ROOFINGS "T?EPA@ by Mining

www.ucmp.ug The Uganda Chamber of MINES & PETROLEUM Issue: 12 September, 2014

More mining investments to follow LAW REVIEW

EQUITY FINANCES EXTRACTIVES BETTER

KATTO IS NEW COMMISSIONER

Rooﬁngs Eyes Mining Sector

$620m Sukulu phosphates project sets precedent Plot 11/13 Lower Kololo Terrace Fax: +256 (0) 312 229 234/5 Website: www.aon.com Bolloré Africa Logistics in Uganda Plot M-611, Ntinda Road Tel; +256 414 336000 I Email; [email protected] UCMP COUNCIL MEMBERS CHAMBER COUNCIL

Hon. Elly Karuhanga Raﬁn Francois Chairman COUNCIL

President – Tullow Oil, Total E&P, Uganda Country Uganda, Managing Partner Manager – Kampala Associated Advocates and Director dfcu bank, Nile Breweries and other companies

Hon. Richard Henry Kellen Kayonga, Kaijuka COUNCIL Vice Chairman Managing Director, of Askar Chairman EA Gold and Security Services Managing Director, Berkeley Reef Ltd, a fully- ﬂedged Mining and Mineral Exploration Company

Paul Sherwen Jimmy Mugerwa, GEN.SECRETARY COUNCIL

Chairman, Greenstone Tullow, Uganda Country Resources Manager

Jeff Baitwa Matthew Tallarovic Treasurer COUNCIL Partner, Deloitte (Uganda) Ltd Director ThreeWays Shipping Services [Group] Ltd

Xiao Zong Wei Irene Nakalyango COUNCIL COUNCIL

CNOOC, Uganda, CEO, UCMP President Xiao Zong Wei

4 The Uganda Chamber of Mines & Petroleum UCMP COUNCIL MEMBERS ADVISORS

Gordon Setimba ADVISOR Herman Kasekende ADVISOR Astor Finance Plc Standard Chartered Bank, Managing Director

Denis Kusaasira, ADVISOR

Joshua Tuhumwire ABMAK ADVISOR Managing Partner Mining consultant, Gondwana Geoscience Consulting Ltd. Also former Commissioner of the Uganda Department of Geological Survey & Mines Sam Thakkar, ADVISOR

A. H. Thakkar & Sons

Igor Markov ADVISOR

Semliki Rift Trading

Daniel Pettersson, ADVISOR

Hima Cement, Country Manager

Gerald Mukyenga ADVISOR Sam Odera Multilines International ADVISOR

Uganda Bankers’ Association

The Uganda Chamber of Mines & Petroleum 5 6 The Uganda Chamberof Mines &Petroleum Chairman’s Note Pulling intherightdirection I p Thi the biddin Furthermore, the cont the G becomin A f Thi pro O i ease f the World Banktoparticipateinareview o In thesamevein, that were a Prim with therelevant S inte in power Development, LandsandFinanceen and dele in December, where – T R Y Followin third MineralWealth H . I all. A seein for U s conc , t t or our ramework. Thislawreview islon oweri Museveniand he ﬁrsteverMinin h llow me,tocon ubsequently, the a on. eolo ur continuedparticipationinthese gi h osp d s cou s cor g g an ves me e C i e rams demonstratesthecomin nue ration o g i b g D j nvestment Mini hamber unwaverin g ust reward k andans in h thatwewillsoonhavesi e, we r. r. l g ical

ates m u di y g rowth inextractivessectors. d g Ell d f o pl g asuccessfulMW ul discussionsthatsou a g thesubstantive e s u ations b l e process g y re d t S ac g e d reed uponatthe f h

K theminin urvey &Mines.MrKattohasalwaysaccorded r t by reat p w ave s l ki aru i at n o

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i D g ng areas, canon i e ons t n t f g G g h h or ourstead f eneral and n ecem C . rom theMinistrieso overnment deservespraise overnment an recent g overnment ofﬁcesthrouovernment i su l nce ta h g easure oncea hamber hasheldpro f Retreat washeldat hi C or therole o e m ratulate Mr. Edwards Katto, ga C r onference p w e g hamber wasinvitedb S th b f industryintotheU i or anentire da outh Africanminin g er 2014aspro nera k e i supportandweare certainofhis t en r h C d ea t 2013, addressed byH.EPresident eve C l S h sector. f gi C liz ast hamber membersinparticular e statecanon tate Houseworkshop. g ant steps ommissioner, Departmento f ni a l ( g leadinvestorintheoilre o MW l g ti overdue andshouldassuch y po ﬁ p p g ht topavetheway o cant businesstoen atience! ments a g n i ofa C). n towe W of g i nt togoo j e a

ecte so y f g S g Ener h –H.EthePresident ressive en i ed U g tate House,Entebbe n t g o m f g i thele g overnment relatedovernment e ofthe n t p g d h the e andan economy. y h l e t ma l y .

come youtot theMinistr of e r g f h b C h or y andMineral th e co d e a igh at t MP members g g t O f e net, Brid al and ast trackin i r g mes a t h ffice ofthe g eso f a di C e pp oo or g hamber. p g rect ements er an d f rocess a l or the u fi fi y t g fi h ti nery. nally and hi e us i scal ea o on. g n h n et d d g g e – s f

contents 47

16 36

Acknowledgements Layout and Design: Editorial to the editorial team assisted Moses L. Katumba Deep Earth International Ltd. by Richard Kaijuka. ([email protected]) ([email protected]) **This publication may be copied in whole or in part for any purpose, provided full credit as to source is given with the reproduction and that none of the material is incorporated into a document for which a copyright is sought. 64

The Uganda Chamber of Mines & Petroleum 9 “How does mining integrate ŝƚƐĞůĨŝŶƚŚĞŶĂƟŽŶĂůĞĐŽŶŽŵǇ͍ dƌĂĚŝƟŽŶĂůůǇ͕ŝŶƚŚĞƉƌĞͲĐŽůŽŶŝĂů ƟŵĞƐ͕ƚŚĞƐĞŵŝŶĞƌĂůƐǁĞƌĞƵƐĞĚ ŝŶĂŶŝŶƚĞŐƌĂƚĞĚǁĂǇ͘/ƌŽŶŽƌĞĨŽƌ ŝŶƐƚĂŶĐĞǁŽƵůĚďĞƐŵĞůƚĞĚĂŶĚ ƐƉĞĂƌƐĂŶĚŽƚŚĞƌŚŽƵƐĞŚŽůĚŝƚĞŵƐ ŵŽůĚĞĚŽƵƚŽĨŝƚ͘^ŽǁĞŚĂĚĂ ǀĞƌƟĐĂůůǇŝŶƚĞŐƌĂƚĞĚ ŝŶĚƵƐƚƌǇŝŶƚŚĞƉƌĞͲĐŽůŽŶŝĂůƟŵĞƐ͘ ƵƚƵƉƚŽŶŽǁ͕ǁĞŚĂǀĞƐƟůůŶŽƚ ƐƵĐĐĞĞĚĞĚŝŶďƵŝůĚŝŶŐĂŶ ŝŶƚĞŐƌĂƚĞĚƐƚĞĞůŝŶĚƵƐƚƌǇŝŶ hŐĂŶĚĂ͘dŽŵĞ͕ƚŚŝƐŝƐƚŚĞ ĐŚĂůůĞŶŐĞ͕͟

President Yoweri Museveni, at the Mineral Wealth Conference, 2013.

10 The Uganda Chamber of Mines & Petroleum KEY NOTE SPEAKER MINERAL WEALTH

CONFERENCE 2014 THE REPUBLIC OF UGANDA MINISTRY OF ENERGY & MINERAL DEVELOPMENT

The Uganda Chamber of Mines & Petroleum 11 SPEAKERS PROFILE MINERAL WEALTH

CONFERENCE 2014 THE REPUBLIC OF UGANDA MINISTRY OF ENERGY & MINERAL DEVELOPMENT

PRINCE OTSILE MATLOU

Otsile, a director and head of the mining department at ENSafrica, is not new to Ugandan audiences, having made a presentation at the MWC2013 and at the Mineral Sector Retreat at State House, Entebbe in December.

He acts for a wide range of mining companies in all mineral commodity sectors, including the base and precious metals, coal, rare earths, sand, as well as diamonds sectors. He acts for listed =OSAHH=OQJHEOPA@IEJEJC=J@ATLHKN=PEKJ?KIL=JEAO%A=HOK=?POBKNłJ=J?E=HEJOPEPQPEKJOEJ NAC=N@PKNAOKQN?AłJ=J?ALNKFA?PO

Otsile’s experience includes all aspects of regulatory work in the mining and petroleum (upstream) industries, as well as aspects of acquisitions and corporate restructuring, as well as black economic empowerment transactions. He also advises concerning royalties in the mining sector. He has ATLANEAJ?AN=JCEJCBNKIOP=NPQLATLHKN=PEKJLNKFA?POPKSAHHAOP=>HEODA@IEJEJCLNKFA?PO

He co-authored the 2005-2009 Mining Law chapters of the Annual Survey of South African Law as SAHH=OJQIANKQO=NPE?HAOEJPDAłAH@KBIEJEJCH=SBKNR=NEKQOHA=@EJCLQ>HE?=PEKJO%A=QPDKNA@ the 2012 and 2013 South Africa chapters of The Mining Law Review (a Law Business Research Ltd LQ>HE?=PEKJ %ANACQH=NHULNAOAJPOL=LANO=P?KJBANAJ?AO=J@OAIEJ=NOEJPDAłAH@KBIEJEJCH=S He is an instructor at the Black Lawyers Association and is a member of the Section on Energy, Environment, Natural Resources, and Infrastructure Law of the International Bar Association. He is also a former advocate of the High Court of South Africa as well as member of the Johannesburg Bar.

Otsile is a member of the Presidential Mining Roundtable (Uganda) and is an instructor at the Institute of Legal Institute – African Centre for Legal Excellence where he recently trained various senior government negotiators and regulators from various African countries in regard to mining contracts, concessions and disputes.

Otsile is recognized as a leading mining practitioner by such reputable rating agencies and their publications like the Chambers & Partners Global Guide to the World’s Leading Lawyers 2014, 2013, 2012 – Energy & Natural Resources: Mining (South Africa), the International Who’s Who of Mining Lawyers 2014 - Mining (South Africa) and the Legal 500’s Guide to Outstanding Lawyers 2014, 2013, 2012 – Mining (South Africa).

DIAMANTE KAFUTI

/=J@CKH@(E>=HE-NKFA?P!/

!E=I=JPAEO=OAJEKNATLHKN=PEKJLNKFA?PCAKHKCEOPSDKCN=@Q=PA@BNKIPDA2JERANOEPUKB(EJOD=O= (Democratic Republic of Congo) in 2004.

0DAD=OSKNGA@EJCKH@ @E=IKJ@=J@>=OAIAP=HłAH@OSEPD!A AANO BNEIEJAO/AOKQN?AOĠ=O ?KJOQHP=JP =J@/=J@CKH@/AOKQN?AO0DAFKEJA@/=J@CKH@/AOKQN?AOEJ#A>NQ=NUSDANA ODAD=OI=EJHUBK?QOA@KJPDA(E>=HE-NKFA?P

12 The Uganda Chamber of Mines & Petroleum The Uganda Chamber of Mines & Petroleum 13 SPEAKERS PROFILE MINERAL WEALTH

CONFERENCE 2014 THE REPUBLIC OF UGANDA MINISTRY OF ENERGY & MINERAL DEVELOPMENT

SAURABH NAGPAL

Nagpal is the co-founder of 1618 Capital. Called to the bar in both in ia and Canada, Mr. Nagpal has extensive experience in transactions across different industries, deal-making, and strategic implementation. He has an in-depth understanding of laws affecting corporate business plans. AEJC SAHHRANOA@ EJ PDA H=SO KB PSK I=FKN FQNEO@E?PEKJO *N +=CL=H D=O LNKRE@A@ ?KNLKN=PA advice to various clients in India and North America. His experience is vast, including creating OKHQPEKJO BKN OPNQ?PQNEJC IANCANO =J@ =?MQEOEPEKJO JACKPE=PEJC FKEJP RAJPQNAO =J@ ?NA=PEJC investment vehicles and opportunities.

