Uganda - Mining and MineralsUganda - Mining and Minerals
Uganda’s mining and minerals sector shrunk over the past 30 years, dropping from six percent of GDP (1970) to 0.5 percent (2010). In 2014, Uganda completed a USD 75 million national mineral survey that identified occurrences of resources such as uranium, tin, coltan, nickel, copper and gold across the country. The survey, funded by the World Bank and Nordic Bank is intended to develop an advanced geological data to attract investors. The most endowed regions neighbor mineral-rich eastern Congo. Uganda’s central region also holds potential as an extension of the Green Stone Gold Belt in northwestern Tanzania.
Uganda’s mining sector is a mix of officially registered mining companies (both local and international) and artisanal small-scale miners. Artisanal small-scale mining (ASM) produces more than 90 percent of metallic, industrial and building minerals; providing livelihoods to almost 200,000 individuals. However, ASM is under regulated and hazardous, due to the use of mercury in small-scale gold production. The 2004 Mineral Act provides incentives to mining investors, with royalty fees for base and precious metals set at 3 percent.
Uganda’s gold exports plummeted in recent years. In 2014 Uganda exported USD 240,000 of gold. However in 2012, Uganda exported USD 12.6 million worth of gold that most likely originated in neighboring countries, especially from the Democratic Republic of the Congo, due to political insecurity. In line with U.S. laws and regulations, investors should exercise caution to avoid projects that source conflict materials from neighboring countries.
Sub-Sector Best Prospects
Exporting mining equipment; power generation equipment; civil engineering services; pumps, valves and related materials offers the best prospects in Uganda’s mining sector.
As of June 1, 2016, Uganda does not have any large scale mining operations.
Uganda Mining Equipment and Machinery Trade Development and Promotion