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‘Time will affirm investment in the minerals sub-sector’
Women look for gold in a rock at Acerere Gold Mining Site in Nakapiripirit District last year. FILE PHOTO
What you need to know:
- “Uganda currently has only 10 mining inspectors, with plans to double this number—an insufficient measure given the industry’s need,” Humphrey Asiimwe, the chief executive officer of Uganda Chamber of Energy and Minerals.
Humphrey Asiimwe, the chief executive officer of Uganda Chamber of Energy and Minerals, tells Joan Salmon that Uganda is on a strategic path to sustainable prosperity.
When Sir Winston Churchill called Uganda, the Pearl of Africa, it was in response to the natural beauty and variety. I am not sure he had got the real gist of what lies beneath her soils. Maybe he would have called it, the well-endowed land. That is because Uganda is blessed with a diverse array of mineral resources, with approximately 27 minerals identified in commercially viable quantities.
These include critical minerals essential for the global energy transition, such as copper, cobalt, tin, tungsten, and titanium, alongside rare earth elements like graphite and lithium.
Strategic minerals like iron ore and graphite are vital for the country’s industrialisation, while construction materials such as gravel and sand contribute significantly to national development.
However, one wonders, who is exploiting them? Mr Humphrey Asiimwe, the chief executive officer of Uganda Chamber of Energy and Minerals, says both local and international companies are engaged in the exploration and exploitation of these minerals.
“International firms are involved in various stages, from exploration to production. On the other hand, Ugandan-owned entities range from artisanal miners to small and medium-scale enterprises. However, the high-risk nature of mining investments, compounded by limited exploration data, poses challenges for greater local participation in the sector,” he says.
Mr Asiimwe also notes that, globally, the average time from mineral discovery to full-scale mining and value addition is approximately 16.9 years. This underscores the need for patient and risk-tolerant investment, not least because exploration does not always guarantee commercially viable quantities.
That makes it tough for local companies to invest in a venture that seems to swallow more than it gives. At least for half the time of the operation.
Women look for gold in a rock at Acerere Gold Mining Site in Nakapiripirit District last year. FILE PHOTO
Minerals vs oil revenues
With all these highly valued minerals, conversations in investment and development corridors seek to find out whether it would be better to focus on these rather than oil.
Mr Asiimwe agrees that minerals have substantial reward given their variety and abundance in comparison to the singular nature of oil and gas resources.
“For instance, the demand for critical minerals is projected to outstrip supply by 2030, necessitating the rapid development of new mines or the discovery of alternative solutions for minerals such as copper, graphite, and tin,” he says.
Uganda has nonetheless invested heavily in oil and gas, with Mr Asiimwe reasoning that it is a strategic decision attributed to the steady global demand for oil and gas. This provides a more predictable revenue stream.
“Nonetheless, the government is also prioritising mining by fully constituting the National Mining Company with human resource capabilities to enhance exploration and financing efforts, aiming to attract foreign investment into the sector,” he says.
Value addition agenda
Relatedly, with President Museveni’s directive to ban the export of raw materials, efforts are underway to establish more value addition plants within the country. For instance, vermiculite is being processed in eastern Uganda, and iron ore is being refined in Kasese. The large-scale Wagagai gold mine plans to process ore into refined products, including jewellery.
Additionally, tin is being exported as 99-100 percent pure ingots, with initiatives to attract battery manufacturers to utilise Ugandan tin domestically.
“However, the development of more value-added facilities requires time and substantial investment. Challenges such as inadequate electricity supply and poor infrastructure, including the lack of a well-connected railway system, hinder progress,” he offers, adding, “For example, poor road access is affecting the Blencowe graphite project in Kitgum, northern Uganda.”
In 2023, the government launched the Energy Strategy linked to the Energy Transition Plan. “It aims to increase power generation from 2,000 megawatts to 52,000 megawatts by 2050.”
Even then, to make this value addition agenda a reality, funding allocations must align with national priorities. For example, while the National Development Plan highlights mining as a key sector, it was allocated only Shs50 billion (approximately 0.0693 percent) of the Shs72.136 trillion FY 2024/2025 budget.
“Moreover, Uganda currently has only 10 mining inspectors, with plans to double this number—an insufficient measure given the industry’s need,” Mr Asiimwe says.
Men mine gold in Bihanga Sub county Buhweju. Uganda has seen a surge in exploration activity, fueled by rising global demand for these minerals. PHOTO/ FILE
Technological advancements
As the world embraces technology in various sectors and facets of life, modernising Uganda’s mining sector is a necessity that needs urgent attention. Nonetheless, this calls for consolidating and digitising existing geological data, including records from colonial and post-independence exploration.
“This would enable the creation of a comprehensive digital geological map, facilitating artificial intelligence-driven exploration, which is standard in advanced mining economies,” he says. Development partners are providing funding to assist with this digitisation process. Once digital systems are in place,
Mr Asiimwe says other technologies can be integrated to assess Uganda’s mineral potential better and develop bankable mining projects. In this move, a recent survey on Karamoja’s minerals, involving airborne geophysical and geological mapping, revealed over 300 million tonnes of limestone/marble in the Moroto, Kotido, and Napak districts.
“This is a positive development, but similar efforts are needed in other parts of the country to harness Uganda’s mineral wealth,” he says.
External support
Foreign players have been part of Uganda’s mining sector, one of them being Australia, which Mr Asiimwe says has been one of Africa’s strongest mining partners. One of the ways it supports the sector is by hosting the annual Africa Down Under Conference, which attracts junior mining companies and provides risk capital for exploration.
“The Australian Stock Exchange also offers patient capital for mining ventures. One example is Ionic Rare Earths, an Australian company operating the Rwenzori Rare Earths project in Uganda,” he says.
With a variety of critical minerals, Uganda continues to import resources to power its e-mobility journey. However, Mr Asiimwe clarifies that while these minerals are available, not all the required resources are available locally. For instance, Kiira Motors requires 23 different minerals to manufacture buses, but only about 10 can currently be sourced domestically.
“Progress is being made in mineral value addition, such as tin refining in Mbarara, with investors seeking to establish domestic battery production,” he says.
However, major challenges remain, particularly infrastructure and energy deficits. Additionally, Uganda lacks domestic mineral testing laboratories, forcing companies to rely on facilities in China and South Africa. Establishing local testing centres would significantly improve the sector’s efficiency.
Overall, unlocking Uganda’s mineral potential requires bold, strategic action from the government, private sector, development partners, and all stakeholders. A deliberate and coordinated effort is essential to ensure that mineral wealth is sustainably harnessed, driving economic transformation, creating lasting opportunities, and securing prosperity for generations to come.
