Uganda’s mineral wealth is under scrutiny as experts call for quantification. Richard Kaijuka, Chairman of the Board of Trustees of the Uganda Chamber of Mines and Petroleum (UCMP), pointed out that while Uganda possesses a variety of minerals, the absence of proven reserves leaves potential untapped. Large investors in the mineral sector seek established reserves rather than investing in extensive exploration efforts.
Kaijuka’s remarks were made during a press launch for the 12th annual mineral wealth conference scheduled for October 30th-31st, 2023, at the Serena Hotel in Kampala.
The need for exploration to attract medium-scale companies was emphasized by Kaijuka, who explained that such companies are willing to sell their findings to larger entities capable of establishing significant mining operations.
Vincent Kedi, the Assistant Commissioner of Mines at the Ministry of Energy and Mineral Development, emphasized Uganda’s focus on banning the export of unprocessed and semi-processed minerals. The objective is to encourage value addition within the country for all minerals. New mining policy, regulations, and laws have set the stage for mining activities within the country.
Humphrey Asiimwe, the CEO of UCMP, highlighted the diverse range of participants expected at the upcoming conference. These include representatives from the regional chamber of mines, various countries, civil society organizations, and development partners.
The conference’s theme, ‘Creating a viable and feasible roadmap for Uganda’s mineral sector to contribute to economic transformation,’ underscores the collaborative efforts of UCMP and the Ministry of Energy and Mineral Development. Anticipated participants include government officials, private sector representatives, civil society organizations, and members of the diplomatic community and development partners, with industry exhibitors also present.
The annual mineral wealth conference has played a crucial role in connecting domestic and international mining interests in Uganda, bringing together key decision-makers, business leaders, financiers, academics, and investors from around the world.
This year’s discussions at the conference will center on various aspects of the mining industry, including investment climate, reporting and compliance requirements, climate change’s impact on mining, regional integration of mining projects, the role of legal and regulatory frameworks in investment promotion, and lessons from Uganda’s mineral sector development.
Uganda boasts substantial mineral wealth, with geological surveys indicating potential commercial exploitation in over 20 mineral categories. High-resolution aerial magnetic data acquisition has revealed high target areas with anomalies for various minerals. Commercial deposits of rare earth elements, graphite, iron ore, and gold, among others, have been discovered across the country. There is also potential for uranium, tin, tungsten, tantalite, nickel, lithium, bentonite, and other clays.
The Third National Development Plan prioritizes five categories of minerals for development: iron ore, gold, copper, phosphates, and development minerals. The government has allocated funds to quantify the country’s mineral deposits to determine their value before beneficiation, and experts argue for more significant financial allocations to this cause.
The new Mining and Minerals Act, passed in 2022, aims to streamline mining by formalizing artisanal/small-scale miners and giving the minister more power in licensing. UCMP is actively working with various groups, including women in Mubende, to formalize small miners.
While the new law promises to revolutionize the mining sector through value addition, UCMP remains open to working with the government to ensure changes to the act benefit all stakeholders.
The Mineral Wealth Conference is sponsored by various organizations, including Rwenzori Rare Metals, Centenary Bank, Uganda Insurers Association, Tororo Cement, Kenya Commercial Bank, Minet, Marsh, MADI, European Union, Ionic Rare Earth, Willis Tower Watson, USAID, Equity Bank, The Uganda Extractive Industries Transparency Initiative, PlanetGold Uganda, and Blencowe.