ANTHONY NDEGWA

Speaking for at his second consecutive MWC, Tony Ndegwa is an investment banker at the 0P=J@=N@ =JGKB0KQPDBNE?=O*EJEJC#EJ=J?A@EREOEKJSDE?DLNKRE@AOHARAN=CA =?MQEOEPEKJ=J@ LNKFA?PłJ=J?AOKHQPEKJOPKBNE?=OIEJEJCOA?PKN%A=HOKLNKRE@AOEJRAOPIAJP>=JGEJCĠIEJEJC sector coverage) for the bank in East Africa. His deal experience includes base metals, precious IAP=HO >QHG=J@EJ@QOPNE=HIAP=HO%AD=O>AAJEJRKHRA@EJłJ=J?EJCOEJAT?AOOKB20>JBKN H=NCA?=L IE@?=L=J@FQJEKNOEJPDAIEJEJCOA?PKN

-NEKNPKFKEJEJC0P=J@=N@ =JG 1KJUSKNGA@=P#ENOPBNE?=$NKQL =>KQPEMQAEJRAOPIAJP>=JG (acquired by Standard Chartered Bank in 2006), as well as at Merrill Lynch International.

Tony holds an MBA from The Wharton School and a Bachelor of Commerce degree from the University of Nairobi.

LYNDA DALEY

MD SIPA EXPLORATION

Lynda has recently been appointed Managing Director for Sipa Resources Pty Ltd & Sipa Exploration Uganda Ltd. She has over 25 years’ experience in the mineral exploration industry, EJ?HQ@EJCIKOPNA?AJPHU=O!ENA?PKN"TLHKN=PEKJQOPN=HE=BKN+ASIKJPOE=-=?Eł?=J@?PEJC !ENA?PKNOE=-=?Eł?$AJAN=PERA"TLHKN=PEKJ

During her nine year tenure with Newmont, Lynda was responsible for the strategic planning I=J=CAIAJP=J@KRANOECDPKB=HH+ASIKJPOCAJAN=PERAATLHKN=PEKJLNKFA?PO =OSAHH=O>QOEJAOO @ARAHKLIAJP EJPDAOE=-=?Eł?NACEKJ

Lynda is also on the Board of the Centre of Exploration Targeting (CET) at the University of Western Australia.

Before Newmont, Lynda has worked for a number of mining and exploration companies including directorship of Summit Resources Ltd and for Newcrest at the Telfer Gold Mine and Worsely Alumina at the Boddington gold mine at its commencement.

Lynda holds a Bachelor of Science with Honours in Geology from the University of Queensland Australia; is a graduate member of the AICD and member of the AUSIMM and the SEG.

14 The Uganda Chamber of Mines & Petroleum SPEAKERS PROFILE MINERAL WEALTH

CONFERENCE 2014 THE REPUBLIC OF UGANDA MINISTRY OF ENERGY & MINERAL DEVELOPMENT

KWASI AMPONSAH BOATENG

Kwasi is currently a Social Performance Manager, at Tullow Oil, Uganda. With experience SKNGEJC EJ LNER=PA LQ>HE? =J@ ?KIIQJEPU OA?PKNO DA D=O @ARAHKLA@ @AOECJ =J@ LNKFA?P I=J=CAIAJPOGEHHOKRANPSAJPUłRAUA=NO%EOSKNGEJPDA?KJOPNQ?PEKJ=J@ATPN=?PERAEJ@QOPNEAO D=OEJRKHRA@EILNKREJC?KIL=JEAOLANBKNI=J?AEJPANJ=HHU=J@BKNLNKFA?PEIL=?PA@?KIIQJEPEAO internationally.

Kwasi is also an environment and social responsibility (ESR) practitioner and a communicator.

He is a mentor for trainers in Development Practice with a focus on Good Governance and Ethics Advocacy in Extractive Industries.

(S=OE D=O OANRA@ KJ PDA #EPJAOO PK -N=?PE?A -=JAH KB PDA $AJAN=H *A@E?=H KQJ?EH ĠUNO 2( Government Advisory Boards in Architecture and the Built Environment (4yrs).

ALEX KWATAMPORA Z. BINEGO

HAT(S=P=ILKN=7 EJACK PDA-NKFA?P*=J=CAN1E>AP%EI=*EJEJC K)P@ EO=J=??KILHEODA@ mining and engineering geologist. Born on December 26, 1970 at Kilembe Mines Hospital, (S=P=ILKN= D=@ DEO ?DEH@DKK@ A@Q?=PEKJ =P QHAI>E= -NEI=NU 0?DKKH FQOP =@F=?AJP PK PDA ?KIL=JUKBł?AO SDANADAJKSOA=PO

He was drawn to mining by his father who worked as a foreman in the Diamond Drill Department =P(EHAI>AEJPDA O ĺO(S=P=ILKN=QJ@ANPKKG = PN=EJAAO?KQNOA =J@ MQ=HEłA@ =O = $AKHKCE?=H1A?DJE?=HOOEOP=JP H=OOHEJ=BPANDEOOA?KJ@=NUA@Q?=PEKJ#QNPDANPN=EJEJCEJ OAEOIKHKCU=PPDA!AL=NPIAJPKB$AKHKCE?=H0QNRAUO=J@*EJAO "JPA>>AO=SDEI>A?KIAPDAłNOP seismic station operators under Uganda National Seismological Network. He worked at DGSM intermittently until 2011.

(S=P=ILKN==HOKOANRA@=O=CAKHKCE?=H=J@CAKPA?DJE?=HAJCEJAAN KJPDA QF=C=HE%U@NKLKSAN -NKFA?P QJ@AN0=HEJE KOPNQPPKNEEJ

He has a Diploma in Engineering Geology and Seismology from Pretoria University, in South Africa and a Bsc (Hons) Degree specializing in Mining and Engineering Geology from Middleham University.

Kwatampora has also attended the National Research Institute of Astronomy and Geophysics EJ"CULP=J@PDA&JOPEPQPAKB0AEOIKHKCU=P%AHOEJGE2JERANOEPU#EJH=J@ĠSDANADA=HOKOPQ@EA@ Nuclear Radiation and Detection). In 2011, he completed a modern postgraduate course from South Korean Institute of Geosciences’ and Mineral Resource - KIGAM and specialized in Mineral Resources Exploration, GIS and Remote Sensing.

Kwatampora has worked in over 14 Countries including Rwanda, D. R. Congo, Burundi, Kenya, 1=JV=JE= 0KQPDBNE?= )AOKPDK 0QHP=J=PAKB,I=J "CULP 0Q@=J #EJH=J@ QOPNE= $ANI=JU over the last 20 years.

The Uganda Chamber of Mines & Petroleum 15 SPEAKERS PROFILE MINERAL WEALTH

CONFERENCE 2014 THE REPUBLIC OF UGANDA MINISTRY OF ENERGY & MINERAL DEVELOPMENT

STEVE OSEI-MENSAH

ERNST & YOUNG

0PARAEOPDA#EJ=J?E=H0ANRE?AO=J@-NER=PA0A?PKN KJOQHPEJC=J@@REOKNUOANRE?AOHA=@ANEJ"NJOP 6KQJCBKN"=OP=J@ AJPN=HBNE?=%ANAFKEJA@"6=PPDAOP=NPKBEJPDA#EJ=J?E=H0ANRE?A ,NC=JEO=PEKJKBł?AEJ)KJ@KJ-NEKNPKPDEO0PARAS=O=L=NPJANBKNUA=NOSEPD-S SEPD=J international portfolio of clients in the Private sector, Insurance, and Banking sectors. He has over 26 years of business and consulting experience including 14 years as a senior manager and then a director in Banking and Insurance companies.

0PARAEO= D=NPANA@ =JGAN=J@OOK?E=PAKBPDAE#0%ADKH@O=?ANPEł?=PAKB?KIL=JU@ENA?PEKJ and is a member of the IoD (Institute of Directors). He graduated (BA Hons) from UCL London.

Steve has worked in a number of geographies across Europe, US, Asia and the Middle East. He has focussed in the last 3-4 years on helping clients with complex regulatory and operational issues in emerging markets. Recent assignments have included leading risk analysis and design work for a number of multi-national companies, focussing on operational risk management, compliance, =J@E@AJPEł?=PEKJ=J@I=J=CAIAJPKBAIANCEJCI=NGAPNEOGO

4EPD=0=HAO=J@*=NGAPEJC>=?GCNKQJ@EJPDA#0EJ@QOPNU 0PARAEOAT?EPA@=PPDANA=HCNKSPD KLLKNPQJEPEAOEJłJ=J?E=HOANRE?AOI=NGAPDANAEJ(AJU==J@IKNASE@AHUEJ"=OPBNE?=

Dr Sebbowa who has served and continues to serve on several Boards of Directors of various ?KNLKN=PAłNIOO=/KP=NE=J !N0A>>KS=KBPAJP=GAOKJOARAN=H?D=NEP=>HANKHAO

STEPHEN KARANGIZI

Stephen Karangizi is a lawyer with extensive experience in International Commercial and Trade Law. He was Deputy Secretary General (Programmes) of the Common Market for Eastern and Southern Africa (COMESA) from 2008 and General Counsel and Legal Advisor for COMESA from 1997 to 2008.

Over a 30 year career as a lawyer, he also served as a Legal Advisor for the Governments of Anti- gua and Barbuda (West Indies), Uganda and Zimbabwe after starting off in private legal practice. A Ugandan by nationality, Mr Karangizi is a holder of a Law Degree from Makerere University, Kampala, Uganda and a Masters in Laws Degree. He is a Legal Practitioner of the High Court of Zimbabwe and an Advocate of the High Court of Uganda.

%AD=O>AAJPDA!ENA?PKNKBPDABNE?=J)AC=H0QLLKNP#=?EHEPUĠ#=?EHEPU OEJ?A,?PK>AN

1DA#=?EHEPUS=OAOP=>HEODA@PK=@@NAOOPDA=OUIIAPNE?JACKPE=PEJC?=L=?EPUKBBNE?=JCKRANJ- ments when dealing with deep-pocketed international investors. It is an organization dedicated solely to providing legal advice and technical assistance to African countries.

16 The Uganda Chamber of Mines & Petroleum ISAIAH TUMWIKIRIZE

Department of Geological survey & Mines-Ministry of Energy & Mineral Development

‘Earthquakes and Lightening in Africa: Is Infrastructure in Uganda adapted and mitigated?’

SIKANDER LALANI

*N)=H=JE EO D=ENI=J=J@*=J=CEJC!ENA?PKNKB/KKłJCO2C=J@=)P@ PDAH=NCAOPI=JQB=?PQNAN of steel construction material in Uganda. He has over 30 years of experience in steel business and has been described as single handedly changing the landscape of the steel industry in Uganda.

The Uganda Chamber of Mines & Petroleum 17 SPEAKERS PROFILE MINERAL WEALTH

CONFERENCE 2014 THE REPUBLIC OF UGANDA MINISTRY OF ENERGY & MINERAL DEVELOPMENT

DR THEO CHIKE OSANAKPO

Dr T.C Osanakpo is a revered Senior Advocate of Nigeria and Entrepreneur whose legal education PN=RANOAOPDNAAHAC=HFQNEO@E?PEKJO%AO>AAJEJ=?PERAHAC=HLN=?PE?AOEJ?AOP*=N?DBK?QOEJC on commercial transaction law, corporate law practice, and civil litigation in commercial law transaction including arbitration. He also has a good working legal knowledge on law regulating economic freedoms in Economic

Community of West African States (ECOWAS), Public Private Partnership in the housing sector and a considerable interest in the law regulating electricity in Nigeria.

EMEKA OKWUOSA

Emeka is a seasoned engineer, administrator, entrepreneur and a visionary with over 32 years of experience in engineering in the following areas: maintenance and operations, teaching, wire-line logging and interpretation, seismic acquisition, processing and interpretation, pipeline AJCEJAANEJC LNK?QNAIAJP =J@ ?KJOPNQ?PEKJ Ġ"- LNKFA?P I=J=CAIAJP @NEHHEJC =J@ @NEHHEJC services. Some of these activities span Europe, North Africa, West Africa, Gulf of Guinea/Central Africa and Indonesia while he worked in Schlumberger Energy Services in different capacities OQ?D=OĢłAH@"JCEJAAN =OA*=J=CAN "MQELIAJP1KKH1AOP KKN@EJ=PKN=J@1A?DJE?=H*=J=CAN

Emeka is the founder and Managing Director/CEO the following companies: Oilserv Ltd, Oilserv 2C=J@=)P@ ,EHOANR(AJU=)P@ #N=VEIAT)P@ #N=VEIAT"JANCU0ANRE?AO)P@ #N=VEIAT"JCEJAANEJC )P@ =J@#N=VEIAT0EANN=)AKJA)P@ #N=VLKSAN)EIEPA@SEPDKBł?AOEJ-KNP%=N?KQNP )=CKO >QF= Houston and Toronto.

