State Participation: Is Production Sharing in Mining Projects Tenable?

Interview: Mining JERVOIS: Bringing Interview: “Artisanal Industry Will Lift Off Uganda to the Forefront Mining Is the Springboard Soon – PS Kasande of the “Green Revolution” The Industry Needs” ...... PAGE 14 ...... PAGE 37 ...... PAGE 44

The Uganda Chamber of MINESMINES && PETROLEUMPETROLEUM Issue: 22 October, 2019 State Participation: Is Production Sharing in Mining Projects Tenable?

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UCMP BOARD OF TRUSTEES

CHAIRMAN Hon. Richard Kaijuka (F.C.I.B) Berkley Reef

DEPUTY CHAIRMAN MEMBER TREASURER Jimmy Mugerwa Gordon Sentiba Dr. Kellen Kayongo Tullow, Uganda Astor Finance Plc Askar Security Country Manager COUNCIL, ADVISORY COMMITTEE

Finance Health, Safety & Environment Insurance Mr. Gibson Nangono Mr. Hakim Mwesigwa Mr. Paul Kavuma Barclays/Absa All Terrain Services Uganda Insurers Association

International Relations Investment, Legal & Advisory Mr. Aggrey Ashaba Mr. William Kizito Ms. Doreen Byengoma GCC Services Finlaw Associates Hima Cement Ltd

Local Content Logistics Minerals Mr. Tony O. Otoa Mr. Hitesh Shah Dr. Jennifer Hinton Stanbic Bank Union Logistics Ltd Jervois Mining

Public Relations Training and Skills Development Youth & Gender Matters Ms. Cynthia Mpanga Mr. Franklin Bouguep Ms. Carol Athiyo Standard Chartered Bank Solid Rock LB Minet Uganda

Special Advisor to the Chairman Sustainable Development General Advisory Mr. Peter Bitarakwate & Social Performance Mr. Gerald Mukyenga Zahkem International Construction Mr. Nicholas Ramsden Multilines International Montrose The Uganda Chamber of Mines & Petroleum 5

UCMP COUNCIL

Chairperson: Vice Chairperson: General Secretary: Hon. Dr. Elly Karuhanga Mr. Patrick Mweheire Mr. Sam Thakkar FCCA (UK) CPA(U) Partner – Kampala Associated CEO- Stanbic Bank CEO UHY Thakkar & Associates Certified Advocates Public Accountants

Treasurer: Member Member Mr. Geoffrey Baitwa Ms. Pamela Natamba Mr. Zhao Shunqiang Director- Threeways Partner - PWC President – CNOOC Uganda Shipping Group

Member Member Member Member Mr. Pierre Jessua Mr. Nicholas Ecimu Mr. Abdul Kibuuka Catherine Niwamanya General Manager Partner – Sebalu & Lule Executive Director - Wabomba – Total E&P Uganda Advocates True North Africa Ag. CEO- UCMP 6 The Uganda Chamber of Mines & Petroleum

THIS WAY ContentsIN Mr. Robert PG Kasande: Mining Industry Will 15 Lift Off Soon MWC2019 Seeks PG Better Environment For Mining 10 PG New Mining Law To Promote Industry 20 – GovERNMENt Shaping PG DGSM’s next 100 years 17

PG Interview: “Artisanal PG Mining Is the Time for Springboard Kilembe To 44 The Industry 62 Get on Board Needs”

PG JERVOIS: Bringing Uganda to the Forefront of the “Green Revolution” in 37 Global Transportation TRIBUTE: Hon. PG Edward Athiyo Lorika, Karamoja’s Gem Will Keep Shining 68

8 The Uganda Chamber of Mines & Petroleum Creating an enabling environment for mining in Uganda The title of this note is borrowed, word for word, from the theme of our 8th Mineral Wealth Conference (MWC2019), scheduled for October 2nd and 3rd 2019.

The repetition is to emphasize our belief that it is high time the country benefited from its highly promising mining and minerals sector, like has been the case before.

We all appreciate that for this to happen however, we will need to have the best conditions in place; hence the MWC2019 theme.

Putting in place a new policy and legal framework is a good starting point by the Government of Uganda. Last year, the Cabinet approved the Mining and Mineral Policy for Uganda 2018, replacing the Mineral Policy 2001. And at present, the Ministry of Energy and Mineral Development is conducting consultative meetings countrywide, to gather stakeholder views on the draft Mining and Minerals Bill 2019.

The Chamber has also prepared its observations on the same, which the Ministry will receive soon. Some of these are captured in this very magazine in the detailed analytical essay by Mr Denis Kusaasira titled “State Participation under the Minerals and Mining Bill, 2019: Is Production Sharing in Mining Projects Tenable?” of which I encourage all of you, and especially the Government officials to read and internalize.

We would also like to applaud the state for securing a loan from Spain to fund the aeromagnetic survey of Karamoja, after a very long wait. This should encourage more investments in the mineral-rich region.

The Government can also directly participate in extensive exploration to help quantify our mineral resource, which will subsequently attract the big players.

Currently, the sector contributes only 0.3% to the gross domestic product (GDP) per annum, yet in the 1960s, when mineral production played an important role not only in export earnings but also in supplying raw materials to local industries, it contributed about 30% to GDP.

This is the kind of potential that we continue to sit on. We commend Sipa Exploration, Jervois Mining, Samta Mines, Wagagai Mines, Rwenzori Rare Metals, Consolidated African Mineral Resources, African Panther and many others that are carrying out extensive exploration work in the country.

The Chamber is committed to protracted lobbying at Government’s doors until Uganda’s mining industry takes off. We believe that with a more predictable and favourable legal regime and therefore an enabling environment, we will more than double the current investment in our mining and minerals sector overnight.

We congratulate the Directorate of Geological Survey and Mines (DGSM) for clocking 100 years of existence and look forward to a more vibrant and productive century.

I thank you. Chairman’s Note Chairman’s

Enjoy, the deliberations, Dr. Elly Karuhanga, Chairman UCMP Council Magazine AD FINAL.pdf 1 9/11/2019 12:08:22 PM

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www.eacop.com 10 The Uganda Chamber of Mines & Petroleum MWC2019 Seeks Better Environment For Mining The Uganda Chamber of Mines and Petroleum (UCMP) in partnership with the Ministry of Energy and Mineral Development is hosting the 8th annual Mineral Wealth Conference (MWC2019) on October 2nd and 3rd, 2019, under the theme ‘Creating an Enabling Environment for Mining in Uganda’.

UCMP Council CM, Dr Elly Karuhanga, Chamber Ag CEO, Mrs Cathy Wabomba, Africa Union’s Mr Frank Mugyenyi, UCMP BOT CM Hon Richard Kaijuka and Mr Gabriel Data from DGSM The Uganda Chamber of Mines & Petroleum 11

censing process easier and and JV Agreement with Rio Tinto faster for the investor, while to underpin accelerated nickel- enhancing transparency in the copper exploration at the Kit- sector. Uganda also agreed gum Pader Base Metals Project We are excited to see large to sign up to the Extractive in Northern Uganda in which Rio players like Australia’s Industries Transparency Ini- Tinto can fund up to US$59M of Jervois coming into the tiative (EITI), an international exploration expenditure to earn scheme that promotes open- up to a 75% interest in the proj- market and the return of ness and trust in the oil and ect. In the latest company report, world class companies gas and mining industries. Sipa quotes a total spend of over $15 million in direct exploration like Rio Tinto. More Discussions at the MWC2019 costs and taxes to the Ugandan have been structured to look investments are expected government since exploration back at the glory days – where in the industry, and as commenced in late 2012. mining was a crucial contribu- Ugandans we need to tor to the economy, examine On the other hand, Jervois Min- cash in, especially through the challenges that led to its ing, who has already invested offering different support collapse and then finally ex- several million dollars in explora- plore options and suggestions tion over the past year and a half, services that create a great foundation recently announced that it had for revamping the sector to approved a $1.5 million explora- Mrs. Cathy Wabomba, fundamentally contribute to tion programme for its Uganda the acting CEO, UCMP Uganda’s economy. projects in the fourth quarter of 2019 alone. Vivo Energy’s Head of Min- ing, Mr. Caldwell Alex, with ex- “Jervois was initially attracted Dr Elly Karuhanga, the UCMP perience from over 10 mining to Uganda by its competitive, Chairman, says the Chamber jurisdiction in Sub-Saharan predictable legal framework and was proud of its continued en- African, Europe and Australia the exceptional geodata and gagement with government, will deliver a keynote address human resources in the indus- aimed at finding solutions to- at the MWC2019, highlighting try. We are thrilled with results wards creating an enabling en- key examples Uganda can achieved through our investment vironment for the mining and learn from the mining giants. in Uganda thus far and we see mineral sector. great opportunity to work with Mrs. Cathy Wabomba, the “I am very happy that the govern- Uganda in order to optimize the acting CEO, UCMP, noted that ment is shifting considerable at- development of her natural re- 2019 had seen a lot of interest tention to the mining and mineral sources,” said Dr Jennifer Hinton, in Uganda’s mining industry, sector starting with the elimination the company’s Country Manager. with significant foreign direct of passive speculators. Already, as investment (FDI) registered. Samta Mines, Wagagai Mines, of August 30, 2019, a total of 475 li- Rwenzori Rare Metals, Consoli- censes were valid. These included “We are excited to see large dated African Mineral Resources 325 Exploration Licenses, 105 Lo- players like Australia’s Jervois and African Panther are some cation Licenses, 42 Mining Leases coming into the market and of the other companies under- and 3 Retention Licenses. Two the return of world class com- taking considerable exploration years ago, over 1000 exploration panies like Rio Tinto. More in- for different minerals across the licenses were in circulation, but vestments are expected in country. most were passive,” he said, not- the industry, and as Ugan- ing the Chamber’s commitment dans we need to cash in, es- The growing interest of inves- to protracted lobbying at govern- pecially through offering dif- tors in Uganda’s mining industry ment’s doors until Uganda’s min- ferent support services,” she means the risks in the sector are ing industry takes off. said. increasingly reducing. The possibility of arranging financing for Recently, government an- In May 2018 Sipa Explora- the mining sector could soon be nounced the creation of an online tion announced a Farm-in platform that would make the li- 12 The Uganda Chamber of Mines & Petroleum

realised if the current growth in guidance, especially the need President Museveni remains the sector is further supported. for value addition on raw mate- a keen follower of events in the rials. He however, asked govern- “The country must do whatever mining industry and is expected ment to find the right balance it takes to make sure that it at- to chair a round table in Decem- between the need to add value tracts serious investments into ber, discussing the sector’s fu- and the investors’ wishes to ex- exploration, so that we can prove ture with different mining com- port raw materials in order for our mineral deposit reserves. panies. the sector to grow. Without proven reserves, Ugan- da can never be known as a mining destination,” said Hon Rich- ard Kaijuka, the Chairman Board of Trustees of the UCMP. Although Uganda is blessed with a huge mineral potential such as huge deposits of gold, vermiculite, rare earths, among others, the mining sector’s contribution to the country’s Gross Domestic Product remains low, at less than 5%, yet, it stood at 30% in the 1950s and 1960s. Deliberations at the conference will cover; financing and raising capital for the mineral sector, latest developments and opportunities for exploration and value addition, mining technologies and technological ad- vancements, international best practices, geological data acquisition, conflict management, production sharing agreements, legal and regulatory frameworks and the role of the state and private sector in mining. Other topics will examine equal opportunities for national participation, training and skilling development, risk, the co-existence of the artisanal and large scale miners, infrastructural requirements for the mineral sector, business models drawn from international experiences among others. The President of Uganda, H.E. Yoweri Kaguta Museveni, has been invited as Chief Guest. Dr Karuhanga thanked Presi- dent Museveni for his continued The Uganda Chamber of Mines & Petroleum 13 14 The Uganda Chamber of Mines & Petroleum

A new policy and legal framework in Uganda’s Mining and Minerals industry is intended to attract more investments and as such grow the industry’s contribution to the growth of the country, according to Mr Robert Kasande, the Permanent Secretary at the Ministry of Energy and Mineral Development. In this interview he shades more light on these interventions and other developments in the industry:

Mr. Robert Kasande, Mining Industry Will Lift Off Soon The Uganda Chamber of Mines & Petroleum 15

How is the mining them in terms of safe mining, agreements. We believe state use of harmless chemicals participation is important, industry doing in the mining process. This since we not all get more in currently? will be even better organized revenues but we also build Following the passing of the when the new law is enacted. capacity. Mining Policy last year, we em- Guangzhou Dongsong is com- We are also looking at creat- barked on a new Mining and pleting the pilot scheme for ing a government entity that Minerals Bill 2019. The first draft its fertilizer after adding value gets involved in mining after of the Bill has been finalised to its phosphates mineral in the law has been passed. and stakeholder consultative Tororo. There is renewed in- The percentage of our interest meetings are ongoing at both terest in exploration. Wagagai as the state is not prescribed national and regional levels. We which has discovered a size- in the law because it will vary hope to have the Bill in Parlia- able gold deposit in Busia dis- depending on the mineral’s ment by November 2019. trict; there is interest in non- value. We are also cleaning up the ca- traditional areas like in Kiboga If I have mapped Karamoja daster system. We have a new in Central Uganda and Arua in and I see lucrative prospects, e-system where all our licens- West Nile. Nickel exploration I may want to have more state es, new and existing, will be is also ongoing. participation, but this may not logged. The Mining Cadaster We are looking at relicensing be the case if I see there is go- Registry System (MCRS) func- Kilembe Mines soon. A lot of ing to be a lot of expenditure tion was upgraded to an e-gov- interest has been registered, in exploration and the like. ernment (online) based mineral and hopefully we attract a licensing system. Together with company that is vertically in- And for strategic minerals the Uganda Revenue Authority tegrated so that they can do like uranium or rare earth ele- (URA), we will develop an on- exploration, mining and pro- ments, the state will likely be line transactional portal where cessing – adding value in- a majority participant. a licensee will be able to view country. all their license portfolios, sub- How are the plans to We are also very close to final- mit new license applications, have value added the izing a financing agreement for pay fees online, track their ap- a Concession Loan from Spain iron ore in the country plication status, submit all stat- to carry out the aeromagnetic going? utory reports, apply for license survey of Karamoja. It will be renewal and perform transfers, The National Planning Author- quite comprehensive. Given surrenders and withdrawals. ity (NPA) is looking at a broad what we already know about scale study that will look at We are also working on regis- Karamoja, even before these what is required? To which tration of minerals through the studies, this survey will be market the steel will go etc. Mineral Certification Mecha- a game changer, with some nism. Furthermore, organiz- good deposits discovered. The lack of a reducing agent ing and registering artisanal is what has failed us so far. We and small scale miners using The Bill 2019 is not have discussed with our Tan- biometric systems is ongoing. clear about the zanian neighbours to consider We had a good benchmarking percentage the state building a gas pipeline from trip to Tanzania to study how Tanzania to Kigezi. A feasibil- they have organized ASMs. will seek in mining ity study on the same will be Already in the Kasanda area projects. What are done soon. in Mubende, we have availed you targeting? Of course this will involve ful- about 30 licenses to SMEs, This is something we have ly quantifying the amount of who have created associa- borrowed from the petroleum iron ore reserve that we have tions. We are supporting 16 The Uganda Chamber of Mines & Petroleum

An artisanal miner cracking marble rock in Rupa, Karamoja

and therefore how much gas tion, and probably consider enfranchise Ugandans, but is required. All these are long- that if land is required for a we need to aim for a win-win. term. We do not expect this public good by government, What other industry to kick off in less than it should be immediately ac- 3 years. quired and the compensation interventions are discussions follow after. being considered All these projects to grow the mining need easy access to That is not a very popular statement, but my thinking is sector’s contribution land, but the various we need to go that way. to the GDP? projects are failing to Because as it is now, it is un- Apart from the new policy and take off because the believably costly! the draft bill which are all inland question remains The Tororo-Lira electricity tended to make our mining unanswered. Any line for instance, has stalled industry more attractive, there lasting solution on in Tororo indefinitely because is a lot of attention going to go one gentleman has sued the towards institutional organiza- the horizon? developer. We are losing mil- tion. Being in a ministry that de- lions of dollars because of We intend to build the hu- velops a lot of infrastructure such avoidable delay. It is ri- man resource capacity at the (mining, electricity, oil & gas), diculous really! Directorate of Geological Sur- the lasting solution I would We badly need to rethink our vey and Mines (DGSM) and want to see personally, is to strategy. improve the remuneration. reexamine our land legisla- This is in no way a call to dis- The Uganda Chamber of Mines & Petroleum 17 Shaping DGSM’s next 100 years In its next century, the Directorate of Geological Survey (DGSM) and its line ministry, the Ministry of Energy and Minerals Development (MEMD) will have to do more of walking the talk, if Uganda’s mining and minerals industry is to match the success of the 1950s and 1960s.

Mr. Joshua Tuhumwire, Director, Gondwana Geoscience Consulting 18 The Uganda Chamber of Mines & Petroleum

his is according to Mr “I honestly do not think the government Joshua Tuhumwire, a has been very serious about reviving the Director and Founder at Gondwana Geoscience mining industry during the last 40 years. Consulting Ltd and This is because a lot is said but little, if any, Tthe Chairman, Sipa Exploration Uganda Limited. With over 30 is done, with the exception of the sectoral years of service to the then interventions in 1983 when an airborne survey Department of Geological Survey was undertaken for hydrocarbons exploration and Mines, including in the role of Commissioner from 2001-2010, and more recently in 2004 – 2011 under the Mr Tuhumwire feels much more Sustainable Management of Mineral Resources can be done, than is currently happening. Project (SMMRP). Mere lip service will not help “I honestly do not think the the industry,” government has been very Mr Joshua Tuhumwire, a Director and Founder serious about reviving the at Gondwana Geoscience Consulting Ltd and mining industry during the last 40 years. This is because a lot the Chairman, Sipa Exploration Uganda Limited is said but little, if any, is done, with the exception of the sectoral interventions in 1983 when an manner calculated to provide Survey and Mines(DGSM) is airborne survey was undertaken maximum benefit to the nation. to provide basic geological for hydrocarbons exploration and In the late 1960’s there used to maps of the country, undertake more recently in 2004 – 2011 under be a Mineral Utilization Advisory mineral exploration, provide the Sustainable Management Committee whose work was to laboratory services, enforce of Mineral Resources Project co-ordinate developments in the the provisions of the Mining Act (SMMRP). Mere lip service will mineral industry,” says Tuhumwire. and technically advise miners. not help the industry,” says DGSM also disseminates geo- Tuhumwire. Uganda’s known economic science data and advises on minerals are copper, cobalt, engineering geological problems Some of the areas he feels have phosphate, marbles, diatomite, not received as much attention as and undertakes geothermal limestone, tungsten, tin, energy survey and geo-hazards they deserve include a failure to columbite/tantalite, pyrochlore, find the right investor for Kilembe monitoring. DGSM has progressed lead, beryl, bismuth, asbestos, a long way since then, but after Mines to exploit the copper and lithium minerals, feldspar, gold, cobalt resources – almost 40 100 years, emphasis is again on salt, glass sands, stone, clay, iron mineral exploration. years after its closure, a failure to ore, sulphur minerals, ceramic carry out an aeromagnetic survey minerals, bentonite, vermiculite, Mining activities started springing of the potentially mineral rich gypsum, amblygonite and up in 1921 as a result of the Karamoja area so as to acquire gemstones. geological investigations and extensive geo-scientific data and mineral production climaxed failure to empower the DGSM to The development of the minerals in the sixties. Gold was first carry out its mandates. in Uganda started in 1919 with the produced in Uganda in 1931. From establishment of the Geological “Uganda is endowed with a 1934-42 the mining of alluvial Survey of Uganda (GSU). GSU was gold was flourishing in swamps variety of mineral deposits founded under the Directorship which if rationally and correctly and rivers in many parts of of Mr. E.J. Wayland, as part of a Uganda, notably in Busia, Kigezi developed can greatly contribute policy of geological exploration to the economic development and Ankole. Total production to to meet the need for minerals for the end of 1964 was 140,085 troy of Uganda. In the exploitation of munitions. GSU was created to minerals, the minerals are never oz, valued at £996,000 by then. In carry out grass-root geological the sixties, the mining industry in regenerated except in rare cases. investigations to assess the It is therefore, necessary that Uganda ranked third as a foreign mineral potential of the country exchange earner. Attempts to the country’s mineral resources at that time. The role of GSU should be exploited in a careful produce a pure salt at Lake Katwe now Directorate of Geological on a commercial basis were The Uganda Chamber of Mines & Petroleum 19

made by the Katwe Salt Trust in the plant closed down in 1978. from the World Bank, the Nordic Development Bank (NDF) 1948-49 and later by the Uganda Like all other production sectors, Development Corporation (UDC) and the African Development the mineral sector showed a Bank (ADB) to fund the year the in 1955-57. In neither case was healthy growth trend during the a process successfully brought SMMRP activities between 2004 sixties. During this period, mineral and 2011. The objective of the into production, mainly because production played an important of high costs of separating SMMRP was to strengthen the role not only in export earning but GoU's capacity to develop a sound and purifying the common salt also in supplying raw materials (Morton, 1971). Another attempt in minerals sector based on private to local industries. The mineral investments and improvements in 1978 – 1979 by UDC with German sector contributed about 30% of government cooperation ended selected artisan and small-scale the gross domestic product (GDP). mining areas. SMMRP helped in failure due to technological The combined export of copper, problems; the project has build institutional capacities, columbite/tantalite, bismuth, acquire extensive geo-scientific remained a white elephant for amblygonite, lead, molybdenum, last 40 years. data and develop information wolfram, beryl, tin, and gold on mineral resources (apart from Beryllium was first worked in placed the mineral sector as the then volatile Karamoja), amongst south western Uganda in the third most important source of other positives. late 1930’s with both very low foreign exchange for GoU during production and price. It was in the sixties. Similarly, production of Such interventions, Tuhumwire the 1950’s when the production limestone, phosphates, salt, sand believes should be routine, for the picked up and the country and stone aggregates formed country to benefit wholesomely produced 3% of world production. a basis for industrial processing from its mineral resource The total production of beryl of cement and fertilizers, and potential. from the time when mining first for construction and building “Government needs to be serious started up to the end of 1964 was industries. about data acquisition and estimated to be 3,732 tons valued GSU played a catalytic role in empowering the DGSM staff, so at £422,000 by then. the development of the mineral that their lawful recommendations In 1956, copper production industry. Provided with sound are respected,” he says. started at Kilembe in Kasese. As a geological survey equipment, a Mr Robert Kasande, the result of an agreement between functioning analytical laboratory Permanent Secretary at the the United Nations Special and a core of trained geological Ministry of Energy and Mineral Fund and the Government of and survey personnel, the Development is confident that Uganda(GoU) on November 30, GSU was able to appraise the more positives lay ahead. 1960, an airborne geophysical mineral potential of the country The review of the policy and legal survey was mounted in Uganda in those areas where it mounted framework ongoing Uganda’s in July 1961. Airborne geophysical geological survey activities. It mining industry will not only surveys were flown in three was out of these activities that become more attractive to regions of Uganda by Hunting the GSU was able to further investors but a lot of attention Surveys Ltd on behalf of the GoU. discover valuable minerals. The will go towards strengthening The Scheme was financed by country later suffered stagnant institutions like the DGSM. the United Nations Special Fund. development and production The areas included Districts of activities after the sixties until “We intend to build the human Karamoja, along strip of country early eighties resource capacity at the DGSM along Aswa fault zone and Fort “For me the most exciting years and improve the remuneration,” Portal/Ibanda areas on east side are the first 61 years of DGSM, says Kasande. of the western rift valley. In the from 1919 to 1972. Unfortunately, Currently, the sector contributes late 1960’s production averaged after the expulsion of the 0.3% to GDP per annum compared about 16,000 tons of copper per Asians and non-Ugandans by to the annual sub-sector growth year. During the early 1960’s GoU then President Idi Amin Dada, of 10.9% - a far cry from the lofty established the Tororo Industrial everything went down and as heights of 30%. This contribution Chemicals and Fertilizers Ltd a mineral sector, we have since is expected to increase to 7% (TICAF) to manufacture granular struggled to find ourselves again,” 2020 according to the National single super-phosphate (SSP). says Mr Tuhumwire. Development Plan (NDP) II (2015- Production capacity was 25,000 2020) and Vision 2040. tons of SSP per year but gradually He however commends the declined in the early 1970’s until Government obtaining financing 20 The Uganda Chamber of Mines & Petroleum New Mining Law To Promote Industry – Govt

