Mining: Government to deal with landlords

Kampala. Land owners will have to sell their land to the government if a prospecting mining company makes a discovery.
In the ongoing review of the Mining Act 2003 and Mining Policy, landowners will no longer be required to negotiate with investors – mineral rights holders - for compensation on their land if a mining company wants to carry out mining activities.
This was revealed by Mr Edwards Katto, the commissioner in the Directorate for Geological Survey and Mines and Mines (DGSM), at the 5th Mineral Wealth Conference in Kampala last Wednesday.
“The policy is also trying to address most of these challenges, especially those related to land. Landlords have been asking for a lot of funds. They have been so extortionate and this has been a big challenge, which scared a lot of investors,” he said.

“The government will negotiate for land rather than the investor negotiating with the land owner,” Mr Katto added.
The Mining Act defines a mineral right as an exploration, retention, prospecting, location licence or mining lease.
In Section 82 of the Mining Act, 2003, a mineral rights holder (investor) is required to compensate the landowner for surface rights on land where minerals have been discovered or activities are taking place.
Additionally, if the landowner does not want compensation, then the mineral rights holder has to give the landowner royalties in order to access the land.
The Uganda Chamber of Mines and Petroleum (UCMP) has been demanding for this review to happen.
Mr Elly Karuhanga, the chairperson of UCMP, said: “A more favourable legal regime provides miners with better access to surface rights.”

The review of the Mineral Policy and Mining Act two years ago.
The Osukulu Phosphates project has also stalled for at least five years over failure to secure the surface rights. At least 124 households will be affected by this project and the mineral rights owners have been haggling with the residents on the rates, which Mr Museveni blamed on extortionists.
According to the Land Act 1998, for anyone to be moved off the land, there must be compensation that is provided for the disturbance.
This is further emphasised by the Constitution, which allows Ugandans to own land through the different land tenure systems.
Since citizens can own land privately, mining companies have to approach them for this land but they reserve the right to sell.

Background

Two years ago, President Museveni directed that the mining laws be reviewed and only give the government the right to negotiate with landowners. “The mistake has been to make the investors deal with the landowners, they should deal with the government, and then the government will deal with the landowners. You just tell those villagers to get out. You cannot stop the State from accessing its assets. We shall sort it out, we shall amend the Act,” President Museveni said.

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