Uganda To Hold Stake In Mining Companies

The Ugandan cabinet has approved the Mining and Minerals Policy 2018 that requires the state to hold a share in every mining company granted a license.

The new policy seeks to increase the economic gain to Uganda of activities in the mining sector as currently investors are able to own 100 per cent of their leases, and can export raw ore.

Speaking on the changes the Permanent Secretary in the Ministry of Energy Robert Kasande stated, “The revised laws will help us revive the mining sector.” 

In a bid to rule out speculators the policy also requires investors to have capital to cover everything from exploration through to value addition and employs a ‘use it or lose it principle’.

The chairman of the Uganda Chamber of Mines and Petroleum (UCMP) Elly Karuhanga has stated that there are currently in excess of 800 mineral licenses in play, but claims that speculators hold the majority of these.

Among the firms already active in the country are Rio Tinto and Sipa Resources. The country’s minerals include rare earths, gold, tin, iron ore, copper and gemstones.