Artisanal gold mining in Mubende has left the environment ruined in some areas. Environmental protection standards Uganda is to set to will be emphasized in the new law to have a new mining mitigate the damage law that will create a predictable environment for he formulation of Constitutional Affairs and the law comes the Ministry of Energy and investors and put in after cabinet Mineral Development. When place institutions approved the the bill is finally accented into Mining and law, it will replace the Mining that will consolidate Mineral Policy Act of 2003. 2018, replacing the Mineral government’s income T Among the major inclusions Policy of 2001. The policy has in the Bill is the “establishment already been gazetted. from a sector thought of a government private to be worth more than Already, the first draft of mining company to the Mining and Minerals manage government $10 billion. Bill has been developed by participatory interest in the the Ministry of Justice and mining sector.” The mining The Uganda Chamber of Mines & Petroleum 21

company is expected to “take decades and therefore look at up shareholding of government A major introduction the land as inherently theirs, has participatory interest in mining of the new law will be been tough. projects; hold mineral rights that the awarding of mineral The new law will try to organize are of strategic importance to licenses on a competitive artisanal miners into a formal the government of Uganda; and structure, which is expected to handle government’s commercial basis. Uganda faces a compete favourably with the interests in the mining sector.” problem of dormant other junior miners and create a Other institutions that are to be licenses, where some semblance of harmony in mining created include the Mineral Audit speculators with a weak areas. Unit, which is expected to audit The new Bill now calls for the mining companies to ensure financial base hold “enforcement of penalties, government is collecting the right licenses for far too long sanctions and fines on illegal revenues, among others. without any work done. mining and non-performing There will also be the creation mineral rights.” of a mineral promotion unit “to The new Bill broadens the bracket promote and increase investment of miners. Today, there are many in the mineral sub-sector.” activity.” The law will also look people who are involved in To boost the confidence of critically at the environment in quarries, selling stones under an investors about the certainty of which the miners operate. Issues unregulated regime. Others are licenses, government will also of health and safety for the miners, also involved in sand mining. create a Mining Cadastre Unit. and the use of the dangerous The new law will have legal The creation of the unit comes materials such as mercury, which implications on the commercial in the wake of preparations to has an effect on both the land exploitation of some mineral put in place an online e-licensing and the miners. commodities such as sand, system, where anyone can apply Although Uganda has a mineral clay, stones, murram and for licenses online. protection unit under the Police, gravel and define the role of With the new Mining Cadastre the Bill calls for a more robust unit. Local Government in their system, once an interested The Bill wants the “establishment regulation. party logs in, they will be able to; of the Mineral Protection Force A major introduction of the view all your License portfolios, as an enforcement arm of the new law will be the awarding of submit new license applications, mineral subsector.” mineral licenses on a competitive pay fees online using banking Uganda has missed out on basis. Uganda faces a problem of cards or mobile money, track substantial amounts of money dormant licenses, where some the status of the application, because the country lacks a speculators with a weak financial submit all statutory reports, standard mineral laboratory. base hold licenses for far too long apply for renewal of a license, Mining companies, therefore, without any work done. perform transfers, surrenders and take out minerals to countries Currently, the mode of award withdrawals, among others. such as South Africa and Australia of a license has been via direct In order to protect the for testing. application, more like a first come environment from adverse To curb these cash outflows, the first serve basis. The competitive effects of mining activities, the Bill Bill seeks to create a provision of award of the licenses will rout out calls for the establishment of an “ISO certified mineral laboratory many speculators. Environmental Restoration Fund. services and strengthen the Also, the new law will limit the Money from the fund will be used mineral laboratory to support size of the licenses in order to to restore any environmental geoscientific investigations, allow more investors in the sector. degradation from mining regulation and monitoring.” activities, among others. There will also be a limit to how The country has witnessed many licenses one can hold. Still on the environment, the different cases of artisanal The minister of Energy will be in Bill recommends the adoption miners encroaching on licensed charge of issuing the licenses. of “guidelines for engineering areas. Finding a solution to Previously, the Directorate of geology assessments and these conflicts, especially where Geological Survey and Mines was geotechnical investigations and artisanal miners say they have in charge of issuing the licenses. monitor geohazards and seismic been mining in the area for 22 The Uganda Chamber of Mines & Petroleum

A safety vehicle follows a mining truck loaded with excavated kimberlite rock out of Jwaneng mine, operated by the Debswana Diamond Co, a joint venture between De Beers and Botswana’s government, in Jwaneng, Botswana (Chris Ratcliffe / Bloomberg) State Participation under the Minerals and Mining Bill, 2019 Is Production Sharing in Mining Projects Tenable?

Introduction among others, production sharing By Denis Kusaasira, arrangements. LL.M in Mineral Law Uganda's draft Minerals and Mining Bill, 2019 (the “Bill”) proposes to This paper examines the changes & Policy, CEPMLP, fundamentally change the role proposed in the Bill, focusing on University of Dundee, of the state in the mining sector. the provisions relating to state The state will, in addition to being participation and production UK Partner at ABMAK a regulator and granter of mineral sharing, and how these Associates rights, become a participant in changes could affect Uganda’s mining projects undertaken by competitiveness in the competition private investors. The state will for the scarce investment capital for participate directly or through a mineral development. The paper national mining company to be concludes that the provisions established under the Companies relating to state participation Act. The Bill also proposes to and production sharing could empower the Minister responsible negatively affect Uganda’s for mineral development to competitiveness in the accessing enter into a Mineral Agreement the scarce investment capital for with any person in respect to mineral development. any matter related or connected Discussion with operations or activities Every country desirous of under an exploration licence or developing its minerals has the (potentially) a mining lease. The prerogative to enact laws and mineral agreement shall contain regulations to control mining terms and conditions relating to, activities and to maximise The Uganda Chamber of Mines & Petroleum 23 economic benefits to its people. Mineral exploration and extraction The private investor requires such large amounts of may be reimbursed for capital that the state alone could even development—after which not efficiently mine all the minerals the funds advanced the NRC spends pari passu with in the country, even if it so desired. on behalf of the the private investor as under full Therefore, to promote maximum state, with or without participation interest. The private use of mineral resources, the investor may be reimbursed for state has to implement a system interest or a risk the funds advanced on behalf under which private individuals premium. Where of the state, with or without and companies may develop the compensation does interest or a risk premium. Where mineral resources by obtaining compensation does occur, it is licences through grants from the occur, it is typically typically paid out of the state’s state. paid out of the state’s share of the future dividends or Mining companies have many share of the future profit distributions that would have been distributed to that ownership countries to choose from when dividends or profit deciding to expend their mineral interest. The result is that the exploration and development distributions that state will not receive any dividend budgets. In most developing would have been distribution for many years or at all. In practice, the amount due to the countries, mining capital is foreign distributed to that in origin, and as is known in investor may increase steadily over general, such capital is scarce, ownership interest. the years. In effect, but not in form, and timid with regard to venturing this type of equity can be thought into countries it perceives as of as similar to a loan extended risky. This means that developing technology and know-how, or by the investor to pay the state’s countries are constantly engaged (iii) the need to have more direct equity purchase cost and ongoing in a worldwide fierce competition control over project development. participation costs. Carried interest for the scarce capital to develop requirements are typically not A state may participate in a mining their minerals. Those nations with acquired by statutory mandate project in any of the following prospective geology, reasonable but arise instead in a negotiated forms: tax, acceptable legislation and agreement where a government political stability have a brighter l Full participation. The state or desires an equity stake but is prospect than those where one or its designated national resource not able to currently pay for it. more of these elements are absent. company (NRC) invests pari passu For example, the Government with the private sector from the start of Mongolia entered into an Due to this worldwide competition of operations, by acquiring either agreement with foreign investors to for the scarce mining capital, an equity share in an incorporated develop a large copper mine, and countries are not entirely free to joint enterprise or a participation a related shareholder’s agreement enact any form of legislation or interest in an unincorporated joint provided for carried interest equity offer any contract and fiscal terms venture. Most investors do not provisions. as they wish. Governments must view this requirement as a major find out what is happening in other l Tax swapped for equity. This is impediment to investment as long countries and regions with similar where the government’s equity as the purchasing procedures are circumstances. Knowledge of how share is offset against a reduced clearly defined. Some investors such countries have fared with tax liability. Tanzania applies this welcome working state equity certain contract forms and fiscal model to acquire equity in addition participation because it can reduce regimes can shade light on the to the free equity carry acquired by certain types of risk. The mining appropriateness of host country’s statutory mandate. laws of Botswana, Indonesia, and proposed laws, contracts and Papua New Guinea require that l Free equity participation. This fiscal regimes. Thus, some form of the government has an option to option is a simple grant of an comparative review is considered acquire a working interest in new equity interest in an incorporated normal practice. mines, and these nations have been joint enterprise to the state A. State Participation successful in attracting foreign without any financial obligation Governments adopt state investment into their mining sector. or compensation to the private participation in mining projects in investor. The state, however, l Carried participation interest. a variety of forms, depending on receives a share in the joint This may take several forms. The their aims, the circumstances and enterprise’s dividends pro rata to most frequently encountered is issues they face. State participation its equity interest. The justification the so-called partial carry during may be motivated by the desire to for the free equity participation is the early stages of a project. Under share in the profit and any upside that the state’s contribution to the this approach, the private investor of a mining project and/or by project is the mineral endowment “carries” or advances the costs of non-economic reasons. The non- being exploited. Free equity its NRC partner’s interest through economic reasons may relate to; participation is viewed by investors specified stages of a project— (i) nationalistic sentiments, as taxing the project albeit using exploration, appraisal, and possibly (ii) the need to facilitate transfer of 24 The Uganda Chamber of Mines & Petroleum

The provision of the Bill that provides for state a different instrument from a tax. participation is clause 46(2). It provides as follows: Hence, a requirement for free equity is considered a major detriment “(2) There shall be included in an exploration licence by most potential investors. Free equity participation requirements a provision with respect to the exercising by the have a substantial negative impact Government or the Uganda National Mining Company, on potential fiscal revenue because of an option to acquire, on any stipulated terms or on little investment will occur. Accordingly, free equity interest terms to be agreed, an interest in any venture for the requirements have declined over exploration which may be carried on in an exploration the past several decades, except in certain countries in the West Africa area.” [Underline is for emphasis]. region. Even in such countries, proposed mining projects are sometimes exempted from the operations under a special mining substituting for it the following: equity requirement (such as in licence. 10.-(1) In any mining operations Ghana and Guinea). (2) The level of free carried under a mining licence or a special interest and State participation mining licence the Government in any mining operations under shall have not less than sixteen What is notable in the above a special mining licence shall percent non- dilutable free carried clause is that either Government be negotiated upon between interest shares in the capital of a or the Uganda National Mining the Government and a mineral mining company depending on Company may exercise an option rights holder depending on the the type of minerals and the level to acquire an interest in a mineral type of minerals and the level of of investment project during the exploration investment.” (2) In addition to the free carried phase. Further, that the interest in interest shares, the Government the mineral project will be acquired The Tanzania mining Act specified shall be entitled to acquire, in either on any stipulated terms or on the form of state participation total, up to fifty percent of the terms to be negotiated. The level as “free carried interest”. shares of the mining company and form of state participation in However, it did not specify the commensurate with the total a mining project is not specified. level of participation. The Act tax expenditures incurred by A comparative review of laws of was subsequently amended by the Government in favour of the other countries where the state section 9 of the Written Laws mining company has the right to exercise the option (Miscellaneous Amendments) (3) Acquisition by the Government to participate shows that the level Act, 2017 to cure the defect in the of shares in the Company shall be and form of state participation is following terms— determined by the total value of customarily specified in the law. “9. The principal Act is amended the tax expenditures enjoyed by In cases where the state intends by repealing section 10 and to participate in form of a carried interest, the method of valuation is stated. A near example on this point is Tanzania. The Tanzania Mining Act, 2010 provided for state participation in the following terms: “10.-(1) The Minister may, on behalf of the United Republic and subject to subsection (3), enter into a development agreement, not inconsistent with this Act, with the holder of, or an applicant for, a mineral rights for which he is the licensing authority relating to the grant of such a mineral right or mineral rights, the conduct of mining operations under a special mining licence the grant of the Government free carried interest and State participation in mining, and the financing of any mining President Yoweri Museveni at the Goodwill Ceramics Company, in Kapeeka, Luwero 25 The Uganda Chamber of Mines & Petroleum

production is split between cost the mining company.” Production Sharing Agreement model, or the “PSA model”. and profit minerals. An alternative Further, and most important, there to a royalty is to have a limit on cost is a real risk in the Bill that state The PSA model differs from the Tax minerals, for example, 60 percent of participation may be retrospectively and Royalty model where the state production, which ensures there is applied to exploration licenses grants an investor the exclusive profit minerals, and therefore, state and mining leases issued prior to right to exploit minerals within a revenue, as soon as production the coming into force of the new defined area, commonly known as commences. mining law. This is implied in clause “the contract area”, and to process, market and sell any minerals Unrecovered costs in any year are 3391(a) and (2). The clause provides carried forward to subsequent years. as follows: successfully extracted; in return for payment of taxes, royalties, mineral Some PSAs allow unrecovered “339. Existing licences, permits costs to be uplifted by an interest and agreements. rents, and, sometimes, additional profit tax. factor to compensate for the delay (1) A licence or permit issued in cost recovery. Interest expense under the Mining Act, 2003, Under a typical PSA model, the is generally not a recoverable cost. repealed by section 338, and state retains the right to mineral If interest expense is allowed to be which is in force immediately resources in the ground but recovered, then there should be no before the coming into force of appoints the investor as “contractor” uplift for unrecovered costs as this this Act— to assist the state in developing would involve a double counting to (a) shall have effect from the the resources. Instead of paying the extent unrecovered costs are commencement of this Act as if the contractor a fee for this service, debt financed. granted under this Act; and while the state bears the risk, cost (b) The effect of section 339(1) and expense, the parties agree Contractors usually pay income (a) is that the condition of state that the contractor will meet the tax on their share of production participation under clause 46(2) of exploration and development and may be subject to the same the Bill is retrospectively implied costs in return for a share of any income taxes as other companies. in all existing licences and permits. production that may result. The The split of profit minerals can Retrospective law is generally contractor will have no right to be mimic a resource rent tax. However, considered to be unfair and paid in the event that discovery since the state receives a share of contrary to rule of law. and development does not occur. production, the package of taxes, royalties and fees will typically The other risk in the Bill is that it is The PSA will usually specify a be lower than under the Tax and not sufficiently clear whether, if the portion of total minerals that can Royalty regime. state does not exercise the right to be retained by the contractor to participate during the exploration recover costs (“cost minerals”). The Nonetheless, PSA’s have been used phase, the state will be estopped remaining minerals (including any by some countries. Philippines to exercise the option during the surplus of cost minerals over the uses the PSA for a broad spectrum mining lease phase. This creates amount needed for cost recovery) of hard minerals. To overcome the uncertainty. are termed “profit minerals” and complexities of the PSA model, are divided between the state and such as lack of market for the The defects highlighted above state’s share of the minerals, the would make the resulting law the contractor according to some formula set out in the PSA. The Philippines PSA permits the state to unpredictable and unfair. Where receive its share of the production the law is unfair and unpredictable, split of profit minerals is often fixed. However, the split of profit minerals in the form of excise tax equivalent especially with respect to important to a percentage of the gross output. matters such as the timing, level may vary by level of production during the year, the cumulative Other countries that use the PSA and form of state participation in model apply it to specific minerals, mining projects, investors will be production in the contract area, the price of the minerals, or the mainly coal [Poland, Indonesia] and loath to invest. These defects would gold [Egypt]. make Uganda uncompetitive. internal rate of return earned B. The Production Sharing on the project. The state retains What is notable is that very few Model and disposes of its own share of countries use the PSA model minerals produced (though joint- for hard minerals. The Tax and Production sharing refers to an marketing arrangements may be Royalty system is the norm for hard arrangement whereby the state made with the contractor) or, as it is minerals. One reason for this is as owner of the minerals and the the case under the Philippines PSA, that production sharing contracts, private investor share the output the state may receive its share of as indicated hereinbefore, tends of mining project in predetermined the production in the form of excise to set an annual limit on the proportions. It is more commonly tax equivalent to a percentage of amount of production that can used in oil and gas projects than the gross output. be allocated to recover costs. for hard minerals. In the mineral In some PSAs there is an explicit The underlying assumption—that resources fiscal systems, this there is a sufficient margin for arrangement is known as the royalty payment that is paid to the government before the remaining allocation between the investor 26 The Uganda Chamber of Mines & Petroleum

and the state—does not hold for satisfactory. In some cases, the the mining industry, because the Further, by problems facing the private managers considering innovative costs of mineral projects are more proposing to front-loaded and higher (as a arrangements have been real. proportion of annual revenue) than introduce the They have worried about how in the petroleum sector. Mining PSA model while to explain the new structures also requires capital investments to shareholders, how to set up throughout a mine’s life because, at the same time insurance against expropriation with time, the resource becomes pushing for value and other risks on assets which less accessible and more difficult they do not own, or how to raise to extract. addition in form loans on property to which they of smelting and do not have title. Another reason why most countries have not thought it worth applying refining, the Whereas the Uganda’s Minerals the PSA model to exploitation of government of and Mining Bill does not provide hard minerals is that there is not any guidance on what terms much to share in hard minerals, Uganda is facing the government of Uganda compared to crude oil, hence in opposite will be offering under the PSA making a profit share less attractive model—the reasons highlighted for the state. Instead, states look directions at the in the foregoing discussion are either to get cash up front in same time. sufficient for one to conclude royalties or capture some value that the PSA model is a no go for added in downstream processing. mining projects. Further, for the PSA arrangements cost recovery before the start Further, by proposing to introduce to be of significant benefit to the the PSA model while at the same host country, the government must of production sharing, and the various bonuses payments to time pushing for value addition be able to sell domestically or in form of smelting and refining, on foreign markets a share of the be made to the state created a non-commercial operating the government of Uganda is output of the extractive operation. facing in opposite directions at This has been possible for oil, but environment for any mining investor. the same time. While the viability not for the hard minerals, where of smelting and refining minerals sales of large quantities on spot Indeed, most serious companies, in Uganda is still complicated by markets cannot be arranged so including those that were several factors, some of which smoothly. The government must already investing in Egypt, are beyond the control of mining depend on the investor to sell the declined to participate in the companies, the PSA model will minerals to affiliates and/or to bidding rounds organised by further complicate issues as it arrange long-term sales contracts the Egyptian government, citing aims at reducing the output that with other firms in the industry. the PSA model as the reason for would be available for use as In 1976, Indonesia had considered their decision. Other companies feedstock in the smelting and the possibility of to replacing suspended their operations refining plants. the contract of work (“COW”) until government agrees to repeal the PSA model. Wood It would be preposterous for the system by extending the PSA state to take, as its production model beyond coal to other hard Mackenzie, the consultant who was hired by government to lay share, part of the minerals minerals. The decision was made extracted and then sell them in favor of continued reliance on out a strategy for Egypt’s mining sector is reported to have cited back as feedstock in the smelting the COW system. The decision was and refining plants, to a company supported by strong tax arguments the oil-and-gas-style PSA as one of the challenges facing in which the state is likely to be in favor of the COW system and by an equity shareholder! the view that it would be easier for Egypt’s mining sector. Egypt has transnational mining companies to reportedly accepted to withdraw In conclusion therefore, it is obtain foreign investment insurance the PSA model and revert to apparent that the provisions for if mining venture were organised the traditional Tax and Royalty state participation in the Bill have under the COW system. system. fundamental defects. The PSA mode is untenable as it is not In 2014, Egypt introduced the PSA It is also important to note that in many cases, extractive firms appropriate for hard minerals. model for gold mining projects. The Therefore, the provisions split was set at 50:50 with a royalty have resisted arrangements that are different from those to which relating to state participation of 6 percent. Mining companies and production sharing could rejected the PSA model on the they have become accustomed, even though the financial and negatively affect Uganda’s ground that the 6 percent royalty, competitiveness. the 50 percent share, the partial control aspects of the proposed agreements might be perfectly The Uganda Chamber of Mines & Petroleum 27

