Uganda’s Mineral Sector Potential

Despite its potential, Uganda’s mineral sector is still struggling. It is mainly characterized by informal, illegal artisan mining and massive speculation, with no concrete data on known deposit reserves. Uganda is underexplored and is largely considered a “green field” in terms of mineral deposit potential.

A change in circumstances and prioritizing could lead the sector to become the backbone of economic development and improve the international balance of payments. How? By:

1. Stimulating broad-based industrialization (mid-stream and downstream)
2. Local community developments (employment and service provision): transportation, fuel, accommodation, agricultural produce, and training facilities.
3. Infrastructural development and reorganization (power, water, roads, rail).

So what needs to be done?

1. Extensive exploration (PPs), incentives, fines, and penalties to rid of speculators, and strict inspection and monitoring.
2. Investment in supportive/required infrastructure (rail, power, road networks leading to deposits)
3. Revamping the old mines to tap into the current demand for “green minerals,” such as Kilembe for Co, Cu, and Zn.
4. Investing in small-medium smelters/processors of minerals with known deposits such as phosphates at Usukulu, and tungsten at Nyamuriro.
5. Allowing artisan and small-scale miners to export raw minerals (iron ore, tungsten, tantalite, nickel, gold) to take advantage of rising world market prices.

Critical drivers for the sector include:

1. A stable, predictable, and internationally competitive mining code that provides the certainty needed by investors.
2. A fair, predictable, and internationally competitive fiscal regime aligned with international best practices.
3. Technical capacity and institutional efficiency in licensing, enforcement, inspections monitoring, accountability, and transparency.
4. Exploration and mining data/information on deposits potential to build investor confidence, facilitate FID, and attract genuine reputable investors.

This information was provided by Sarah Namara, Advisor on the Mineral sector at Uganda Chamber of Mines and Petroleum.