Unlocking Uganda’s Mineral Potential: A 30-Day Campaign to Showcase Opportunities
By The Public Lens
The Uganda Chamber of Mines and Petroleum (UCMP) on Monday announced 30 days of mining campaign with the aim of showcasing Uganda’s mineral wealth and investment opportunities in the sector.
The campaign starts on September 3, 2024, and will end on September 30, 2024, under the theme: Leveraging critical minerals for sustainable development and economic transformation.
This campaign precedes the 13th Annual Mineral Wealth Conference, set for October 1-2, 2024, at the Kampala Serena Hotel, with the Ministry of Energy & Mineral Development as a partner.
The primary goal of the “30 Days of Mining” campaign 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.
The campaign will be featured across both traditional and digital media platforms under the hashtag #30DaysofMining, utilizing talk shows, face-to-face engagements, social media interactions, and more.
UCMP Chief Executive Officer, Humphrey Asiimwe, says the campaign will explore Uganda’s mineral sector potential, addressing broader issues such as the legal and policy framework, investment opportunities and challenges, gender and youth inclusion, the artisanal mining landscape, mineral traceability initiatives, technology and innovations, sustainability efforts, community engagement, and more.
VALUE ADDITION
During the launch on Monday, the Chairman of the Board of Trustees of Uganda Chamber of Mines and Petroleum, Richard Kaijuka, said that if the country focused on three minerals and added value to them, “it would be getting more money than you get from oil and gas.”
“This will remain a song until serious players have gone into mining,” he said.
“In the next 5-10 years, if we invested in a focused manner, our contribution to the GDP and forex earnings would be second to none,” said Kaijuka. He added that all countries are positioning themselves for visa-vie long-term approaches.
“We must do whatever it takes to attract serious investors into the country and make mining a priority.”
Nabil Alam, the Chief Executive Officer of Blencowe Resources, however, argues that value addition, although a “fantastic idea,” is hard to do everything in-country. He noted that the issue of value addition requires a holistic approach and that a “tremendous investment is what we require.”
He appealed to the country and sector players to take time and understand each mineral, develop a strategy, and see how much (in terms of value addition) can be done in-country.
According to Lynn Gitu of PlanetGold, Uganda’s mining sector has great potential to lead Uganda to middle-income status. She says that it is about attracting investors, and the positives will be out for all to see. She adds that for a long time, Africa’s mining sector has been known for “so many bad things.” To this, she said that the campaign gives Uganda an opportunity to showcase its mineral potential.
Aggrey Ashaba, the Chairperson, Governing Council of the UCMP, said that the campaign will provide information, which information can then be made use of.
UCMP Chief Executive Officer, Humphrey Asiimwe, appealed to stakeholders to sign up for the conference to be able to appreciate what the country’s mining sector has to offer.
Uganda’s Mineral Sector at a Glance
Uganda’s NDPIV 2025/26-2029/30 strategy emphasizes implementing the Mining Act (2022) to address challenges in the sector, such as delays and income leakages caused by speculators.
The country’s rich and diverse mineral resources are drawing significant attention from investors with notable deposits of gold, copper, high-grade tin, tungsten/wolfram, salt, beryllium, cobalt, kaolin, iron ore, glass sand, vermiculite, phosphates (for fertilizers), uranium, and rare earth elements.
Gold
Gold is one of Uganda’s most valuable resources, with significant deposits in Busia, Mubende, Karamoja, and Buhweju. While artisanal and small-scale mining is common, efforts are underway to develop large-scale commercial operations under the new legal framework.
Cobalt and Copper
The Kilembe Mines in Western Uganda, historically important sources of cobalt and copper, are experiencing renewed interest. This revival aims to meet the growing global demand for cobalt, especially for use in batteries. The Ministry of Energy has recently advertised proposals to resume mining at Kilembe.
Iron Ore
Uganda has substantial iron ore deposits, particularly in the Muko area in the southwest and the Sukulu region. These resources are critical for developing a domestic iron and steel industry, which could further industrialize the country.
Tin, Tungsten, and Tantalum (3Ts)
Significant deposits of tin, tungsten, and tantalum (3Ts) are located in Uganda’s southwestern region. These minerals are essential for the electronics industry and are highly sought after on the global market.
Phosphates
Large phosphate deposits in the Sukulu region of Tororo District are crucial for fertilizer production, supporting Uganda’s agricultural sector and contributing to regional food security and economic transformation.
Limestone and Marble
Abundant deposits of limestone and marble are found in the Karamoja region and around Lake Victoria. These materials are vital for the construction industry, particularly for cement production, and play a significant role in infrastructure development.
Rare Earth Elements
Rare Earth Elements (REEs), essential for high-tech applications, have been discovered in Uganda’s Eastern and Western regions. As global demand for REEs rises, these deposits could become increasingly valuable. Notably, Rwenzori Rare Metals Limited, a private Ugandan company, is investing resources in REEs.
Gemstones
Uganda is also known for its rich variety of gemstones, including rubies, sapphires, and tourmaline, found in the Eastern and Western regions. These precious stones contribute to the country’s growing reputation as a source of valuable mineral resources.
Salt
Lake Katwe has long been a source of salt in Uganda, with ongoing efforts to modernize and expand this industry to better serve domestic and regional markets.
With these resources, Uganda is well-positioned to become a leading mineral producer in the region, offering substantial opportunities for investment and economic growth. However, 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 & Mineral Development and the 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 approx. 35% from 2, 194, 340 MT in the calendar year 2017/2018 to 1, 416, 394 MT in the year 2021/2022, with limestone, pozzolana, vermiculite, kaolin (non-metallic), syenitic aggregate, iron ore, and volcanic ash (metallic) contributing the highest quantities, respectively.
The total value of the minerals produced increased by approx. 37.6% from around Shs105.4 billion in the year 2017/2018 to Shs145.1 billion in 2021/2022, mainly contributed by the increase in limestone, vermiculite, gold, wolfram, synthetic aggregate, and iron ore, among others.
Important to note is that the mining and quarrying industries directly employ 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.