Reference: Otto, J. 2017. The Taxation of substance. American Journal Extractive Industries: Mining. of International Law. 69, 560- Books: United Nations University, 590. Research Collection Barbaris, D. 1998. Negotiating WIDER Working Paper School of Law. Mining Agreements, Past, Present 2017/75. Newspaper Articles: and Future Trends. London: ICMM [2009] Mineral Taxation Kluwer Law International Eric Knecht. Miner Centamin Regimes: A review of issues won’t bid in Egypt gold tender, Peter D. Cameron, Michael C. and challenges in their design terms not viable. Reuters, 23 Stanley. 2017. Oil, Gas, and Mining: A and application. January 2017. Sourcebook for Understanding the Muna N. 2013. Legal and Extractive Industries. International Patrick Werr. Egypt digs itself a Regulatory Frameworks for hole with new mining bidding Bank for Reconstruction and Resource Exploration and Development/World Bank. rules. The National, January Extraction-Global Experience. 2017. Journals, Papers & Other A presentation made at African Publications: Development Bank High Level Wood Mackenzie Says Four Policy Seminar on Optimizing Challenges Face Egypt’s Emil M. S, and Thomas B. 2001. the Benefits Of Coal & Gas in Mining Sector. Enterprise State The Tax Treatment of the Mining Mozambique. of the Nation, November 2018. Sector: An IMF Perspective. Background paper prepared for SMITH, David Nathan and Egypt Cabinet Approves the World Bank workshop on the WELLS, Louis T. 1975. Mineral Amendments to Mineral taxation of the mining sector. agreement in developing Resources Act. Enterprise countries: Structures and News 8 November, 2018. 28 The Uganda Chamber of Mines & Petroleum NEWS IN BRIEF

Women have role to play undertaken at national or local levels with the objective of in managing mining sector scoping women’s involvement in the various activities, the various challenges women face in performing (or lacking) different roles across the mining spectrum, key areas in which they can excel and opportunities to help them establish and grow in mining businesses,” the experts advised recently. Some of the issues affecting women include: inaccessibility to capital and financing for the mining operations, lack of access to information on the availability of mining claims which makes it difficult to acquire mining licences, domestic violence, substance abuse and transactional sex, which exposes or makes them prone to diseases like HIV/AIDS and other Sexually Transmitted Diseases. It is important that government women from participating in the undertakes a comprehensive industry. However, if women are Experts say that “despite study about the issues facing given the right knowledge and the numerous challenges women in the mining industry if it is opportunities, their participation highlighted above, women to resolve the gender imbalance in can have an impact on the in ASM have demonstrated the sector, experts have advised. economy. enormous potential to achieve substantial financial gains and Uganda faces the patriarchal “The study, supported by notion that mining is a man’s manage successful mining a systematic and targeted businesses.” job, which has locked out many analysis and research, can be

NEWS IN BRIEF

Govt to boost capacity geology and mineral exploitation techniques to extract as much of small-scale miners revenue as possible. In a country where financial Although Uganda’s mining industry $10 billion. institutions are wary of taking risks is dominated by Artisanal and Small- in the mining industry, artisanal Vincent Kedi, the principal engineer scale mining operations, most and small-scale miners face the for mining at the Directorate of of these miners use rudimentary challenge of lack of capital to Geological Survey and Mines, equipment, part of which explains invest in their projects. pointed to the lack of regulation as the low revenues from the sector. one of the main issues behind the As part of government’s strategy At least 90 per cent of Uganda’s mining low fortunes for artisanal and small- to organize and improve the industry is dominated by artisanal scale miners. industry, there will be biometric and small-scale miners, with their registration for all the miners. He said there is no legal framework contribution to the country’s Gross for the small miners who are Also, an upcoming Mining Law is Domestic Product valued at less than involved in minerals such as sand, set to further boost the industry 5 per cent. This contribution is thought stone and clay. He also explained and raise the returns of the small- to be far too small in a country whose that the lack of knowledge in scale miners. mineral value is thought to be north of 29 The Uganda Chamber of Mines & Petroleum The Uganda Chamber of Mines & Petroleum 29

NEWS IN BRIEF

Uganda seeks to wipe capacity of project beneficiaries, an operational relationship between ASM stakeholders and out conflict minerals financial institution, a gender responsive mining law and regular monitoring of the 3TG mining industry. One of the things that the project will do is to “establish a Mineral Tracking Working Group involving relevant government agencies to share information to reduce mineral smuggling and enhance revenue collection.”

With armed rebels still controlling large parts of the neighbouring and mineral- rich Eastern Democratic Development minerals Republic of Congo, efforts are underway to shield Uganda’s mineral industry against the can spur economy entry of minerals from such As Uganda’s middle class on whether ASM operators and areas in conflict. grows, sparking demand for new other SMEs understand and have Under the European Partnership housing units, artisanal miners of adequate capacity to meet the for Responsible Minerals development minerals such as needs of and compete within these project, Uganda is seeking to clay and sand have been urged markets.” “prepare mine site operators to grow their capacity in order to For artisanal miners to exploit, and mineral exporters to exploit this opportunity. the presenters recommended undertake responsible mineral In a joint presentation made at the deeper “access to financing and supply chains and in so doing first annual Artisanal Small-scale equipment” as critical if the full open opportunities for them Mining and Quarrying Conference benefits of the sector are to be to access commodity markets recently, Catherine Nyakecho reaped. and capital financing.” from the Ministry of Energy and Figures from their presentation This project is pegged on the Mineral Development, and Hope place production of sand at 3.5 already established OECD Kyarisiima from the United Nations million tonnes in the year 2015/16, Due Diligence Guidance for Development Programme, said with sales valued at $9.9 million. In Responsible Supply Chains of that demand for development the same year, production of bricks Minerals from Conflict-Affected minerals such as sand is expected was valued at 5.4 billion, with sales and High-Risk Areas initiative. to increase in the wake of escalating estimated at $289.2 million. demand for concrete and mortar Uganda is yet to fully embrace Nyakecho and Kyarisiima said used in construction. Organization for Economic when the full value chains of Cooperation and Development The two ladies listed development development minerals are (OECD) standards. minerals among industrial considered – from production of The project targets four minerals such as gypsum and salt, clay bricks, sand, stone aggregate minerals - Tin, tantalum, construction materials like sand and rough dimension stones to tungsten and Gold (3TGs). and gravel, dimension stones, like their use in construction – the total According to the plans, the marble and granite, and semi- value equates to almost 6.5 per project “will address current precious stones, like garnet and cent of Uganda’s Gross Domestic knowledge gaps in the sector tourmaline. Product. that are preventing Artisanal Miners of development minerals, They said almost 7 per cent of and Small-scale Miners (ASMs) they said, should know that “entry the population, approximately 2.5 and other stakeholders from into new markets, such as that million Ugandans, is estimated adopting responsible mineral provided by government civil to rely on these artisanal mining supply chains.” works investments or products development minerals value Some of the outputs will include demanded by the growing chains. enhanced knowledge and middle-to upper class, will depend 30 The Uganda Chamber of Mines & Petroleum

Roofings Celebrates25Years

Dr Ruhakana “The Government of Uganda innovation, service and success is proud of Roofings, which I that had seen a home grown dream Rugunda, the Prime must say, is the leading flagship turned into a trusted brand in the Minister of Uganda, Ugandan brand on the African greater East and Central African has hailed steel continent. Having started out region. with USD 2 million in 1994 the Roofings Group generates between manufacturing giant, company is now worth more USD $60 and USD 70 million per year Roofings Group, than USD 280 million,” said Dr in exports, employing at least 1,800 Rugunda, at celebrations to workers directly. Its companies for being a strong mark 25 years of the company. include Roofings Limited (1994), Roofings, the Premier added, Roofings Rolling Mills (2009), and contributor to the had paid over UGX 100 billion Roofings Steel & Plastics (2010) – growth of Uganda’s in taxes and contributed UGX producing a wide range of steel and economy, especially 3 billion towards social causes plastic products. over the past 3 years alone. These include wire, galvanizing through provision of Sikander Lalani, the Group plant, for wire and fencing jobs and payment of Chairman, called the occasion products, a cold rolling mill and a a celebration of partnerships, colour coating line, for backward taxes. growth, compliance, integration, forming lines, tube mills employment, hard work, for electro welded pipes, PVCand The Uganda Chamber of Mines & Petroleum 31

HDPE plant for water harvesting and drainage systems . Currently Roofings is producing over 200,000 MT of steel per annum, but has an installed capacity of close to 350,000 MT annually. It has mooted plans of exploiting the iron ore deposit in Kigezi, South Western Uganda, which would make it a fully integrated steel producer. However, without a reducing agent in coking coal or gas, these plans remain on hold. The Government of Uganda in the meantime is engaging Tanzania, about the possibility of building a gas pipeline from there to Kigezi. At the celebration, Ms Evelyn Anite promised continued government support to Roofings Group, which she hailed for upholding high standards in its business processes while remaining corruption free over the years. Mr Stuart Mwesigwa, Roofings’ Business Development Manager, noted that the continued investment in human resource training coupled with highly competitive remunerations, kept the employees motivated to deliver their best. Similarly, Mr Abbas Mutyaba representing dealers and distributors of Roofings products said the company made it a point to train them in product knowledge and company ethos, as well, which made them commendable ambassadors for the brand. “Apart from consistently having the best quality products on the market Roofings has also extended us generous credit facilities helping our businesses grow from strength to strength. In turn we have also employed more Ugandans; probably 5 times more than what Roofings employs directly,” Mutyaba noted. Mrs Winfred acclaimed her husband for not only his business acumen but also his humility, integrity, strong moral principles, honesty, modesty and selflessness. Some of the social causes supported by Roofings include its Forever Forestry Guild initiative which aims at re-foresting the entire African continent through the provision of free training, consultation and donation of tree seedlings, oxygen donation to hospitals and education bursaries to the disadvantaged. City Ambulance Limited is a highly specialized Emergency Medical Service (EMS) provider that offers prompt, professional and affordable, basic and advanced life support services. We have a fleet of well-equipped ambulance vehicles manned by a team of highly qualified, experienced and dedicated emergency medical specialists. We are simply experts in our field.

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www.cityambulance.net Plot 12, Acacia Avenue(Babiha) Avenue, Kololo, Kampala. P.O Box 35220, Kla, Uganda. Emergency: 0800111044 (Toll free – available 24/7), Tel: +256 (0) 414-240158 / +256 (0) 392-177174 Email: [email protected] The Uganda Chamber of Mines & Petroleum 33

CONGRATULATIONS 2019 AWARD WINNERS

GOVERNMENT ENTITY CITIZEN CHOICE CIO OF THE YEAR UGANDA OF THE YEAR 2019 AWARD Recognizes the Head of IT in any Government Entity who has been exemplary in the delivery of their work and championed implementation of National ICT related Standards and Recognizes the Government entity which is most The Government e-service voted by the public as Guidelines within their institutions (Submitted by Heads of IT in Government Entities). compliant in the in the delivery of its e-services to the most useful/helpful in the citizens lives. The the Government of Uganda IT Standards in the list of e-services for this category was drawn Martin Sekajja following areas: Cyber security, ICT Approvals N7 from the top 10 most accessed e-services over Head Information Systems process & Acquisition of Hardware & Software: the e-citizen’s web portal (www.ecitizen.go.ug) Kampala Capital City Authority National Social Security Fund e-Tax Instrumental in the design and implementation of the KCCA client transaction platform Uganda Revenue Authority (e-Citie) which improved the Authority’s operations as well as contributed to Uganda’s enhanced global rating in ease of doing business ranking.

OUTSTANDING WEB-PORTAL AWARD

CONNECTED CATEGORY INTERACTIVE CATEGORY INFORMATIONAL CATEGORY LOCAL GOVERNMENT CATEGORY Government Website that offers user centric Government Website that offers enhanced Government Website that offers Local Government Website that offers end-to-end online transactional services (easy for information services (easy for a user to find and essential information services with essential information and is City Ambulance Limited is a highly specialized Emergency Medical Service (EMS) a user to start and finish a transactional without download forms, submit data online, updated updated content in compliance with frequently updated in compliance leaving the portal with fast response and information and interact with the entity) in the NITA-U (E-Government with the NITA-U (E-Government provider that offers prompt, professional and affordable, basic and advanced life interaction) in compliance with the NITA-U compliance with the NITA-U (E-Government Regulations) 2015 - SI No. 27 of 2015 Regulations) 2015 - SI No. 27 of 2015 (E-Government Regulations) 2015 - SI No. 27 of Regulations) 2015 - SI No. 27 of 2015 and the and the Guidelines for Development and the Guidelines for Development support services. We have a fleet of well-equipped ambulance vehicles manned by 2015 and the Guidelines for Development and Guidelines for Development and Management of and Management of Government and Management of Government Management of Government websites: Government websites: websites: websites: a team of highly qualified, experienced and dedicated emergency medical www.mak.ac.ug www.unbs.go.ug www.dpp.go.ug www.mbarara.go.ug Makerere University Uganda National Bureau of Standards Directorate of Public Mbarara Local specialists. We are simply experts in our field. Prosecutions Government

OUTSTANDING SECTOR eSERVICE AWARD Recognizes Government Electronic Services that are the most innovative in transforming service delivery to Government, Citizens or Businesses in the following sectors (submitted by Government Entities):

ECONOMIC INFRASTRUCTURE & COMPETITIVENESS TOURISM & TRADE SECTOR EDUCATION SECTOR HEALTH SECTOR SECTOR Electronic One Stop Center web E-Registration Smart Care PDU E-transit Ladder portal (eBiz) Uganda National Examinations National Medical Stores Uganda National Road Authority Uganda Investment Authority Board Offers real time visibility on all deliveries Since its roll out (2017/2018), 3,292 A single point/one stop web-based A secure, reliable and robust of essential medicine and medical procurements have been initiated and tracked application that makes it possible for national examinations results supplies made to all Public Health Facilities in online. The solution has also built a work culture that potential investors to apply for government management system for academic results Uganda and enables all Public Health Facilities in makes the transition to the electronic Government licenses, permits and certificates required and the attendant processes/services for Uganda to give feedback in real time on medicines OUR SERVICES: Procurement System (eGP) almost seamless to setup up investment projects in Uganda. all the levels handled by UNEB. and medical supplies delivered by NMS.

HUMAN DEVELOPMENT SECTOR ACCOUNTABILITY & GOVERNANCE SECTOR PUBLIC SECTOR ADMINISTRATION JUSTICE, LAW AND ORDER (JLOS) AND MANAGEMENT SECTOR External Employment Information System Integrated Financial Management Business Registration System Ministry of Gender, Labour and Social System eLogRev Uganda Registration Services Bureau Development Ministry of Finance, Planning and Ministry of Local Economic Development Government Since its introduction, there has been a The system automates the labour reduction in turnaround time taken to externalization process by registering the details of With usage in over 250 Government entities, Enables collection of revenues at register a business, from 30 days to 4 hours and individuals going abroad for work and licensed IFMS has improved timeliness and accuracy of selected Municipalities. Collected instant name searches (online). companies which recruit people going abroad for management & financial reports with faster revenues are automatically computed work as well as managing jobs of the registered payment processing from a period of one and aggregated with strategic companies. Time to get licensed reduced by over 85% month to a couple of days. dashboard views for decision-making. www.cityambulance.net

Plot 12, Acacia Avenue(Babiha) Avenue, Kololo, Kampala. P.O Box 35220, Kla, Uganda. Email: [email protected] NITAUganda1 NITA.Uganda nitauganda Website: www.nita.go.ug Emergency: 0800111044 (Toll free – available 24/7), Tel: +256 (0) 414-240158 / +256 (0) 392-177174 Email: [email protected] 34 The Uganda Chamber of Mines & Petroleum

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JEBringingRV Uganda to the OForefrontI ofS the “Green Revolution” in Global Transportation

Idaho Cobalt Project, Idaho, USA

Jervois Mining Limited has recently emerged as In response to this, carmakers one of the world’s leading potential suppliers including BMW, Toyota, Volvo, of key minerals to support the electrification Volkswagen and many others are increasingly adding new models of global transportation. Jervois’ focus is a of electric vehicles to their lines strategic response to the escalating global and, with this, the demand for demand for electric vehicles, and with this, cobalt and nickel is growing. the minerals used to produce the lithium- Jervois, a global exploration ion batteries that are used to power them. and mining company, is a future Countries including the UK, Germany, Sweden, producer of cobalt and minerals that occur with them, including China and many others have committed to copper and nickel. With its strong progressively move away from petrol and diesel balance sheet and an ambitious, powered vehicles in order to reduce fossil fuel experienced management team, emissions, counter climate change and meet Jervois is constructing a cobalt mine in the United States and has demands from consumers. future hopes to do the same in 38 The Uganda Chamber of Mines & Petroleum

0.46% Co and 0.81% Cu inferred. Executive General Manager - Jervois’ is now moving fast to Technical Services at Jervois, Uganda. undertake revised ICO feasibility has designed, developed During 2019, Jervois acquired and scoping studies, which are and operated state-of-the-art Uganda-focused explorer M2 scheduled to be completed at the refineries and smelters across a Cobalt and then merged with end of Q1 2020. First commercial long career. production of concentrate for eCobalt, thereby acquiring the Jervois’ Uganda operations export from the United States is Idaho Cobalt Operations (or ICO), are led by Dr Jennifer Hinton, expected to be achieved in the America’s largest and highest a prominent figure in Uganda’s second half of 2021. quality cobalt resource. Jervois minerals sector for almost 15 concurrently raised A$16.5 million Jervois management comes from years. to finalise feasibility studies, the top of the sector. Crocker, the Dr. Hinton stated “Our goal in in an oversubscribed offering, CEO, was a director on Xstrata’s Uganda is develop a meaningful demonstrating that even in weak Nickel board and its head of operational presence that markets, the company has the strategy, marketing and business contributes in a positive way capacity to raise capital. development. Jervois’ chairman, to the country’s economic and Peter Johnston, was previously “The ICO is very attractive because social development, in much the head of Glencore’s worldwide it is a partway constructed mine. same way as Kilembe and Kasese nickel-cobalt operations and We get to finish a project that is Cobalt Refinery did for Uganda in is widely regarded as one of already permitted. Over $100 their previous operating phases. Australia’s leading mining million has been spent on plant, We are actively exploring as executives. Also on the Jervois infrastructure, and environmental we believe Uganda holds board is Brian Kennedy, who has permitting,” says Bryce Crocker, tremendous potential, exploration built and managed a range of Jervois CEO. is the key to unlocking this.” large mines worldwide, including The ICO project hosts 3.87 mt the Kibali gold mine in eastern Dean Besserer, Jervois’ General 0.59% Co, and 0.85% Cu measured DRC with an investment of US$2 Manager of Exploration, is a and indicated, and 1.82 mt billion. Michael Rodriguez, professional geologist with

Ugandan geologists and field technicians are being trained in international best practice methods for exploration, including in a range ground geophysical survey techniques The Uganda Chamber of Mines & Petroleum 39

One of Jervois’ diamond drilling become a significant exporter of programmes in Kiboga District refined cobalt products. According to Crocker, “Uganda experience in over 50 countries, understanding and sensitivity to has exciting mineral potential and Thomas Lamb, Operations local stakeholders.” at and around Kilembe, which if realised and combined with Manager, has also been active in Since early 2018, exploration the refinery, could transform Uganda’s minerals sector since has been intensive has included the country. But this potential 2012. flying of 3,100 line km of will not be realised unless the helicopter airborne VTEMTM The company has been spending government is careful to create surveys, over 5,900 line km of up to A$1m per month on its 11 an attractive environment for ground geophysical surveys, exploration licences in Uganda foreign investors—one which collection analysis of over 19,800 (aggregating 2,415 square takes a long term view.” kilometers), and employs a soil and rock samples and over range of skilled and professional 5,400 metres of diamond drilling. As it continues to increase the Ugandans who are training and Jervois’s Board has recently scale of its investments into operating at an international approved an additional US$1.5 Uganda, Jervois has stated it standard. Jervois’s has conveyed million investment through looks forward to continuing to that it believes this investment in ongoing geochemical and demonstrate its commitment development of Uganda’s human geophysical surveys and another to social and environmental resource base is contributing phase of drilling that will run from stewardship. In order to support to the country’s future as an October until mid-December. the company’s investment plans, Jervois has cautioned that important mining jurisdiction. Jervois has declared its interest changes to law and policy are in re-opening Uganda’s historic According to Lamb, “In addition important risks. to the level of knowledge and Kilembe Mines and Kasese commitment of our Ugandan Cobalt Company Ltd refinery, “Our hope is that countries keep team members, we recognize and is ready to start investing in mind that ultimately policy that acceptance of our activities immediately should the toward foreign investment by communities where we are Government of Uganda grant it matters. Sentiment can be turned working is critical to our success. permission to do so. If Jervois off quickly, but not necessarily Our Ugandan team members are and the Government of Uganda turned back on; that is an at the forefront of our community become aligned in this strategy, unfortunately reality,” Crocker has efforts. They are essential to our Uganda has the potential to been quoted as saying, 40 The Uganda Chamber of Mines & Petroleum Uganda Railways Enhances Charles A. Kateeba, MD Its Capacity

