Uganda seeks investors in the gold sector

By David Muwanga

CAPTION: Ambassador Dr. Stephen Chebrot (fourth from left, on his right, is UIA Director-General Mr. Lawrence Byensi and on his left is UIA Director for Investment Promotion and Business Development Ms. Sheila Mugyenzi.

According to the Gold Mining Status Report February 2021 released by the Ministry of Energy and Mineral Development, one million ounces of gold are estimated in the areas of Mashonga (Bushenyi) and 500,000 ounces of gold in Kampono, Ibanda district. Gold occurs in several places in the districts of Buhweju, Bushenyi, Ibanda, Rubirizi and Mitooma.

The report was released at a meeting between the Uganda’s Ambassadors to Qatar Dr. Stephen Chebrot, the Director General of the Uganda Investment Authority (UIA) Mr. Lawrence Byensi and officials from the ministry at the UIA headquarters in Kampala.

The Report delves into the opportunities for investment in the jewellery and mining sectors extending to joint ventures with existing mining companies for large scale production of gold and in exploration as most of the areas are covered by surface exploration and more work is needed for underground mining.

The Kigezi region has been identified as having 10% of Uganda’s gold production and gold nuggets of up to half an ounce were found at Chelima Valley. High values were also recorded in Bwindi Impenetrable Forest that seem to have been draining tailings from Itama mine, a producer in the past.

The districts of Mubende, Mityana, Kasanda and Kiboga also have the potential for gold mineralization- there are currently two mining leases and thirty-eight location licenses for gold. Gold is mined in alluvial sediments and shear zones and quartz veins, previous studies showed quartz feldspathic auriferous veinlets with width 1-50cm traced for more than 1km along strike with an average grade of 2-5g/t.

Other gold potential areas include Kaboong, Kopoth, Loyoro-Lopedo, Kalapata, Kathile, Mamoru, Kangapeth, Morulem, Sokodu, Kotome, Kanguoth, Lemonye, Loith, Nakapel in Kaabong, Chepkart (Karita-Nakapiripirit), Moruangaber, Kanyimpa, near Acherer, Lotonyiri, Lamariyo, around Nakoit Bridge in Nabilatuk Sub-County, Rupa and Nakabat in Moroto, Alerek and Morulem, Kokano, Pupu, found in Kamoya parish Nyakwae Sub county and Gul Aleri in Abim District.

There are about fifty-four (54) private companies with mineral rights in the region which include 43 Exploration license, eight location licenses and three mining leases.

Precious metals including Gold are also found in Kigezi, Buhweju, Mubende, Busia, Namayingo, Bugiri, and Karamoja.

Incentives

Government offers good geological data sets and management systems and guarantees streamlined procedures and protection of investors against appropriation. Others incentives include allowing foreign individuals and companies to own 100% of business in Uganda including mining companies, zero-rated import taxes for all mining equipment, cheap labour and good governance and security.

For details kindly contact Uganda Investment Authority