Slightly edited article by Dr Patricia K. Litho, Assistant Commissioner for Communication, Ministry of Energy and Mineral Development
In Uganda, the Ministry of Energy and Mineral Development is mandated with promoting sustainable management of energy and mineral resources and ensuring that the sector contributes to the country’s economic growth and industrialization.
The ministry oversees a transparent and well-defined licensing process for mining, mining, and processing minerals, governed by the Mining and Minerals Act of 2022.
This legal and process framework requires all local and international applicants to meet strict technical, financial, and social criteria, including plans for value addition, environmental responsibility, and community engagement.
Acquiring a mineral license in Uganda is a structured process through the Mining Cadastre and Registry System (MCRS) – dgsmportal.minerals.go.ug
Prospective applicants must first register on the MCRS portal and submit the necessary identification documents and tax details.
After registration, individuals or companies can apply for specific licenses such as the Mineral Dealer’s License (MDL) or a mining license, depending on the scale of operation.
Application requirements typically include financial proof, technical competence, and a detailed business plan.
Licensing categories in Uganda:
Prospecting license (PL);
Exploration license (EL) – for exploring minerals within an area of up to 250 km2;
Retention license (RL) – for mineral deposits that cannot be immediately developed;
Artisanal mining license (AML) – for smaller, informal mining operations;
Small-scale mining license (SML) – for operations with smaller capital investments;
Medium-scale mining license (MML) – for operations with medium-range capital investments;
Large-scale mining license (LML) – for mining operations with big capital investment;
Geothermal resources license (EGRL) – for geothermal energy extraction;
Mineral processing license (MPL) – for processing minerals like crushing, grinding, and leaching;
Mineral smelting license (MSL) – for extracting metals from ores; and
Mineral refining license (MRL) – for purifying metals and other mineral products
Mineral value addition
Uganda’s mineral development strategy is firmly rooted in the principle of value addition. In the Mining and Minerals Act, 2022, the Ugandan government commits to transforming the mining sector in line with National Vision 2040 and the National Development Plans, which prioritise industrialization, job creation, and maximizing the value retained within the country.
A key element of this strategy is the prohibition on the export of unprocessed iron ore, a move designed to promote beneficiation within Uganda and foster the growth of a robust steel industry.
Uganda’s iron ore potential
Uganda’s iron ore potential is estimated at 318 million tonnes, presenting a significant opportunity to establish a strong domestic steel industry. This potential can only be fully realized if it is developed in line with the country’s laws, national strategies, and ethical standards, which promote sustainable development.
Uganda’s gold
Gold is one of Uganda’s most precious minerals, and the ministry ensures that it is traded legally. This requires valid mineral dealer licenses, and, for its exports, additional permits and certifications are required.
Companies involved in the gold trade must ensure compliance with all applicable regulations, including verifying the authenticity of the gold, obtaining proof of purchase, and ensuring environmental and social responsibilities are met.
Addressing investor concerns
The ministry remains committed to addressing investor concerns like a lack of clarity in licensing procedures, particularly for iron ore, gold, and other minerals.
The ministry remains committed to a fair, transparent, and development-oriented licensing system that will support Uganda’s transformation agenda.
Adherence to licensing terms
The ministry is committed to ensuring that companies adhere to the terms of their licenses. Any licensee found in breach of the terms, including non-compliance, inactivity, or illegal practices, faces swift and appropriate action.
The actions include the issuance of non-compliance notices, license suspension, revocation, or even cancellation of licenses etc. Through this structured approach, Uganda seeks to maintain a legally compliant mining sector where all players operate on a level playing field.
Respect of local communities
As part of the licensing process, companies must respect the rights of local communities and obtain the necessary environmental approvals from the National Environment Management Authority (NEMA).
The government is committed to ensuring that mineral resources benefit the local populations, contributing to socioeconomic development in the regions where these resources are found. This aligns with the broader goal of ensuring that Uganda’s mineral resources are utilized sustainably, benefiting both present and future generations.
Sustainable mineral development
The government’s approach to mineral licensing reflects the country’s long-term goals of industrialization and economic growth, while ensuring that mineral resources contribute meaningfully to Uganda’s socioeconomic development.
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