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Joshua T. Tuhumwire

Commissioner

Department of Geological Survey and Mines

Email: joshua.tuhumwire@minerals.go.ug

dgsm@minerals.go.ug

Website:www.uganda-mining.go.ug

MINERAL EXPLORATION OPPORTUNITIES IN UGANDA

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IntroductionIntroduction

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Fiscal and Fiscal and Macro-economicMacro-economic FrameworkFramework

Uganda’s economy has been growing over the last Uganda’s economy has been growing over the last 23 years 23 years • Liberation of markets from state interventionsLiberation of markets from state interventions

• No requirement for state participation in private No requirement for state participation in private investmentsinvestments

• Incentives to the mining sector include:Incentives to the mining sector include: 100% deductible exploration expenditure100% deductible exploration expenditure Variable Rate Income Tax for miningVariable Rate Income Tax for mining Zero Rate Duty on mining equipmentZero Rate Duty on mining equipment

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• Stimulate investment by promoting private sector participation

• Mineral wealth to support national economic and social development

• Regularize and improve artisanal and small-scale mining

• Mitigate the adverse social and environmental impacts

• Women to participate in mining

• Protect children against mining hazards

• Add value to mineral ores and increase mineral trade

Mineral Sector Development Strategies 1. Formulation of Mineral Policy in 2001

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2. New Mining Act, 2003 and Mining Regulations, 2004

• Ownership of minerals is vested in the stateOwnership of minerals is vested in the state• Various types of mineral rights/ licensesVarious types of mineral rights/ licenses

• Royalties payable on mineral productionRoyalties payable on mineral production

• Compensation payable for disturbance of Compensation payable for disturbance of surface rightssurface rights

• Mineral agreements for large scale investments Mineral agreements for large scale investments •Environmental protectionEnvironmental protection

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Uganda Geology and Mineral Occurrences

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Sustainable Management of Sustainable Management of Mineral Resources ProjectMineral Resources Project

(SMMRP)(SMMRP)

The project aims at assisting in:The project aims at assisting in: capacity buildingcapacity building institutional and regulatory reforms institutional and regulatory reforms improvement of small-scale and artisan mining improvement of small-scale and artisan mining establishment of environment and social establishment of environment and social management capacitymanagement capacity development of requisite physical infrastructuredevelopment of requisite physical infrastructure country wide acquisition of geological information country wide acquisition of geological information information on mineral resources potentialinformation on mineral resources potential

The project was formulated to address technical constraints of the sector and make the country attractive to investors.

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RESULTS ACHIEVED INCLUDE:RESULTS ACHIEVED INCLUDE:

•High resolution Airborne Geophysical Survey started in Dec. 2006 by Fugro Airborne Surveys

•80% of the country has been covered.

•630,622 line km of Magnetic, Radiometric and Electromagnetic surveys have been flown

•Final magnetic and radiometric data released to the public domain •Electromagnetic data totaling to 22,360 line km shall be released by June 2009

Support to artisanal and small-Support to artisanal and small-scale miners and communitiesscale miners and communities

The objective is to advance sustainable The objective is to advance sustainable development of artisanal and small-scale development of artisanal and small-scale mining in rural areas and promote mining in rural areas and promote economic growth, employment and economic growth, employment and poverty alleviation.poverty alleviation.

The project has trained staff of the The project has trained staff of the Department of Geological Survey and Department of Geological Survey and Mines and other stakeholders in the Mines and other stakeholders in the Mineral sectorMineral sector

Capacity BuildingCapacity Building

Geological Mapping Being undertaken in areas covered by

Airborne Geophysical Surveys top provide new geology and identify mineral resources.

This activity will increase This activity will increase accuracy/transparency of the licensing accuracy/transparency of the licensing systems thus reducing conflicts.systems thus reducing conflicts.

Establishment of Computerized mining Establishment of Computerized mining cadastre and registry systemcadastre and registry system

Establishment of ModernDocumentation Centre

The objective of this activity is to ensure efficient storage, search, retrieval and dissemination of geo-information and assist to attract investment in the mineral sector.

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Current Exploration and Mining Current Exploration and Mining ActivitiesActivities

An increase in mineral exploration, as per increase in tenements and companies.

TRENDS IN MINERAL LICENCES

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1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

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Notable Companies Involved in Mineral Production

VermiculiteRio Tinto (U) Ltd

LimestoneTororo Cement Ltd. and Hima Cement Ltd.

WolframKrone Uganda Ltd.

GoldBusitema Mining Cie. Ltd.

CobaltKasese Cobalt Co.Ltd.

Mineral CommodityCompanies

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Notable Companies Involved in Notable Companies Involved in Mineral ExplorationMineral Exploration

African Mineral Fields- African Mineral Fields- Gold & Base metals Gold & Base metals

Oryx Exploration- Oryx Exploration- Gold & Base metals, PGEs Gold & Base metals, PGEs

Flemish Investments- Flemish Investments- Gold & Base metals, Gold & Base metals,

IBI Corporation- IBI Corporation- Gold, Uranium Gold, Uranium

Roraima Mining- Roraima Mining- Gold Gold

Grey Crown Resources-Grey Crown Resources- Gold Gold

Vangold-Vangold- Gold & Base metals Gold & Base metals

International Beryllium-International Beryllium- Beryl Beryl

Nilefos Minerals-Nilefos Minerals- PhosphatesPhosphates

Gold Mines of Uganda Gold Mines of Uganda GoldGold

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Available GeoInformation

•Records and geo-information gathered by government and companies over last 9 decades are available at DGSM.

•Topographic and geology maps for the whole country are available at 1:50,000; 1:100,000 and 1:250000 scales.

•Published and unpublished geological reports as well as Mining Regulations 2004, the Mineral Policy, 2001, Mining Act, 2003, and Annual Reports can be accessed on www.energyandminerals.go.ug

•Uganda – Opportunities for Mining Investment, 2006 and new geo-information available on www.uganda-mining.go.ug

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Why Invest in Uganda

• Uganda still virgin and under-explored Country- Substantial mineral potential.

• Sector reforms being undertaken will assist to further improve the country’s investment environment.

• High resolution airborne geophysical surveys involving magnetic, radiometric, electromagnetic data acquisition and new geological mapping will further provide incentives in mineral exploration and mine development.

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THANK YOU FOR YOUR ATTENTIONTHANK YOU FOR YOUR ATTENTION