Uganda Railways Corporation is established under URC Act, 1992, cap 331 to carry out construction, operation and maintenance of railway, marine and road services both in and outside Uganda for uganda the carriage of Goods railways passenger and Passengers. train

An establishment under the owned enterprise, generating of operations both freight and Ministry of Works and Transport operational income using passenger, reinstatement of (MoWT), URC’s vision is “To be a the corporation’s assets and local cargo operations, sourcing world class railways and marine through Government funding. of institutional capacity building transport provider within the The business segments under consultancy, feasibility study of region” URC include freight, passenger, expansion of passenger services terminals and warehouses, consultancy, refurbishment of Operations buildings, wayleaves and others. main building, Port Bell and Since February 2018, others The corporation registered operations are run as a state- successes such as continuity URC operates freight services The Uganda Chamber of Mines & Petroleum 41 between Kampala and Mombasa on the Northern Corridor (Yellow on the map), also connect us to more Kampala and Dar-es-Salam neighbors. The current and over the lake between system stops at Kasese Port Bell and Mwanza by but the SGR is designed use of wagon ferries on the to connect us to Rwanda Central Corridor (Red on the and South Sudan and this map) and locally between means we can now have Tororo and Kampala. better trade between these On the Northern Corridor, countries. URC works with Kenya Railways Corporation and Strategies for the future Kenya Ports Authority. Two URC plans to develop railways services are offered. Institutional Capacity The first service is purely on system is designed for operating Building, rehabilitate Tororo- the Meter Gauge Network speed of between 50 – 55km per Pakwach line, construct Gulu whereby cargo is loaded in hour, the SGR has an average Logistics hub, expand the Mombasa and it is transported operating speed of 75km per Passenger services from one all the way to Kampala over hour. And this means that cargo to three routes and develop the Meter Gauge Railway. can reach Kampala in less than Standard Gage Railway for the The second service is in 24 hours compared to the current Malaba-Kampala route. combination with the new system of minimum three days. Standard Gauge Railway, To a manufacturer, this means which is between Nairobi and that they will be assured of Mombasa. Cargo is loaded replenishment every day, unlike at Kilindini or Port Reitz and today where replenishment it comes to Embakasi inland is after every three days. The container depot or the new most important issue however, cargo terminal which serves is that the Meter Gauge is to be both Meter Gauge and rehabilitated in the meantime. Standard Gauge The current system is limited to URC also operates a limited 35 wagons maximum whereas passenger service currently the SGR can carry up to 100 operating in Kampala wagons, the current system can between Kampala station and carry up to 65 tons wagons and Namanve station. Four trips the future system can carry up are offered by working day, to 100 tons wagons. SGR will one in the morning and three therefore benefit the economy in the evening and it carries by providing a more productive 600 – 700 passengers each transport system. The SGR will way. URC operates Mukono Internal Container Depot, Kampala Goods Shed, Port Bell and Jinja pier. And recently has rehabilitated the Main Station building, Kampala Goods Shed warehouses and Port Bell warehouses. URC calls on the private sector and the general public to utilize the above facilities. SGR and Vision 2020 The Standard Gauge Railway is meant to revolutionize freight transport in East Africa. Whereas the current

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www.mota-engil.com 4444 The Uganda Chamber of Mines & Petroleum Mr. Don Bwesigye Binyina: “Artisanal Mining Is the Springboard The Industry

Needs” The Africa Centre for Energy and Mineral Policy (ACEMP) is It provides a platform for sharing of extractive industries information for government policy makers, a not for profit Organization the extractive industries sector, the academia, founded in 2012. ACEMP is a the media, mineral rich host communities, sub- national governments, civil society and international Centre of Excellence in Policy, development partners to identify policy gaps and find lasting solutions to those gaps for the sustainable Research for the Energy and development of the extractive industries sector in Uganda and resource rich Africa. Mineral development. The Executive Director, Mr. Don Bwesigye Binyina holds a Master of Science (Mineral and Energy Economics) from Curtin University, Western Australia and Bachelor’s Degree in Law from Makerere University. He is a 2016 Fellow of the Emerging Leaders in Africa Mining Program (ELAM), and is a mining alumnus of the International Mining for Development Centre (IM4DC) – Australia. He is a seasoned mineral and energy policy analyst and has worked with the World Bank and Uganda’s Ministry Mr. Don Bwesigye of Energy and Mineral Development. He is also the Binyina, Chairman, International Conference on the Great Lakes Executive Region. Director He spoke to the UCMP Magazine, about some of the work ACEMP has been doing in the mining industry, especially with the artisanal and small scale miners (ASMs). Below are the excerpts: Speaking at the Mineral Wealth Conference in 2016, you likened the ASM subsector to ‘young trees’ in Uganda’s mining ‘garden’, quoting a Ksaramajong proverb that says “A forest without young trees is a desert in the making”. The Uganda Chamber of Mines & Petroleum 45

Expound on this viewpoint please. when the industry was largely the fairly visible cement companies focused on attracting large scale Mining is historically a livelihood source their limestone from small mining enterprises into the country, quarries. in most African communities. In forgetting that we also needed Uganda, for instance, we traditionally, The Mineral Wealth Conference is in to nurture our traditional ASMs its eighth year, but how many large mined iron ore and smelted it into domestically. tools and weapons like spears, as companies have actually invested in way back as the 16th Century. This It is important to remember that all Uganda over that period. We could was all being done on an artisanal global mining majors started small maybe point at Sipa Exploration, basis. and transformed over generations which is working with Rio Tinto on into medium or large scale a promising copper-cobalt-nickel When I made those remarks in enterprises. Our call is for a balance 2016, it was at a very crucial time, exploration project in Kitgum. to be struck, where large mining We need to change tact. firms (often foreign) are sought without necessarily forgetting to What should be done, instead? promote the domestic ASMs. It is important to have a predictable It is well accepted globally that policy and legal framework, a ASMs are the real’ geologists’ for the transparent licensing process and mining industry, since the large judicial system, which allows mining scale miners always invest where investors to work unencumbered. ASM operations have happened. The ASMs need to be supported, ASMs oftentimes have nothing as it is their activities that attract the to lose – with no capital or bank large firms. We can also benchmark loans but only their hands and a on the state department of mines in few rudimentary tools – so they Western Australia, which has carried are more flexible and mobile. preliminary exploration studies, and annually holds open bids for Do you then believe that new greenfields that have some by focusing more on large quantifiable reserves. Exploration scale mining, Uganda is firms find it easier to commercially misguided? quantify these fields, subsequently. I strongly believe it is a It is therefore commendable that we misguided approach. have a provision for the establishment In our struggle to develop the of a Mineral Exploration Unit, in mining sector, I do not think we the Mining and Minerals Bill 2019, have sought the right advice or which can support the Directorate of followed the right policies. Can Geological Survey and Mines (DGSM) anyone mention any five in doing preliminary exploration. large scale companies that However, the resource nationalization invested in Uganda following calls, as seen in the bill, should be the enactment of a shelved since they are likely to scare new policy and legal away investors. framework in the early 2000s? What are the positive changes in the new policy and legal E v e n framework? The old Mining Act is ok and only needed a few amendments here and there. I like the idea that the Mining and Minerals Bill 2019 recognizes ASMs, even going as far as making a distinction between artisanal and small scale miners. I like the fact that some 46 The Uganda Chamber of Mines & Petroleum

developmental mineral permits can be granted at the district level. Creating mining zones for ASMs and subsequently discouraging movement of miners from one region to another is also good, since ideally ASM is meant to benefit indigenous communities in a particular mineral- rich area. The advantage of zoning is that each area will have mining equipment and processing machinery that any ill-equipped miner can borrow. They will also sell to the centralized buying centers within the zones like is happening at the Geita Gold Market, in Northern Tanzania. There, a miner takes his gold to this market where it is properly evaluated and (L-R) Bwesigye, Agnes Alaba, the commissioner for bought with the government and mines DGSM and Zachary Baguma, Director DGSM local government getting their taxes cleared on the spot plus the local land owner as well. of ASMs by ACEMP gone? to the growth of their country. This Geita market produces about Our assignment was to support the Our biggest challenge though is 200 kilograms of gold per month government in setting up a biometric the continued mass displacement from ASMs and yet it only came up registration system to capture of these ASMs, like has happened in April, 2019. It is an indicator of what the ASMs’ data. The process was in Mubende and Buhweju, most a government endorsed processing launched in March 2019, and the recently. This has left many and marketing center for ASMs does system design has been completed. rattled and uncertain of their next for mineral commodities and the We’ve been in touch with the National meal. Yes, minerals belong to the industry in general. Information Technology Authority state, according to the law, but in However, I am opposed to the (NITA) and the National Information mineral rich communities, mining idea of getting all the discretionary and Registration Authority (NIRA) is a livelihood. This point cannot be powers that are contentious under to ensure we embed identification emphasized enough. the outgoing legal regime and enabling features in the system. Instead of displacing the ASMs, the transferring them to the Minister of It will be tested in January next year state should be looking at organizing Energy and Mineral Development. and actual registrations will start later them and fairly taxing them so that While this is manageable in the in March and probably be completed the entire country benefits. petroleum sector, where we only in June 2020. So while one state agency is saying have a handful of companies, the We are currently working with DGSM we register the ASMs, another is same cannot be said with mining, to build the ASMs capacities ahead displacing them, on charges of where thousands of licenses of the actual biometric registration illegal mining. This lack of cohesion abound. Let the minister stick to process. The ASMs are being told amongst state organs is not helping. policy and governance issues while the importance of being formally the technical teams are empowered You recently hosted the first registered, and why they will not be (through budgetary, human resource ASM-Q related summit, in July allowed to mine in case they aren’t and technical support) to execute 2019. What were the highlights registered. the detailed undertakings. and takeaways? I would say we’re 50% into the Since it is still a draft, all stake The conference was jointly funded by process. holders can work together to polish the Australian government and the it up and hopefully the technocrats This registration will make it easy European Program for Responsible will capture those key principles for to regulate the sector, with taxes Mining (EPRM). It was the first of its the good of the country. and environment concerns easily kind and we hope we can hold one addressed. That is why all the annually. But like they say, it’s one thing to concerned government agencies come up with a law and another to ACEMP, just like the Uganda including the environment, wildlife implement it; and that has been the government, recognizes that ASMs and tax bodies have been invited to biggest challenge over the years. Is can help eradicate poverty (SDG1). partake in this process. government prepared to actually Over 400,000 Ugandans are directly follow through and implement these The beauty is that the ASMs involved in actual mining activities new initiatives? themselves want to be formalized, so both in high value and development that they can carry out their mining How far has the registration drive minerals. Many women are involved activities in peace, while contributing in the stone quarrying industry and The Uganda Chamber of Mines & Petroleum 47 therefore contribute significantly to the minerals, is hardly carried out the infrastructure development in any monitoring operations, so the Currently, there is no single the country. industry is overrun by quacks and presence of any government entity The idea is to bring all related conmen. This also means mining at any mining site worth its name, in stakeholders together at such districts and communities have no Uganda. conferences, to define how ASMs can idea, how much they are entitled to ACEMP is undertaking a study, progressively contribute to Uganda’s in royalties. Capital flight is prevalent funded by Democratic Governance sustainable development. The as well, with foreign nations walking Facility (DGF) that is looking at Ugandan banks in attendance, for in and out of Uganda at will, because specific mineral commodities in instance, realized that there is more regulation is lax. various mineral rich districts in to extractives than just petroleum. In Geita, Tanzania, for instance, at Uganda, aimed at discovering how They now know that mining is a AngloGold Ashanti’s magnificent much is being lost by government, potential banking sector for them gold production facility, you will the districts and communities, due as well. The Microfinance Support not see any mining or production to lax monitoring. We also intend to Center (MSC) has since expressed taking place without government make recommendations on what interest in supporting ASMs, as well. official keeping watch. It exports can be done to plug those loopholes. We also had an opportunity to review about 300kgs of gold, and because As we think of creating an enabling the new policy and legal framework, Tanzania is part of the EITI process, environment for the development of which allowed the ASMs to share it knows how much gold is going the mining sector, the government their views on the same, which we out and how much should be paid in needs to realize that this is an hope the government technocrats taxes. extremely rich sector where it is captured. The Uganda Revenue Authority losing a lot. What else is being done to help (URA) would do the same, just like So the earlier they realize that and the ASM subsector increase its they have a presence at every exit start monitoring mining operations contribution to the economy? and entrance point of the country. effectively, the better. I am happy that over the years, key stakeholders like the UCMP, the development partners and government, recognize the role ASMs play in sustainable development. Limestone Royalty The National Development Plan III (NDP III) is now identifying mining as a standalone sector as opposed to Rates Halved merging it with the oil sector in NDP II. After a 3 year wait, the limestone split between the central This way, mining will no longer be royalty rate has been reversed government, the surface rights overshadowed by petroleum; hence back to UGX 5,000 per tonne owner and the local government. more is expected to be done for it from the controversial UGX The amendment to the law in in the coming years to ensure its 10,000 that came into effect on July 2016 had doubled the royalty growth. July 1, 2016. rates for both limestone and kaolin royalties. Ring-fencing ASM for only locals The new rates are contained in is also a win for our consistent a Ministry of Energy and Mineral At the Mineral Wealth Conference advocacy work for the small guys in Development memo titled ‘The 2016, then Hima Cement, Country the sector. Mining (Licensing) Regulations, CEO, Mr Daniel Pettersson, had 2019’. warned that the sudden abrupt Also, Mubende issue is being “I would like to thank the Uganda changes in policy that were resolved with a good number of unfavourable to local production ASMs getting licensed. Chamber of Mines and Petroleum UCMP for its support in getting would scare away investors. What other practical solutions can the Government of Uganda to “Prior to this amendment, there Uganda’s mining industry adopt to revise the limestone royalty rates was no consultation with Hima reach its full potential? that it increased in October 2016,” Cement, the only fully integrated My chairmanship of the International said Doreen Byengoma, Head of cement producer in Uganda. This Conference on the Great Lakes Legal, Compliance & Corporate is unfair and could make any other Region (ICGLR) Mineral Audit Affairs, Hima Cement Limited would be investors nervous,” he Committee for the last four years, Adding, “The Chamber was very said, then. has allowed me to travel across the instrumental in lobbying for this Imported clinker is no longer tax region quite a bit. One the critical and we would not have been able exempt, as well, attracting a 10% observations I have made is that to get this reversal without your import duty. our peers pay way more attention to tireless support.” mining than we do here in Uganda. It remains to be seen what effect The Mining Regulations of 2004 the new royalty rates will have on We are not handling the critical had set the rate of royalties for the cement production subsector issues in the sector, head on, but are limestone and kaolin at UGX 5,000 in general. merely massaging them. per ton. Royalties are traditionally The state, which is the custodian of AFRICA’S LEADING INDEPENDENT OIL COMPANY

Tullow Oil is a leading independent oil and gas exploration and production company. Our focus is finding and monetising oil in Africa. Our key activities include core exploration campaigns, selective development projects and growing our high-margin production. WHAT WE DO ECONOMIC CONTRIBUTION: Tullow Uganda is a Partner in 9 production licences and 2 exploration licences in the Uganda Lake Albert Rift Basin. Tullow and its Joint venture partners are some of the largest investors in Uganda. Tullow and its partners, CNOOC Uganda Ltd and Total E&P are currently working to bring the Uganda Project to Final Investment Decision (FID) and First Oil. CREATING SHARED PROSPERITY Our strategic priority related to ‘Shared Prosperity’ is to nurture long-term relationships with governments, communities and key stakeholders, with the ultimate aim of creating a positive lasting contribution to economic and social development in communities and countries where we operate. Tullow’s social investments include; • Capacity building through education and skills development which we have done through local and international scholarships and building local schools. • Strengthening the local economy through activities that support the growth of local businesses. To-date, we have spent over $300m on over 600 local suppliers.

• Investing in shared infrastructure and logistics projects to benefit local Tullow Uganda Operations Pty Ltd communities. Tullow has invested over $5m in infrastructure projects supporting Lotis Towers, 2nd Floor, Plot 16, Mackinnon Road, Nakasero health and education in both Hoima and Buliisa Districts. Kampala, Uganda Tel: +256 (0) 312 564 000 www.tullowoil.com The Uganda Chamber of Mines & Petroleum 49 Artisanal Mining: Challenges and Way Forward an extremely high level of physical injuries and short life span of miners, an increased level of air and water pollution or contamination An estimated third of the world’s mineral resources sometimes not limited on operation sites but are located in Africa and is composed of both large also hundreds of kilometers away, damages to and small-scale operations. Artisanal mining occurs local infrastructure and adverse impact on the when mining is done with minimal technology and country economy. usually without formal organization. Women make Some statistics. According to the Minamata Convention, artisanal mining is by far one of the vast majority of workers in artisanal mines, and the sources of the most significant releases of statistics show they make anywhere from 40 to 50 mercury, estimated at 1,400 tons per year in percent in the sector as a whole to as high as 90 2011. Now mercury spreads quickly by air or percent in individual mining zones. water to great distances, and It is recognized that exposure to it causes, for example, irreparable brain damage. Its impact goes far beyond health and safety. Can you be more explicit when Understanding that about 42 million people whose activities usually run outside law and you state the impact goes beyond are working in the artisanal mining sector regulations, bring significant risks to the health and safety? worldwide as of 2017, it becomes evident entire value chain. This from the miners, that this segment plays a significant role in intermediaries, communities, and even Yes, and let me explain this through an global mining. countries in which operations happen. I can example. Artisanal mining activities tend to Artisanal mining is most often pursued as a quickly identify the main ones, which is not degrade crops and the fertile farming lands way to get out of poverty or as an activity to only restricted to Uganda. You, therefore, have which adversely impact harvest and therefore complement insufficient and very low income results in loss of food production. The impact in struggling communities principally rural on soil is increased by the release of toxic and which faces poor alternative income- elements primarily due to uncontrolled generating prospects. Artisanal Mining mining activities leading to the contamination activities, therefore, come with severe of farmlands, the contamination of potable challenges from policy to health and safety. Mr. water, and lakes. All this, in turn, affects Franklin Bouguep, Global COO & Executive fishing lifecycle, stocks, and harvest. So, you Director of Solid Rock Life and Business, the can see there is a significant effect on the leading capacity building and management food chain, which in turn affects markets consultancy firm in Uganda and a UCMP and production at a national level. advisor on Training and Skills Furthermore, artisans don’t usually Development sheds some light pay any tax on the money made from on the challenges this industry excavations and possibly sell their faces in Uganda particularly on products through nontraditional HSE and Training. means. This implies an important loss of earnings for the government. Considering a health and safety Does this mean artisanal perspective, what are mining is bad for Uganda? the dangers faced by No! First, this is a sector that the artisanal mining employs millions of people in sector? the continent and thousands in Uganda. Their sheer number The very nature of the and percentage weight in the small-scale operations sector make artisanal mining of artisanal mining Mr. Franklin Bouguep, Global is an important source of coupled with non- COO & Executive, Director of minerals and metals. Several compliance to Solid Rock Life and Business records show that this sector industry-recognized accounts approximately standards and for about 20 percent of 50 The Uganda Chamber of Mines & Petroleum

Does Solid Rock Life and Business the global gold and diamond supply, for • Technical support throughout the lifecycle have anything in store for the example. Also, most new technological of artisanal production to accompany the mining sector? tools we use today, such as phones, laptops, artisans and ensure their wellbeing electronic gadgets are made from minerals Yes. Our CEO Mrs. Pasima Sule has approved extracted partly by the sector. ASM. What we • Funding as additional support for a wide a $20,000 bursary to support the training need to do instead is to have a two-pronged variety of tasks from safety equipment, of 100 Ugandan artisanal women miners in approach: First easing their transition from a subsidized tools, access to geological health and safety with the deliverance of the still predominant informal sector to a more information, mapping, etc. International Health and Safety Passport formal one and secondly, skills development These are some few initiatives that can be international certification by The Engineering and awareness ensure sustainability. leveraged. This is an area in which Solid Rock Construction Industry Training Board (ECITB). ECITB is the skills, standards, and How do you think this transition Life and Business as part of our corporate social responsibility is working into addressing some qualifications body for the development of from informal to the formal sector the engineering construction workforce in can happen? of the health and safety issues. Our big focus is to support the women and vulnerable group the UK and the rest of the world. This fully Through a holistic and integrated public- that work in the sector through specifically supported bursary is a commitment from private partnership approach where the GoU, targeted activities Solid Rock Life and Business to ensure the development partners, the private sectors and safety and good health of artisan miners and Speaking of skilling what can be their communities. We are also working with stakeholders concerned are fully dedicated to done for this sector ? the solutions to be implemented such as UCMP to design solutions that will address • Increasing the relationship and partnership First and foremost, safety comes first, so some of the essential challenges on not only between the Large-Scale Mining companies approximately 98% of artisanal miners the health and safety but also the skilling and the artisans in the sectors to favor sharing need training in safety, risk assessment, of the artisanal miners across the country. of expertise, methods, standards, purchase and environmental awareness in mining UCMP under the leadership of its chairman agreements, etc. prospecting and related activities. Then Hon. Elly Karuhanga and CEO Mrs. Catherine you have training needed in a broad scope Wabomba and as the leading voice of the • Implement laws and regulatory frameworks such as handling tools, basic mining skills, mining sector is proactive in ensuring that in the sector that will encourage the artisanal control in drilling, safe production, mercury the challenges in the sector are met with miners to formalize their status and join the management, child protection, gender, etc. appropriate solutions from all stakeholders mainstream economy. For example, licensing For those who decide to run an SME, then the involved. Solid Rock Life and Business and its should not be a titanic task but one that is standard business training such as accounting, CEO Mrs. Pasima Sule completely abides to simple, in the local language, not expensive sales, and marketing, HR, etc. this approach and this helps explains why we and rapid to obtain are a proud Gold member of UCMP.

