Uganda Establishes State-Owned Mining Company to Enhance Mineral Value
Uganda has established a state-owned mining company to oversee the government’s equity interests in mining operations, announced Ruth Nankabirwa, the Minister for Energy and Mineral Development.
Historically, all mining activities in the East African nation have been conducted by private firms operating under exploration and mining licenses.
However, a new mining law approved in 2022 allows the government to compulsorily acquire a 15% free carry stake in all mining operations in Uganda.
This initiative is part of broader efforts to increase the country’s share of the value derived from its mineral resources, following the example of other African nations like Tanzania.
“This company will manage the state’s commercial interests in the mining industry and foster strategic partnerships with emerging developers in the private sector,” Nankabirwa stated at a mining conference in Kampala on Tuesday.
The government of President Yoweri Museveni has been actively encouraging investors in the sector to process minerals and add value domestically, rather than exporting them in their raw form.
In April, Uganda launched its first tin refining company, established by Woodcross Resources, which refines tin ore to 99.9% purity.
Additionally, Chinese-backed Sunbird Resources has been licensed to mine limestone for cement production in the northeastern Karamoja region, while Australia’s Ionic Rare Earths has received a license to mine and process rare earth elements.
Ugandan geologists report that the country is rich in a variety of minerals, including gold, cobalt, copper, iron ore, and rare earths.