%ACN=@Q=PA@EJBNKIPDA2JERANOEPUKB&#" &)"&#"SEPDDKJKQNOEJ"HA?PNKJE?O=J@"HA?PNE?=H

Engineering and has received several Awards in the course of practice of Oil and Gas EPC services from around the World.

MAUREEN JANGULO DLAMINI

CEO, CHAMBER OF MINES OF ZAMBIA

Maureen is a highly experienced, operations executive who has demonstrated the ability to lead diverse teams of professionals successfully in highly competitive, fast paced markets. With over UA=NOEJPDAłJ=J?E=HOANRE?AOOA?PKN=P"TA?QPERAHARAH ODAD=O=?MQENA@R=OPPA?DJE?=H=J@ >QOEJAOOATLANEAJ?AEJOPN=PACE?LH=JJEJC >QOEJAOOQJEP@ARAHKLIAJP=J@LNK@Q?P=J@LNKFA?P management. An excellent communicator, her work experience includes being Chief Executive ,Bł?AN KB 7=I>AVE ENHEJAO 0AJEKN $AJAN=H *=J=CAN &JRAOPKN "@Q?=PEKJ =P PDA 'KD=JJAO>QNC Stock Exchange, and Executive Head of the Africa Board at the Johannesburg Stock Exchange, Executive Head of Corporate Affairs at Lion Of Africa Insurance Company in Johannesburg South Africa.

0DAOEPOKJPDA K=N@OKB-NKŃECDP7=I>E==J@+UEKI>K&JROPIAJPO)EIEPA@=J@D=ONA?AJPHU>AAJ appointed Deputy Chair for the University of Zambia, School of Mines, Advisory Board.

18 The Uganda Chamber of Mines & Petroleum SPEAKERS PROFILE MINERAL WEALTH

CONFERENCE 2014 THE REPUBLIC OF UGANDA MINISTRY OF ENERGY & MINERAL DEVELOPMENT

FRED MICHUKI

HEAD OF CORPORATE FINANCE EAST AFRICA- STANDARD CHARTERED BANK

#NA@ D=O ATPAJOERA ATLANEAJ?A =P 0P=J@=N@ D=NPANA@ D=REJC FKEJA@ PDA #EJ=J?E=H *=NGAPO @AL=NPIAJPEJ)KJ@KJEJ-NEKNPK0P=J@ D=NP =JG #NA@SKNGA@BKN EPE>=JG+EJ(AJU= =O%A=@KB#KNAECJ"T?D=JCA1N=@EJC

&J #NA@NAPQNJA@PK0P=J D=NP(AJU==O%A=@KBOOAP=J@)E=>EHEPU*=J=CAIAJPĠ)* !QNEJCPDEOPEIA=J@QJ@AN#NA@OCQE@=J?A 0P=J D=NPłNIHUAOP=>HEODA@EPONALQP=PEKJ=OPDA leading primary dealer in the Kenyan Bond market, a position that exists to date. As a segment DA=@ #NA@D=OI=J=CA@PDA-Q>HE?0A?PKNLKNPBKHEK PDA$HK>=H KNLKN=PAO =J@PDA&JPANJ=PEKJ=H KNLKN=PAO>QOEJAOOAOĢ>A?KIEJCRANUEJOPNQIAJP=HEJłNIHULKOEPEKJEJCPDA =JG=O=GAULH=UAN EJPDALQ>HE?OA?PKNOL=?A =J@=OłJ=J?EAN=J@L=NPJANPKPDACKRANJIAJP=J@EPONAH=PA@AJPEPEAO

#NA@ JKS DA=@O PDA "=OP BNE?= KNLKN=PA #EJ=J?A >QOEJAOO =?NKOO (AJU= 2C=J@= 1=JV=JE= and Ethiopia, focused on origination and leveraging Standard Chartered’s product capabilities in 0PNQ?PQNA@#EJ=J?A -NKFA?P#EJ=J?A )ARAN=CA#EJ=J?A 0PNQ?PQNA@1N=@A#EJ=J?A=J@@REOKNU Services.

DR. ALBERT ZEUFACK

Dr. Zeufack is the Sector Manager for Poverty Reduction and Economic Management in the World Bank’s Africa Region. His portfolio includes natural resources-rich countries in Central and East Africa. Prior to assuming this position in July 2012, Dr. Zeufack was, for four years, the Director of Research and Investment Strategy for Khazanah Nasional Berhad, a Malaysian sovereign wealth BQJ@ >=OA@ EJ (Q=H= )QILQN -NEKN PK FKEJEJC (D=V=J=D DA S=O PDA 4KNH@ =JGO =?PEJC )A=@ Economist and Head of the Poverty Reduction and Economic Management Cluster for South-East Asia based in Bangkok, Thailand.

%AS=O0AJEKN KQJPNU"?KJKIEOPBKN*=H=UOE=BKNOETUA=NO!N7AQB=?GFKEJA@PDA4KNH@ =JG through the Young Professional Program in 1997. He has worked in both Research and Operations on Africa, Asia, the Middle East, and Russia. Dr. Zeufack has worked extensively on micro-foundations of growth and competitiveness, the economics and governance of natural resources and is author of >KKGO=J@JQIANKQO=NPE?HAO%ADKH@O=-D!EJ"?KJKIE?OBNKIPDA2JERANOEPUKB HANIKJP#ANN=J@ EJ#N=J?A

The Uganda Chamber of Mines & Petroleum 19 SPEAKERS PROFILE MINERAL WEALTH

CONFERENCE 2014 THE REPUBLIC OF UGANDA MINISTRY OF ENERGY & MINERAL DEVELOPMENT

DR. JAN CEMPÍREK

CONSULTING GEOLOGIST

received his MSc. and Ph.D. at the Masaryk University in Brno, Czech Republic, one of the PN=@EPEKJ=H?AJPANOKBLACI=PEPANAOA=N?DEJ"QNKLA%EOłAH@KBATLANPEOAEOLAPNKHKCU IEJAN=HKCU and geochemistry of pegmatites and granitic systems in general, poly-phase evolution of magmatic and metamorphic systems, and metasomatic processes, while he also has substantial experience in hydrothermal gold systems (including gold-rich VMS deposits). Jan has extensive experience SEPDN=NAAHAIAJPLACI=PEPAOEJ+KNS=U 0SA@AJ #EJH=J@ AJPN=H"QNKLA &P=HU 0L=EJ -KNPQC=H Brazil, Uganda, USA, Canada and has cooperated on research of pegmatite deposits around the 4KNH@%EOSKNGD=OEJLQ>HEODA@EJLAANNAREASA@L=LANOEJEJPANJ=PEKJ=HFKQNJ=HO=OSAHH=O several book chapters.

DR. THOMAS CHUDY

CONSULTING GEOLOGIST

is a post-doctoral fellow at the University of British Columbia where he has investigated Nb- Ta mineralization since 2009. This includes the magmatic evolution and deposit morphology and structure of Ta-deposits in carbonatites and pegmatites. Over the last 5 years, extensive łAH@SKNG=J@?KJOQHPEJCEJIEJAN=HLNK?AOOEJC=HHKSA@DEIPKAT=IEJA=R=NEAPUKBKNA@ALKOEPO =J@ EJ?HQ@A@ OECJEł?=JP SKNG KJ 1= =J@ )E?KJ?AJPN=PAO BNKI LACI=PEPAO $ERAJ DEO @AAL understanding of the Ta- deposit mineralogy, he is frequently consulted by mining engineers on R=NEKQOLNKFA?PO1DKI=ODKH@O=2JERANOEPU!ELHKI=EJ$AKHKCU-=HAKJPKHKCUBNKIPDA'QHEQO Maximilians University of Würzburg (Germany) and a Ph.D. in Geological Sciences from the University of British Columbia.

HENRY MUKASA

JUNIOR EXPLORATION GEOLOGIST

received his BSc in Geology from Makerere University under the Government of Uganda merit OLKJOKNODELO?DAIAIKJCOARAN=HO?DKH=NODELO=S=N@A@PK=PPAJ@LNKFA?PO=?NKOOBNE?= PDEOD=O EJ?HQ@A@3KHGOS=CAJ0PEBPQJCBQJ@A@łAH@SKNGEJPDAP=JP=HQIIEJEJC=NA=KB$=PQI>= /S=J@= =J@L=NPE?EL=PEKJEJPDABNE?=NN=U$AKLDUOE?O#EAH@0?DKKH=PPDA2JERANOEPUKB4EPS=PANON=J@ in Johannesburg, South Africa. With sponsorship from the Society of Exploration Geophysicists (SEG) and support from Anglo Platinum, he together with researchers from across Africa and America conducted geophysical surveys (seismics, resistivity, gravity, differential GPS, magnetics, EM, and GPR) and related analysis and modelling on the Eastern limb of the Bushveld complex, 0KQPDBNE?=NA?ELEAJPKB$AKOKBPOļ=HS=UOKJPDACK=S=N@ DEOłAH@SKNGS=OLQ>HEODA@EJ their Earth Explorer magazine in 2014. He is currently a Junior Exploration geologist with BeTa Minerals Ltd, a subsidiary of Auranda Minerals, where his primary focus is exploration for tin, tantalum and tungsten deposits across Uganda.

20 The Uganda Chamber of Mines & Petroleum SPEAKERS PROFILE MINERAL WEALTH

CONFERENCE 2014 THE REPUBLIC OF UGANDA MINISTRY OF ENERGY & MINERAL DEVELOPMENT

PIET BREDELL

Piet Bredell has a Bachelor’s degree in chemical engineering and a Bachelor’s degree in law. He has more than 45 years’ experience in the nuclear fuel industry, including uranium extraction, uranium conversion, uranium enrichment, radioactive waste management and nuclear plant decommissioning.

At the beginning of his career, he worked in the uranium mining industry as a IAP=HHQNCEOP&JDAFKEJA@PDA0KQPD African Nuclear Energy Corporation (Necsa), where he held several senior management positions in the organization. These positions included General Manager: Uranium Conversion and Enrichment, and General Manager: Corporate Marketing. At Necsa, Piet Bredell was also responsible for the establishment of the Nuclear Liabilities Management Division, which he managed from 1998 to 2007, followed >U PDA +Q?HA=N #QAH U?HA !AL=NPIAJP from 2007 to 2009. Piet Bredell retired from Necsa at the end of 2009 and is presently working as an independent consultant for the nuclear fuel industry at both the local and international level.

Since 1994 he participated in a number of technical meetings and consultancies at the International Atomic Energy Agency in Vienna, including investigations into regional and multi-national approaches to spent fuel management, the development of national policy and strategy for radioactive waste management, as well as several technical missions to IAEA Member States. Since the beginning of 2012 he has been involved at the IAEA with the development of a nuclear security technical guidance document for the uranium industry.

The Uganda Chamber of Mines & Petroleum 21 SPONSORS

THE REPUBLIC OF UGANDA MINISTRY OF ENERGY & MINERAL DEVELOPMENT

22 The Uganda Chamber of Mines & Petroleum EXHIBITORS

THE REPUBLIC OF UGANDA MINISTRY OF ENERGY & MINERAL DEVELOPMENT

Sipa Exploration Uganda Limited

The Uganda Chamber of Mines & Petroleum 23 “Stanbic can fund big mining projects”

??AOOEJC MQE?G =@AMQ=PA =J@ EJATLAJOERA łJ=J?A PK BQJ@ IEJAN=H Anthony Ndegwa ATLHKN=PEKJ=J@IEJEJCLNKFA?POEOKJAKBPDAPKQCDAOPP=OGOPKI=JAQRAN EJPDAIEJEJCEJ@QOPNU>AEPDANAEJ2C=J@=KNSKNH@KRAN 0AP PK OLA=G =>KQP PDEO RANU OQ>FA?P =P PDA N@ *EJAN=H 4A=HPD KJBANAJ?A EJ (=IL=H= ?KIA ,?PK>AN JPDKJU +@ACS= =JEJRAOPIAJP>=JGAN=PPDA0P=J@=N@ =JGKB0KQPDBNE?=O*EJEJC #EJ=J?A@EREOEKJ LKEJPOKQPOKIAKBPDAGAU=NA=OPD=PEJBKNI>=JGEJC @A?EOEKJOSDAJEP?KIAOPKIEJEJCLNKFA?POġ

What is Stanbic Bank’s experience participate in the full lifecycle of with mining? IEJEJCLNKFA?PO