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Rotary Club of Kiwatule Magazine_Uganda_180518 18 May 2018 01:27:21 PM 54 The Uganda Chamber of Mines & Petroleum With a Good Law, Our Future is Bright – ASMs

These are some of the questions that we put before Mr. John Bosco Bukya, What is the future of Artisanal and the Chairperson of Mubende United Miners Association who has been in this Small-scale Miners (ASMs)? Why are business for many years and has spoken they being evicted and where does at various public events. What stood out in his answers this the government want them to go? time around was the law. He said that How come majority operate in the a favorable legal and policy framework guiding players in Uganda’s mining and informal sector? What fees/taxes mineral’s sector will determine the future are they supposed to pay? Aren’t they survival ASMs. Bukya said the current Mining Act of 2003 entitled to government support given has a lot of gaps that have to be filled for it that they are playing an important to favor all stakeholders involved in sector activities. role to the economy? What does the The government is currently receiving law say about their operations? stakeholder views on the Minerals and Mining Bill, 2019 which it has positioned as an industry game-changer. The Uganda Chamber of Mines & Petroleum 55

He said they are gathering information from five mining once the expert gives us a go regions of Karamoja, Northern ahead. We have already paid Uganda, Eastern, Central and all the required fees for the 30 Western region and that whatever location licenses,” he said. they suggest to be included in the Beyond Mubende, artisanal law will be a harmonized position mining in Uganda takes for all the members. place majorly in areas of “It is good the government Busia, Namayingo, Buhweju, intends to amend the legal Karamoja and Bugiri. regime because the current law Key minerals in the fields Mr. John Bosco is outdated. We are prepared include Gold, Copper, Cobalt, Bukya, to offer our input to realign the Nickel, Iron Ore, Zinc, Lead, speaking at sector,” Bukya said. Tin, Tungsten, Columbite- the recent He notes that the new law must Tantalite, Phosphates, Kaolin, ASM-Q Platinum Group of Elements conference address the social welfare concerns of ASMs because they (PGE), Rare Earth Elements are part of Uganda’s economy. (REE), Uranium, Limestone, Marble Graphite, Gemstones, The other big issue has to do with Salt, Sand, Clay, Murram, evictions of miners. In August Vermiculite, and many more 2017, the government ordered other high value and low value the eviction of about 60,000 minerals. ASMs in Mubende from the mines on grounds that they were Over 90% of mining in Uganda conducting illegal gold mining is done by Artisanal and Small- activities and destroying the scale Miners (ASMs). They are environment. estimated to be more than 390,000 country-wide. It is Bukya said that through dialogue, also estimated that currently the government has given the the ASM sub-sector indirectly evictees 30 location licenses in sustains close to 2,000,000 Mubende area. Ugandans across its various He said his Mubende association value chains, backward and – that brings together 23 mining forward linkages. groups – had hired a geologist The law that is being mooted from Zimbabwe to ascertain the is expected to support areas of levels of mineralisation in these capacity building, awareness areas. campaigns and extension The third National Development Beyond that, Bukya said that his services, registration and Plan (NDPIII) has separated oil members continue to grapple formalisation of players, and gas from mining and that with challenges related to capital gazetting areas for ASM means mining will be given special and inadequate mining tools. operations and more. attention by the government, “We hope to get back on the road and its contribution to the GDP will go beyond 10%, according to observers. The current mining and mineral policy for Uganda currently recognises artisanal miners. This therefore means that with in the new law, current challenges that the ASMs face will be attended to. Artisanal mining in Bukya said that they are working Karamoja closely with the Uganda Association of Artisanal and Small Scale Miners to gather views from all parts of Uganda which they will suggest to be included in the law. 56 The Uganda Chamber of Mines & Petroleum

with environmental data in a developing area. Having such a wide spectrum of geoscience data available will provide Geoscience an opportunity to examine how its usage can support broader applications including environmental, infrastructure, and water management.” Data Portal The Uganda Geoscience Portal has a powerful user-friendly interface for delivering multi-disciplinary data and documents stored within multiple to Encourage systems. The geological, geophysical and geochemical data at regional or 1:250,000 scale is geo-referenced with Exploration existing metadata. Stakeholders can define their area of interest to search for data, interrogate, preview and download data in commercial or open Investment standard formats via a shareable link. The data can easily be integrated into exploration company prospectivity analysis, exploration software packages and other decision-making packages used by potential investors. Mr Zachary Baguma, the Director DGSM, says: “This project is in tandem with our investment promotion efforts. We recently launched a campaign of country-wide exploration and data collection. This will be one of the means of exposing our data globally and attracting inward investment.” Catherine Niwamanya Wabomba, Ag. Chief Executive Officer at UCMP says: “Promotion and fostering investment into Uganda’s mineral sector is our flagship as a Chamber. This project will fill one of the biggest gaps we are The Uganda Geoscience Portal for (NITA-U). currently faced with; availability of data. multi-disciplinary geoscience data The geoscience portal will aid We are excited to be part of a partnership in the Jinja and Mbarara regions communication and collaboration to showcase and make available data of Uganda, is now live online. The between government, industry and that would guide potential investors into portal, primarily designed to help the public through the free availability Uganda’s mineral sector.” inform early stage decision-making of geodata, providing increased The pilot project is guided by the for mineral exploration projects, understanding of the region and aspirations and principles of the Africa will help stimulate investment help to improve the quality of life Mining Vision (AMV) and Agenda into the region and environment of Ugandan people. “Activation of 2063, which recognises geodata and socio-economic development Africa’s vast geodata resources is key as an imperative for enhancing the including water resource and land- to unlocking its value for downstream management of Africa’s extractive use planning. The portal which is a economic and social benefit within the industries to promote inclusive and test pilot project will cover 2 out of respective countries. We are excited sustainable industrial development, the 19 map sheets that make up the along with our project partners to structural economic transformation and entire map of Uganda. explore how geoscience data can inclusive and resilient economic growth. Geosoft, part of the Seequent group, enable this in a sustainable way.” says The Ugandan portal project was developed the portal as part of a Ria Tinnion, Seequent. also assisted by National Research public-private-partnership (PPP) The portal will focus on Jinja within the Council of Canada Industrial Research between government, industry and greenstone belt to the east of Kampala, Assistance Program (NRC IRAP) which commercial organisations. Other prospective for gold, base metals, provided advisory services and funding consortium members include: the phosphates, rare earth elements and to Geosoft, who are supporting the African Union Commission (AUC), vermiculite; and Mbarara southwest portal on an ongoing basis. the British Geological Survey (BGS), of Kampala which has the potential The Uganda Geoscience Portal will be the Directorate of Geological Survey for gold and base metals including formally launched at the 8th annual and Mines (DGSM) and the Ugandan copper, lead, nickel and zinc. Mineral Wealth Conference (MWC), Chamber of Mines and Petroleum Patrick Bell, Information Systems organized by UCMP in partnership (UCMP). The portal is cloud-hosted Team leader at BGS, says: “This is a with the Ministry of Energy and Mineral by The National Information and superb opportunity to test a model Development (MEMD), in Kampala, Technology Authority - Uganda whereby we integrate resources data Uganda, on 2-3 October 2019 The Uganda Chamber of Mines & Petroleum 57

How Laboratories Create Value In The writer, Mr. Happiness Nesvinga (MAusIMM), is the CEO, Nesch Mintech Labo- Mining ratory Tanzania. Web: www.neschmintec.com, Email: [email protected]

Creation of value for a mining principles and conduct such project is entirely dependent as integrity of knowledge, on the results from the objectivity, and transparency. laboratory tests (geochemical or • Most important of all, metallurgical test). accreditation (ISO17025:2017) Professional geoscientists of the analytical lab is and engineers are to conduct benchmark! Exploration consistently high-quality work guidelines require the use of in order to maintain public accredited laboratories for the electrical), often involving confidence. The Exploration development of mining project laboratory work and techniques. Guidelines have been set to resources. assist professional geoscientists Tips to the geoscientist/geologist For sector professionals, and exploration practitioners when choosing a laboratory to send especially the new generation of in planning, supervising, and geological samples for analysis: young engineers and scientists executing exploration programs • The geoscientist relying on entering the mineral processing and these include NI43, the JORC analytical results obtained from a profession, the quantity, and the SAMREC. new analytical technique must be complexity and diversity of However, new methods and able to ask the Lab to demonstrate existing practices together techniques of determining the the suitability of the technique to with new developments can quality, concentration, or quantity the task at hand and the reliability be overwhelming, particularly of mineralization or materials of the information. where access to basic and of interest are continually advanced level laboratory • A geoscientist must clearly being developed, therefore the courses in mineral processing understand from the Lab the knowledge and understanding has not occurred. strengths and shortcomings of this of mineral processing has method, the proper conditions and An understanding of these advanced and moved away procedures for use of the method in principles will enable the from empirically-based mineral exploration programs and professionals to develop and, approaches to a fundamentally- be able to convey this information in line with the 2019 theme of based first-principle approach along with the analytical results to the Mineral Wealth Conference, embracing chemistry (general, the users of the data. be able to create and enable physical, organic, surface) and an environment for mining not multiple engineering disciplines • The geoscientist should choose only in Uganda but in all mining (chemical, mechanical, a lab that relies on good scientific projects territory. 58 The Uganda Chamber of Mines & Petroleum Rio-Sipa Nickel Exploration Promising

In May 2018 Sipa Exploration Uganda, announced a Farm-in and JV Agreement with mining major, Rio Tinto to underpin accelerated nickel-copper exploration at the Kitgum Pader Base Metals Project in Northern Uganda in which Rio Tinto can fund up to US$59M of exploration

expenditure to earn up to a 75% Lynda Burnett, interest the project. Sipa Managing Director

Since Rio commenced funding the Joint Venture, a total of ten diamond drill holes for 4000m have been drilled at Akelikongo and two other regional prospects. The results indicate further nickel and copper sulphide mineralisation at Akelikongo Main and also at the emerging “Eastern zone” towards the base of the intrusive complex, according to a Sipa company statement. “The mineralisation remains open to the north east. The intrusive- hosted nickel-copper sulphide mineralisation at Akelikongo exhibits strong similarities to major intrusive-hosted nickel orebodies such as Nova in Australia, Raglan and Voisey’s Bay in Canada. However, the mineralisation drilled to date is low grade and currently sub-economic,” reads the The Uganda Chamber of Mines & Petroleum 59

statement. expected in the industry, and 38m @ 0.51% Ni and 0.17% Cu It further adds that an extensive as Ugandans we need to cash (AKCD006) including 7m @ regional litho-geochemical in, especially through offering 1.04% Ni, 0.35% Cu 0.05% Co. database has been compiled different support services,” she The growing interest of using results from rock chip said. investors in Uganda’s mining sampling and mapping and Sipa Exploration Uganda industry means the risks in drill core at Akelikongo’s other Limited is a wholly owned the sector are increasingly regional prospects. The Goma subsidiary of Sipa Resources Ltd reducing. The possibility of and Lawiye Adul intrusions an Australian Stock Exchange arranging financing for the have similar metallogenic listed mineral explorer. mining sector could soon characteristics to Akelikongo, In Northern Uganda, the be realised if the current within pristine mantle-derived 100%-owned Kitgum-Pader growth in the sector is further intrusions. Base Metals Project contains supported. Akelikongo shows a greater two new mineral discoveries, “The country must do degree of crustal contamination Akelikongo nickel-copper and whatever it takes to make that has triggered sulphur Pamwa lead-zinc-silver, both sure that it attracts serious saturation. The data, the made by Sipa during 2014. investments into exploration, company statement notes, Since exploration commenced so that we can prove our confirms that the region is fertile in late 2012 the company has mineral deposit reserves. and prospective for economic spent over $US 15 million Without proven reserves, it nickel sulphide mineralisation. in direct exploration costs will take Uganda a long time This study, which was and taxes to the Ugandan to emerge and be known as a undertaken in conjunction with government. mining destination,” says Hon Richard Kaijuka, the Chairman ground gravity and ground As noted earlier, Rio Tinto Board of Trustees of the UCMP. magnetics, is ongoing with can fund up to US$59M of further rock chip sampling exploration expenditure to earn Mr Kaijuka hailed Sipa for continuing. up to a 75% interest in Sipa’s convincing Rio Tinto to come This is positive news for the project. Rio is in the first phase back to Uganda, noting that it Uganda mining industry, which of this earn-in period where it was this kind of giant that the has this year generated a lot is required to spend $12M in industry needed to not only of interest, with significant exploration expenditure to earn undertake the costly, high- foreign direct investment (FDI) 51%. risk exploration works but to also give confidence to the registered, according to Mrs Until this expenditure is mining world that Uganda was Cathy Wabomba, the acting completed Sipa retains 100% of a credible mining destination. CEO, at the Uganda Chamber of the project. Mines and Petroleum (UCMP). The Anglo-Australian At Akelikongo, Sipa has drilled multinational, one of the “We are excited to see large intrusive-hosted chonolith world’s largest metals and players like Australia’s Jervois style nickel-copper sulphide mining corporations with an coming into the market mineralization which is asset base of over US$ 90 and the return of world outcropping and plunges billion, was last in Uganda class companies shallowly to the north-west for around 2009, with interest in like Rio Tinto. More a distance of at least 500m and the vermiculite resource in the investments are open to the north-west. East of the country; and had In December 2016, zones of shown an interest in Kilembe’s up to 7m of semi-massive copper in the 1950s. sulphide interpreted to dip “It is always a good thing for a shallowly to the northwest were young industry like Uganda’s intersected with strong off-hole when a mining major like Rio electro-magnetic conductors Tinto shows interest in us. associated with them. These There is always a lot to learn intercepts occur beneath and gain from such ventures,” large thicknesses up 113m of noted Mr Vincent Kedi, a disseminated nickel sulphides principal mining engineer, at >0.25% and copper sulphide the Directorate of Geological 0.1%, with intercepts of 84.5m @ Survey and Mines. 0.37% Ni and 0.16% Cu (AKD017) 60 The Uganda Chamber of Mines & Petroleum Oil & Gas

The Uganda Chamber of Mines & Petroleum 61

CNOOC UgaNda Limited

CNOOC Uganda –Community Social Responsibility (CSR) Drive

CNOOC Uganda Limited is an overseas subsidiary of CNOOC Limited. Following the discovery of commercially viable reserves of oil in Uganda in 2006, CNOOC Uganda Limited acquired significant interests in three exploration blocks in the Albertine region and became a major player in Uganda’s oil and gas sector in February 2012.

The Kingfisher Oilfield Road. An oil Rig.

CNOOC Uganda Limited was granted a production license (the first player and a sustainable partner. Through the construction of the production license in East Africa) from the Government of Uganda on escarpment road, CNOOC Uganda opened the world to the previously 16th September 2013 to develop the Kingfisher Discovery Area in the hard to reach Buhuka communities, where Kingfisher project is located. Albertine region. CNOOC Uganda shall continue to work closely with key stakeholders to achieve the target of first oil 2020. CNOOC aspires to operate its Policies and Practices through Community Social Responsibility (CSR) in a bid to enhance competitiveness, while CNOOC Uganda is committed to the sustainable long term investment of advancing economic and social conditions of communities. CNOOC the oil and sector in an efficient, effective and environmentally friendly Uganda is mandated to pursue a win-win relationship with the host acceptable standard. Since 2012, hundreds of contracts amounting country, partners and local residents as well as its stakeholders. We to over US$120 million in value have been awarded to Ugandan believe in giving back to the communities especially in our area of contractors. According to the 2016 Uganda Revenue Authority (URA) operation. The CSR activities vary from Education, Health, Environment, Best tax payers report, CNOOC Uganda paid around UGX 27 billion awareness, relief aid among others. For CNOOC Uganda, sustainability ranking the 25th best tax payer in Uganda. We shall continue to adhere is fundamental as we implement our CSR activities to ensure a win-win to win-win principle, respect the rights and interests of stakeholders, situation for all payers. recognize QHSE, Social Responsibility, and strive to be a trusted industry

36 September 2017 62 The Uganda Chamber of Mines & Petroleum

Time for Kilembe To Get on Board How Uganda can exploit global copper challenges

In early September, copper prices In early September, fell to their lowest level since mid- 2017, mainly due to the ongoing trade copper prices fell to war between the US and China, the their lowest level since world’s biggest consumer of the red mid-2017, mainly due metal. On a regional basis, ICSG data shows that mine production declined to the ongoing trade 6% in Asia, 1% in Latin America and 3% war between the US in Europe, but increased around 2% and China, the world’s in North America and 7% in Oceania, and remained essentially flat in Africa. biggest consumer of the There are copper deposits all over red metal. On a regional the world but the most important are basis, ICSG data shows located in Chile and the USA, which together make up an estimated 20 that mine production per cent of world copper reserves. declined 6% in Asia, In recent years, however, copper has 1% in Latin America also been obtained through recycling processes. At least 10 per cent of and 3% in Europe, but global copper demand can be met in increased around 2% in this way. North America and 7% in Mined copper output globally Oceania, and remained dropped in the first six months of the year 2019 by 1.4% to nearly essentially flat in Africa. 9.92 million tonnes, mainly due to weather disruptions in the world’s top By Mr. Kwatampora Alex Binego producer, Chile (Codelco), and the The Uganda Chamber of Mines & Petroleum 63

Wanted: Kilembe Investor The Government of Uganda is market play soon. Whereas the planning to relicense the copper copper/cobalt reserves at Kilembe and cobalt mines of Kilembe, more Mines are considered to be low, it than a year after it terminated the should be noted that Kilembe has a concession agreement with Chi- vast exploration licensed area that na’s Tibet Hima consortium. can eke the reserves to very high “We are looking at relicensing figures. Although a comprehensive Kilembe Mines. The bid docu- exploration has to be carried out, ments are almost finalized and already a lot of interest has been beforehand, which is not cheap. registered,” Mr Robert Kasande, Kilembe Mines already has known the Permanent Secretary at the reserves of copper and cobalt in the Ministry of Energy and Mineral tailings but no full resource estimates Development (MEMD), said re- were done in the past in regard to cently. cobalt reserves. It is projected that Adding, “We want to attract a this red metal will still be marketable company that is vertically inte- in the future, other factors like price grated so that they can do explo- fluctuations notwithstanding. ration, mining and processing – adding value in-country.” Unlike in Chile, the Kilembe ore can easily be mined out and the transition of two mines in Indonesia The MEMD, together with the transportation system is by hoists to different ore zones. Ministry of Finance, Planning and Economic Development and the and tramcars, which use electricity, Chile’s production at has dropped Ministry of Justice and Constitu- environmental-friendly and generally by 2.5% due to heavy rains in the tional Affairs and Kilembe Mines cheaper than the Chilean hauling country’s north that affected the Ltd were tasked by Cabinet to expenses. deep open cast mining, plus lower fast-track the process of identi- Finally, Government of Uganda should grades weighed in on the country’s fying a new operator to revamp put in place favourable conditions copper production. Also, ore grades Kilembe Mines. and tax holidays for it to attract bigger have plummeted at Codelco’s aging The line Ministers nominated Investors in this copper/cobalt mines, prompting the urgent need technical staff to constitute a mining industry and uphold its robust for overhaul schemes. committee that was tasked with policy on value addition. It however shortlisting interested companies The Chilean copper ore grade was has to put into consideration what the on average 1.4% copper but now it and coming up with evaluation criteria that prioritize a production- investor will have spent in actualizing is a little over 1%. By 2025 it will have sharing agreement model just as value addition to its peak and the fallen to 0.7%. And thanks to decades is the case with petroleum. market factors in a given period. The of digging, the rock is now much The committee has developed a Government of Uganda has already further down. term sheet for the proposed Min- taken a huge step in reviewing the Indonesia’s copper concentrate eral Production Sharing Agree- policy and legal framework and is output fell by a staggering 55% due ment (MPSA) and proposed currently carrying out consultations to the transition of Grasberg into evaluation criteria under a Public- with all stakeholders. This is a big block caving and the Batu Hijau Private Partnership. step in the right direction to promote mine to Phase 7. A request for proposal document the mineral sector in Uganda. Due to these factors, the international (RFP) is being finalised, after The author, Alex Kwatampora is the refined copper market ended the which interested parties will be former Project Manager at Kilembe Mines requested to formally express in- first half of 2019 with a supply deficit terest. Ltd. Email: [email protected] of about 220,000 tonnes. This means that global refined copper market ended the first half of 2019 with a supply deficit of about 220,000 tonnes. Factoring in changes to Copper Price unreported, bonded stocks in China, 2.60 USD/ the deficit likely totaled 190,000 lb (5,721.00 tonnes, the industry group said. USD/t | 5,228.95 Given the fact that Africa’s copper EUR/t) 25 and associated minerals production Sep 2019 - 52 remains essentially stagnate, it’s Week Low high time Kilembe Mines, which 2.51 USD/lb has significant copper and cobalt 52 Week High 2.98 USD/lb reserves, came into the global 64 The Uganda Chamber of Mines & Petroleum The Uganda Chamber of Mines & Petroleum 65

Ojok handing over the Certificate of Registration of the Trust to the community

Through its legal body, Rupa Community Development Karamoja Trust (RUCODET), the community has received about UGX 2.8 billion ($759,948) in Surface Community Rights compensation, from Sunbelt Mining Group Ltd, a Chinese owned marble mining company, for the 21 year duration of the In Model company’s mining lease. “Contracts have been signed and the company is already Agreement operating without incident,” says Mr Bwesigye Don Binyina, the Executive Director, Africa Centre for Energy and Mineral Policy (ACEMP), whose With Mining organization is involved in capacity building of the Trust leaders. Firm But how, was this achieved? ‘Surface Rights’ compensation has remained a challenge in Uganda hindering mining The Rupa community in Karamoja, industry, with exploration and mining companies Moroto District in North Eastern Uganda expected to reach a private may not only have landed in the biggest understanding with the land owner before any license is ever cash compensation from a mining granted by the authorities. company in the country’s history, but While article 244 (1) of the 1995 Constitution vests the could also become the benchmark in entire property and control of such negotiations, going forward. all minerals and petroleum in the Government of Uganda, 66 The Uganda Chamber of Mines & Petroleum

as a trustee, on behalf of the people, Article 237 on the other hand vests land into the people of Uganda to be owned in accordance to the four land tenure systems. In Karamoja, land is owned communally thus mining companies have to acquire surface rights from the community. Surface Rights entail the land and all its improvements whether temporary or The Rupa permanent. community Several land developments, meeting about including mining related ones, the land rights are often put on hold in Uganda due to a failure to reach an future generations. understanding between the land l Management of the trust and owner and a developer over the community cultural activities. The Trust is also an arbiter transfer of surface rights. After the Trust successfully between the community and the investor. In mineral-rich Karamoja, where completed the transaction with land is communally owned, an Sunbelt Mining Group Ltd, the “It plays an important role of investor has to negotiate with company co-exists with the guiding the community on how an entire village, parish and community, without incident. best they will engage with the sub County beforehand, which RUCODET has also managed investor. In case of any dispute, makes it even more complicated. and equitably distributed the the issue will be solved first Besides, Karamoja has a volatile benefits accruing from the with the Trust and if necessary, history. Sunbelt compensation to the the investor may be involved. In other words it acts as a shield This is why the community in community. As a result, the trust is now; to the investor to operate within Rupa with the guidance of Mr the confines of the agreement Geoffrey Ojok Odur, a lawyer, l educating over 100 boys and without disturbance from the with GEM Advocates, formed girls in secondary and tertiary community,” Ojok explains. and established a Trust as a legal institutions The Rupa Community body to hold land and manage l sponsoring 5 (five) students at the benefits stemming from Development Trust (RUCODET) the University every after three is now a model scheme in compensation of surface rights (3) years sustainably for the benefit of the Karamoja. Titled and protected community now and the future l Due to this unprecedented community land from land generation. The Trust is managed development, many investors grabbers by Board of Trustees comprised have been attracted to acquire of local leaders of the community lEngaged in investment surface rights through the Trust. under the chairmanship of Mr activities to generate income for Mechanised Agro (U) Ltd Dan Marjory Apolo. the community is currently consulting and The Trust has developed a lSupporting the formation negotiating with RUCODET standard way of distribution of Women Associations to to acquire surface rights to of money received from encourage more girls to embrace enhance their mining activities in compensation of surface rights. education Karamoja. A multinational cement Benefits are distributed in four lSupporting Artisanal and Small company is also engaging the ways, including: scale mining associations in its community through the Trust for l Directly impacted community region Surface Rights to enable them to enhance household livelihood By this framework, RUCODET acquire a mining lease. lCommunity development ensures that the money received The success of RUCODET which most times depends on from investors is distributed can also be attributed to the the strategic plan equally to the last person in the support of civil organization like community bearing in mind the ACEMP and KDF who have been Investment to generate more l principle of sustainability for supporting the Trust in capacity income for the community building. The Uganda Chamber of Mines & Petroleum 67

Global Business, Local Insurance.

