The Ugandan government has announced its intention to form a national mining company and offer shares to investors. This plan, outlined during the 2024/25 Budget Call Conference, is in line with the Mining and Mineral Act of 2022.
The government’s strategy involves creating a special purpose vehicle that will be partially owned by medium and large-scale mining enterprises. The purpose of this vehicle is to raise funds for the mining sector, which typically requires substantial capital.
The special purpose vehicle will serve as a holding company through which the government will engage international concessions specialized in mining management. It will also facilitate the sale of equity to strategic investors and secure capital through leasing arrangements. Additionally, the government intends to list shares of the special purpose vehicle on international capital markets and establish a revenue-sharing mechanism with investors.
As part of its plan, the government aims to establish a national mining company that will have a stake of up to 15 percent in medium- and large-scale mining companies within the country. International capital markets will provide opportunities for borrowing and investing across borders, benefiting both governments and companies by expanding access to funds and reducing risk.
The mining and quarrying sector is a significant contributor to Uganda’s GDP, accounting for 1.8 percent of the national GDP in the 2020/21 financial year. Apart from crude oil in the Albertine region, Uganda is rich in rare earth, gold, copper, iron ore, cobalt, marble, vermiculite, and other minerals.
Marble production alone constituted 62 percent of the minerals produced in the country during the 2020/21 financial year. Uganda also possesses substantial deposits of limestone and pozzolanic materials, suitable for cement production.
The mining sector in Uganda is primarily characterized by artisanal miners who extract a variety of minerals using basic tools, including gypsum, clay, sand, and limestone. These miners often operate informally in the sector.
