The document discusses mining investment opportunities in Uganda. It provides background on Uganda's geology, mineral potential and legal framework. Uganda has a variety of metallic and industrial minerals. Recent airborne surveys have identified 18 new potential areas for exploration, including for gold, iron ore, rare earth elements, and uranium. The document outlines several specific investment opportunities, such as in developing deposits of iron ore, rare earth elements, dimension stone, and other industrial minerals. Uganda seeks to attract more private investment to further develop its mining industry.

1. MINING INVESTMENT IN UGANDA
Mining on Top: Africa – London Summit
One Great George street, Westminster, London 24-26th June 2014
By
Eng Irene Muloni (MP)
Minister of Energy and Mineral Development, Uganda

2. Outline
1. Introduction
2. Mineral Potential of Uganda
3. Legal, Regulatory and Institutional Framework
4. Achievements in Uganda’s Mineral Sector
5. Mining Investment Opportunities
6. Conclusion

3. Introduction
Location

4. Country Background Information
• Total Area: 241,039 sq. km
• Land: 197,097 sq. km
• Water (lakes, rivers, swamps): 43,942 sq. km
• Neighbours: Kenya, Tanzania, Rwanda, Democratic Republic of
Congo and South Sudan
• Population: ≈ 35 million
• Languages: 37 languages; English is the official language
• Literacy: 74%
• Climate: Tropical - Subtropical
• Temperature: 15 – 30 0 C
• Terrain: Highest point is Mt. Ruwenzori crossed by the
Equator at 5,110m above sea level and has snow. The
lowest point is Albert Nile at 621m above sea level.
Introduction

5. Introduction
• Uganda possesses a wealth of metallic and non-metallic minerals
due to its diversified geology.
• Uganda’s geology is dominated by old rocks up to 3,100 million years
and this is favourable geology for discovery of world class mineral
deposits.
• Recently, the Government undertook airborne geophysical surveys
covering 80% of the country followed by ground geological mapping,
geochemical surveys and mineral resource assessment. As a result,
several potential areas for detailed exploration of different mineral
commodities have been identified ranging from precious metals, e.g.,
gold, base metals such as copper and a number of industrial
minerals such as limestone/marble.

6. Uganda’s mineral potential
Metallic mineral resources: Beryllium, Bismuth, Copper, Cobalt,
Columbite-Tantalite (Coltan), Gold, Iron, Lead, Lithium, Manganese,
Platinum Group of Metals (PGM), Rare Earth Elements (REE), Tin,
Uranium and Zinc
Industrial minerals: Bentonite , Clay , Diatomite , Dimension Stones,
Feldspar, Glass sands, Graphite, Gypsum, Kaolin, Kyanite, Marble
/limestone, Mica, Phosphate (Apatite), Pozzolana, Salt (rock salt,
halite), Talc and Vermiculite.
Gemstones: Apatite, Beryl – emerald, aquamarine, heliodor, morganite,
Corundum (Ruby, blue sapphire), Fluorite, Garnet, Opal, Quartz
(amethyst, rose), Topaz, Tourmaline and Zircon.

7. Mineral Occurrence map of Uganda

8. Legal, regulatory and institutional framework
Key Legal Tools:
• The Constitution of the Republic of Uganda (1995) as ammended 2005;
• The Mineral Policy (2001),
• The Mining Act (2003);
• The Mining Regulations (2004);
• The Income Tax Act and VAT Act;
Other applicable Laws:
• The National Environmental Management Act;
• The Land Act

9. Legal, regulatory and institutional framework
Mineral Policy, 2001
The Mineral Policy was put in place to guide the country’s Mineral Sector development
and its objectives is to:-
• To stimulate mineral sector development by promoting private sector participation;
• To ensure that mineral wealth supports national economic and social development;
• To regularize and improve artisanal and small-scale mining;
• To minimize and mitigate the adverse social and environmental impacts of mineral
exploitation;
• To remove restrictive practices on women participation and protect children against
mining hazards;
• To develop and strengthen local capacity for mineral development; and
• To add value to mineral ores and increase mineral trade.

10. Legal, regulatory and institutional framework
Mining Act, 2003
The Mining Act, 2003 was enacted to operationalize the Mineral
Policy. It replaced the Mining Act, 1964 and is internationally
competitive and in line with current industry practice, with following
principles:-
• Ownership and Control of minerals: Vested in the Government.
• Exploration and Exploitation of Minerals through grant of Mineral
licenses/rights to any entity including: Prospecting License,
Exploration License, Retention license, Mining Lease, Location
License, Mineral Dealers & Goldsmith License.
• It provides for Mineral Agreements with investors for large scale
projects.
• Entry is on first-come-first serve basis.

