The Ugandan government has introduced an updated set of laws to govern the mining sector.
The recently approved policy stipulates that the Ugandan government will hold, as equity, at least 10 non-dilutable free carried interest shares in the capital of any mining or processing company operating under a mining exploration lease, according to the Mining and Minerals Policy 2018.
As reported by the East African, the government hopes the new laws will ‘improve efficiency and achieve equitable, transparent management of mineral revenues’. The new law will ‘help […] revive the mining sector’, says Permanent Secretary in the Ministry of Energy Robert Kasande. It requires investors to have sufficient capital for exploration, exploitation and value addition.
The government expects that the policy will ensure competitive bidding rounds, removing ‘hoarding’ companies and speculators from the industry. According to Elly Karuhanga, chairman of the Ugandan Chamber of Mines and Petroleum, more than 800 licences are being held by speculators, blocking investment opportunities. He adds: ‘Those licences should be withdrawn immediately so that people who are competent take them up.’
