Uganda-Day1-3TGKigali2013

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Presentation by Mr. Okedi, Government of Uganda.

Day 1 of the 6th ICGLR-OECD-UN GoE Forum on responsible mineral supply chains, 13 November 2013.

Visit: http://mneguidelines.oecd.org/icglr-oecd-un-forum-kigali-2013.htm

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Uganda-Day1-3TGKigali2013

  1. 1. OECD-ICGLR-UN GOE FORUM ON RESPONSIBLE MINERAL SUPPLY CHAINS A PRESENTATION OF UGANDA’S INTERVENTIONS TO DATE ON THE 6TH ANNUAL MEETING 13-15 NOVEMBER 2013, KIGALI Joseph P. Okedi Ag. Principal Inspector of Mines/Member ICGLR Committee Department of Geological Survey an Mines MINISTRY OF ENERGY AND MINERAL DEVELOPMENT UGANDA
  2. 2. Presentation Outline Implementation of RCM and due diligence by the private sector in Uganda Monitoring of Gold Imports and Exports Cross-border issues Harmonization of standards, legal and fiscal regimes Roles that other gold trading hubs could play to enable responsible sourcing. 2
  3. 3. 1. Implementation of RCM and due diligence by the private sector in Uganda Background Uganda currently has the following small to medium scale mine sites for 3T and G. The sites include: • For 3Ts – 15 mine sites (6 ML’s and 9 LL’s) mostly located in the southwest region of the country • For G - 17 mine sites either producing or under development spread all over the country Operations have since ceased from some sites as a result of lack of market due to non compliance with the RCM requirements. Following extensive meetings and discussions with mining sector representatives and stakeholders, the policy and legal framework of the sector is currently undergoing review for amendment in alignment with regional standards, legal and fiscal 3 regimes.
  4. 4. 1. Implementation of RCM and due diligence by the private in Uganda It is worth noting that Partnership Africa Canada (PAC), an ICGLR counterpart has been instrumental in facilitating the fast tracking of the implementation of RCM. Current activities • Harmonization of National Policies and Laws in lieu of OECD-ICGLR guidelines • Formalisation of Artisanal and Small ScaleMining • Updating and validation of the National Database • Development of an ICGLR Regional Certificate of Origin for Uganda. • Vetting proposals from service providers for mineral traceability 4
  5. 5. 1. Implementation of RCM and due diligence by the private in Uganda Due diligence • Mine sites namely, Mwerasandu Tin Mine, Nyamuliro Wolfram Mine, Kikagati Tin Mine, and several small scale mines have undergone initial inspection by ITRI and more recently Geotraceability Limited. • No gold mine site has ever been inspected by any mineral traceability service provider. • Todate traceability/chain of custody systems are not operational in Uganda: • Certification of mineral exports through third-party audits or otherwise to validate exports and certificates is done within the framework of current Uganda legislation. · 5
  6. 6. 2. Monitoring of gold Imports and Exports Gold and other mineral commodities are traded within the provisions of the Mining Act, Mining Regulations and other applicable laws of Uganda. Traders are required to have a Mineral Dealers’ License or a Mineral Right as individual or body corporate. Imports • Importation on condition of acquisition of import permit which requires provision of proof of origin. • Proof of location and authenticity of business premises. • Evidence of compliance with legal and fiscal requirements of country of origin. • Proof of quantity and grade. 6
  7. 7. 2. Monitoring of gold Imports and Exports Exports • Exportation on condition of acquisition of export permit under provisions of the law. • Provision of proof of origin. • Declaration of final destination. • Proof of location and authenticity of business premises. • Evidence of compliance with legal and fiscal requirements of Uganda or country of origin. • Proof of quantity and grade. 7
  8. 8. 3. Cross-border issues • Regional insecurity. • Cross-border smuggling. • Non-aligned policies, standards, laws and regulations. • Difficulty to authenticate the relevant documentation. • Informal gold production from artisanal mine sites. • Discrete mineral (gold) production and export databases. • Prevailing end market forces. • Lack of common testing and buying centers. 8
  9. 9. 4. Harmonization of standards, legal and fiscal regimes • Policy deliberations by a select committee (constituted mid2013) are ongoing to review current laws with the aim of fast tracking the implementation of the Regional Mineral Certification Mechanisms and transparency initiatives • Implementation of the other tools • The fiscal review started in mid-2011 and to date a revised fiscal framework is operational • Uganda is actively sourcing mineral traceability service providers that have been vetted under the OECD-ICGLR mineral traceability guidelines 9
  10. 10. 5. Role that other gold trading hubs (e.g. Dubai) could play to enable responsible sourcing • Ensure traders show proof of aligned documentation originating from the Great Lakes Region and consistent with ICGLR-RCM guidelines. • Carry out periodic due diligence with member states on the authenticity of the mineral traders, proof of origin of 3T and G commodities. • Periodic reconciliation of volumes of trade from the different states within the Great Lakes Region. • Require annual reports of compliance with the OECD-ICGLR country specific guidelines from the traders. 10
  11. 11. 6. Conclusion • Policy, and legislative reforms are envisioned to be complete by financial year 2015/2016 • The RCM implementation process is estimated to cost a minimum of USD 700,000. • Concerted efforts from all major stakeholders will be required to fast track the implementation of the RCM. 11
  12. 12. THANKYOU 12
  13. 13. 13

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