11. • All mineral rights are granted and revoked by the Commissioner,
Department of Geological Survey and Mines (DGSM).
• Any person aggrieved by the decision of the Commissioner’s can
appeal to the Minister for an Administrative Review.
• Decisions of the Minister may be subjected to judicial review in the
High Court.
• Incase any party is not satisfied with Uganda’s Courts of Law, it can
go for International arbitration.
• Environment: The mineral right holder is expected to comply with
National Environmental Management Act.
Legal, Regulatory & Institutional Framework

12. All mineral rights except the Prospecting license attract annual mineral
rent, fees, royalty and income tax on profits accruing from production:
• Royalties on gross value is charged as follows: Precious
stones(5%); precious and base metals (5%); Industrial minerals -
quantity based (Currently @ approx USD 2 per tonne).
• Revenues from royalty are shared by: Government (80%); Local
Governments (17%); and Land Owner (3%).
• Compensation: Any disturbance of surface rights of the land owner
has to be adequately and fairy compensated.
The Fiscal Regime

13. Legal, Regulatory & Institutional Framework
LICENCE PURPOSE PERIOD REMARKS
Prospecting
Licence
(PL)
To prospect for minerals
around the country.
1 year Non-exclusive & not
renewable.
Exploration
Licence
(EL)
To explore for minerals in
an area not more than
500km2.
3 years Renewable two (2) terms
of two 2 years each and
half area relinquished on
each renewal.
Retention
Licence
(RL)
Granted to the holder of an
EL when the identified
mineral deposit can not be
exploited due to economic
reasons.
3 years Renewable once for 2
years.

14. Legal, Regulatory & Institutional Framework
LICENSE PURPOSE PERIOD REMARKS
Mining
Lease
(ML)
For mining operations. 21 years Should not exceed area of
Exploration Licence and is
renewable for 15 years.
Location
Licence
(LL)
For mining operations of
a smaller investment
where expenditure to
achieve production will
not exceed 50 currency
points (1cp = UGX 20,000
= GBP 4.7)
2 years Granted to citizens of
Uganda or in case of
corporate, citizen of
Uganda holds ≥50% of
ownership. Renewable for
terms of 2 years each.

15. Geological maps with mineral
potential
• Uganda has generated geological
maps with new mineral potential
zones at scales: 1:250000 (19
Sheets), 1:100000 (74 Sheets) &
1:50000 (52 Sheets).
• These maps can either be availed at
the Department of Geological Survey
and Mines or can be accessed
through a Geological and Mineral
Information System portal at
www.uganda-mining-
go.ug:81/ugandaGMIS
Achievements in Uganda’s Mineral Sector

16. Typical cadastre map
at:
http://www.flexicadas
tre.com/uganda/
Mining Cadastre and Registry System
(MCRS)
• MCRS was put in place to enhance
transparency in licensing of mineral
rights.
• A daily updated web based portal on
www.flexicadastre.com/Uganda/ has
been established to facilitate access to
mineral rights information.
• This development has led to increased
transparency in mineral licensing and
awareness about the mineral potential
areas to both local and international
investors.
Achievements in Uganda’s Mineral Sector

17. Simba Mines
Ltd.-Gold
First Mining
(u) Ltd.-Tin
Zarnack
Holdings-Tin
Muhindo
enterprise -
koalin
Uganda
internal
mining –
iron ore
Berkley
reef -
Wolfram
Great lakes-
iron ore Kigezi steel –
Iron ore
Krone Uganda
Ltd.-Wolfram
Mineral concession map of South Western- Uganda

18. Tororo
Cement-
Limestone
Tororo
Cement-
Limestone
Jan Mangal (u)
Ltd-Gold
Greenstone
resources
Ltd.-gold
Ataco
services Ltd.-
Gypsum
Kilembe
Mines-
Limestone
Anglo Ugandan
Corporation-
Gold
Kisita Mining
company
limited-gold
Hima
cement
Limited-
Limestone
Mining cadastre map showing active mining areas in Uganda

19. Achievements in Uganda’s Mineral Sector cont’d
Modern Documentation System
• A Modern Documentation Centre has been put in place at the Department of
Geological Survey and Mines. It contains geo-information, maps and data in
mineral sector and also hosts the mineral sector website: www.uganda-
mining.go.ug
Geological Mineral Information System (GMIS)
• GMIS has been put in place at the Department of Geological Survey and Mines
and it hosts geological, environmental, seismological and laboratory data.
Trained Artisanal and Small Scale Miners (ASMs)
• About 1000 ASMs have been trained (40% Women) and as a result they show: i)
increased use of mineral resources; ii) increased awareness in market prices; iii)
increased environment awareness related to mining; iv) improved value
addition; v) and increased occupational safety and awareness.

