Ban on raw minerals export to stay - Govt

Energy Minister Ruth Nankabirwa has maintained that a ban on exporting unprocessed minerals, which was instituted in 2015, still stands.

In February 2015, President Museveni imposed a moratorium on the export of unprocessed iron ore and other minerals. 

Ms Nankabirwa explained that the ban is intended to promote growth of local industries, which in turn create employment.

“For so many years, we have been hearing about people involved in the mines but we cannot see the products that have come out of the minerals. This time round, we are saying that we are putting a ban on exportation of our minerals, which are not processed to a required percentage,” she said on Tuesday.

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 “We are encouraging investors to come and invest in refineries for the minerals, like they have done for gold. We want to see many more refineries being done in Uganda so that we can give job opportunities to our people, in addition to promoting technology transfer,” she added.

The minister said this while addressing participants at the 11th annual mineral wealth conference held in Kampala yesterday under the theme, ‘Positioning Uganda’s mineral sector for green energy revolution.’

Mining companies have been urging the government to lift the ban on grounds that Uganda does not have the processing capacity for all of its ore.  Some mining companies have even threatened to suspend operations entirely since the bulk of their revenue comes from the export of semi-processed minerals, especially gold.

Last year, the State Minister for Minerals, Mr Peter Lokeris, said government would review the ban and introduce exceptions, admitting that several minerals cannot be easily processed beyond a certain level in Uganda. 

However, Ms Nankabirwa yesterday said the minerals must be processed up to the required percentage.

“We would like to see an integration of our minerals subsector supporting oil and gas sub-sector.

 She also said companies involved in mineral exploration should not only enrich themselves, but also help communities in their areas of operation to get out of poverty.

The chief executive officer of Rwenzori Rare Metals, Mr Warren Tregurtha, said since Uganda does not exist on the global list of mineral investment destinations, more publicity needs to be done on availability of minerals in the country.

Ms Agnes Alaba, the acting Director of the Department of Geological Survey and Mines, said Uganda hosts a number of critical minerals that are required for transition to a green economy. She said they include Copper, Cobalt, lithium, and nickel manganese, among others.

Government backs out of Eskom contract

At the same meeting, Minister Nankabirwa confirmed that government would not extend the contract of South African energy company Eskom, which is expected to end next year.

In 2002, government entered into a concession with Eskom to operate and maintain Nalubaale and Kira dams. 

Under the concession, negotiations for a renewal had been expected to take place within three years to the end of the concession, which currently has a few months left. 

But Ms Nankabirwa said Uganda would give opportunity to Ugandan companies to take over the work that Eskom has been doing.

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