Uganda to set up a national mining company
The government of Uganda is set to put up a national mining company. Minister for energy and minerals Ruth Nankabirwa Ssentamu revealed the plans and said the move aims to take equity stakes of up to 15% of all medium and large scale mining operations in the country.
“The new company will be called Uganda National Mining Company (UNMC). State equity participation will be in medium and large-scale mining of up to 15% participatory equity interest at no cost to the government,” said Ruth Nankabirwa Ssentamu.
Mining state in Uganda
According to the country’s geologist, Uganda has large deposits of a range of minerals including gold, cobalt, copper, iron ore, rare earths, vermiculite and phosphates. The country is also aiming to start pumping crude oil in 2025 from fields in its west. The establishment of a state-owned mining firm and commercial state participation in the sector are part of wide-ranging reforms under a new mining law enacted last year.
Under the new law, all mining licences are to be awarded on a competitive bidding basis as opposed to the previous ‘first come, first serve’ criteria, she said, adding that applications would be filed online, a move that would improve efficiency and transparency.
Last year, Uganda said aerial exploration, followed by geophysical and geochemical surveys and analyses, had showed the country had an estimated 31 million tonnes of gold ore, from which an estimated 320,158 tonnes of refined gold could be extracted.