What is Marine Cargo Insurance? Marine protects the customer against losses or damages to cargo in transit within speciﬁed destinations. It can, for example, compensate if the property is damaged while in transit or when it is being loaded or ofﬂoaded from any road vehicle or passenger or goods train, ship, boat or aircraft or while the cargo is temporarily housed in the ordinary course of transit. Some of the risks insured include, and are not limited to, loss or damage due to war, theft and jettison.

What are the benefits of procuring marine cargo insurance locally? * Easy authentication and correctness of the insurance policy. * Opportunity to negotiate for better rates and terms. * Provides for easier claim settlement. * Avoids losses through remittance and exchange rates. * Creation of jobs. * Enhancement of government tax base. * Goods can be covered from point of origin to destination.

Who qualifies to take Marine Insurance? Anyone who imports or exports.

What is changing in the Marine insurance space? The Insurance Act under Section 9 (2) and (3) strictly mandates that only insurance companies licensed under the Insurance Act can issue insurance policies on ships, aircraft or other vehicles and cargo registered and or destined in and for Uganda, except personal effects and donations. This article was further strengthened by the Government pronouncement on the same in the background paper to the budget in FY 2017/18.

It therefore makes it mandatory for importers to only use local insurance companies to purchase this insurance.

While purchasing insurance; 1. Contact your preferred insurance company diretly or purchase through an insurance broker and/or insurance agent. 2. Following the establishment of the Insurance Act 2017, all insuring clients, both corporate and individuals are required to pay directly their premiums (insurance fees) in full/upfront on or before the effective date of their respective policies to the Insurance Company. 3. Speak to your Banker about the Insurance Premium Financing Option.

For questions about Insurance, contact

INSURANCE REGULATORY AUTHORITY OF UGANDA Promoting Insurance. Protecting You.

[email protected] | 0800 124 124 [email protected] | 0800 10 50 50 68 The Uganda Chamber of Mines & Petroleum tribute: Hon. Edward Athiyo Lorika March 29, 1928 - July 5, 2019 Karamoja’s Gem Will Keep Shining

At the grand old Mzee Athiyo age of 91, Hon. (C) is joined by Mr Elly Edward Athiyo Karuhanga, the UCMP Council Lorika, breathed his Chairman and Hon Amelia last, on July 5, 2019, Kyambadde following a sudden (R), the Minister of Trade cardiac arrest at Industry and Cooperatives, his home in Kitende at a recent UCMP Mineral along Kampala- Wealth Entebbe road. A giant Conference. son of Karamoja, Athiyo’s fingerprints

can be found all over Certificate in 1953 before joining everything positive Busoga College Mwiri College for administration studies in the United A’ Level. His further education was Kingdom. coming out of the halted when he was summoned In 1961, Athiyo and the deceased North Eastern region back home by his dad. Hon. Choudhry Lokwang It is then that Hon. Athiyo joined represented Karamoja at Britain’s of Uganda. the Veterinary Department at the Lancaster House, as Uganda made Ministry of Animals and Livestock its case for independence from the Industry, a fitting vocation, British. Incidentally, the colonial considering that livestock is a government had intended to keep mainstay in any Karamajong Karamoja under their rule, a position Fortunately for the citizens of Athiyo strongly rejected. Uganda, his generosity of service homestead. On completion of his training, he was posted to Iriri, A year later, he was part of another was not limited to his community team that engaged in further alone, but benefited the entire present day Napak Districk as a Veterinary Administration officer. independence negotiations at country in general. Marlborough House, UK. It was after Born on March 29, 1928, to Lorika In 1958, he was appointed General Secretary (LC V Chairman), District these rigorous talks that the Kabaka Lotukoi and Pulkol Nayor in the Yekka party and Mr Milton Obote’s village of Moru Arengan in Rupa Council of Karamoja; where he persuaded his community to accept Uganda People’s Congress formed Sub-County, Matheniko County, a coalition government and Uganda Moroto District, Athiyo attended the creation of Kidepo National Park. He held this position until 1959 when was granted independence on Lotome Primary School and Ngora October 9, 1962. High School, in Teso region. He he was sponsored by the Karamoja Local Government to undertake Subsequently, Athiyo served as a completed his Junior School District Commissioner in the regions The Uganda Chamber of Mines & Petroleum 69

exploration of the minerals in Karamoja and in Uganda , so that people’s fortunes would be turned around for the better. He always encouraged the government to help in the setting up of a lapidary workshop in Karamoja so that more value would be gotten out of the precious stones through cutting, polishing or engraving. Certainly, Mzee Athiyo’s ever present wheelchair will be missed at the 8th Mineral Wealth Conference (MWC2019). However, for his generosity in sharing Mzee Athiyo (R) his knowledge, his star will keep attending the UCMP shinning. Mineral Wealth Conference in 2015 He is survived by wife, Christine Rugasira Athiyo, children, grandchildren, great grandchildren and great great grandchildren. His siblings include businessman Cornelius of West Nile, Bugisu, Bunyoro, Through his company, Kadam Kodet, the proprietor of Aero Beach in Mbale, Tororo and Ankole. Mining Co. Ltd, Mzee Athiyo Entebbe, former woman MP Hon. Rose From 1971 to 1972, he represented prospected, explored and Nacha,(6th Parliament) and the late Uganda as an envoy to Zaire (now mined a wide range of minerals William Naburi a former Minister of Democratic Republic of Congo) including principal and precious State for Defense in the 1970s. gemstones, industrial minerals before returning home to serve He was laid to rest on at his home in as the Permanent Secretary in and precious metals, majorly in Karamoja but also other parts of Nakaale Village, Namalu sub-county in the Ministry of Commerce and Nakapiripirit district. Industry, where he eventually Uganda. . became Minister. It appeared that in collecting and They Said: In 1975, Athiyo was elected polishing precious stones like “Mzee Athiyo was a very intelligent man. Chairman of the Uganda Chamber rubies, emeralds, blue sapphires, He died when he was still a resourceful of Commerce with a mandate to aquamarine, tourmalines, garnet, person to this country and Karamoja rebuild the country’s collapsing rhodolite, tsavorite green garnet, because he had broad knowledge on international trade relations, laborodite, agate, diopside, fire mineral developments,” Hon Peter during President Idi Amin’s - opal, zircon, topaz, peridot, Lokeris, State Minister for Minerals reign. He was later instrumental amethyst, fluorite , obsidian, Development and MP. in the creation of the Departed quarts, spinel, name it, Mzee “Athiyo ranked among the then good Asians Property Custodian Board Athiyo, had settled on not only debaters in the House,” ex-Mpigi South (DAPCB). an exciting but equally rewarding MP, exDP Party President and former hobby. In 1976, Athiyo was appointed National Presidential Candidate, Mr Minister of Trade and later the This passion meant he became Kawanga Semwogere. Minister of Information. In 1980, a moving encyclopedia as far “His death has robbed us of a great he returned from exile in Kenya as gemstones were concerned, hard worker,” Mr Cornelius Kodet, and contested for and won a never hesitating to share his businessman, and brother to Athiyo. knowledge with the geologists Parliamentary seat, representing “He did not have any grudge with at the Directorate of Geological South Karamoja Constituency anybody. He was social and knew many Survey and Mines (DGSM) in (present day Nakapiripirit and languages. Mzee Athiyo was everyone’s Entebbe which he frequented. Amudat) until 1985. In 1984, father,” Fr Simon Lokodo, the State Edward was appointed a Minister Many a geologist in Uganda Minister for Ethics and Integrity. of Transport. and beyond will confess to “Karamoja needed Mzee Athiyo’s having learnt a thing or two Gemstones guidance and knowledge to help about the shiny stones, from Perhaps what will always resolve border conflicts with their interaction with the ever endear members of the Uganda neighbouring Teso districts. He had welcoming Athiyo. Chamber of Mines and Petroleum knowledge about the internal and (UCMP) and the mining industry Even in the evening of his life, international boundaries. We had in general to Hon Athiyo, was slowed down by illness, a frail hoped to bring him on board to help us his unquenchable passion Athiyo never shied away from give evidence about the boundaries,” for minerals, and particularly championing his community’s Mr Samson Lokeris, the MP for Dodoth gemstones. interests, always advocating East in Kaabong District. for an extensive study and 70 The Uganda Chamber of Mines & Petroleum PROFILES: UCMP Council, 2019 – 2021

As a not-for-profit, non- cost to the UCMP; a gesture UCMP’s Council, whose governmental organization that the Chamber members primary role is to oversee the that represents the interests feel they cannot appreciate general management and of the private stakeholders enough. day-to-day operations of the in Uganda’s mining and Chamber, while reporting to The UCMP’s leadership petroleum industries, the the BOT. includes the Board of Uganda Chamber of Mines Trustees (BOT), which The Council’s task is & Petroleum (UCMP) largely provides overall governance eased with guidance depends on the expertise to the Chamber besides from an advisory team of of its diverse membership acting as the custodian of professionals. to shape its agenda and the Chamber’s assets and perspective. This article seeks to resources. celebrate the recently This expert advice, it must Next in hierarchy is the reelected UCMP Council: be noted, is received at zero

H.E Hon. Dr. Elly Karuhanga Chairman, UCMP Dr. Elly Karuhanga is one of the Founding Partners of Kampala Associated Advocates (KAA), Founding Chairman of the Uganda Chamber of Mines & Petroleum, Founder President and Chair- man Governing Council of Uganda Centre for Arbitration and Alternative Dispute Resolution (CADER) formed in 1998. He was appointed its Chairman and has been reappointed every three years to date. Hon. Elly is an advocate of the Supreme Court of Uganda from 1974 to date. He served as a Member of Parliament for Nyabush- ozi County for 13 years, from 1988-2001 and also served as an elected delegate on the Constitutional Assembly that promulgated the 1995 Uganda Constitution and also served as Chairman of the Presidential and Foreign Affairs Committee. Hon. Elly is also a former President and Director of Hardman Petroleum Resources which discovered Oil in Uganda 2006. He was the President and Director of Tullow Uganda Operations Pty Ltd and was the Senior Adviser, Africa, for Tullow Oil. Hon. Elly has worked in a diplomatic capacity as Honorary Con- sul General of the Republic of Seychelles to Uganda since 2005. He also served and still serves on the boards of many companies, such as: British American Tobacco, SAB Millers Uganda (Nile Breweries), Director DFCU Bank, AON Uganda now Minet Uganda, Private Sector Foundation Uganda (PSFU), National Social Security Fund(NSSF) , Rwenzori Mineral water, Mweya Sa- fari Lodge, Paraa Safari Lodge, Silverback lodge and Chobe Safari Lodge under Marasa Holdiongs part of the Mahdvani Group of Companies. The Uganda Chamber of Mines & Petroleum 71

Patrick Mweheire of which were spent at Merrill Lynch & Co, New York, where he Vice Chairman, UCMP worked as Director, Investment Banking and executed numerous Patrick Mweheire is the Chief M&A and financing transactions. Executive of Stanbic Bank Uganda Prior to joining SBU, Patrick (“SBU”), the largest commercial worked as Head of Investment bank in the country, with assets in Banking Africa for Renaissance excess of UGX 6.1 trillion. He was Capital based in London and appointed Chief Executive by the Nairobi. He holds an MBA from board of directors in December Harvard University’s Graduate 2014. School of Business. Mr. Mweheire joined SBU in 2012 Mr. Mweheire also holds the posi- as Executive Director & Head of tion as Chairman of the Uganda Corporate and Investment Bank- Bankers Association. ing with over 15 years of Invest- ment Banking experience; 9 years

Geoffrey Baitwa Distribution another 2PL entity specializing in light commercial transport. Treasurer, UCMP He has overseen t¬he setting up of Geoffrey is the co-founder of Bro Threeways Shipping Kenya and Tan- Group Ltd. He founded and managed zania that operate in Mombasa and the startup business under Threeways Dar-es-Salaam respectively. Shipping services in Uganda in 1996, He Presided over peak group revenues a firm specializing in offering Freight of US$ 35million in 2013/14 financial services between Uganda and the rest years. of the world through the Ports of Dar- es-Salaam and Mombasa. Geoffrey is currently presiding over the restructuring and repositioning of Bro- In 2002 he oversaw the setup of Trans- Group in the market that also includes trac Uganda a 2PL transport provider bringing on board minority sharehold- specializing in Long & Heavy Haulage ers, a new governance structure, rescu- that expanded from a 12 truck fleet to ing one of its subsidiaries from receiv- 250 trucks between 2002 and 2012. ership and partnering with a global In 2003, as MD he set up Threeways experienced player in the market.

Sam Thakkar quirements. He is currently serving on the insolvency committee and is a Non-Execu- General Secretary, UCMP tive Director Multilines International Ltd. Sam is a 3rd generation Ugandan in his Sam is the Sole Proprietor of UHY Thak- family as well as 3rd generation Accoun- kar and Associates Ltd an internationally tant. His grandfather established one of recognized Audit firm. UHY Thakkar & the very first Audit practices in Uganda in Associates is a member of UHY Interna- 1929 and the family has been involved in tional, a cohesive worldwide network of the practice ever since! Sam returned from independent member firms providing au- UK to Uganda in 2004 where he was a dit, accounting, tax and business advisory Director – Finance for a division of TNS, a services across the globe. global marketing research company. Sam is also the Managing Director and Sam is a Fellow of Association of Chartered Shareholder of Adamas Capital Limited Certified Accountants (UK), Member, and Adamas Advisory Limited, a venture Institute of Certified Public Accountants capital company incorporated in Uganda. of Ugandan (ICPAU) with over 20 years’ Adamas has the backing of several private experience. equity investors seeking opportunities in He is widely experienced in International the Agriculture, Tourism, Oil & Gas, Min- Reporting Standards and was involved erals and Property sectors in Uganda. with ICPAU in the Technical Committee Sam has been Involved, managed and di- which is mandated with Promoting and rected assignments of projects and organi- maintaining compliance with professional zations of various donor funded projects in standards, legal and other regulatory re- Uganda. 72 The Uganda Chamber of Mines & Petroleum

Mr. Zhao Shunqiang of Tianjin branch, CNOOC Oilfield Service Limited. From 2004 to 2005 he Council, UCMP served as the General Manager of Tian- jin branch, CNOOC Oilfield Service Mr. Zhao Shunqiang is the President of Limited. CNOOC Uganda Limited. After that, Mr. Zhao served as the Born in 1968, and graduated from the General Manager of oilfield production China University of Petroleum and department, CNOOC Oilfield Service received a bachelor degree in Drilling Limited and also being a Chairman of Engineering in 1990. As a senior engi- CNOOC OTIS Completion Services neer, he has been working in the oil and Limited, and Chairman of COSL-EX- gas industry for over 20 years. PRO Well Testing Company.Mr. Zhao Mr. Zhao worked in CNOOC North Shunqiang was appointed as the Vice Drilling Company from 1990 to 2001. President of CNOOC International In 2002, he served as the Vice president Limited in 2012.

Mr. Pierre Jessua to 2006 and Project Manager for Carina & Aries from 2002 to 2005. Council, UCMP Earlier, Pierre was Division Director for Pierre JESSUA is a seasoned Oil and Gas Peciko & Tunu Task Force at Total E&P business executive with over 20 years’ Indonesia from 1999 to 2000 and was experience within Total Group. He is cur- Project Manager, Tunu Phase 4 to 6 from rently the General Manager of Total E&P 1996 to 1999. Uganda and Total Group Country Chair, Before joining Total, Pierre had worked Uganda. with Technip Geoproduction on the Pierre began his assignment in Uganda development of various projects including in August 2018 and he is responsible for one for Total ABK. ensuring that Total E&P Uganda’s opera- Among his numerous achievements, Piere tions are fully sanctioned through the is recognised for successfully managing Final Investment and delivering a (10 billion USD) project Decision, thereafter leading to projects on time and budget as Managing Director execution. Prior to his appointment in of Total E&P Congo. Uganda, Pierre was the Managing Direc- Pierre is well versed with managing large tor of Total E&P Congo from 2014 to July multi-discipline and multi-cultural teams 2018. Before that, he was Vice President, in challenging and diverse environments Project and Construction for Total E&P around the world. from 2010 to 2014 based at the group headquarters. Pierre holds a Master of Science in En- gineering Degree (Diplôme d’ingénieur) Previously, Pierre had worked with Total from Ecole Centrale De Marseille E&P Nigeria as the USAN Project Direc- (France) and a Master of Science in tor from 2006 to 2010, a career journey Underwater Technology from Cranfield he undertook after serving at Total E&P Institute of Technology (UK). Argentina as a Project Director from 2005

Mr. Nicholas Ecimu operations and or investments in the Mining, oil & Gas and Energy Sector. He has also advised on some Council, UCMP of the largest infrastructure projects in Uganda. Nicholas Ecimu is an established practitioner in With specific reference to oil & gas and mining, the power and infrastructure sector (electricity, oil Nicholas acts on the mandate of the Joint Venture and gas and mining). He acts on the mandate of the Partners with operations in Uganda. Nicholas also world’s leading development financial institutions, acts on the mandate of LafargeHolcim which is a the Government of Uganda, governmental agencies, leading cement manufacturing company in Uganda, global infrastructure entities and project sponsors. and he has advised the company on many of their Nicholas is a Partner and the Head of Sebalu & Lule mineral rights acquisition processes as well as on Advocates’ Projects and Infrastructure Practice of routine, corporate/ M&A instructions, over the last the Firm. In the last 19 years of Nicholas’ practice as 17 years. Nicholas also served as a member of the a lawyer in Uganda, he has acted for and continues Mining Policy working group that was charged with to act for many leading corporations with significant revising Uganda’s Mineral Policy. The Uganda Chamber of Mines & Petroleum 73

Mr. Abdul Kibuuka before joining Tullow Oil Plc as their pioneer Head of Human Resources Council, UCMP in Uganda. At Tullow Oil he also Abdul Kibuuka is the current CEO worked as Group Head of Talent & and Founding Director of True Competence Development based in North Consult Ltd, a boutique London before subsequently being Management Consulting firm based appointed as Head of Public Affairs in Uganda with offices in Uganda, for Tullow Uganda. Kenya and Rwanda. Prior to joining Currently he doubles as CEO and True North Consult as CEO, he had Principal Consultant at True North a stellar career in the Oil and Gas and has offered HR & management industry where he worked in varied consultancy services to several senior management positions with organizations mostly in Oil & Gas, the Royal Dutch Shell Plc in their Banking, Telecoms, Manufacturing downstream operations in Africa and selected government Agencies.

Pamela Natamba VAT, withholding taxes, employment taxes, etc), international structuring advice, due Council, UCMP diligence work, etc Pamela is a Tax Partner at PwC with over Tax policy related work such as lobbying 15 years’ experience in tax consulting and the Government for amendments to tax advisory services both in Uganda and in laws the UK. She has provided advisory services Support with resolving URA tax audits, to a number of multinational clients in a seeking rulings from the URA, tax health broad range of industries including Oil and checks and other general tax consulting Gas, Banking, Insurance, Telecommunica- work. tions, Manufacturing, Energy and Utilities. Providing support to the Uganda Chamber Pamela’s experience covers a broad range of of Mines and Petroleum as an advisor to responsibilities including: the Council on local content matters. Tax compliance services which covers Pamela holds a Bachelor of Commerce corporate tax compliance (i.e. preparation degree from Makerere University and is and review of corporate tax returns and the a Fellow of the Association of Chartered supporting tax computations) and personal and Certified Accountants (FCCA) and income tax compliance (i.e. prepare/review a member of the Institute of Certified personal income declarations and returns) Public Accountants of Uganda (ICPAU). Tax advisory and tax planning services She also holds a Master’s Degree in Busi- covering a number of tax heads (such as ness Administration from Oxford Brookes University, UK.

