In a bold move to revolutionize the mineral extraction industry, Uganda’s Ministry of Energy and Mineral Development has mandated all earth materials dealers to undergo official registration.
Agnes Alaba, Commissioner for the Mines Department, emphasized that this registration is crucial for anyone involved in mineral dealings, including artisans, small-scale miners, and transporters, to ensure compliance with the law.
This initiative marks the operationalization of the Mining and Minerals Act of 2022, replacing its predecessor from 2003.
The Ministry temporarily suspended new mining licenses to streamline investments, but licensing has since resumed.
State Minister for Minerals, Hon. Peter Lokeris, revealed that comprehensive sensitization programs have been launched to facilitate compliance with the new legal framework, aiming to combat smuggling and boost government revenue.
The revised Act introduces various mineral rights categories, from large-scale to artisanal mining licenses. Over 900 artisanal miners have already registered in response to the Ministry’s call. Unlike the previous Act, the new legislation permits the commercial exploitation of building materials.
Following an extensive Airborne Geophysical Survey in 2021, the Ministry identified 18 mineral targets, ranging from uranium to rare earth metals.
Acquiring a quarry license from the Ministry, along with authorization under the National Environment Act of 2019, is now essential for any commercial exploitation of building substances.
Additionally, the Act revises royalty distribution, allocating 70% to the government, 15% to district local governments, 10% to sub-county/town councils, and 5% to registered or customary landowners.
The Act enforces strict penalties for offenders, with fines ranging from 60 to 500 million Shillings, accompanied by imprisonment terms of 2 to 7 years, or both.
Notably, this robust legal framework has already attracted a surge in Foreign Direct Investment, with figures skyrocketing from US$ 5 million in 2003 to an impressive over US$ 800 million in recent years, totaling approximately 2.995 trillion Shillings.
This marks a significant milestone in Uganda’s quest to regulate and optimize its mineral sector for sustainable growth and development.
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