The Standard Bank Group, the parent Globally, banks, even resources- company of Stanbic, Uganda, has a BK?QOA@>=JGO @KJKPłJ=J?AIEJAN=H history spanning over 150 years during exploration activities. Explorations are a which it has had a strong participation high-risk venture and many exploration in the resources sector. Indeed, the LNKFA?PO @K JKP AJ@ QL =O RE=>HA group’s three core sectors include mining operations, and therefore, Mining & Metals, Oil & Gas, and Power equity rather than debt funding is & Infrastructure. OQEPA@ BKN ATLHKN=PEKJ =JG łJ=J?EJC EOLNAIEOA@KJLKOEPERALNKFA?PA@?=OD In these core sectors, the bank offers ŃKSO =P = DECD HARAH KB ?KJł@AJ?A = BQHH OQEPA KB łJ=J?EJC =@REOKNU =J@ SDE?D=LNKFA?P=PPDAATLHKN=PEKJOP=CA trading and hedging services. The group does not provide. EONAC=N@A@=OPDAHA=@EJCłJ=J?EANEJ Africa’s Mining & Metals sector. However, once the (equity funded) exploration activities prove-up viable The bank has funded big mining mineral resources, at appropriately names on the continent including DECD HARAHO KB ?KJł@AJ?A >=JGO =NA Anglo American, BHP Billiton, Exxaro =>HA PK LNKRE@A LNKFA?P łJ=J?A PK Resources, African Barrick Gold, @ARAHKL=$NAAJłAH@OLNKFA?P African Rainbow Minerals, Assore Limited, Anglo Gold Ashanti, Impala How would Stanbic address the risk Platinum, among others. that is prevalent in these sectors, while structuring loans? It is said that banks are averse to mining projects in their infant stages. The basis of any lending in the mineral Why is this so? sector is the certainty around the existence of the mineral resources Being a resources-focused bank, we

24 The Uganda Chamber of Mines & Petroleum In these core sectors, the bank offers costs through due diligence on the = BQHH OQEPA KB łJ=J?EJC =@REOKNU mine development plans, which and trading and hedging services. we undertake through independent The group is regarded as the leading engineering consultants and our in- łJ=J?EANEJBNE?=O*EJEJC*AP=HO house technical team comprising Explorations sector. geologists and mining engineers. #KN I=NGAPO SA QOQ=HHU NAMQENA are a high- The bank has funded big mining $NAAJłAH@OLNKFA?POPKOA?QNAKBBP=GA names on the continent including contracts for a portion of production risk venture Anglo American, BHP Billiton, which guarantees a market at the Exxaro Resources, African Barrick LNK@Q?PEKJOP=CAKBPDALNKFA?P =JGO and many Gold, African Rainbow Minerals, also provide commodity hedging Assore Limited, Anglo Gold Ashanti, solutions to guarantee prices for an exploration Impala Platinum, among others. appropriate level of production.

LNKFA?PO@K It is said that banks are averse to There have been cases in Uganda mining projects in their infant stages. where viable deposits have been not end up as Why is this so? MQ=JPEłA@>UIEJEJCłNIO>QP>=JGO are still hesitant to offer loans for say Being a resources-focused bank, we equipment and the like. Could this be viable mining participate in the full lifecycle of a lack of expertise in the said banks’ IEJEJCLNKFA?PO operations, and Risk Management Departments to Globally, banks, even resources- clearly assess what mining entails? therefore, equity BK?QOA@ >=JGO @K JKP łJ=J?A Do you have plans to bolster Stanbic, mineral exploration activities. Uganda’s expertise in understanding rather than debt Explorations are a high-risk venture mining and therefore offer more =J@I=JUATLHKN=PEKJLNKFA?PO@KJKP informed support to the industry? funding is suited end up as viable mining operations, 4EPDKQPHKKGEJC=POLA?Eł??=OAO EPEO and therefore, equity rather than debt @EBł?QHPPK?KIIAJPKJSDUIEJEJC for exploration funding is suited for exploration. Bank łNIOEJ2C=J@=D=RAJKP>AAJ=>HA łJ=J?EJC EO LNAIEOA@ KJ LKOEPERA PK =PPN=?P >=JG łJ=J?EJC D=J?AO LNKFA?PA@?=ODŃKSO =P=DECDHARAH are that the risk elements discussed KB?KJł@AJ?A SDE?D=LNKFA?P=PPDA previously were not fully addressed, (production quantity), costs of mining exploration stage does not provide. for example, banks would not lend (both capital and operational costs), if the minerals resources which the availability of a market for the mined However, once the (equity funded) IEJEJC LNKFA?P NAHEA@ KJ SANA JKP commodity (s), and achievable exploration activities prove-up viable ?ANPEłA@>UMQ=HEłA@LANOKJO commodity prices. These four pillars mineral resources, at appropriately DECDHARAHOKB?KJł@AJ?A >=JGO=NA Accessing quick, adequate and At this stage of the market and our =>HA PK LNKRE@A LNKFA?P łJ=J?A PK EJATLAJOERA łJ=J?A PK BQJ@ IEJAN=H business, we have the interesting @ARAHKL=$NAAJłAH@OLNKFA?P ATLHKN=PEKJ =J@ IEJEJC LNKFA?PO EO challenge of addressing a continent KJAKBPDAPKQCDAOPP=OGOPKI=JAQRAN How would Stanbic address the risk whose different countries are at EJPDAIEJEJCEJ@QOPNU>AEPDANAEJ that is prevalent in these sectors, different stages of developing their 2C=J@=KNSKNH@KRAN while structuring loans? resource sectors. To ensure that all our clients have the best of our 0AP PK OLA=G =>KQP PDEO RANU OQ>FA?P The basis of any lending in the sector expertise, irrespective of =PPDAN@*EJAN=H4A=HPD KJBANAJ?A mineral sector is the certainty around their location, we have centralised EJ (=IL=H= ?KIA ,?PK>AN the existence of the mineral resources specialist teams working together JPDKJU +@ACS= =J EJRAOPIAJP (production quantity), costs of mining with our local banking teams to >=JGAN=PPDA0P=J@=N@ =JGKB0KQPD (both capital and operational costs), originate and service local mining BNE?=O *EJEJC #EJ=J?A @EREOEKJ availability of a market for the mined ?HEAJPO,QNOLA?E=HEOPIEJEJCłJ=J?A LKEJPOKQPOKIAKBPDAGAU=NA=OPD=P commodity (s), and achievable advisory, markets, risk and technical EJBKNI >=JGEJC @A?EOEKJO SDAJ EP commodity prices. These four pillars expertise are based in Johannesburg ?KIAOPKIEJEJCLNKFA?POġ PN=JOH=PA PK ?=OD ŃKS LNKFA?PEKJO and London, and these specialists What is Stanbic Bank’s experience which banks rely on for structuring work with our local and regional with mining? loans but also, these four pillars OA?PKN ?KKN@EJ=PEJC PA=IO #KN "=OP ?=NNUOLA?Eł?NEOGOSDE?D>=JGOOAAG Africa and indeed Uganda, we have The Standard Bank Group, the parent to address in partnership with the sector-focused Mining & Metals and company of Stanbic, Uganda, has LNKFA?POLKJOKNO Oil & Gas teams. a history spanning over 150 years during which it has had a strong #KN AT=ILHA PDA NEOG =NKQJ@ PDA What are banks looking for before participation in the resources sector. existence of resources is addressed łJ=J?EJC=IEJEJCLNKFA?P Indeed, the group’s three core sectors PDNKQCD LNKBAOOEKJ=H ?ANPEł?=PEKJO We look for proven and expert- include Mining & Metals, Oil & Gas, KJ PDA MQ=HEPU =J@ łJ@EJCO KB ?ANPEłA@ IEJAN=H NAOKQN?AO and Power & Infrastructure. ATLHKN=PEKJ>U=LLNKLNE=PAHUMQ=HEłA@ professionals. We ascertain mining strong mine development plans

The Uganda Chamber of Mines & Petroleum 25 John Muruli (2nd L, jacket) shows the Minister, Peter Lokeris (R) and the Commissioner, Katto (L) around his gold exploration site in Mashonga, Bushenyi. At this stage, his project ?=JKJHU=PPN=?PAMQEPUłJ=J?EJC

appropriate for the resource, scale good way of banks sharing risks and generations and will also be available of production, quality of sponsors, arranging efforts for large or complex for future generations. Norway quality of contractors/developers, LNKFA?P łJ=J?EJCO &P @KAO JKP SKNG and the Emirates are often-quoted and the market dynamics for the BKN OI=HH LNKFA?PO SDANA = OEJCHA examples. These governments offer target commodity. We also assess lender is more suited. Syndication their policy expertise to countries the risks in each of these elements, is well-developed in Uganda and with nascent resource sectors and and whether the sponsor and has been executed in a number of are good references for us. The łJ=J?EANO ?=J IEPEC=PA PDAOA NEOGO łJ=J?EJCO>QPD=OUAPPK>A=LLHEA@ multilateral agencies are also a in an economic but satisfactorily EJPDA?KQJPNUOIEJEJCLNKFA?PO strong and credible source of policy way. It is also important to us that expertise. =HH IEJEJC LNKFA?PO PD=P SA OQLLKNP There are other opportunities result in positive outcomes for the that emerge during mining like %KS AHOA ?=J łJ=J?E=H EJOPEPQPEKJO communities and countries in which infrastructure and other services. like Stanbic help Uganda achieve its they are developed, and we need How prepared is Stanbic for these mining potential? PK OAA PDEO =@@NAOOA@ >U PDA LNKFA?P opportunities along the value chain? As a bank, we have a lot of mining OLKJOKNOEJ=@R=J?AKBKQNłJ=J?EJC Indeed, one of the bank’s three core experience and knowledge that We consider all the above in our sectors is Power & Infrastructure. mining entrepreneurs can tap into as łJ=J?EJC@A?EOEKJO We have strong appetite for Mining they conduct exploration activities & Metals or Oil & Gas opportunities =J@ @ARAHKL JAS LNKFA?PO 4A =HOK %KS>EC=IEJEJCLNKFA?P?=J0P=J>E? that are linked to infrastructure have strong networks comprising OQLLKNP EJ 2C=J@= #KN EJOP=J?A JK opportunities, and we view these as łJ=J?EANO PA?DJE?=H IEJEJC ATLANPO local institution has participated in being part of an ecosystem. In our markets and commodity traders, PDA KRAN I LDKOLD=PAO LNKFA?P ATLANEAJ?A H=NCA IEJEJC LNKFA?PO engineering contractors, equipment in Tororo. NAMQENA =J@ FQOPEBU PDA @ARAHKLIAJP suppliers, etc., all of which we can of infrastructure, to facilitate access extend to mining entrepreneurs. The Standard Bank Group has to the mine sites as well as to the participated in large mining commodity markets. We like to encourage mining łJ=J?EJCO EJ BNE?= =HKJA KN EJ entrepreneurs to establish banking banking syndicates, even in excess O=JAT=ILHA H=NCAENKJKNALNKFA?PO relationships as early as possible KB >J BKN = OEJCHA ?KQJPANL=NPU QOQ=HHUFQOPEBUPDA@ARAHKLIAJPKBN=EH EJ PDAEN LNKFA?PO HKJC >ABKNA PDAU The key to attracting funding is for a and port infrastructure, on which iron need development funding, and OLKJOKN PK D=RA = >=JG=>HA LNKFA?P ore is transported from the mine sites to use such relationships to guide that can achieve returns for all to the exporting port – we call these their exploration and development stakeholders. ļLEPPKLKNPLNKFA?PO activity. This would help them to @ARAHKLLNKFA?PO=HKJCPDAHEJAOPD=P If the funding requirement is large and What would be your advice to the = >=JG KN łJ=J?EAN SKQH@ AR=HQ=PA requires multiple funders, we have country’s managers on how to OQ?D LNKFA?PO SDE?D CKAO = HKJC strong experience in underwriting handle the expected windfall from a way to ensuring that they spend their and leading arranging or syndicating successful mining industry - without exploration funding appropriately efforts. destabilizing the economy entirely =J@AJ@QLSEPD=>=JG=>HALNKFA?P (Dutch Disease)? Are syndicated loans friendlier to banks as regards funding exploration There are very good examples of and mining projects? governments that have managed their resource wealth in such a way Syndications or club-deals are a PD=P EP D=O >AJAłPPA@ PDAEN ?QNNAJP

26 The Uganda Chamber of Mines & Petroleum The Uganda Chamber of Mines & Petroleum 27 Activity on the Uganda Securities Exchange Raising funds for