Catherine Niwamanya erals Programme- being implemented by UNDP in partnership with the Ministry of Wabomba Energy and Mineral Development. Ag. Chief Executive Officer • A member of African Union Commission’s Mineral Unit Technical Working Group Catherine is a graduate geologist that has (TWG) been involved with UCMP since its launch in 2010. • Project Manager for the Uganda Geodata Pilot Project- implemented by the Director- Prior to joining UCMP she worked as an ate of Geological Survey and Mines, British exploration geologist and exploration project Geological Survey, Geosoft Inc and UCMP coordinator at Rwenzori copper and Nickel under the auspices of African Union Com- Ltd which was a Ugandan subsidiary of the mission. Canadian mining company, Vangold. • A member of the Gender mainstreaming She has been involved in offering advice and sensitization team in the Mineral Sector-im- guidance to prospective investors in the min- plemented by the Directorate of Geological ing and petroleum sector as well as liaison Survey and Mines. with government and other development partners nationally and internationally. Catherine has also participated in different IFP online trainings in oil & gas; from explo- She has represented UCMP on many fronts ration to distribution sustainable mobility; including; technical and environmental challenges for • A member of the Country Working Group the automotive sector among others. (CWG) for the ACP-EU Development Min- UCMP’s 9th AGM

The Chamber would like to thank all members who participated in the 9th UCMP Annual General Meeting held on Friday 21st June, 2019 where elections for the UCMP Council 2019-2021 were GET UNSECURED BID/TENDER BONDS OF held. Some photos from the event: UP TO UGX 250M PLUS IMPORT AND EXPORT FINANCE FROM CENTENARY BANK

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/centenarybank centenarybank /centenarybank The Uganda Chamber of Mines & Petroleum 75 UCMP Advisory Board, 2019 – 2021 The UCMP Council elected advisors who were appointed for the same term following their expression of interest to serve. The advisory team will work with sub committees in the different fields to consolidate the Chamber’s role in the minerals and petroleum sectors while promoting members’ interests.

Name: Dr. Jennifer Hinton Name: Cynthia Mpanga Company: Jervois Mining Company: Standard Chartered Bank Advisory Role: Mining Advisory Role: Public Relations Jennifer has almost 20 years of ex- Cynthia is the Corporate Affairs Manager at perience working with governments, Standard Chartered Bank. She boasts 15 miners, companies and communi- years’ working experience in communications ties in 20 countries in Africa, Asia and marketing, with international exposure and South America. Currently the gained representing the Standard Chartered Uganda Country Head for Jervois Group in various capacities in India, Gambia, Mining, Jennifer is a director of Kenya and Tanzania. She has participated several private mineral exploration in the organizing of the Nairobi marathon on companies and an Adjunct Professor three different occasions, coordinating the at Carleton University. communication and PR for one of the biggest marathons on the African continent. Name: Gibson Nangono Company: Absa Group/ Barclays Bank Name: Franklin Bouguep Advisory Role: Finance Company: Solid Rock Gibson joined Barclays Bank in April Advisory Role: Training & 2010. He has a diversified banking Skills Development experience having worked from 2006 Franklin is the Executive Director, Global Operations as a business banker in the personal and at Solid Rock. He holds an MBA in Operations and business banking units at Stanbic Bank, Supply Chain Management plus several profession- Uganda. He was later engaged in 2007 al certificates from leading universities including as the relationship officer responsible the University of Wisconsin, Stanford University for the government’s portfolio which and Arizona State University. Franklin has a decade included government departments, of Project Management experience in Warehous- statutory bodies and national institu- ing Design, Construction Logistics, Operations tions at the corporate and investment management and Procurement, directing teams of banking division of Stanbic. over 300 people. An agile communicator, fluent in English and French, Franklin has held managerial Name: Hakim Mwesigwa positions for the last 20 years across industries in Company: ATS the US, Europe, Central & West Africa. Advisory Role: Health, Safety & Environ- ment Name: Nicholas Ramsden With 15 years in retail and service industries, Hakim Company: Montrose is currently the Country Business Development Advisory Role: Sustainable Manager at Allterrain Services (ATS) – one of the Development & Social Performance largest camp management companies in Africa and the Middle East. ATS has spent more than $100 An international social performance million on local community projects across the programme strategy and manage- African continent. Hakim framed the local content ment professional, Nicholas was born plan for ATS, Uganda. and grew up in Papua New Guinea. He boasts 12 years’ experience in Name: Tony O. Otoa corporate sustainability, social invest- Company: Stanbic Bank ment, and international development Advisory Role: Local content aid. Nicholas has designed and managed multi-million (British Pounds) Tony is the Head of the Stanbic Business Incubator. Prior to investment programmes in South this, he worked at Total Exploration and Production as the National Content Manager. In addition to this role, he was Sudan and Rwanda, set up and grew also the Public Affairs Manager. a sustainability consultancy presence in Myanmar to 10 staff in two years, Tony has also worked with civil society in the UK and Uganda; focusing on the oil and gas sector in the East and has worked with energy, mining, African region. It was in this period that he also published on and agribusiness majors on commu- the regulations and laws for the oil and gas sector. Tony is nity engagement, grievance mecha- also the founder of the National Content Council, a conven- nisms, and sustainable development tion geared towards the promotion of local content in the programming. petroleum sector in Uganda. He holds a BSc International Relations and LLM in International Law. 76 The Uganda Chamber of Mines & Petroleum Name: Aggrey Ashaba Company: GCC Services Advisory Role: International Relations Aggrey has over 19 years’ experience in business development, setup, marketing, growth, ideas, people, advisory, management, synergies and implementation Name: Mr. Gerald Mukyenga of business strategies across East Africa. He has also Company: Multilines led a number of set-up and strategic engagements in International the education, transport, public sector, retail, telecom- Advisory Role: Special munications, infrastructure, mining, health, energy and Advisor to the Chairman oil and gas. Aggrey is the General Manager, GCC Ser- Gerald is the Group Managing vices, a leading camp management services’ provider Director at Multilines in Africa and the Middle East. He is also the CEO at International Limited Axis international and a member of the Association of Chambers of Mines and Other Mining Associations in Africa (ACMMAA). An ardent football fan, Aggrey also serves as the Chairman, KCCA Football Club. Name: William Kizito Name: Doreen Byengoma Company: Finlaw Associates Company: Hima Cement Advisory Role: Investment Advisory Role: Legal & Advisory William enjoys vast experience in busi- Doreen is the Head of Legal, Compliance and ness development and relationship man- Corporate Affairs at Lafarge Uganda (Hima agement, product development, credit Cement). She earlier served as Legal Officer risk management and policy, financial at Orange Uganda (Africell) up to 2014, advisory, recoveries and business support. when she joined Hima. Doreen graduated from Leeds University with a Masters of Laws (LLM), Human Rights Law. Name: Hitesh Shah Company: Union Logistics Ltd Name: Peter Bitarakwate Advisory Role: Logistics Company: Zakhem International Hitesh is the Managing Director, Union Construction Logistics. A trustee Jain Samaj and a Advisory Role: Special Advisor member of the Uganda National Chamber to the Chairman of Commerce and Industry, he carries a Peter is the country representative of wealth of experience in logistics going Zakhem International Construction Ltd, a back over 20 years. global oil and gas infrastructure developer Hitesh also served as a member of the and financier. He trained with the Institute Bombay Management Association of Chartered Secretaries and Administra- (BMA), a member of the Indian institute tors (ICSA), UK and the Chartered Institute of materials management (IIMM), a mem- of Management Accountants (CIMA), UK. ber of the task force for inland port and air With over 25 years, at a managerial level, development of Uganda, a vice chairman, he has worked and gained competencies Samaj–Uganda, Secretary of the Indian and skills in management, business pro- Association of Uganda, Secretary of the cesses, development banking and financial Indian Business Forum and founding consulting. He has also garnered experi- member of the Uganda Freight Forward- ence in tax management, audit, innovating ers Association (UFFA). internal control systems with different East African Revenue Authorities and with Her Majesty’s Customs and Excise (HMCE) in the United Kingdom. Name: Caroline Athiyo Company: Minet, Uganda Name: Paul Kavuma Advisory Role: Youth & Gender Company: Uganda Insurers Association Matters Advisory Role: Insurance Carol is the Marketing and Business Paul is the CEO, Uganda Insurers Association Development Director at insurance bro- (UIA), possessing over 20 years’ experience ker, Minet Limited, a Pan African firm, within the insurance industry from both the and the largest AON Global Network mainstream underwriting and broking side. correspondent, with presence in more Prior to joining UIA, Paul worked as a Deputy than 120 countries, worldwide. She Managing Director and Chief Operations Officer holds over 15 years’ experience in insur- at Goldstar Insurance, Head of Broker Business ance, with special focus on the Energy, at AIG and Chartis Insurance and as a Manager Oil & Gas, Mining and Infrastructure at AON. He holds a LLB Hons Law from the industries University of London. The Uganda Chamber of Mines & Petroleum 77

Call: 0800222123 (Toll Free) 78 The Uganda Chamber of Mines & Petroleum Money Laundering and Terrorism Financing Implementing AML/CFT Measures in the Minerals Sector

For example, a criminal organization By Sydney Asubo may purchase gold from artisanal miners using cash and place it in gold to hide its existence or conceal the The Financial Intelligence Author- ownership. The main characteristics ity (FIA) is a government body of gold make it both attractive for, and established in 2014 after the en- vulnerable to, exploitation by crimi- actment of the Anti-Money Laun- nal organizations that need to legiti- dering Act 2013, to fight Money mize assets, Gold has intrinsic value, Laundering and Terrorism Financ- is easily smuggled and exchangeable ing in Uganda. The writer, Mr Sydney Asubo, is worldwide and can be traded anony- The AMLA/CFT Act implementation the Executive Director, Financial mously by criminals. framework, is anchored on the 40 rec- Intelligence Authority (FIA) Layering constitutes the second ommendations of the Financial Ac- Financial Intelligence Authority stage of the laundering process and tion Task Force (FATF) which is the Rwenzori Towers (Wing B) involves the separation of proceeds global body responsible for setting from the illegal source through the and reviewing Anti-Money Launder- 4th Floor, Plot 6, Nakesero Road use of complex transactions designed ing and Countering the Financing of Kampala –Uganda, to obscure the audit trail and hide the Terrorism (AML/CFT) international P.O.Box 9853, Kampala proceeds. standards. Tel. +256414231556 Integration, the third stage of money Money laundering is the process of [email protected] laundering, represents the conver- turning illegitimately obtained prop- sion of illegal proceeds into appar- erty into seemingly legitimate prop- ently legitimate business earnings erty. This includes concealing or dis- through normal financial or com- guising the nature, source, location, mercial operations. Integration cre- disposition or movement of the pro- ates the illusion of a legitimate source ceeds of crime and any activity which for criminally derived funds and in- constitutes a crime. Criminals who volves techniques as numerous and commit predicate offences and get creative as those used by le- proceeds find ways to move money in gitimate businesses to increase various forms without being detected profit and reduce tax liability. by Law enforcement Agencies such as Police or the FIA. The extractive industries are among the most lucrative busi- Money Laundering consists of a ness sectors which are vulnerable three-stage process. The first stage to money laundering .The sector involves the placement of proceeds is exposed to corruption and other derived from illegal activities - the serious offenses which generate huge movement of proceeds, (nor- sums of proceeds. The Uganda AML/ mally currency) - from the CFT National Risk Assessment Re- scene of the crime to an- port of 2017 identified a range of other place, or into a profit-making opportunities for form, less suspi- criminals in gold, diamond cious and more and other precious miner- convenient for als market. The report also the criminal. The Uganda Chamber of Mines & Petroleum 79 sets out a range of red-flags to identify predicate offences that could occur in the mining, recycling, refinement, retail and investment of gold. It is important to note that criminal organizations are likely to benefit from infiltrating the booming gold market in Uganda. For example; gold and the gold trade has become an alternative means for criminals to transfer value and generate proceeds. Gold is anonymous, has a stable value, easily transformable and transportable, which makes it an attractive alternative for criminals to store or move and generate value. The United Nations (UN) reports indicate that conflict gold provide the largest source of revenue to militias and other actors involved in the flashpoint eastern Congo, where an estimated 3.3 Source: ML/TF National Risk Assessment Report, March 2017 Page xix to 7.6 million people have died. Conflict minerals are minerals mined in conditions of armed conflict and human Money Laundering and Terrorism the customer is collected and evaluated rights abuses and the profits from the Financing. Since the findings of the for any potential risk for the organization sale of the minerals used to finance con- National Risk Assessment rate the sec- or money laundering/terrorist financing tinued fighting or commit other crimes. tor as highly vulnerable to ML/TF, a activities. All dealers in the mining sector The FIA has put in place measures to considerable effort is required by the are obliged to carry out CDD. The AMLA, ensure that sectors like the Mineral, Regulatory, Supervisory Authorities 2013, as amended, emphasizes the use of gems and precious Metals are protected and Law Enforcement Agencies to fight simplified CDD for low risk customers from being abused by criminals to laun- the crime. This requires enforcement of and enhanced CDD for the high risk cus- der proceeds of crime or even finance compliance obligations by all the stake- tomers. CDD should also be carried out terrorists. holders involved in the sector. for all customers immediately before the The FIA carried out a Money Launder- OBLIGATIONS OF ACCOUNTABLE commencement of transactions, dealers ing and Terrorism Financing National PERSONS (CASE FOR DEALERS must avoid transactions involving gold or risk Assessment in 2016. The Miner- IN MINERALS AND PRECIOUS other minerals that occur anonymously, als sector was found to be among the STONES) with little or no record as regards identification of the seller or purchaser of gold. most vulnerable to Money Laundering The Anti-Money Laundering Act im- and was rated Medium High. (See table poses specific obligations on Account- 3. Putting in Place Approved Anti Mon- below) The report further indicates that able Persons including dealers in pre- ey Laundering and Countering the Fi- Uganda is a major conduit for miner- cious metals and gems. The law defines nancing of Terrorism Policies (AML/ als smuggling especially gold and dia- this category to include both mineral CFT).All dealers are by Law required to monds from DRC and other countries dealers and retailers when engaged in develop an AML/CFT program/policy to the international markets such as any cash transactions over USD 10,000. that is regulator approved. Each dealer/ Dubai. entity must specify the methods it will use Such requirements include; Although certain protocols have been to identify customers and the information put in place to ensure that the minerals 1. Registration with the Financial In- that needs to be collected from them to from conflict areas are not traded inter- telligence Authority. All dealers in the ensure sufficient transparency (KYC Pro- nationally, weak controls in the sector minerals sectors are required by AMLA, cedures) this includes internal controls continue to pose a threat to Uganda. 2013, as amended, to register with the and procedures to manage and enforce For example, the presence of various FIA. This registration is done once by compliance unlicensed mineral dealers in Uganda the entity or the individual and is free 4. Proper KYC when dealing with Third who claim to be purchasing gold from of charge. The FIA issued guidelines to Parties. In line with FATF Recommen- neighboring countries for onward ex- this effect which required all account- dation 17 and the AMLA where a dealer port to the international market with- able persons to have registered by end relies upon a third party to supply/source out proper declarations on the source of of year 2016. or offer some of its services, where such funds used to purchase these minerals. 2. Carry out Customer Due Diligence reliance is permitted, the ultimate respon- The role of the FIA is to identify pro- (CDD) on all clients. This is the process sibility for CDD measures remains with ceeds of crime and the combating of by which relevant information about the registered mineral dealer. 80 The Uganda Chamber of Mines & Petroleum

All large transactions, multiple cash and monetary transactions which all together exceed the prescribed amount and are undertaken by or any one person in one day shall be treated as a single A rtisanal gold mining in B usoga region transaction and should be reported to the FIA. 7. Maintaining AML records. All deal- 5. Monitoring and reporting suspi- ers as Accountable Persons are obliged cious activities. by Law to maintain all documents that Accountable persons have a responsibil- relate to suspicious activity, transac- ity to monitor customer activity for any tions reports submitted to any external suspicious financial activities. Mineral authorities and records of training given to staff members. dealers including refiners, processors, 6. Training and communicating AML exporters and all those involved in the policies. The AMLA, 2013 requires all account- value chain must monitor and report able persons to maintain documents suspicious transactions in Form B as All accountable persons must ensure for a minimum period of 10 years from soon as after forming the suspicion but that all their staff receive initial and the date of transaction. Maintenance of not later than two working days. This on-going training on relevant AML leg- Records should be in a form that can should be submitted to the FIA with islation, regulations, policies and pro- enable the entity/dealer to comply with documentation forming the basis of the cedures that your company will put in requests and should enable the trans- suspicion. place. It should however be noted that action to be reconstructed when need ML transactions are more vulnerable arises Accountable persons are also supposed to detection at the stage of establishing to record and report cash and mon- a business relationship with the cus- 8. All Accountable persons must carry etary transactions exceeding 1,000 cur- tomer. Therefore adequate training is out periodic Independent audits to rency points (20,000,000/=) in form A particularly encouraged to be given to assess its compliance with the require- to the FIA. All large transactions, mul- ‘front line” staff to equip them on how ments of the AML Act, 2013 and AML tiple cash and monetary transactions to detect ML .The continuous and ef- Regulations. which all together exceed the prescribed fective training of staff and artisan sup- 9. Must submit Annual compliance amount and are undertaken by or any pliers is a vital tool for combating ML. report at the end of each calendar year, one person in one day shall be treated Knowledgeable staff enable the swift setting out the level of compliance with as a single transaction and should be re- and effective management of suspicious the AML Act, 2013 and AML Regula- ported to the FIA. financial activity. tions. The Uganda Chamber of Mines & Petroleum 81

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www.spedaginterfreight.com 82 The Uganda Chamber of Mines & Petroleum

chemical testing services to mineral exploration companies but also did soil tests for farmers and university students pursuing industrial chemistry projects,” says Mr George Mugambwa, the Time Analytics, CEO. The early positive vibe from the market was all Mugambwa and his partners needed to formally register the laboratory in February, 2018 and officially open for business. Mr. George Mugambwa, the Overnight bigger subcontractor Time Analytics, gigs for chemical tests on soil and CEO at the lab water started coming in from other engineering labs. These included soil and water tests for Total E & P and large road projects. “Currently Time Analytics is preoccupied with carrying out feasibility soil tests for the East African Crude Oil Pipeline (EACOP), the Time Analytics’ Mpigi-Busega highway soil tests, Ziba dam and Nyamwamba II hydro water quality tests besides the services to research students, individual Lab Eyes Mining farmers and the mining industry,” says Mugambwa. Below, he shades more light on what Prospects Time Analytics is about: Personnel The core team at Time Analytics has laboratory experience relating That Uganda lacks modern assay to mining chemistry and hazardous laboratories to get quick mineral waste management handling gained from working at the Kasese Cobalt identification tests done locally, is Company Ltd (KCCL) and Luwero not new, a story. That promise after Industries. promise has been made by the Uganda This expertise extends to management of different testing instruments government to set up these facilities including Atomic Absorption, in-country, without anything tangible XRF, Gas Chromatography, Spectrophotometers and UV registered, is old news as well. technologies. I hold a Bsc. Biochemistry degree with over 12 years’ experience in the industry. Mr Daniel Okwako, the What is new however is citizens, three Ugandan gentlemen, the Lab Manager holds a Bsc. Industrial folding their sleeves and laboratory observes local content Chemistry qualification with over addressing this challenge head concerns up to 100 percent. Like 20 years’ experience. Mr Innocent on, as the proprietors of Times many entrepreneur ideas, this Tibaingana, the Technical Signatory Analytics will attest. particular one was set off by the is also Bsc. Industrial Chemistry realization of the glaring gap in Times Analytics is a Uganda degree holder and comes with 12 chemical analytical services in years of experience while Mr Lennon National Bureau of Standards Uganda. (UNBS) gazetted testing lab, for Kagonyera, the Finance Manager, soils and water located on Plot “Together, with my friends, we holds a Bsc. Civil Engineering 1089, Church Road in Kitintale, pooled our measly resources and qualification plus PGD Project Kampala. set up shop, initially in a discarded Planning and Management. Lennon truck container. We not only offered has 7 years’ practice in this field. Started in October 2017 by The Uganda Chamber of Mines & Petroleum 83

permit under lab recognition capacity and therefore the scheme for ISO 17025:2005; need for further investment in this permit number UNBS/LRS/0019. area is obvious. And this capacity Besides Time Analytics uses building should not only be in lab calibrated pieces for measurement infrastructure and equipment but of volumes, weights and in personnel training as well. temperatures traceable to UNBS. With such a glaring gap, you Only analytical grade reagents are would think it would be easy from credible suppliers that are to attract funding to our sector, traceable to renowned standards but unfortunately, this is not the like NIST. We also participate in case, with financial institutions laboratory proficiency testing misguidedly listing us as high risk. schemes – the EAC PT for feeds Government should step in with and SADCMET Water PT. special funding for lab analytics Because UNBS is our industry as well as reducing taxes on regulator, we run credible testing equipment. And these laboratory operations and therefore interventions would immediately offer reliable results. realize gains since a great deal of lab testing work is being shipped We strictly apply accepted abroad yet the money can be spent industry or conventional methods here to the benefit of the economy. including British standards and ISO, with quick turnaround times and There’s also a lot of potential from minimum bureaucracy. DR. Congo and Southern Sudan, who too are in need of these Our short term plans involve services. growing our testing scope to cover as many industries as possible Clientele by investing in more specialized We have collaborated with Teclabs, testing equipment, increased Alpha Geo Labs and Artoria participation in proficiency testing Certification, Capacity Engineering Labs on soil and with international labs and getting water for the East African Crude We operate under the lab ISO 17025:2017 accreditation. recognition scheme of Uganda Oil Pipeline (EACOP). We have also National Bureau of Standards Need done water and soil tests for major highways including the Kampala (UNBS) to carry out tests on soil Our lab analytical services are Flyover and the Busega – Mpigi and water; permit number UNBS/ an important addition to the Expressway. LRS/0019. industrialization process of any However, we have built a developing country. Without Other construction projects Time partnership with Polucon them, the development of not Analytics has been part of include Services Kenya Limited which only mining but many other the Entebbe Airport expansion is ISO 17025:2005 accredited sectors is hampered including works plus carrying out water to carry out tests on water, soil, food and agriculture, construction monitoring tests for mini hydro cosmetics, hydrocarbons, food and and engineering and sanitation, dams like Nyamwamba Dam and microbiology. amongst others. An improvement Ziba Dam. in the analytical services sector can We are also doing gold testing for a The UNBS local lab recognition is boost development in all others. a stepping stone to international number of Mubende and Busitema accreditation, which should be For the mining industry especially, miners, soil testing for farmers, fully achieved within the next three Uganda lacks fully functional assay water quality tests for Wells of years. laboratories. Currently samples Life and the Chinese embassy in have to be flown out to Tanzania, Uganda. Time Analytics has also ensured South Africa, Canada, Australia and Future Prospects compliance with our operational Europe for thorough laboratory licenses. Being fully registered on tests; which is not only expensive Mugambwa believes once Time the Petroleum Authority Uganda’s but also time consuming. In Analytics upgrades to 17025:2017, National Supplier Database addition, bureaucratic delays in by at least May 2020, they will need means we are tax compliant and exporting these samples out of the another two years before adding our National Social Security Fund country are inevitable. on high mining industry standards (NSSF) paperwork is in order. like JORC and NI-101, that mining In general, lab analytical services investors from major players like Compliance, Growth are very rare in Uganda. The Canada, consider highly in mining country currently runs under 15% We recently acquired our UNBS data verification. 84 The Uganda Chamber of Mines & Petroleum

