Stakeholders in the mining sector say Uganda is well-positioned to become a leading mineral producer in the region, offering substantial opportunities for investment and economic growth, if well handled.
Richard Kaijuka, Chairman Board of Trustees at the Uganda Chamber of Mines and Petroleum, noted that if the right investment and focus is put on the mining sector, Uganda can get more money from its minerals than what it will earn in the oil and gas sector.
“Minerals need investment and thorough exploration. If, for instance, we focus and add value to only 10 critical minerals, like tin, tantalite tungsten, graphite among others, there is potential to get more money compared to oil and gas,” he said.
He explained that investment in mineral development will help lower production costs, increase returns on investment, and expand the availability of locally manufactured products like cement, iron, and steel.
Kaijuka noted that challenges such as inadequate infrastructure in remote areas, limited geological data, and the need for improved regulatory enforcement must be addressed.
According to data from the Ministry of Energy and Mineral Development and Uganda Bureau of Statistics (UBOS), the mining sector’s contribution to national GDP has grown from 0.3% in FY2009/2010 to 2.2% in FY2022/23.
With strategic investment, this could exceed the 7% levels seen in the 1950s and 1960s.
Uganda’s annual mineral production of non-metallic and metallic minerals decreased by approximately 35% from 2, 194, 340 MT in the calendar year 2017/2018 to 1, 416, 394MT in the year 2021/2022 – limestone, pozzolana, Vermiculite, Koaline (non-metallic) and syenitic aggregate, iron ore, and volcanic ash (metallic) contributing the highest quantities respectively.
The total value of the minerals produced increased by approximately 37.6% from around Shs 105.4billion in the year 2017/2018 to Ugx145.1 billion in 2021/2022 – mainly contributed by the increase in limestone, vermiculite, gold, wolfram, synthetic aggregate, and iron ore among others.
The mining and quarrying industry directly employs close to 600,000 people. Most of the people employed in this sector belong to the Artisanal and Small-Scale Mining (ASM) bracket.
ASM contributes over 90% of Uganda’s mining production employs more than 60% of the mining workforce and contributes at least $850 million in production value to Uganda’s economy.
Aggrey Ashaba, Chairman Governing Council, UCMP, said the engagements with the government are yielding tangible results, as reflected in the NDPIV. The government proposes key actions to harness mineral exploration, exploitation, production, and productivity.
“Our focus remains on increasing investment in the exploration, quantification, and geological mapping of priority mineral resources, including iron ore, copper, and phosphates,” he said during the launch of the inaugural “30 Days of Mining” campaign by the Uganda Chamber of Mines.
He called on government to invest in the mining sector, just like it has done in the petroleum sector. He also asked for operationalization and establishment the National Mining Company to enhance the monitoring of mining operations and address sector challenges.
“We urge the government to operationalize the company in the interest of sector growth. We anticipate further formalization of sector operations through new laws, including licensing artisanal miners, scaling up the biometric registration system, and fast-tracking the construction of water facilities for industrial use.”
The inaugural “30 Days of Mining” campaign, under the theme “Leveraging Critical Minerals for Sustainable Development and Economic Transformation,” will run until September 30.
This precedes the 13th Annual Mineral Wealth Conference, set for October 1-2 at Kampala Serena Hotel, with the Ministry of Energy & Mineral Development as a partner.
The primary goal is to showcase Uganda’s mineral wealth, emphasizing diversity, equity, and inclusion in the mining sector.
The campaign will highlight critical minerals, investment opportunities, traceability, Environmental, Social, and Governance (ESG) standards, digitization, and climate change mitigation.
Throughout the 30 days, the Chamber will collaborate with the Ministry of Energy & Mineral Development, private sector entities, and development partners to educate, engage, and inspire stakeholders to explore Uganda’s mineral potential, focusing on promoting sustainable mining practices.