Session 3 - Overview of mining sector in Uganda
Elly Karuhanga, Partner, Kampala Associated Advocates and Chairman of Ugandan Chamber of Mines and Petroleum
3. Introduction
Uganda possesses a wealth of metallic and non-metallic
minerals due to its diversified geology.
Metallic mineral resources: Copper, Cobalt,
Tungsten, Beryllium, Bismuth, Columbite-Tantalite, Gold,
Lead & Zinc ores, Lithium, Tin, iron ores, Platinum Group
of Metals, Uranium and Rare Earth Metals.
Industrial minerals: Marble /limestone, Phosphate
(Apatite and francolite), Vermiculite, Kaolin, Bentonite,
Diatomite, Gypsum, Glass sands, Salts, Feldspar,
Quartz, Pozzolana, Dimension Stones .
Gemstones: Apatite, Beryl –emerald, aquamarine,
heliodor, morganite, Corundum (Ruby, blue sapphire),
Fluorite, Garnet, Opal, Quartz (amethyst, rose), Topaz,
Tourmaline and Zircon.
4. Introduction cont’d
All these minerals have the potential
to turn the Country’s economy
around.
Exploration activities in Uganda are
being supported by revising the
policies and legal regimes to more
investor friendly for good returns on
investment opportunities in the
mineral Sector.
- Iron Ore in kanungu, Kabale,
Tororo, Busumbu 300MMT
Cement
- Vermiculite proven reserves at
about 10 MT and currently
best/large flake quality in the
world, at Namekhara,
- Limestone/Marble in Karamoja
300MMT
- Gold
- Copper /Cobalt 6 MT with
potential to significantly
increase resources at Kilembe
- Nickel potential for discovery of
world-class resources in
Lamwo/Kitgum and Ntungamo
districts
- Columbium/ tantalite 130MMT in
Sukulu
- Tungsten/Wolfram 800,000MT in
Kirwa and 1MMT in Nyamiriro
while potential is 300MMT
- Phosphates world-class apatite
deposit with over 300 MT at
Sukulu, Tororo district
- Carbonetite 50MMT in Bukusu
- Kaolin 2.8MMT in Ruhinda and 1MMT
in kooki
- Gypsum 2MMT in Kibuuku Ntoroko
- Salt in Katwe 22MMT
- Glass sands 2MMT for sheet glass
- Granites,
- Rare Earth Elements Aluminous clays
at Makutu, Buwaya in Mayuge
district
- 3Ts ( Tin, Tantalite and Tungsten)
1MMT
6. ACTIVE MINING AREAS
Tororo
Cement-
Limestone
Tororo Cement-
Limestone
Jan Mangal (u) Ltd-
Gold
Greenstone
resources Ltd.-
gold
Ataco
services Ltd.-
Gypsum
Kilembe
Mines-
Limestone
Kisita Mining
company
limited-gold
Hima
cement
Limited-
Limestone
7. ACTIVE MINING AREAS- SOUTH WESTERN
Simba Mines
Ltd.-Gold
First Mining (u)
Ltd.-Tin
Zarnack
Holdings-Tin
Muhindo
enterprise
-koalin
Uganda
internal
mining –
iron ore
Berkley
reef
-Wolfram
Great lakes-
iron ore
Kigezi steel –
Iron ore
Krone Uganda Ltd.-
Wolfram
8. Legal &Regulatory Frame Work
The constitution of the Republic of Uganda
(1995) as amended in 2005.
The Mining Act, 2003
The Mining Regulation, 2004.
The income Tax Act and the VAT Act.
Other applicable Laws are:
National Environmental Management Act
Land Act
11. Recent Developments in Uganda’s Mineral Sector
Recently, the Government undertook airborne
geophysical surveys covering 80% of the country
followed by limited ground geological mapping,
geochemical surveys and mineral resource assessment.
As a result, several potential areas for detailed
exploration of different mineral commodities have been
identified ranging from precious metals e.g. gold, base
metals, PGMs, Rare Earth Elements (REE), Uranium
and a number of industrial minerals such as limestone.
Uganda has generated geological maps with new
mineral potential zones at scales: 1:250000 (19 Sheets),
1:100000 (74 Sheets) & 1:50000 (52 Sheets)
16. Investment opportunities -cont’d
Rare Earth Elements (REE) potential exist in:
Isolated pegmatite's in SW Uganda, Carbonatite centres in Eastern Uganda
(Sukulu, Butiriku, Bukusu, Napak).
Aluminous clays enriched in Scandium, Gallium, Yttrium and REE in Makuutuarea
(SE Uganda) is estimated at 3 billion tonneswith grades of 23% REE and 27%
Alumina.
Other commodities include:
Base metals: Copper, cobalt, Lead, Zinc, PGMs
3 Ts: Tin, Tantalite (coltan) & Tungsten.
Industrial Minerals: Dimension stones (from Marble and Granite)
and Glass sand
Geothermal energy: 4 Main areas under exploration are: Buranga,
Katwe, Kibiro, Panymur–All in Western Rift Valley.
17. Incentives in Mining Sector
Uganda Investment Authority (UIA)
UIA is under Ministry of Finance & Economic Planning and
Economic Development put in place an Investment Code, 1991.
The Code encourages private investment by streamlining procedures
and guaranteeing protection of investors against appropriation.
Foreign individuals and companies -own100% of a business in
Uganda (Mining companies inclusive).
Taxation : Import taxes such as customs duty for all mining
equipment is zero-rated.
Mineral Certification : Uganda is in process to certify minerals, for
example tin, tungsten and columbite-tantalite (3Ts) and gold in
compliance with the Great Lakes initiative. When this process is
accomplished, it will be able to trace minerals from mine sites and
stages of trade among the Great Lakes member states subsequently
will minimize conflicts in marketing of the country’s minerals.
18. Conclusion
Uganda is richly endowed with mineral resources; the
recently concluded geological, geochemical and air borne
geophysical surveys revealed potential for more mineral
resources. Specifically, new targets for gold, iron ore and
platinum group metals(PGMs), REEs, nickel-chromium,
among others.
Government intends to develop these resources in
partnership with private sector in a sustainable manner
MiningAct,2003 allows partnership(Joint Venture) in
mineral investment and total transfer of the mineral right.
You are all welcome to invest in Uganda’s mineral sector