Keith Kalyegira extractives through the capip tal markets ´,QFRQVLGHULQJHTXLW\ÀQDQFLQJLWLVFULWLFDOWKDWGHYHORSHUVLQ WKHVHVHFWRUVWDNHFRJQL]DQFHRI WKHFRPPRGLW\SULFHF\FOHVDQG WKHLPSDFWWKHVHKDYHRQWKHYDOXDWLRQVRI FRPSDQLHVµ

ecently, there have increasingly been a driver for this industry, especially now upswings in commodity prices could see Rlot of well-founded excitement about that the petroleum & mining industry ƚŚĞŵ ƌĞĂƉ ďĞŶĞĮƚƐ͘ Ƶƚ ƚŚŝƐ ĐĂŶ ŽŶůǇ Uganda’s oil & gas, and mining prospects ŚĂƐ ďĞĞŶ ĞĂƌŵĂƌŬĞĚ ĂƐ Ă ƉŽƚĞŶƟĂů follow if the business story they’re selling ĂŶĚƚŚĞƉŽƐŝƟǀĞŝŵƉĂĐƚƚŚŝƐǁŝůůŚĂǀĞŽŶ catalyst for Uganda’s early achievement ŝƐĂƩƌĂĐƟǀĞ͘ ŽƵƌ ĞĐŽŶŽŵǇ͘ ^ĞǀĞƌĂů ŝŶƚĞƌŶĂƟŽŶĂůŽŝů ŽĨƉŽǀĞƌƚǇĞƌĂĚŝĐĂƟŽŶĂŶĚŽŶĞƚŚĂƚǁŝůů ĐŽŵƉĂŶŝĞƐ͕ ĂŶĚ ůŽĐĂů ĂŶĚ ŝŶƚĞƌŶĂƟŽŶĂů ĐƌĞĂƚĞůĂƐƟŶŐǀĂůƵĞƚŽƐŽĐŝĞƚǇĂƐǁĞƐƚƌŝǀĞ auxiliary service providers have opened towards middle income status. In the mining, and oil & gas sectors, shop in Uganda and a lot of work is going ƚŚĞ ĨŽƵƌ ƐƚĂŐĞƐ ŝŶǀŽůǀĞĚ ;ĞǆƉůŽƌĂƟŽŶ͕ ŽŶŝŶƚŚĞĞǆƚƌĂĐƟǀĞƐĂƌĞĂƐ͘^ŽŽŶĞĐŽƵůĚ ĚĞǀĞůŽƉŵĞŶƚ͕ ĐŽŶƐƚƌƵĐƟŽŶ ĂŶĚ comfortably say that Uganda’s mining There is no doubt that when minerals ƉƌŽĚƵĐƟŽŶͿ Ăůů ƌĞƋƵŝƌĞ ƚŚĞ ƚǇƉĞ ŽĨ ĂŶĚƉĞƚƌŽůĞƵŵŝŶĚƵƐƚƌǇŝƐƚĂŬŝŶŐŽīǁĞůů͘ remain in the ground, they have zero ĮŶĂŶĐŝŶŐǁŚŝĐŚďĂŶŬƐʹǁŚŝĐŚĂƌĞ The oil & gas policy, legal and regulatory ǀĂůƵĞƚŽŽǁŶĞƌƐ͕ĐŝƟǌĞŶƐ͕ŐŽǀĞƌŶŵĞŶƚ͕Žƌ ŵŽƐƚ ƐƵŝƚĞĚƚŽ ĮŶĂŶĐĞ ďƵƐŝŶĞƐƐĞƐǁŝƚŚ ĨƌĂŵĞǁŽƌŬ͖ƚŚĞŶĂƟŽŶĂůŽŝůĐŽŵƉĂŶǇ͖ĂŶĚ anyone. The real value has to be added, ŐƵĂƌĂŶƚĞĞĚĐĂƐŚŇŽǁƐʹĂƌĞŶŽƚƐĞƚƵƉƚŽ ĂƐƐŽĐŝĂƟŽŶƐůŝŬĞƚŚĞhŐĂŶĚĂŚĂŵďĞƌŽĨ hence the need for development. Mining meet. Mr. Admassu Tadesse, the President Mines and Petroleum, oil & gas suppliers businesses need heavy capital investment ĂŶĚ K ŽĨ Wd ĂŶŬ ŶŽƚĞĚ ĚƵƌŝŶŐƚŚĞ ĂƐƐŽĐŝĂƟŽŶĞƚĐ͘ĂƌĞŶŽǁŝŶƉůĂĐĞ͘^ŽŵĞ ůŽŶŐ ďĞĨŽƌĞ ƚŚĞǇ ĐĂŶ ďĞ ƉƌŽĮƚĂďůĞ͘ Africa Investor panel discussions on reforms are underway in the mining legal Whereas many businesses turn to debt ƚŚĞ ƐŝĚĞůŝŶĞƐ ŽĨ ƚŚĞ tŽƌůĚ ĂŶŬ ^ƉƌŝŶŐ and regulatory framework. ĮŶĂŶĐŝŶŐ ;ĨƌŽŵ ĐŽŵŵĞƌĐŝĂů ďĂŶŬƐͿ͕ ŵĞĞƟŶŐƐ ŝŶ Ɖƌŝů ϮϬϭϰ ŝŶ tĂƐŚŝŶŐƚŽŶ business owners in this industry need ƚŚĂƚ͕ ͞ĂŶŬƐ ĂůŽŶĞ ĂƌĞ ŶŽƚ ƚŚĞ ĂŶƐǁĞƌ ƚŽďĞĂǁĂƌĞƚŚĂƚůŽĐĂůĂŶĚŝŶƚĞƌŶĂƟŽŶĂů to building robust businesses in Africa.” However, there is need to address the equity investors can provide much of Mining and oil & gas developments can ƋƵĞƐƟŽŶ ŽŶ ĮŶĂŶĐŝŶŐǁŚŝĐŚŝƐĂŬĞǇ ƚŚŝƐ ƌŝƐŬ ĐĂƉŝƚĂůŽŶƚŚĞ ĞǆƉĞĐƚĂƟŽŶ ƚŚĂƚ ƚĂŬĞ ϭϬ ʹ ϭϱ ǇĞĂƌƐ ƚŽ ƌĞĂĐŚƚŚĞ ĐĂƐŚ

28 The Uganda Chamber of Mines & Petroleum ŇŽǁ ŐĞŶĞƌĂƟŽŶ ;ƉƌŽĚƵĐƟŽŶͿ ĞǆĐŚĂŶŐĞƐ ŚĂǀĞ ŚĂĚ ϭϮϯ͕ stage. Therefore players ϭϯ ĂŶĚ Ϯϰ /WKƐ ƌĞƐƉĞĐƟǀĞůǇ ŝŶ ƚŚĞ ĞǆƚƌĂĐƟǀĞƐŶĞĞĚƚŽ ďĞƚǁĞĞŶ ϮϬϬϵ ĂŶĚϮϬϭϮ͘ ĂƉƉƌĞĐŝĂƚĞ ƚŚĞ ĂůƚĞƌŶĂƟǀĞ These four exchanges listed ĨŽƌŵƐ ŽĨ ĮŶĂŶĐŝŶŐ ĂǀĂŝůĂďůĞ ĂďŽǀĞ ĂĐĐŽƵŶƚĞĚ ĨŽƌ ϵϬй ŽĨ to be able to address this ƚŚĞŵŝŶŝŶŐ/WKƐŐůŽďĂůůǇ͘ dŚĞ challenge. Most importantly d^yĂŶĚ^yĂǀĞƌĂŐĞh^ϭϯͲ they need to build sustainable ϭϱ ŵŝůůŝŽŶ ƉĞƌ /WK͘ ZĞĐĞŶƚůǇ͕ businesses that will meet the ^ǁĂůĂŶĞƌŐǇǁŚŝĐŚŝƐůŝƐƚĞĚŽŶ growing demand for such ƚŚĞ^y͕ĂŶĚŚŽůĚƐƐƵďƐƚĂŶƟĂů products while at the same equity in assets in Tanzania, ƟŵĞĂůůŽǁŝŶŐĐŝƟǌĞŶƐƚŽƐŚĂƌĞ <ĞŶǇĂ ĂŶĚ ĂŵďŝĂ ĂŶĚ ĂŶ into their success. ĂĐƟǀĞ ďƵƐŝŶĞƐƐ ĚĞǀĞůŽƉŵĞŶƚ program in Sub-Saharan ĨƌŝĐĂ͕ ůŝƐƚĞĚ ŽŶ ƚŚĞ 'D^ Research indicates that out market in Tanzania, making ŽĨ ƐŝǆƚĞĞŶ ĨŽƌŵƐ ŽĨ ĮŶĂŶĐŝŶŐ ŝƚƚŚĞĮƌƐƚŽŝůΘŐĂƐĐŽŵƉĂŶǇ available, its only public ƚŽ ůŝƐƚ ŽŶ ƚŚĞ'D^ŝŶĂƐƚ equity that can be used to Africa, and the second overall ĮŶĂŶĐĞ Ăůů ĨŽƵƌ ƐƚĂŐĞƐ ŽĨ ƚŚĞ ĞīĞĐƚ ŽŶ ƚŚĞǀĂůƵĂƟŽŶƐ ŽĨ /Ŷ ϮϬϭϮ͕ ƚŚĞ ĂƉŝƚĂů DĂƌŬĞƚƐ ƚŽƌĂŝƐĞĮŶĂŶĐŝŶŐƚŚƌŽƵŐŚƚŚŝƐ ĞǆƚƌĂĐƟǀĞƐ ƐĞĐƚŽƌ͘ /ŶĚĞĞĚ ongoing developments. It Authority approved the segment. The company set ĞƋƵŝƚǇ ĮŶĂŶĐŝŶŐŝƐƐƚƌŽŶŐůǇ is therefore prudent for 'ƌŽǁƚŚ ŶƚĞƌƉƌŝƐĞ DĂƌŬĞƚ ŽƵƚ ƚŽƌĂŝƐĞdƐŚƐ͘ϲ͘ϴ ďŝůůŝŽŶ recommended for the developers to consider selling ^ĞŐŵĞŶƚ;'D^Ϳ͕ĂƐĞŐŵĞŶƚ ;h^ϰ͘ϭŵŝůůŝŽŶͿĂŶĚƚŚĞŽīĞƌ ĞǆƉůŽƌĂƟŽŶĂŶĚĚĞǀĞůŽƉŵĞŶƚ Ă ƉŽƌƟŽŶ ŽĨ ƚŚĞŝƌ ĨƵƚƵƌĞ ŽĨƚŚĞh^ƐŝŵŝůĂƌƚŽǁŚĂƚƚŚĞ ǁĂƐŽǀĞƌƐƵďƐĐƌŝďĞĚďǇϯϬй͘ phases of mining, and oil & ƉƌŽĚƵĐƟŽŶ ĨŽƌǁĂƌĚ͕ Ăƚ ĮǆĞĚ EĂŝƌŽďŝ ^ĞĐƵƌŝƟĞƐ ǆĐŚĂŶŐĞ gas project developments. prices, as a way of hedging ;<ĞŶǇĂͿĂŶĚƚŚĞĂƌĞƐƐĂůĂĂŵ ƋƵŝƚǇĮŶĂŶĐŝŶŐŝƐĐŽŵƉƌŝƐĞĚ The capital markets could against possible downswings ^ƚŽĐŬ ǆĐŚĂŶŐĞ ;dĂŶǌĂŶŝĂͿ of public equity, private also provide an exit for in commodity prices. have, but also the equivalent equity, sovereign wealth Government’s investments in ŽĨ ƚŚĞ d^y sĞŶƚƵƌĞ ǆĐŚĂŶŐĞ ĨƵŶĚƐ͕ƐƚƌĂƚĞŐŝĐĞƋƵŝƚǇ;ƵƐƵĂůůǇ ƚŚĞ ƉŝƉĞůŝŶĞ Žƌ ƌĞĮŶĞƌǇ ĂŌĞƌ ;d^ysͿŽĨĂŶĂĚĂ͕ǁŚĞƌĞƐŵĂůů ƉƌŝǀĂƚĞͿ͕ĨĂƌŵͲŝŶƐ͕ƐƚĂŶĚďǇ ƚŚĞǇĂƌĞĨƵůůǇŽƉĞƌĂƟŽŶĂů In the case of Uganda, the to medium sized companies equity and equity linked debt. capital markets industry, ;ĂƐ ŝƚ ŚĂƐ ĚŽŶĞ ĚƵƌŝŶŐƚŚĞ ǁŝƚŚƐƚƌŽŶŐŐƌŽǁƚŚƉŽƚĞŶƟĂů͕ ƉƌŝǀĂƟǌĂƟŽŶ ŽĨ ƐŽŵĞ ƐƚĂƚĞ despite the slow uptake, has ĐĂŶ ƌĂŝƐĞ ƉĂƟĞŶƚ ĮŶĂŶĐŝŶŐ steadily grown to an annual ŽǁŶĞĚ ĞŶƚĞƌƉƌŝƐĞƐͿ ƚŚĞƌĞďǇ In considering equity through the capital markets. turnover at the Uganda ŐŝǀŝŶŐhŐĂŶĚĂŶƐ ĂŶĚ ĂƐƚ ĮŶĂŶĐŝŶŐ͕ ŝƚ ŝƐ ĐƌŝƟĐĂů ƚŚĂƚ dŚĞ ƌĞƋƵŝƌĞŵĞŶƚƐ ĨŽƌ ůŝƐƟŶŐ ^ĞĐƵƌŝƟĞƐ ǆĐŚĂŶŐĞ ;h^Ϳ ŽĨ Africans in general, an developers in these sectors on this segment are less h^ϭϬϬ ŵŝůůŝŽŶ ƉĞƌ ĂŶŶƵŵ͘ opportunity to own into these take cognizance of the stringent compared to &ƵƌƚŚĞƌ͕ƚŽĚĂƚĞ͕ƚŚĞĚŽŵĞƐƟĐ investments, while raising commodity price cycles and ƚŚŽƐĞ ĨŽƌ ůŝƐƟŶŐ ŽŶ ƚŚĞ DĂŝŶ ŵĂƌŬĞƚ ĐĂƉŝƚĂůŝǌĂƟŽŶ ;ĨŽƌ funds for other Government the impact these have on Investment Market Segment ƚŚĞ ĞŝŐŚƚ ĚŽŵĞƐƟĐ ůŝƐƚĞĚ programs in the process. ƚŚĞ ǀĂůƵĂƟŽŶƐ ŽĨ ĐŽŵƉĂŶŝĞƐ͘ ;D/D^Ϳ͕ ǁŚĞƌĞ Ăůů ƚŚĞ ŽƚŚĞƌ ĐŽŵƉĂŶŝĞƐͿ ƐƚĂŶĚƐ Ăƚ ĂďŽƵƚ /Ĩ ƚŚĞ ƉƌŝĐĞ ŽĨ ƌĞŶƚ ƌƵĚĞ listed companies in Uganda h^ ϭ͘Ϯ ďŝůůŝŽŶ͕ ǁŚŝĐŚŝƐ Žŝů ĨĞůů ƚŽ ƐĂǇ h^ ϱϬͬďďů ;ŝƚ ĂƌĞ ůŝƐƚĞĚ͘ /Ŷ ĂŶĂĚĂ͕ ĨŽƌ Therefore, it’s important to about 6% of the country’s ǁĂƐ h^ ϭϮͬďďů ĂƐ ƌĞĐĞŶƚůǇ instance, the Toronto Stock note that whereas equity GDP. However, market ĂƐϭϵϵϴͿĂŶĚŐŽůĚĨĞůůƚŽh^ ǆĐŚĂŶŐĞd^yĂŶĚd^ys ŚĂǀĞ ĮŶĂŶĐŝŶŐ ŵĂǇ ďĞ ĚŝůƵƟǀĞ ŝŶ ĐĂƉŝƚĂůŝǌĂƟŽŶƐŚŽƵůĚŵŽǀĞƵƉ ϲϬϬ ƉĞƌ ŽƵŶĐĞ ;ŝƚ ǁĂƐ h^ ŚĂĚ Ă ĐŽŵďŝŶĞĚƚŽƚĂů ŽĨ ϭϯϯ nature, it remains the most ƚŽĂƚůĞĂƐƚϮϬйŽĨ'WʹǁŚŝĐŚ ϮϱϬƉĞƌŽƵŶĐĞĂƐƌĞĐĞŶƚůǇĂƐ /ŶŝƟĂů WƵďůŝĐ KīĞƌƐ ;/WKƐͿ͖ preferred source of funding ŝƐ ĂďŽƵƚ h^ ϰ͘Ϯ ďŝůůŝŽŶ ŽǀĞƌ ϮϬϬϭͿ ŽǀĞƌ ƚŚĞ ŶĞǆƚ ϱ ǇĞĂƌƐ͕ ƵƐƚƌĂůŝĂ ^ĞĐƵƌŝƟĞƐ ǆĐŚĂŶŐĞ for oil & gas, and mineral ƚŚĞŶĞǆƚĮǀĞǇĞĂƌƐ͘ this would have an adverse ;^yͿ͕,ŽŶŐ<ŽŶŐĂŶĚ>ŽŶĚŽŶ ĞǆƚƌĂĐƟŽŶ ŝŶĚƵƐƚƌǇ ďĞĐĂƵƐĞ ŽĨ ƚŚĞ ůŽŶŐ ůĞĂĚ ƟŵĞƐ ŽĨ ƉƌŽĚƵĐƟŽŶ͘ ^ĞĐƚŽƌ ƉůĂǇĞƌƐ need to weigh the advantages and disadvantages of equity ĂŶĚĚĞďƚĮŶĂŶĐŝŶŐĚĞƉĞŶĚŝŶŐ ŽŶƚŚĞƟŵŝŶŐͬƐƚĂŐĞ͘dŚĞƟŵĞ for mining and petroleum businesses to grow is now and they must not wait. There ŝƐ Ă ǁŝĚĞ ƌĂŶŐĞ ŽĨ ĮŶĂŶĐŝŶŐ ŽƉƟŽŶƐ ƚŽ ĐŚŽŽƐĞ ĨƌŽŵ ďƵƚ ŬĞǇƚŽŶŽƚĞŝƐƚŚĂƚ͞ŝƚ͛ƐďĞƩĞƌ ƚŽŽǁŶϱйŽĨĂůĂƌŐĞŶƵŵďĞƌ ƚŚĂŶ ϭϬϬй ŽĨ Ă ǀĞƌǇ ƐŵĂůů number”.