20. • High resolution magnetic data
covering 80% of Ugandan area has
been acquired.
• Similarly high resolution
radiometric (Th, K & U) data
covering 80% of the country has
been acquired.
• Transient Electromagnetic (TEM)
data for selected high mineral
prospective areas has also been
acquired.
Achievements in Uganda’s Mineral Sector cont’d
Acquisition of airborne geophysical data
Radiometric Ternary map
Analytical signal map

21. New mineral potential targets
• Recent airborne geophysical data integrated with new
geological maps has resulted into eighteen (18) mineral
potential targets for further detailed exploration and this is
very crucial for potential investors.
1.Iganga gabbro intrusion - Nickel – PGE
2. Zeu (Zombo District)- Gold
3. Moroto area -Chromite–PGE-Marble-gold
4. Kidera (southeast Uganda) - Kimberlite Potential
5. Naigobya Geophysical Anomaly - Ni, Cr, Cu and Co
and REE
6. Bukusu carbonatite - Limestone, Phosphate, Iron
ore, Titanium,Vermiculite and REE potential
7. Masindi–Karuma Falls area - Ni,Cr,PGE, Fe
8. Kitaka–Buhweju Area Gold
9. Packwach area -Diatomite
10. Kaiso-Tonya-Kaolin-Bentonite clays
11. Mayuge area- Iron
12. Kafunzo area -Nickel
13. Makuutu area – REE & and Uranium
14. Hoima-Kafu area - Gold
15. Kaliro-Ivukula area - Gold
16. Aboke-Alo area - Gold
17. Buhara- Kabale - Iron
18. Butogota –Kanungu - Iron
Achievements in Uganda’s Mineral Sector cont’d

22. Precious Metals
• Gold, silver, platinum occur in all regions of
Uganda.
• 8 million ounces of gold proven.
• Further exploration and evaluation will
discover and prove more potential areas for
precious metals requiring investment in
mechanized mining and processing.
Investment Opportunities in Mining Sector
Gold occurrences in Uganda.

23. Iron ore
• The new airborne data led to discovery of over 200
million tonnes reserves of iron ore (haematite) in
SW of Uganda.
• Over 125 million tonnes of iron ore (magnetite)
proven reserves in SE Uganda.
• Feasibility studies to process Ugandan’s iron ore
using methane gas (from oil fields) and imported
coal to final products are underway.
• This would necessitate to develop a pipeline to
transport gas, develop a gas thermal plant to
generate power (1000 MW), set up iron ore
smelting plants and develop the railway network for
cheap transportation.
Investment Opportunities in Mining Sector
Discovered iron ore deposits marked by
brown colour lines .

24. Rare Earth Elements (REE); potential exist in:
• Isolated pegmatites in SW Uganda, Carbonatite centres in
Eastern Uganda (Sukulu, Butiriku, Bukusu, Napak) with
resources of 74 million tonnes of grade 0.32%.
• Aluminous clays enriched in Scandium, Gallium, Yttrium and
REE in Makuutu area (SE Uganda) is estimated at 3 billion
tonnes with grades of 23% REE and 27% Alumina.
Investment is required for further evaluation of the potential; and
mechanised mining and processing.
Investment Opportunities in Mining Sector

25. Dimension Stone:
• Over 300 million tonnes of marble occurs in Karamoja region and
thousands of millions of dimension stone outcrop all over Uganda.
• Granite, granite gneiss, amphibolites, dolerite and gabbro underlie
the geology of Uganda.
• Investment is needed to develop dimension stone, aggregate, premix
industry for the booming building industry in the region
Investment Opportunities in Mining Sector

26. Vermiculite:
• About 55 million tonnes of vermiculite occur in Eastern Uganda.
There is a mine developed but there is need to establish processing
plants for fertilizers, industrial materials like heat insulators.
Glass Sand:
• Over 2 million tonnes of one of the highest qualities of silica sand of
99.95% for manufacturing glass, thus providing a viable investment.
Salt:
• Over 22 million tonnes of trona at Katwe in Western Uganda,
providing industrial production opportunities.
Investment Opportunities in Mining Sector

27. Phosphates:
• About 280 million tonnes of phosphates occur in Eastern Uganda.
There is an investor preparing to develop a mine and processing
plants for fertilizers, and other industrial products.
Gypsum:
• About 2 million tonnes confirmed and there is an available market for
the manufacture of cement and plaster of paris (POP) used in
medical applications; and making moulds.
Kaolin:
• About 3 million tonnes have been confirmed and this mineral is on
demand from local industries for manufacture of paints, paper,
Investment Opportunities in Mining Sector

