Kabale District Council on Friday approved the allocation of 15.5 acres in Kijojo Village, Buhara Parish, Ndorwa East, to Sino Mining Company Ltd for the establishment of an iron ore factory.
The decision, passed during a council sitting at Rukiiko Hall, is part of a major initiative to set up an iron ore plant aimed at boosting the local economy and generating revenue for the district.
The proposal was presented by Barker Turyamureeba, Chairperson for Production, Natural Resources, Trade, Industry and Local Development.
Turyamureeba cited the Local Government Act (Cap 138), noting that the district, as a corporate entity, holds perpetual rights over its assets, including land.
This, he said, allows the local government to enter agreements that support revenue generation and service delivery.
‘Once parliamentary approval is granted, we plan to formalize the agreement by entering into a Memorandum of Understanding (MOU) with the iron ore company,’ Turyamureeba said, adding that the MOU will define the roles and responsibilities of both parties.
Under the agreement, Sino Mining will pay an annual rent of Shs1.2 million per acre, with a 2% increment every three years.
The company will also contribute Shs30 million annually to the district, to be paid in two instalments of Shs15 million for the maintenance of the 10-kilometer Rwakihirwa-Buhara road.
The firm has further pledged Shs10 million annually to Buhara Parish under the Parish Development Model (PDM), aimed at supporting needy residents.
Additionally, Sino Mining will provide scholarships for four deserving students from Buhara Parish each year, covering both high school and secondary education, and award two scholarships to science students from the district.
The project has sparked mixed reactions among locals. In May 2025, Ndorwa East Member of Parliament Wilfred Niwagaba held discussions with landowners from neighbouring villages to brief them about the planned factory.
While the initiative was generally welcomed, some landowners protested the perceived low compensation for their land.
Niwagaba cautioned that the project could be relocated to Ntungamo District if compensation concerns are not addressed. ‘
While the factory holds the potential to drive development in the area, the community would be left with no choice but to reconsider the project if the compensation issue is not adequately addressed,’ he said.
The council’s resolution will now be forwarded to the Minister of Local Government for approval, before seeking final endorsement from Parliament.
Authorities say the move marks a significant step in Kabale’s efforts to attract investment, stimulate local development, and improve infrastructure.