The author is the CEO, Capital Markets Authority - Uganda

WƵďůŝĐĞƋƵŝƚǇĐĂŶďĞƵƐĞĚƚŽĮŶĂŶĐĞĂůůĨŽƵƌƐƚĂŐĞƐŽĨƚŚĞĞǆƚƌĂĐƟǀĞƐƐĞĐƚŽƌ

The Uganda Chamber of Mines & Petroleum 29 ‘‘With law reviews, Uganda’s mining industry is bright’’ Hon. Elly Karuhanga

DA@NERAPKPQNJ2C=J@=OIEJAN=HK??QNNAJ?AOEJPKI=FKN?=OD?KSO BKNPDA?KQJPNU?KJPEJQAO=L=?A,JAKBPDAGAU=NA=OPD=PJAA@ TQNCAJP=@@NAOOEJCEJPDEO@NERAEOPDAHAC=HNACEIA"HHU(=NQD=JC= PDA 2C=J@= D=I>AN KB *EJAO =J@ -APNKHAQI Ġ2 *- D=ENI=J OD=NAODEOPDKQCDPOKJPDAOA@ARAHKLIAJPOġ

You were involved in a recent In other words there are many things and all the relevant ministries to Mining Law review session; can in the law which deter potential łJ@SKNGEJCOKHQPEKJOPKPDAI=JU you share with us the major talking mining investors; hence the law hurdles that abound in the mining points? review. The review however, will sector and implement some of be done in such a way that Uganda the recommendations from State #KHHKSEJC=?NUKQP>UPDAEJ@QOPNU =J@ EPO ?EPEVAJO >AJAłP IKOP BNKI House; and delightfully all these that some mining laws were their natural resources. meetings have taken place. There impractical, Government decided were technical meetings, Permanent to review the Mining Act, 2003 and So what is the way forward? Secretary level meeting and then NAH=PA@NACQH=PEKJO#KNAT=ILHAPDA there were ministerial meetings that small scale and artisanal miners are The three-day legal review retreat were chaired by the Prime Minister. JKP ?=PANA@ BKN EJ =JU OECJEł?=JP sponsored by the World Bank and way yet they leave immense organized by the Ministry of Energy HH KB PDAOA =NA OECJEł?=JP environmental damage everywhere and Mineral Development where milestones that have coincided with they go. the Uganda Chamber of Mines enhanced government enthusiasm and Petroleum members were for the sector. His Excellency the The requirement is that the mining invited to attend is a positive step President has led this drive; often inspectors from Government visit forward. Over the three days, we talking about minerals in both local these mining sites every month to FQOP ?KJ?AJPN=PA@ KQN AJANCEAO EJPK and international fora since the enforce environmental and safety łJ@EJCS=UOPKPQNJ2C=J@=EJPK= December 2013, retreat. standards, deter mineral smuggling competitive mining nation. After the amongst others but this is not retreat, a sector-wide think tank has How will the taxes on exploration happening. There has not been been selected to draft a Bill which and infrastructure bottlenecks be enough money to fund this though >U PDA łNOP MQ=NPAN KB ODKQH@ addressed amidst these changes? over the years. >AKJPDAŃKKNKB-=NHE=IAJP The tax collector will continue Secondly land rights are hard to Some of these reviews were also charging a tax on exploration come by for many a miner because discussed at State House in a meeting activities until the policy changes. the law does not protect you. The with the President of Uganda. What Luckily the President shares our law says minerals belong to the have been the deliverables? view that some of these laws are State yet the land is owned by the unfair so they will also be addressed people – this is tricky situation. Even After the meeting with President henceforth. in cases where land is accessed, the Yoweri Museveni last year, he issue of compensation and royalty directed that there should be As for infrastructure shortcomings, sharing is also not well addressed. monthly meetings between UCMP we cannot downplay the immense

30 The Uganda Chamber of Mines & Petroleum investment opportunities this presents for Ugandans and their foreign counterparts.

Already the Hoima-Kaiso-Tonya road is nearing completion in the oil rich Albertine region besides the planned airport in the same area. The opportunity for us to explore iron ore in Muko, Kigezi opens up railway investments. Government has also committed the funds for investing in the 600MW Karuma =J@*4&OEI>=LKSANLNKFA?PO

1DAOA KLLKNPQJEPEAO =NA =I=VEJC =J@ FQOP require a little change in attitude by Ugandans to exploit them.

How do you attract mining investors to Uganda seeing that these capital intensive opportunities cannot be fully taken on locally?

Now this is the big challenge for a country like ours. Remember investors have so many investment opportunities that they are looking at. And because they have saved up their money and endured that pain, they will only take that money to where it has the highest chances to grow. Capital is a coward; it only goes where it grows.

So, yes, we may have many opportunities, but we must make these opportunities very attractive to the investors and make sure that once they have invested their capital, it is protected in the right environment with clear and enforceable laws. That way, the investor should be able to make a return on their investment and Government can collect revenue –win-win situation.

What is the MWC2014 conference going to add to this drive to make Uganda a preferred mining destination?

#ENOP KB =HHSASEHH >A DKOPEJC PKL JKP?D investors from around Africa and the world. These include leading players from top mining destinations like Australia, South Africa, Canada, Zambia, Ghana, Tanzania, Nigeria to mention but a few. And with President Museveni also attending as the Keynote Speaker, we will have concrete discussions on how to move Uganda forward.

The Uganda Chamber of Mines & Petroleum 31 Mineral Sector Policy & Law Review what legal changes will improve uganda’s attractiveness as a mining destination?

