaFounded 2016
Haematite iron ore outcrop and haulage track in the hills of south western Uganda
analysisInvestment

Muko iron ore reserves revive Uganda's steel ambitions, but power and rail decide the outcome

With around 260 million tonnes of proven reserves across Muko, Bukusu and Sukulu, Uganda has the ore. Smelting economics depend on electricity tariffs and haulage.

By Moses Byaruhanga··Kabale

Uganda's iron ore endowment is not in doubt. Proven reserves across Muko in Kabale, Bukusu in Mbale and the Sukulu Hills in Tororo are cited at around 260 million tonnes, with Muko haematite grading high enough for direct reduction.

The constraint is not geology

Steel making is an electricity business. Uganda's industrial tariff, while improved, still sits above the level at which regional smelting competes with imported billet, and the Muko deposits sit far from both the grid's strongest nodes and the rail network.

What is actually being built

Practical progress has come in downstream rolling and re-rolling capacity around Kampala and Jinja, which uses imported and scrap feed. Connecting that capacity to domestic ore requires an intermediate processing step that no one has yet financed.

Local effect in Kabale

For Kabale, the near-term reality is quarrying and haulage employment rather than industrial jobs. Road damage from ore trucks is the recurring district complaint and it has not been resolved through the current licence conditions.

Realistic timeline

On current tariffs and infrastructure, a domestic integrated steel chain is a decade proposition. The intermediate win, beneficiating ore to a saleable concentrate for regional buyers, is available now and attracts far less political attention than it deserves.

Sources

How we verified this: licence and production details are checked against official records and ministry statements where they exist. Company-issued figures are reported as claims and attributed. Corrections are welcome at corrections@ugandamineraltrust.com.

Byline
Moses Byaruhanga

Industrial Minerals Correspondent

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