A Breakdown of Uganda’s Mining Law: From Prospecting to Extraction
By Eng Olanya Olenge Tonny
Mining operations include the entire value chain, from looking for, prospecting, exploring, mining, processing, smelting, transporting & Value Addition- everything that one can do with a mineral is provided for and governed.
From prospecting to mining
Mineral Development follows a structured licensing sequence.
The process begins with a prospecting licence, which is issued for one year and allows preliminary assessment of the presence of minerals.
If results are promising, a developer then applies for an exploration licence, which allows detailed studies to determine whether the mineral deposit is viable.
Exploration licences are granted for a maximum of four years and can be renewed once for an additional three years.
Mining is a long-term activity and that the exploration period allows for extensive studies using geophysical, geological and geochemical methods.
“It is only the holder of an exploration licence who has the first right to apply for a mining licence,”
Requirements before extraction
Companies must meet several requirements before transitioning to full-scale extraction.
These include conducting geoscientific and feasibility studies to confirm that a mineral deposit exists in commercially viable quantities.
A company must also obtain surface rights to access land where minerals are located, noting that while minerals are vested in government, land ownership may belong to individuals. Proof of acquisition of these rights is required when applying for a mining licence.
Extraction can only take place under a mining licence and warned that carrying out mining activities under an exploration licence is illegal.
Regulation and compliance
The law contains provisions to ensure that licence holders actively use their exploration areas.
For example, there is a limit to the number of exploration licences one entity can hold, and failure to utilise them may affect eligibility for additional licences.
Exploration licences are granted for specific areas and durations, and developers are expected to carry out work within that period.
Gold and Mineral Regulation
Gold, is regulated like other minerals under the Mining and Minerals Act and related laws. Gold falls under a category of “designated minerals” which are subject to additional regulatory controls due to their association with conflict and security concerns.
Government is working on regulations to establish designated mineral markets and buying centres, where trade will be conducted under the supervision of relevant authorities, including revenue and security agencies.
Sustainability and environmental protection
“The entire regulation is towards ensuring that minerals are extracted in a way that is optimal and they are not wasted, but also that the environment is protected,” The Laws require land restoration and rehabilitation after mining, including refilling pits
Eng Olanya Olenge Tonny is the CEO Lyec Bullion Consults and Team Lead Global Gold Consortium-Ug
+256 789259675 (WhatsApp)
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