By Denis Kusaasira, LL.M Mineral Law & Policy, is likely to trigger change in policy and law, aimed at University of Dundee, UK. improving Uganda’s attractiveness to mining investment. What changes can improve Uganda’s attractiveness as a In 2000, a formulated a new mining policy for Uganda. destination for mining investment? This was followed by enactment of the new Mining Act in 2003, and a new set of Mining Regulations in 2004. Mineral Policy 1DAI=FKN=EIKBPDAJASLKHE?U=J@H=SS=OPKOPEIQH=PA private sector investment in the mineral sector, while As far as mineral policy is concerned, a shift from the pure government plays the role of regulator, and arbiter of łNOP?KIA łNOPOANRA@HE?AJOEJCLKHE?U SDE?DLKPAJPE=HHU disputes between private sector players. Shortly after obliges the regulator to grant an exploration licence to the formulation of the new policy and enactment of new laws, łNOP =LLHE?=JP I=U =IAHEKN=PA PDA LNK>HAI KB CN=JPEJC applications for exploration licences increased from220 to HE?AJ?AO PK łNOP =LLHE?=JPO SDK D=RA JK łJ=J?E=H =J@ nearly 500 licenses by 2009. Investments in the mineral technical capacity to do exploration. A switch to the OA?PKNCNASBNKI20IEHHEKJEJPK20IEHHEKJ łNOP?KIA łNOP?KJOE@ANA@ HE?AJOEJC LKHE?U SDANA PDA by 2009. NACQH=PKNO@QPUEOPK?KJOE@ANPDAłNOP=LLHE?=JPSEPDKQP PDA K>HEC=PEKJ PK CN=JP PDA HE?AJ?A PK PDA łNOP =LLHE?=JP The marked increase in mineral sector investment created might provide a solution to eliminate passive speculators. excitement and hope that Uganda was making strides Under this licensing policy, multiple marking out of in developing its mineral resources to emulate countries prospective land is allowed to go on for a week or so, and such as Tanzania which had also reformed their mining PDAHE?AJ?AEOCN=JPA@PKPDA=LLHE?=JPSEPD>APPANłJ=J?E=H policy and laws in the late 1990s, and whose geological and technical competence. This allows some form of prospectivity is, to a greater extent, believed to be similar competition and allows government to grant the licence PKPD=PKB2C=J@=2JHEGA1=JV=JE= SDE?DO=S=JEJŃQT a person who is best suited to develop it, as opposed to of big international players and the opening of six world- IANAHUPDAłNOP=LLHE?=JP ?H=OO CKH@ IEJAO JK I=FKN ATLHKN=PEKJ LNKFA?PO D=RA turned into serious mines since Uganda reformed its Tax Policy policy and law. As far as tax policy is concerned, elimination of frontloaded Investment decision making in the mining sector is not taxes may improve Uganda’s attractiveness as a destination only determined by good mineral policy and good mining for mining investment. Currently, Uganda’s tax policy laws. Other factors such as presence of an attractive @KAO JKP B=RKN IEJAN=H ATLHKN=PEKJ EJRAOPIAJP #NKJP geological setting, a favorable tax regime at different loaded taxes such as value added tax on imported goods LNKFA?P?U?HAO =J@=??AOOPKH=J@BKNIEJAN=H@ARAHKLIAJP and services make exploration operations expensive. An are criteria for investment decision-making in the mineral argument has been advanced by the Uganda Revenue sector. Geology is beyond control of Government. We Authority to counter this point. The argument is that VAT either have attractive geology or we do not. On the other is recoverable once a company begins to make taxable hand, policy and law are within Government control. supplies, and that it is the importer of goods and service providers, not the exploration company, that pays that The Government of Uganda has now embarked on withholding tax. This argument is tenuous in as much review of the current mineral policy and laws, which as it does not take into account the fact that the chances

32 The Uganda Chamber of Mines & Petroleum that an exploration company will make taxable supplies are as slim as the chances of discovering a ͞&ĂŝůĞĚĂĐĐĞƐƐƚŽůĂŶĚŚĂƐďĞĞŶŽŶĞŽĨƚŚĞ mineable deposit. The chances that =JATLHKN=PEKJLNKFA?PSEHHPQNJEJPK ŵĂũŽƌŝŵƉĞĚŝŵĞŶƚƐƚŽŵŝŶĞƌĂůĞǆƉůŽƌĂƟŽŶ a mine are less than 1%. It would be more prudent to exempt exploration companies from payment of VAT ĂŶĚ ĚĞǀĞůŽƉŵĞŶƚ ŝŶ hŐĂŶĚĂ͘ tŝƚŚŽƵƚ until when they have discovered mineable deposits, and when it is ĂĐĐĞƐƐƚŽůĂŶĚ͕ĂŵŝŶĞƌĂůƌŝŐŚƚŝƐĂǁŽƌƚŚůĞƐƐ certain that they will commence production? A reduction of the ƉŝĞĐĞŽĨƉĂƉĞƌ͘͟ rate of withholding tax on imported services from 15% to 6% is likely to livestock or crops (ss.80). In such a the land to which the lease relates, as make a difference, as it will reduce case, the holder of the mineral right may be agreed between the holder the exploration cost. The distinction must pay compensation for any of a mining lease and the landowner in rates was intended to encourage damage to crops, trees and building or lawful occupier. The Act further use of local services providers. Since works damaged during the course of provides that if the parties fail to we do not have competent mineral the operations of the mineral right agree, the terms of the agreement services providers in Uganda, there DKH@AN ĠOO #QNPDANIKNA PDA may be determined by arbitration. EO JK FQOPEł?=PEKJ BKN EILKOEJC = holder of a mineral right must pay This section has three shortcomings, higher withholding tax on imported fair and reasonable compensation SDE?DI=GAEPEILN=?PE?=>HA#ENOPHU services. for any disturbance of rights of the the section only applies where a landowner or occupier; and for mining lease already exists, yet Mining laws and access to land any damage done to the surface of exclusive rights may be required the land by the operations under before a mining lease is granted. #=EHA@=??AOOPKH=J@D=O>AAJKJA the mineral right. The basis upon Secondly, the section applies at KBPDAI=FKNEILA@EIAJPOPKIEJAN=H which compensation is payable for the request of the landowner or exploration and development in damage to the surface of the land lawful occupier, meaning that if Uganda. Without access to land, a is the extent to which the market the landowner or occupier has not mineral right is a worthless piece of value of the land has been reduced made a request, no negotiations paper. Therefore, the review of the by the damage occasioned by can commence. Thirdly, the section laws will to need to focus on enacting the operations under the mineral provides for arbitration in case of workable provisions for access to right (ss.82 (1)(i)). If the landowner failure to reach an agreement, but it land for mineral development. The KN H=SBQH K??QLEAN EO @EOO=PEOłA@ does not name, or provide guidance current provisions are vague and with the compensation offered, for naming the arbitrator, and also impracticable. the dispute shall be determined by offers no solution where a party is arbitration (ss.82 (2)). not willing to agree to arbitration. Under the Mining Act, a holder of an exploration licence or his or A solution can be found in her representative is authorized to introducing a surface rights tribunal, enter any land (private or public) to While ss.82 of the Mining Act sets which is empowered to imposing perform any activity necessary for a benchmark for computation mining easements where there conducting exploration operations of compensation payable to the is failure to reach an agreement (ss.31). The holder of an exploration landowner or occupier, it does not between landowners and mining licence has the exclusive right to provide a solution in cases where companies. Such a tribunal may apply for a Mining Lease (ss.34 the landowner does not want be comprised of persons with (4) and 41). The applicant must PK CN=JP OQNB=?A NECDPO #QNPDAN expertise in mining, law, survey and show written proof that he or she the section does not provide a valuation. has reached an agreement with real solution in a case where a the relevant landowners or lawful H=J@KSJAN EO JKP O=PEOłA@ SEPD Conclusion occupiers to use the area of land for the compensation offered by the conduct of mining operations. This, mineral right holder. The section The viability of the mineral sector is in mineral industry parlance, is what does not name the arbitrator or ?U?HE?=H=J@OQ>FA?PPKCHK>=HB=?PKNO is called “surface rights”. Surface provide guidance on how the including commodity prices, market rights may be acquired by signing arbitrator is to be appointed, and demand, and relative mineral a land lease or agreement for rights the rules the arbitrator is to apply in potential. However, policy factors to use the land on such terms as resolving the dispute. Moreover, the can also be a key determinant in to duration and extent of the land. section refers to compensation after attracting globally mobile mining Surface rights agreement may grant exploration operation rather than investment. Unfavorable tax exclusive or non-exclusive rights compensation before explorations. policies and lack of clear rules to over the area to which they relate. To this extent, ss.82 of the Mining regulate the interaction of mining Where the surface rights agreements Act is not practicable. and other land uses can deter do not grant exclusive rights, the mineral development. landowner or occupier reserves that The Mining Act provides for right to graze and cultivate on any acquisition of exclusive use of The author is a mining and oil H=J@PD=PEOPDAOQ>FA?PKB=IEJAN=H the whole or part of the mining & gas legal expert with ABMAK right, if such grazing or cultivation area (ss.81). This may be done by Associates. Email: [email protected] does not interfere with the proper obtaining a land lease or such other working under the relevant mineral rights to use the area, upon such right or, pose a danger or hazard to terms as to duration or the extent of

The Uganda Chamber of Mines & Petroleum 33 The Mining Act is being reviewed Ăƚ ƚŚĞ ƟŵĞ ǇŽƵ ĐŽŵĞ ŝŶƚŽ ƚŚĞ new seat. With structural changes likely to happen, won’t ƚŚŝƐ ĂīĞĐƚ ƚŚĞ ĞƉĂƌƚŵĞŶƚ͛Ɛ ŽƉĞƌĂƟŽŶƐ͍ Reviewing of the Mining Act ŝƐ ǀĞƌǇ ŐŽŽĚ ĂƐ ŝƚ ĮƚƐ ǁĞůů in Government’s vision for the mineral sector in a way ŽĨ ĞƐƚĂďůŝƐŚŝŶŐĂŶĞīĞĐƟǀĞ͕ transparent and inventor-friendly regulatory regime to govern the ĚǁĂƌĚƐ<ĂƩŽ ;ƉŝĐƚƵƌĞĚͿ was tŚĞƚŚĞƌ ŝŶ ĂĐƟŶŐ ƉŽƐŝƟŽŶ Žƌ ĞǆƉůŽƌĂƟŽŶ ĂŶĚ ĚĞǀĞůŽƉŵĞŶƚ ƌĞĐĞŶƚůǇ ĂƉƉŽŝŶƚĞĚ ƚŚĞ ĨƵůůͲƟŵĞ ĂƐ ĨƵůůͲƟŵĞ ŽŵŵŝƐƐŝŽŶĞƌ͕ ĂŶǇ ŽĨŵŝŶŝŶŐĂĐƟǀŝƚǇŝŶƚŚĞĐŽƵŶƚƌǇ ŽŵŵŝƐƐŝŽŶĞƌ͕ĂƚƚŚĞĞƉĂƌƚŵĞŶƚ ƉĂƚƌŝŽƟĐ ĐŝƟǌĞŶ ƐŚŽƵůĚ ĂůǁĂǇƐ ĐŽŶƐŝƐƚĞŶƚ ǁŝƚŚŝŶƚĞƌŶĂƟŽŶĂů ŽĨ'ĞŽůŽŐŝĐĂů^ƵƌǀĞǇĂŶĚDŝŶĞƐ͘ ƉƵƚŝŶŵĂǆŝŵƵŵĞīŽƌƚƚŽƉƌŽĚƵĐĞ standards and best industry ,Ğ ƐŚĂƌĞƐ ŚŝƐ ƚŚŽƵŐŚƚƐ ŽŶ ƚŚĞ ĚĞůŝǀĞƌĂďůĞƐƚŚĂƚ ĂƌĞ ďĞŶĞĮĐŝĂů ƉƌĂĐƟĐĞ͘ tasks ahead in this interview ĨŽƌ ƚŚĞ ĞŶƟƌĞ ƉŽƉƵůĂƟŽŶ ŽĨ the country. As such, any right- The most important point to note ,ĂǀŝŶŐƐƉĞŶƚƚǁŽǇĞĂƌƐŝŶĂĐƟŶŐ thinking person would agree about the on-going changes is that ĐĂƉĂĐŝƚǇ͕ǁŚĂƚĚŽĞƐďĞŝŶŐĮŶĂůůǇ ǁŝƚŚŵĞƚŚĂƚ ƉƵƫŶŐ ĂǁĂǇ ĂŶǇ the Department of Geological ĂƉƉŽŝŶƚĞĚ ƚŚĞ ĨƵůůͲƟŵĞ '^D ƉůĂŶƐďĞĐĂƵƐĞ/ĂŵŶŽƚĂĨƵůůͲƟŵĞ Survey and Mines is being re- ŽŵŵŝƐƐŝŽŶĞƌŵĞĂŶƚŽǇŽƵ͍ ŽŵŵŝƐƐŝŽŶĞƌ͕ǁŽƵůĚŚĂǀĞďĞĞŶ structured into a Directorate and total misjudgment on my part. in that regard there will be need to streamline and spell out who ĞŝŶŐ ĂƉƉŽŝŶƚĞĚ ƚŚĞ ĨƵůůͲƟŵĞ will be responsible for carrying ŽŵŵŝƐƐŝŽŶĞƌŝƐŐŽŽĚŶĞǁƐƚŽŵĞ What will your priority areas as ŝŶƚŽ ĞīĞĐƚ ƚŚĞ ƉƌŽǀŝƐŝŽŶƐ ŽĨ but this does not mean that I will '^DŽŵŵŝƐƐŝŽŶĞƌďĞ͍ the Mining Act bearing in mind ƉĞƌĨŽƌŵŵǇƚĂƐŬƐĚŝīĞƌĞŶƚůǇĨƌŽŵ ƚŚĂƚ ƚŚĞƐĞ ĚƵƟĞƐ ĂŶĚĨƵŶĐƟŽŶƐ the way I was been performing ǀĞŶ ŝŶ ĂĐƟŶŐ ĐĂƉĂĐŝƚǇ / ŽĨ ĂĚŵŝŶŝƐƚƌĂƟŽŶ ŽĨ ƚŚĞ ǁŚŝůĞ ŝŶ ĂĐƟŶŐ ĐĂƉĂĐŝƚǇ͘ /Ŷ had set out priority areas to current Act are vested into the any case, I will maintain and ĨŽůůŽǁ ƵƉ͘ Ɛ Ă ŽŵŵŝƐƐŝŽŶĞƌ͕ ŽŵŵŝƐƐŝŽŶĞƌ ŽĨ ƚŚĞ 'ĞŽůŽŐŝĐĂů ĐŽŶĐƌĞƟǌĞ ƚŚĞ ƌĞƐƉŽŶƐŝďŝůŝƚǇ ŽĨ /ǁŝůůŵĂŝŶƚĂŝŶ ƚŚĞƌĂƟŽŶĂů Survey and Mines Department. ĂĚŵŝŶŝƐƚƌĂƟŽŶĂŶĚŵĂŶĂŐĞŵĞŶƚ ĚĞǀĞůŽƉŵĞŶƚ ĂŶĚ ƵƟůŝǌĂƟŽŶ ŽĨ /ĂŵƐƚƌŽŶŐůǇŽƉƟŵŝƐƟĐƚŚĂƚƚŚĞ of the mineral sector that I have mineral resources in a safe and ĐƵƌƌĞŶƚŝŶŝƟĂƟǀĞƐƉƵƚŝŶƉůĂĐĞƚŽ ďĞĞŶƵŶĚĞƌƚĂŬŝŶŐǁŚŝůĞŝŶĂĐƟŶŐ sustainable environment for the review the Act will address this capacity. socioeconomic enhancement of ŵĂƩĞƌ ĂŶĚ ƐƵďƐĞƋƵĞŶƚůǇ ƉƵƚ ŝŶ the people of Uganda. In brief, ƉůĂĐĞŵĞĐŚĂŶŝƐŵƐĨŽƌĐŽŶƟŶƵŽƵƐ tŝůů ǇŽƵƌ ƉƌŝŽƌŝƟĞƐ ŝŶ ƚĞƌŵƐ ƚŚĞũŽƵƌŶĞǇŽĨƚŚĞƚƌĂŶƐĨŽƌŵĂƟŽŶ ƐŵŽŽƚŚ ĂĚŵŝŶŝƐƚƌĂƟŽŶ ĂŶĚ of deliverables change now of the mineral sector for the management of the mineral ƚŚĂƚ ǇŽƵ ĂƌĞ Ă ĨƵůůͲƟŵĞ country’s economic growth sector under the Directorate. ŽŵŵŝƐƐŝŽŶĞƌ͍ DĂǇďĞ ƐƚĂƌƚ ŽŶ ǁŚŝĐŚ / ĐŽŵŵŝƩĞĚ ŵǇƐĞůĨ ĞǀĞŶ other structural and policy plans ǁŚĞŶ/ǁĂƐŝŶĂĐƟŶŐ ĐĂƉĂĐŝƚǇ ŝƐ DŝŶŝŶŐ ŝƐ ĂůƐŽ ŐĞƫŶŐ Ă ůŽƚ ŽĨ ƚŚĂƚ ŵĂǇ ŚĂǀĞ ďĞĞŶ ĚŝĸĐƵůƚ ƚŽ completely un-stoppable. ŐŽǀĞƌŶŵĞŶƚĂƩĞŶƟŽŶŽĨůĂƚĞǁŝƚŚ ƉƵƚ ŝŶƚŽ ĂĐƟŽŶ ǁŚĞŶ ŝŶ ĂĐƟŶŐ WƌĞƐŝĚĞŶƚ DƵƐĞǀĞŶŝ ĚŝƌĞĐƟŶŐ ĐĂƉĂĐŝƚǇ͍ ǀĂƌŝŽƵƐ ŵŝŶŝƐƚƌŝĞƐ ƚŽ ĨĂƐƚ ƚƌĂĐŬ

