Mining industry of

Uganda

The mining industry of Uganda,

documented as early as the 1920s,
witnessed a boom in the 1950s with a
record 30 percent of the country's exports.
It received a further boost when mining
revenues increased by 48 percent between
1995 and 1997.[1] However, the World Bank
reported that the sector's contribution to
gross domestic product (GDP) dropped
from 6 percent during the 1970s to below
0.5 percent in 2010.[2] Uganda's extractive
industry activities have been identified by
the Natural Resource Governance Institute
as focused on "extraction of cobalt, gold,
copper, iron ore, tungsten, steel, tin and
other industrial products such as cement,
diamonds, salt and vermiculite".[3]
Limestone is sold in local markets
whereas gold, tin, and tungsten are major
exports.[4]

Kilembe Mines in southwest Uganda

History
The country's mining history is recorded in
the 1920s with work done at southwest
Uganda's tin and tungsten deposits. In the
following decade, gold mining began near
Busia. In the 1950s, the Kilembe copper
mine was developed and it became the
country's largest mine.[5] The 1950s and
1960s was an important phase for mining
when it had a 30 percent contribution to
the total exports of the nation.[6] During
the late 1980s, laying of roads led to
increase in demand for construction
material. The National Mining Commission
was formed in 1988. North Korea financed
the Ugandan government's project to
rehabilitate the Kilembe copper mine.[7]

Production and impacts

Companies working in the mining and
quarrying industries saw an 11 percent
increase in revenues every year (in
2008).[8]

Under the SMMRP, artisanal mining is part

of community development with 50
artisanal and small-scale mining
associations getting established.[2]

Lack of continuous power supply is one of

the challenges that the industry faces.[6]
Tororo and Hima Cement Industries
together produce 1.05 million tonnes of
cement annually.[9] Despite this, as of 2013
Uganda imported cement from Kenya.[10]

A-Tec Industries (Austria) restarted

extraction at the Kilembe Copper Mines
with an investment of US$200 million.[8]

Magnus International Resources (US),

Anglo Uganda Corp. (UK), and Grey Crown
Resources Ltd. (Canada) are some of the
foreign companies working for gold
extraction in Uganda.[10] Gold mining is
also done by artisans.[1] The first case of
gold production was recorded in 1992,
and, in 2000 Uganda, produced 56
kilograms (123 lb) of gold.[11]

230 metric tonnes of phosphorus is

estimated to be present in approximately
26 square kilometres (10 sq mi) of the
Osukuru Hills.[12]

Canada's IBI Corp. has explored Mubende

for uranium.[13]

Cresta Uganda is involved in diamond

mining.[7]

Legal framework
The country has a Mineral Act, which is
under revision. Mineral exploration and
exploitation is governed by several types
of licenses. These are: the Prospecting
Licence which is mineral or area specific
and is valid for one year; under Exclusive
Prospecting Licence (EPL), mineral
specific. and is limited to an area of 20.48
square kilometres (7.91 sq mi) and the
Special Exclusive Prospecting Licence
(SEPL) is for a minimum area of 76.8
square kilometres (29.7 sq mi); Mining
License for developers which could be
location specific as Mining License is
limited to an area of 16 hectares (40
acres) with validity of 1 year; in the case of
large mining area the lease could be for 21
years for areas up to 251 hectares (620
acres); and Mineral Dealers Licence which
is a permit to use water resources for
mining operations with validity of one year
ending December.[1]

Under the new Mineral Act, at least 70% of

all revenue from new mines will belong to
the government. From that amount, 15%
will go to the local government and the
town council will get a 10% of the revenue.
Owner of the land shall receive up to
5%.[14]

Mines
Kilembe Mines ( copper, cobalt)
Nyamuliro mine (Tungsten)
 Ruhijha mine (Tungsten)
Sukulu mine (Niobium)

References
Uganda
portal

1. "Mining in Uganda- Overview" (http://www.

mbendi.com/indy/ming/af/ug/p0005.ht
m) . mbendi.com. Retrieved 15 June 2015.

2. "Developing Uganda's Mining

Sector:Empowering Artisans, Streamlining
Regulations, and Extending Technical
Assistance" (http://www.worldbank.org/en/
results/2013/03/19/developing-uganda-s-
mining-sector) . World Bank. 10 March
2013. Retrieved 11 June 2015.
3. "Uganda:Extractive Industries" (http://www.r
esourcegovernance.org/countries/africa/u
ganda/extractive-industries) .
www.resourcegovernance.org. Retrieved
11 June 2015.

4. Uganda Business Law Handbook 2012,

p. 140.

5. Kasimbazi & Alexander 2011, p. 192.

6. Uganda Business Law Handbook 2012,
p. 84.

7. Uganda Business Law Handbook 2012,

p. 93.

8. Uganda Business Law Handbook 2012,

p. 85.

9. Uganda Business Law Handbook 2012,

p. 90.
10. Uganda Business Law Handbook 2012,
p. 86.

11. Uganda Business Law Handbook 2012,

p. 91.

12. Uganda Business Law Handbook 2012,

p. 87.

13. Uganda Business Law Handbook 2012,

p. 88.

14. cfeditoren (2022-06-13). "Uganda is Over

the Moon After Discovery of Huge Gold
Deposits" (https://www.africa-press.net/ug
anda/all-news/uganda-is-over-the-moon-aft
er-discovery-of-huge-gold-deposits) .
Uganda. Retrieved 2022-07-02.
Bibliography
Uganda Business Law Handbook: Strategic
Information and Laws (https://books.google.c
om/books?id=0ZtOCs25XZgC&pg=PA93) .
Int'l Business Publications. 2012. ISBN 978-
1-4387-7128-1.
Job, A. L. (1967). "Mining in Uganda" (http://
www.africabib.org/rec.php?RID=18826025
0) . Uganda Journal. 31 (1): 43–61.
Hinton, Jennifer (2009). "National Strategy
for the Advancement of Artisanal and Small
Scale Mining in Uganda". Report to Ministry of
Energy and Mineral Development.

Kasimbazi, Emmanuel; Alexander,

Kibandama (2011). Environmental Law in
Uganda (https://books.google.com/books?id
 =zyJIfAUKeGcC&pg=PA192) . Kluwer Law
International. ISBN 978-90-411-3833-0.

Further reading
Basiima, Alex (1993). Uganda Sector
Profile: Mining (https://books.google.co
m/books?id=_eOCXwAACAAJ) . Uganda
Investment Authority.
Uganda Mineral & Mining Sector
Investment and Business Guide (https://b
ooks.google.com/books?id=d2R0Fegrg
XwC) . Int'l Business Publications. 2007.
ISBN 978-1-4330-5087-9.
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