Deputy Speaker of Uganda’s Parliament Thomas Tayebwa has called upon Energy and Mineral Development Ministry to ensure transparency in the Mineral sector.
He cited that when he was still on the natural resources committee in Parliament, they found one man called “Muyanja”, who nearly had all licenses for Gold mining, surprisingly issued to him by the government.
Speaking at the 13th Annual Mineral Wealth Conference organized by the Ministry of Energy and Mineral Development in collaboration with Uganda chambers of mines and petroleum at Kampala Serena Hotel on October 1, 2024, Tayebwa asked the line Minister, Ruth Nankabirwa to do away with vendors of mining licenses.
The Deputy Speaker, further stressed that the government must unlock the potential in the minerals sector if it is to achieve its ambitious goal of growing the country’s Gross Domestic Product (GDP) from US$55 billion to US$500 billion by 2039.
He said this is a critical sector which government can use to unlock the potential of the country.
In her remarks, Nankabirwa said the sector is steadily growing with new exploration findings and extraction.
The Minister added that government had concluded the process of redeveloping Kilembe mines and that the contractor will soon be announced.
‘’The winning company will work with the National Mining Company to take care of commercial interests of government in Kilembe,” she noted.
On his part, the Chairperson of Uganda Chamber of Mines and Petroleum Board of Directors, Richard Kaijuka, asked the government to consider a supplementary budget for the mining sector.
“It is unbelievable to hear that the mining sector contributes only 02% to the GDP year in, year out,’’ he said.
‘’With additional investment of even US$ 100 million being sought for exploration, I can predict the sector’s contribution can rise to more than 10%,” Kaijuka added.
He said the 13th Mineral Wealth Conference comes at a critical moment, aligning with global trends in clean energy and Uganda’s rising prominence in the critical minerals market.
“As a Chamber we believe that the transformation of Uganda’s mining industry is very possible given the discovery of critical minerals such as lithium, cobalt, nickel, and rare earth elements (REEs), which are essential for technologies like smartphones, military hardware, clean energy solutions and more,” Said Aggrey Ashaba, the Chairman Governing Council of Uganda chambers of mines and Petroleum.
Since the Paris Agreement on climate change, the demand for critical minerals needed for clean energy technologies has surged, increasing from US$53 billion to US$378 billion over the last two decades.
Ashaba said this presents immense opportunities for Uganda to tap into.
Uganda holds vast reserves of copper, cobalt, nickel, iron ore, and REEs, thus positioning the country as a potential key player in global critical mineral supply chains, particularly with rising global shortages.
He said key projects such as the Makuutu Rare Earth Project and the revival of Kilembe copper mines and others are critical to capitalizing on Uganda’s mineral wealth and attracting further investment.
Additionally, he noted that Uganda’s Energy Transition Strategy prioritizes investment in critical minerals, local value addition, and banning raw ore exports to promote domestic mineral processing and increase economic returns, which aligns well with ongoing global discourse.
‘’We believe that with strategic investments, Uganda’s mining sector could see significant growth. Currently contributing 2.2% to GDP in FY2022/23, this could rise with resource quantification, formalization of artisanal miners, infrastructure enhancements, and more to the level of 7% or more reported in the 1950s and 1960s,” he added.
