Insurers must build capacity to handle mining, says official

Insurers must, according to Mr Amogole prepare before hand to handle the highly capital intensive mining sector

Kampala

Uganda’s insurance sector must build both technical and financial capacity in order to provide cover for the mining sector that has woken up after decades of dormancy, Mr Maurice Amogola, the chief executive officer Aon Insurance Uganda has said.

Beside the 3.5 billion barrels of oil located in the Albertine region, Uganda is blessed with a number of minerals that were recently mapped out by a survey conducted across the country.

Uganda’s mining sector slowed in the 70s as the country’s economy collapsed following the exit of a number of mining experts and political repression.

However, over the last 10 years, emphasis has been placed on the sector with several initiatives including the recent airborne geophysical survey conducted between 2004 and 2006. The survey points to the existence of substantial amounts of mineral resources that are yet to be exploited.

At negotiation stage
“We have begun talking among ourselves (insurers) about putting together an insurance programme that will enable us build capacity in terms of human resource and the financial aspect,” Mr Amogola, said.

Mr Amogola was speaking at the close of the mineral wealth conference held in Kampala last week. He said the insurance sector in Uganda has to be ready to take advantage of the new opportunities that will come with increased investments in the mining sector.

A variety of precious, non-precious and industrial minerals including phosphates, platinum, beryllium, bismuth, collumbite tantalite, copper, chromite, diamond, gold, iron ore, tin and wolfram among others have been discovered in a number of places including Busia, Bushenyi, Buhweju, Kaliro, Mubende, Karamoja and Lira.

Mr Amogola said: “For minerals, you need effective liability – taking in the assets and personnel among others, so all the cover can be packaged and offered locally. However, re-insurance can be sourced elsewhere if there is no enough financial capacity.”

nkalungi@ug.nationmedia.com