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Uganda has invested US$200 million in the construction of iron ore smelting plant in order to reduce the heavy reliance on raw materials such as scrap steel and billets.
The new iron ore smelter, located in Iganga, eastern Uganda, has a capacity of 1.2 million tons per year and is owned by Tembo Steels Uganda.
Sanjay Awasthi, chairman of Tembo Steels, indicated that the new smelter would be the largest integrated steel mill in East Africa, with the ability to integrate steel forward and backward.
Uganda has confirmed iron ore reserves of more than 500 million tons. These include hematite iron ore found in Muko, Kabale and Kisoro districts in southwestern Uganda, and magnetite found in Sukulu and Bukusu, Tororo district in eastern Uganda.
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