According to Ruth Nankabirwa, Uganda’s energy and mineral development minister, the country has established a state-owned mining firm to oversee the government’s equity holdings in mining operations.
Prior to now, private companies have carried out all mining operations in the East African nation following the acquisition of exploration and mining permits.
The government may compel the acquisition of a 15% free carry interest in all mining enterprises within the nation under a new mining law that was adopted in 2022. This action is a part of larger attempts to increase Uganda’s revenue from its natural resources, emulating other African nations like Tanzania.
“This company will manage the state’s commercial interests in the mining industry. It will do so through strategic partnerships with young developers in the private sector,” Nankabirwa told a mining conference in Kampala on Tuesday.
The administration of President Yoweri Museveni has also been pressuring industry participants to refine minerals and add value locally rather than shipping them unprocessed.
Woodcross Resources, a mining company, established Uganda’s first tin refining plant in April. The company purifies tin ore to a 99.9% purity.
Australia’s Ionic Rare Earths has been granted a licence to mine and process rare earths. In contrast, Chinese-backed Sunbird Resources has been granted permission to mine limestone to produce cement in the northeastern part of Uganda, known as Karamoja.