Uganda launches state-owned mining company
The government of Uganda has officially launched a state-owned mining company to manage equity interests in mining operations, part of broader efforts to capitalize on the country’s rich mineral wealth.
Uganda’s Minister of Energy and Mineral Development, Ruth Nankabirwa, said the new company is tasked with overseeing Uganda’s commercial stakes through strategic partnerships with private sector developers. This move aligns with Uganda’s 2022 mining law, which grants the government a compulsory 15% free carry stake in all mining ventures.
Mining laws
The law aims to increase Uganda’s share of the profits from its natural resources, following the model of neighboring Tanzania, which has also implemented reforms to retain more value from its mineral resources.
President Yoweri Museveni’s government is pushing for domestic processing of minerals to reduce raw material exports and encourage value addition within Uganda. A reflection of this push is the country’s first tin refinery, launched in April by Woodcross Resources, which processes tin ore to 99.9% purity.
Uganda is rich in minerals like gold, cobalt, copper, iron ore, and rare earth elements. Notably, gold exports from Uganda surged to $2.3 billion in 2023, a tenfold increase from 2022, as reported by the Bank of Uganda. Moreover, companies like Chinese-backed Sunbird Resources and Australia’s Ionic Rare Earths have been granted licenses to mine limestone and rare earths, respectively, further positioning Uganda as a key player in the regional mining sector.
