Uganda, June 1 -- The Rubanda District Council on Wednesday approved the proposal of establishing an iron ore processing factory worth $1.5 billion (over Shs5 trillion) on condition that it employs local residents besides paying royalties directly to its bank accounts.

"We thank President Museveni for identifying for us the investors from Steam Investment Ltd that will process steel equipment from our locally available iron ore deposits," Rubanda District chairperson Stephen Kasyaba said.

"This company must employ our people and also pay royalties directly to our [district] bank accounts. As long as this company incorporates the existing artisanal miners in its operations, we pledge our total support," he added.

The firm's managing dir...