28. Tungsten:
• Over 2 million tonnes of reserves occur in Western and Central
Uganda with grades of wolfram ranging from 0.1% to 69%. There are
three mining leases granted to develop this resource.
Tin:
• About 2.5 million tonnes of grades 2.5% tin occur Western Uganda.
Two mining leases have been granted to develop this resource
Titanium:
• Grade of titanium ranges from 13% to 22% in Eastern Uganda and
this resource is undeveloped.
Investment Opportunities in Mining Sector

29. Columbite Tantalite (Niobium-Tantalum):
• About 130 million tonnes of Niobium occur at Sukulu in Eastern
Uganda; and about 3.5 million tonnes of columbite-tantalite in
Ntungamo, Western Uganda.
Other Mineral Commodities include:
• Lead, Lithium, Silver, Zinc, Fieldspar, Kyanite, Diatomite, Nickel,
Beryl, Chromite; and Diamond Group of Metals (DGM) are under
evaluation to determine the commercial reserves and grades.
Investment Opportunities in Mining Sector

30. Uranium
Over 30 uranium targets have been identified and 10
targets have been priorized for follow up by Government.
A. Kei and Midigo-Kaya Basin, Arua
district.
B. Acha-Alo basin-Pakwach district.
C. Zipia, Bibia, Pekelle -Ayugi Basin-
Adjumani district
D. Naam-Okora, Ogli and Wol (Pager-
Agago-Ogel Basin)-Kitgum district.
E. Karongo-Waki Basin- Masindi
F. Bulyango, Kigozi-Kiizi Basin-
Kabarole district.
G. Mpanga-Kahambu Basin Kyatwa
(Ndale) -Mpaga Basin, Kyakutama-
Basin-Kabarole district.
H. Rubindi, Kashongi -Nyabishekye
Basin, Mirama Kababo Basin –
Mbarara distrtict.
I. Kinyasano, Nyakibale (Rukungiri
District), Kagamba, Ntugamo, Rubare
Ntungamo District), Gayaza,
Kahirimbi- Mbarara district.
J. Mabale, Kagadi, Isunga, Pachwa,
Kabwoya-Hoima district.
Investment Opportunities in Mining Sector

31. Geothermal energy
• Main areas under
exploration are:
Buranga, Katwe,
Kibiro, Panymur – All
in Western Rift Valley.
Investment Opportunities in Mining Sector

32. Uganda Investment Authority (UIA)
• UIA put in place an Investment Code, 1991.
• The Code encourages private investment by streamlining procedures and
guaranteeing protection of investors against appropriation.
• Foreign individuals and companies - own 100% of a business in Uganda (Mining
companies inclusive).
Taxation
• Import taxes such as customs duty for all mining equipment is zero-rated.
Mineral Certification
• Uganda is planning to certify minerals, for example tin, tungsten and columbite-
tantalite in compliance with the Great Lakes initiative. When this process is
accomplished, it will be able to trace minerals from mine sites and stages of
trade among the Great Lakes member states and subsequently this will
minimize conflicts in marketing of the country’s minerals.
Fast tracking Investment and incentives in the
Mining Sector

33. Conclusion
• Uganda is richly endowed with mineral resources; the recently
concluded geological, geochemical and airborne geophysical
surveys revealed more mineral resources and targets for gold,
iron ore and Platinum-Nickel-chromium among others.
• Government intends to develop these resources in partnership
with private sector in a sustainable manner.
• Mining Act, 2003 allows partnership (Joint Venture ) in mineral
investment and total transfer of the mineral right.
• You are invited to come and invest in Uganda - the next mining
destination country for high returns.

34. Key Government Contacts
Hon. Eng. Irene Muloni, MP
Minister of Energy and Mineral Development
P. O. Box 7270, Kampala, Uganda
Tel: +256-414-233331
+256-414-344414
Fax: +256-414-234732
E-mail: memd@energy.go.ug
Website: www.energyandminerals.go.ug
Hon. Peter T. Lokeris, MP
Minister of State for Mineral Development
P. O. Box 7270, Kampala, Uganda
Tel: +256-414-232598
+256-414-343508
Fax: +256-414-234732
Website: www.energyandminerals.go.ug
Mr. Fred A. Kabagambe Kaliisa
Permanent Secretary, Ministry of Energy and Mineral
Development
P. O. Box 7270, Kampala, Uganda
Tel: +256-414-234733
Fax: +256-414-234732
Website: www.energyandminerals.go.ug
Mr. Edwards Katto
Commissioner
Department of Geological Survey and Mines
Plot 21-29 Johnstone Road
P. O. Box 9, Entebbe, Uganda
Tel: +256-414-323432
Fax: +256-414-320364
E-mail: dgsm@minerals.go.ug
Website: www.uganda-mining.go.ug

35. Thank you!