Kabale District leaders and stakeholders have proposed amendments to a draft Memorandum of Understanding (MoU) with Yogi Steel Limited to ensure local communities benefit from the company’s planned iron ore mining project in Kicumbi Parish, Kamuganguzi Sub-county.
The proposals were presented during a joint meeting involving the Kabale District Executive Committee, the Local Economic Development and Investment Committee, and officials from Yogi Steel at the company’s processing plant in Kicumbi Parish.
The meeting reviewed the draft MoU, assessed progress on the iron ore processing plant and discussed the expected social, economic and environmental impact of the project on surrounding communities.
District leaders called for a comprehensive resettlement plan for families likely to be affected by the project after compensation. They also urged the company to support the rehabilitation of roads and health facilities under its Corporate Social Responsibility (CSR) programme.
Other proposed changes include increasing road maintenance support from the Shs29 million outlined in the draft MoU and lowering the age eligibility for elderly beneficiaries of the company’s support programme from 70 to 60 years.
The Chief Administrative Officer, Robert Mugabe, who chaired the meeting, asked Yogi Steel to consider donating road construction equipment, including an excavator or bulldozer, to support district infrastructure development.
“This will reduce district costs on hiring machinery and leave a lasting contribution to Kabale,” Mugabe said.
Kabale LCV Chairperson Denis Nzeirwe welcomed Yogi Steel’s commitment to supporting surrounding communities, saying a stronger CSR programme would help address some of the district’s infrastructure challenges.
“The social responsibility programme will ease pressure on the district budget by addressing some local infrastructure needs,” Nzeirwe said.
Yogi Steel’s iron ore project is expected to create economic opportunities through employment, local business development and increased industrial activity in the region.