Mr. Zachary Baguma, the DGSM Director and Ms Jessica Keigomba (3rd L), the minerals protection unit police head Will Police’s Mineral Protection Unit Have Desired Impact? mechanisms are fully imbedded in the laws and regulations but their Uganda’s mining application and punitive measures industry was so vibrant had lots of loopholes. The Mineral Protection Unit has so in the 1950s and 1960s far had far reaching impact, both that at the peak of positive and negative on the industry. production, it greatly The unit has done some significant work amidst long standing aided the growth and industry challenges and policing development of the impediments. Its stern approach to By Tom Nsubuga matters may be uncomfortable for country, with a GDP some, but I believe it is what the contribution of 30% industry needs now if we are to get registered at some Currently, the mining industry is at rid of the illicit mineral trade quickly. progression stage, so all intended The Police officers should also be point. interventions have to be cautiously commended for effortlessly carrying thought through in order to have out this new assignment in what may credible, viable initiatives that can have been a totally alien industry for inherently enhance industry growth many of them. After all, the mining at all stages of production be it short, industry is not the easiest to regulate, In the 1970s though, after the medium or long term. with diverse stakeholders and a lot political upheavals and expulsion One such initiative is the introduction of money going around. of foreigners by President Idi of the Mineral Protection Unit of Amin Dada, the economy suffered Entebbe international airport and the Uganda Police Force in the which consequently led to a total other porous borders had for long mining industry by President Yoweri collapse of the mining industry. acted as conduits for illegal transit of Museveni in 2016, which was received minerals denying Uganda revenues In mining areas, plants were closed with utmost optimism. The hope in taxes and royalties. The Mineral and equipment vandalized and was that it would rid the industry Protection Unit has since intercepted looted. The idle mining areas that of the illicit mineral trade that had huge quantities of both fake and had been gazetted by Government become a mainstay. The checks and genuine gold exports at these border were encroached on and shared balances in the industry, standard points. amongst the local people. performance and production The Uganda Chamber of Mines & Petroleum 85

This intervention has greatly boosted to be clearly spelt out so that the the nitty-gritties of the industry confidence in the mining industry mainstreaming of the mining industry before the law is enforced to avoid and hopefully the effort will continue. is attained. accusations of bias and victimization. The continued crackdown has The line ministries (Energy and Sufficient facilitation of the unit and will definitely improve foreign Mineral Development plus Internal in terms of human resource and exchange earnings which will in Affairs ministries) needed to clearly funds is also important if the unit, turn call for more investment in the design duties of the unit vis-à-vis which carries out 70% of industry mining industry. DGSM to avoid duplication of roles monitoring, is to achieve its mandate. Sensitization of artisanal and small and responsibilities. The police scale miners (ASMs) who have officers under the Mineral Protection Allegations of bribery of the unit for long acted contrary to the set Unit also needed to be equipped officers by miners as claimed by industry standards will create sanity with adequate knowledge about ASMs in Kasanda goldmines, need in the industry. Already several ASM the entire mining industry before to be quickly investigated and associations have been formed, deployment. perpetrators, if any, swiftly dealt with, to maintain trust in this monitoring which are easy to monitor and There is also need to have a phased process. evaluate in terms of compliance to implementation plan. industry regulations like eradication Industry players remain optimistic The biggest challenge in the mining of child labour and environmental that if our concerns are continually industry is not about how best to protection. addressed comprehensively our enforce the law but how to sensitize returns will improve greatly and the On the flipside, a grey area remains the players about the law. as far as where the Directorate of overall transformation of Uganda’s In Mubende and Buhweju, artisanal Geological Surveys and Mines’ mining and minerals industry will be miners were initially chased away (DGSM) and Mineral Protection Unit’s complete. from the mining sites and then monitoring work starts and ends. This is certainly not a one man’s advised to form associations to attain race but requires concerted efforts This uncertainty could undermine mining licenses. This was wrong, in from all concerned parties and performance of both parties yet they my humble opinion. need to coordinate and cooperate stakeholders in the industry. In order to achieve the desired for their well-intended interventions The writer, Mr Tom Nsubuga, is goals, the police unit needs to to achieve maximum results. a Director at Arrm Investments follow a coherent and phased Ltd (Mutaaka Mines). Email: Roles and responsibilities plus core transitional implementation plan. [email protected] responsibilities of both parties need ASMs especially need to understand

waste management water resources. 86 The Uganda Chamber of Mines & Petroleum Uganda should tax oil profits not investments

A key transaction to unlock Uganda’s oil sector interest disposals. If Uganda had maintained its involving Tullow Oil selling stake to Total and 2008 oil tax regime but with CNOOC aborted recently. Both statements from modifications, the current Tullow and Total noted that disagreements disagreements would be minimal. The rules introduced in with the government over the underlying 2008 adopted a “step in shoes” tax treatment led to its collapse. The final approach to PSA disposals. The investment decision (FID) for Uganda’s oil transferor/seller was not taxed on any gain, but the transferee/ project may remain outstanding until this deal buyer inherited the seller’s mainly intended to help Tullow raise finances undepreciated costs for tax for investment in the project completes. purposes. CNOOC and Total have disagreed with the government for denying them tax relief on acquisition costs if they went ahead with the Tullow transaction. Delaying Uganda’s oil Anticipating that Heritage would production further is costly to dispose of its PSA interests, the both the government and oil law was amended in 2009 to tax companies (IOCs) the reason arising gains. While it is fair to tax they must urgently seek a capital gains, this amendment did settlement. not consider the various reasons The current standstill over taxes for PSA disposals. Though IOCs can be fixed with a strategic sometimes dispose PSA stake for commercial outlook and profits (which clearly was Heritage appropriate alignment of issues. motive), they are usually intended Tax disputes on oil stake (PSA) to raise funds for exploration disposals are common in countries and development operations as with new oil discoveries that see an well as mitigating sector risks increase in PSA interest transfers by diversifying a portfolio of and sometimes misunderstand projects. The current tax regime these as happening entirely unfortunately taxes PSA disposals for profit maximisation. Kenya, uniformly regardless of objective. Uganda, Mozambique and Tanzania have all at one time attempted to tax or (indeed taxed) The Uganda National Oil Company By Denis Kakembo the supposed windfall gains on (UNOC) recently announced that it PSA transfers. With experience had applied for an oil exploration that such measures can adversely license. We anticipate it will affect sector capital inflows, Kenya dispose of part of its PSA stake revised its oil tax regime aligning to another IOC in exchange for it to the commercial realities of oil financial support to meet its PSA The Uganda Chamber of Mines & Petroleum 87

Uganda Prime Minister, Mr Ruhakana Rugunda speaking at the Oil Convention in April, 2019. A lot has changed in the industry since then

work commitments. Under the evaluating whether to participate brink. Investment capital is highly current tax regime, this support in in the ongoing Uganda oil licensing mobile and Uganda will lose out kind to UNOC would be treated as round will raise the same. to these projects unless there is consideration and oddly subject Relying on press reports, the a quick settlement. There is also to 30% income tax even though government demanded for taxes investor fatigue having waited for UNOC would not have received amounting to $167 million from so long for Uganda’s project. any of it in cash. We believe it is Tullow Oil on its cancelled sale The government estimates that not a government objective to tax as well as denying Total and the oil sector will create over capital for investments but some CNOOC tax relief on the would 160,000 Jobs. Assuming an provisions in the law give this be acquisition costs. The IOCs average monthly pay of $500, result. There are other instances have maintained that this position the government would collect a taxing capital that cannot be suppresses project returns below minimum of $307 million in pay outlined here for lack of space. the target for their shareholders to as you earn taxes (PAYE) alone President Yoweri Museveni sanction the FID. If the law can be per year. This is double the tax advised government agencies revised ensuring that only profits that the government demanded in 2014 against taxing capital are taxed, Uganda’s oil industry will leading to the collapse of Tullow’s earmarked for investment. It thrive. Many qualified Ugandans stake sale further delaying FID. was prudent to the President if have been laid off or cannot be There is therefore every reason only the income deriving from absorbed in the sector because for the government to come to these investments was taxed. of the inactivity from the current agreement with the IOCs even if Though the oil tax regime was stalemate. it means yielding to some of their amended in 2015 to address the According to my rough economic tax demands. It can scientifically President’s concerns, there are model, the government loses in be validated that the aggregate still gaps in the law to plug to excess of $300 million per year economic benefits significantly achieve an optimal tax position. in eroded value of its expected outweigh the value of taxes Both the government and IOCs oil project revenues with the currently demanded by the should therefore relax their delays. IOC losses are significantly government or hoped to save irreducible demands and have an lower but they are also under in the future that is stalling the objective evaluation of whether less financial pressure because progress of the country’s oil sector. indeed Uganda’s oil tax regimes they have oil producing assets The writer is Managing Partner dwindles sector profitability. This in other countries generating at Cristal Advocates. Email: discussion will once and for all cashflows. Mozambique had its [email protected] resolve the outstanding tax issues. FID recently and Kenya is on the Otherwise, investors currently 88 The Uganda Chamber of Mines & Petroleum UCMP MEMBERS 2019 Chamber Diamond Members COMPANY CONTACT PERSON SECTOR exim Bank (Uganda) limited Ms. Zainab Byanjeru Banking Somagec Investments Uganda ltd Mr. Omar Farid Karama Engineering & Construction Jervois Mining ltd Dr. Jennifer Hinton Mining & Exploration Zakhem International Construction ltd Mr. Peter Bitarakwate Oil & Gas Infrastructure CnooC Uganda Ms. Aminah Bukenya Oil & Gas Exploration & Production Total e&P Uganda Ms. Anita Kayongo Oil & Gas Exploration & Production Tullow Uganda operations Pty Mr. Jimmy Mugerwa Oil & Gas Exploration & Production Chamber Gold Members COMPANY CONTACT PERSON SECTOR KPMG Mr. Asad Lukwago Audit & Tax Advisory UHY thakkar & associates Mr. Sam Thakkar Audit, Tax Advisory & Accounting stanbic bank Uganda Mr. James Karama Banking standard Chartered bank Ms. Cynthia Mpanga Banking absa Group Mr. Gibson Nangono Banking Uganda development bank Mr. Ladislao Ategeka Banking Commercial bank of africa Limited Mr. Anthony Ndegwa Banking nC bank Uganda Limited Ms. Ramla Nantongo Banking Hima Cement Ltd Ms. Caroline Kezaabu Cement Manufacturing african Gold refinery Ms. Cherry Anne Dacdac Gold Refining speke Group of Hotels Mr. Amit Sachdeva Hospitality Liberty Life assurance Uganda Mr. Bonnie Pande Insurance Lim-ited sebalu & Lule Mr. Nicholas Ecimu Legal Services solid rock Group Mr. Franklin Bouguep Management Consulting Madhvani Group Ltd Mr. Mwine Jim Kabeho Manufacturing, Mining & Energy samta Mines & Minerals Hon. Richard Kaijuka Mining & Exploration baker Hughes, a Ge Company Mr. Adrian Bukenya Mulindwa Oil & Gas & Mining VIVo energy, Uganda Mr. Mugisha Tonny Shawn Oil & Gas, Minerals & Energy JMG Construction & General Mr. Johannes G. Kidane Road Construction, Oil & Gas & trading Co. Ltd Civil Building Engineering Kenlloyd Logistics Uganda Limited Mr. Albert Muganga Logistics & Transport dsV air & sea Ltd Mr. Joseph Mukasa Logistics & Transport transeast (U) Ltd Mr. Mathew Agacha Logistics & Transport The Uganda Chamber of Mines & Petroleum 89 Chamber Silver Members COMPANY CONTACT PERSON SECTOR

PWC Mr. Francis Kamulegeya Auditing, Tax & Advisory Deloitte Mr. Norbert Kagoro Auditing, Tax & Advisory Ernst & Young Mr. Muhammed Ssempijja Auditing, Tax & Advisory Citibank U Ltd Ms. Bagorogoza Clare Banking Toyota U Ltd Mr. Baisama Awori Car Dealership Victoria Motors Limited Mr. Dickson Mwesigwa Car Dealership Newrest Mr. Gael Lokossou Catering All terrain services Mr. Hakim Mwesigwa Catering Tororo Cement Limited Mr. Gagrani B. M Cement Manufacturing Kampala Cement Co Ltd Mr. Sanjeev Gupta Cement Manufacturing Civtec Africa Ltd Mr. Castro Kagina Taremwa Civil Works & Fabrication BTS Clearing & Forwarding Ms. Merian Sebunya Clearing & Forwarding Multilines International U Ltd Mr. Gerald Mukyenga Clearing & Forwarding Union Logistics Mr. Hitesh Shah Clearing & Forwarding Mota-Engil Uganda Mr. Mauro Ventura Construction Construction, Warehousing, Camp Building Mineral Services Ltd Mr. Richard Kiganda & Motor Vehicle Support AG Quality Consultants Ms. Sara Byabazaire Consultancy Consultancy, Supply Chain & Financial Crown Agents Mr. Winston Manzi Services British High Commission Mr. Eric Olanya Diplomatic Mission GEMS Cambridge International School Ms. Brenda Mutesi Education Keltron Development Services Ltd Mr. Keith Flowers Electrical & Mechanical Contracting International Energy Technik (U) Ltd Mr. Dinanath Yadav Electrical Engineering City Ambulance Dr. Hannington Byarugaba Emergency Medical Services Kagga & Partners Mr. Raymond Kalema Engineering Consulting Environment Consultancy, Engineering & Rsk Environment Ms. Lucy Thomas Technical support Green Label Services Dr. Grace Mugume Environmental & Public Health Consultancy Environmental Assessment & Social Invest- Montrose Africa Mr. Nicholas Ramsden ment Consultancy Achelis Uganda Ltd Mr. Hans Georg Hinterberger Equipment Sale & Rental Fenon Entertainment Mr. Steve Jean Selunkuma Event Management & P.R GCC Services (U) Ltd Mr. Aggrey Ashaba Facilities Maintenance & Catering Services E360 Mr. Jim Akaya Health, Safety & Environment 90 The Uganda Chamber of Mines & Petroleum

UnitedHealthcare Global Medical Ms. Rebecca Gargan Healthcare Ganatra Plant & Equipment Ltd Ms. Ashiana Jivraj Heavy Machinery Leasing & Sales Sheraton Kampala Hotel Mr. Jennifer Kizito Hospitality Kabira Country Club Mr. Stephen Mulu Nzavi Hospitality Krohne Pty Ltd Mr. John Boxley Industrial Process Instrumentation Uganda Insurers Association Ms. Faith Ekudu Insurance Goldstar Insurance Co. Ltd Mr. Azim Tharani Insurance UAP Old Mutual-Uganda Ms. Caroline Tayebwa Insurance Willis Towers Watson Uganda Insurance Ms. Ritah Mutesi Kabayiza Insurance Brokers Ltd TransAfrica Assurance Company Ltd Mr. Madhav Kumar Insurance MUA Insurance Mr. Latimer Kagimu Mukasa Insurance African Trade Insurance Agency Mr. Fredrick Mutua Insurance Minet Uganda Ltd Ms. Caroline Athiyo Insurance & Risk Management Marsh Uganda Ltd Mr. Alex Mukasa Insurance & Risk Management Legal Services Kampala Associated Advocates Mr. Joseph Matsiko Legal Services Capital Law Partners Ms. Christabel Kutesa Legal Services Ligomarc Advocates Mr. Joshua Ogwal Legal Services Nangwala, Rezida, & Co. Advocates Mr. James Nangwala Legal Services Signum Advocates Mr. Patson Arinaitwe Legal Services Arcadia Advocates Mr. Robert Bautu Legal Services Fredrick Francis & Associates Ms. Diana kyobutungi Legal Services Agaba Muhairwe & Co Advocates Mr. Naboth Muhairwe Semliki Rift Trading Co Mr. Igor Markov Lift Services & Ferries Liberty ICD Ltd Prof. Minaz Karmali Logistics Spedag Interfreight U Ltd Mr. Arthur Kato Logistics & Transport Saba Gifco Uganda Ltd Mr. Kassim Mohamed Yamany Logistics & Transport FF Oil and Gas Logistics Ltd Mr. Anthony Agaba Logistics & Transport Bollore Transport & Logistics Uganda Ltd Ms. Nancy Kiconco Logistics & Transport Afrofreight Clearing & Forwarding (U) Ltd Ms. Grace Tumukunde Logistics & Transport Astor Finance Plc Ltd Mr. Gordon Sentiba Micro-Leasing and Financial Services Sino Minerals Investments Co. Ltd Ms. Sarah Namara Mineral Exploration Megha Minerals Mr. Sikander Meghani Mineral Exploration Great Rift Geosciences Mr. Andy Spiro Tugume Mineral Exploration Sipa Exploration Uganda Ltd Ms. Natasha Venus Mineral Exploration The Uganda Chamber of Mines & Petroleum 91

Askar Investments Ltd/ Askar Security Ms. Kellen Kayonga Mineral Exploration/Security Services Namekara Mining Company Limited Mr. Henson Mambo Mining The Motorcentre EA Mr. Joseph Ssemuwemba Motor Vehicle Sales, Hire & Maintenance Halliburton International GmbH Mr. Randy Gilchrist Oil & Gas Services Sunmaker Energy Mr. Jerry Ma Oil & Gas Training Regis Uganda Ltd Ms. Linda Da Beer Oil & Gas, Mining & Heavy Industries Ortec Uganda Mr. Olivier Cadoux Oil & Gas, Storage, Mining & Heavy Industry Procurement, Warehousing & Distribution Medical Access Ms. Josephine Tamale of Health-related Commodities SeaOwl Energy Services Uganda Ms. Aurelie Duchateau Recruitment & Training Kenya Ports Authority Mr. Muhamad .A. Jezan Sea & Inland Waterways Management Industrial Security Services Mr. Conarad Sebuccu Security Services Securex Agencies (U) Ltd Mr. Gurpreet Singh Security Services PM Piping Uganda Limited Ms. Laini Hadijah Munsi Supply of Pipes, Piping Materials & Valves Telecommunications, Logistics, Engineering Invesco (U) Ltd Ms. Paula Namuli & Oil & Gas Lloyds British International Ms. Harriet Namata Testing, Inspection & Certification Bureau Veritas Uganda Ltd Mr. Rakesh Prasad Testing, Inspection & Certification Epsilon U Ltd Ms. Hellen Nambi Waste Management Enviroserv U Ltd Ms. Damaris Namutebi Waste Management Chamber Individual Members Name Specialty Mr. Jeff baitwa Businessman Mr. rajiv ruparelia Businessman Mr. alex rugamba Businessman & Consultant Mr. Paul Muwanga Businessman & Engineer Mr. Malkit singh saini Construction Mr. rajesh dewani Construction Mr. Kuldip singh Lotay Construction Mr. William Kayondo Event Manager Mr. abdul Kibuuka Human Resource Manager Mr. Justinian Kateera Lawyer Mr. Joshua tuhumwire Mining Ms. allen Kukiriza Registrar Mr. robert Palfrey Social Risk Manager Banking on the win for Africa at the African Bank Awards 2019.

We go to extraordinary lengths to exceed expectations and get things done. We challenge limits, we close distances, we connect people to opportunities across borders, languages and cultures. African ingenuity knows no limits; neither do we.

That is why we are proud to announce that our Corporate and Investment Banking operations across the continent have been awarded 'Investment Bank of the Year'. This award recognises the success of Absa Group’s efforts to contribute to the transformation of Africa’s financial sector, as well as deepening the relationships we continue to build with our clients.

Thank you to all whose faith and trust in us has made this accolade a reality.

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Absa Group Limited Reg No 1986/003934/06. Absa Group Limited uses Barclays trademarks under license from Barclays Bank Plc. Barclays Bank of Uganda Limited, company registration no. 4227 is regulated by the Bank of Uganda. Barclays Bank of Uganda Limited uses Barclays trademarks under license from Barclays Bank Plc.