34 The Uganda Chamber of Mines & Petroleum New Commissioner, (=PPK EOłNA@QL

ƚŚĞ ŝŶƚĞŐƌĂƟŽŶ ŽĨ ƚŚĞ ŝŶĚƵƐƚƌǇ ŝŶƚŽ ƚŚĞ ĐŽƵŶƚƌǇ͛Ɛ ĞĐŽŶŽŵǇ ;ƚŚƌŽƵŐŚ ďĞŶĞĮĐŝĂƟŽŶͿ͘ Ɛ ŽŵŵŝƐƐŝŽŶĞƌ͕ ŚŽǁ ĂƌĞ ǇŽƵ ŐŽŝŶŐƚŽƉŽƐŝƟŽŶ'^DƚŽƐŚĂƉĞ ͞/ŶƚĞŐƌĂƟŽŶŽĨƚŚĞŵŝŶĞƌĂůŝŶĚƵƐƚƌǇ ƚŚĞĐŽƵŶƚƌǇ͛ƐŵŝŶŝŶŐĨƵƚƵƌĞ͍ ŝŶƚŽƚŚĞĐŽƵŶƚƌǇ͛ƐĞĐŽŶŽŵǇŝƐƋƵŝƚĞ /ŶƚĞŐƌĂƟŽŶ ŽĨ ƚŚĞ ŵŝŶĞƌĂů industry into the country’s economy is quite encouraging ĞŶĐŽƵƌĂŐŝŶŐďĞĂƌŝŶŐŝŶŵŝŶĚƚŚĂƚǁŚĞŶ bearing in mind that when the mineral sector is developed, it ƚŚĞŵŝŶĞƌĂůƐĞĐƚŽƌŝƐĚĞǀĞůŽƉĞĚ͕ŝƚǁŝůů ǁŝůů ĐŽŶƚƌŝďƵƚĞ ƐŝŐŶŝĮĐĂŶƚůǇ ƚŽ ƐƵƐƚĂŝŶĂďůĞ ŶĂƟŽŶĂů ĂŶĚ ƐŽĐŝĂů ĐŽŶƚƌŝďƵƚĞƐŝŐŶŝĮĐĂŶƚůǇƚŽƐƵƐƚĂŝŶĂďůĞ growth. The President is encouraging ŶĂƟŽŶĂůĂŶĚƐŽĐŝĂůŐƌŽǁƚŚ͘͟ ǀĂůƵĞĂĚĚŝƟŽŶŽŶŵŽƐƚŵŝŶĞƌĂůƐ mined and strictly to avoid them being exported in raw form. there is equitable sharing of challenges. For example, the Yes, this is agreeable to all of us ƚŚĞ ďĞŶĞĮƚƐĨƌŽŵ ƚŚĞŵŝŶĞƌĂů ƉƌŽƉŽƐĞĚ ŚĂƌŵŽŶŝǌĂƟŽŶ ŽĨ ƚŚĞ because we realize that similar resources amongst the people of DŝŶŝŶŐĐƚǁŝƚŚƚŚĞ >ĂŶĚ Đƚ ĮŶŝƐŚĞĚ ƉƌŽĚƵĐƚƐ ĨƌŽŵ ƚŚĞƐĞ Uganda. should make it easy for investors minerals when imported are in the sector to acquire land for ƋƵŝƚĞ ĞǆƉĞŶƐŝǀĞ͘ sĂůƵĞ ĂĚĚŝƟŽŶ ĚĞƋƵĂƚĞ ƌĞŵƵŶĞƌĂƟŽŶ ŽĨ ŵŝŶĞƌĂůĞǆƉůŽŝƚĂƟŽŶ ŝŶƐƚĞĂĚ of these minerals within the ŐŽǀĞƌŶŵĞŶƚ ƉƌŽĨĞƐƐŝŽŶĂůƐ ƚŽ of dealing with individual land country of course also helps ďŽŽƐƚ ŵŽƌĂů ĂŵŽŶŐƐƚ ƐƚĂī owners that in most cases ŝŶ ŐĞŶĞƌĂƟŶŐ ĞŵƉůŽǇŵĞŶƚ ĨŽƌ ĂŶĚ ŵŽĚĞƌŶŝǌŝŶŐ ƚŚĞ '^D ďĞĐŽŵĞƐ Ă ďŝƚ ƚŽŽ ĞǆƚŽƌƟŽŶĂƚĞ hŐĂŶĚĂŶƐ ǁŚŝĐŚ / ďĞůŝĞǀĞ ĮƚƐ ůĂďŽƌĂƚŽƌŝĞƐƌĞŵĂŝŶŚŝŐŚƉƌŝŽƌŝƚǇ ǁŚĞŶŝƚĐŽŵĞƐƚŽĐŽŵƉĞŶƐĂƟŽŶ͘ ǀĞƌǇ ǁĞůůǁŝƚŚŝŶ ƚŚĞ ŶĂƟŽŶĂů ĂƌĞĂƐ ĨŽƌ hŐĂŶĚĂ͛Ɛ ŵŝŶŝŶŐ ƐƚƌĂƚĞŐǇ ŽĨ ƉŽǀĞƌƚǇ ĞƌĂĚŝĐĂƟŽŶ industry. What other key areas KŶƚŚĞŝƐƐƵĞŽĨƐĂůĂƌŝĞƐ͕ ĂƐƚŚĞƐĞĐŝƟǌĞŶƐǁŝůůŝŵƉƌŽǀĞŽŶ in the industry require urgent improvement of laboratories and their livelihoods. ĂƩĞŶƟŽŶ ĨŽƌ ŝƚ ƚŽ ŵŽǀĞ ƚŽ ƚŚĞ ŽƉĞƌĂƟŽŶĂůĨƵŶĚƐĂƐ/ĞǆƉůĂŝŶĞĚ ŶĞǆƚůĞǀĞů͍ above will simply depend on dŽĨĂĐŝůŝƚĂƚĞƚŚŝƐ ďĞŶĞĮĐŝĂƟŽŶ Ministry of Finance providing drive, the DGSM will of course The Ministry of Finance should adequate funding to the sector. ŵĂŝŶƚĂŝŶ ƚŚĞ ĐŽůůĞĐƟŽŶ ĂŶĚ ĐŽŶƟŶƵĞ ĂĐĐŽƌĚŝŶŐƚŚĞ ŵŝŶĞƌĂů ĚŝƐƐĞŵŝŶĂƟŽŶŽĨŐĞŽƐĐŝĞŶĐĞĚĂƚĂ sector high priority by providing ŝƐ ƚŽ ƐĞŶƐŝƟǌĞ ƚŚĞŵ ŽŶ ŵŝŶŝŶŐ͘ ƚŽĂůůƐƚĂŬĞŚŽůĚĞƌƐĂŶĚĐŽŶƟŶƵĞ ĂĚĞƋƵĂƚĞ ĮŶĂŶĐŝĂů ƐƵƉƉŽƌƚ͕ ƐŽ We intend to mobilize the ŵŽŶŝƚŽƌŝŶŐŽƉĞƌĂƟŽŶƐ͘tĞǁŝůů that our mining industry becomes ĂƌƟƐĂŶƐŽƌŝůůĞŐĂůŵŝŶĞƌƐƚŽĨŽƌŵŐ also endeavor to encourage ĂŶ ŝŶƚĞƌŶĂƟŽŶĂůůǇ ĐŽŵƉĞƟƟǀĞ ĐŽŽƉĞƌĂƟǀĞƐͬĂƐƐŽĐŝĂƟŽŶƐƐŽƚŚĂƚ industry professionals to stay ŝŶǀĞƐƚŵĞŶƚĚĞƐƟŶĂƟŽŶ͘dŚŝƐǁŝůů what they recover is declared, in Uganda so that all of us can ĚĞĮŶŝƚĞůǇŵĞĂŶĂƐƚƌŽŶŐ͕ĚǇŶĂŵŝĐ ǀĂůƵĞĚĂŶĚƌŽǇĂůƟĞƐƉĂŝĚƚŽƚŚĞ ƉĂƌƟĐŝƉĂƚĞ ŝŶ ƚŚĞ ĚĞǀĞůŽƉŵĞŶƚ ĂŶĚ ƉƌŽĮƚĂďůĞ ŵŝŶŝŶŐ ŝŶĚƵƐƚƌǇ Government. of the mineral sector and have ĨŽƌ ƚŚĞ ďĞŶĞĮƚ ŽĨ ƚŚĞ ƉĞŽƉůĞ ŽĨ ŝƚ ƐƵƉƉŽƌƚ ƐƵƐƚĂŝŶĂďůĞ ŶĂƟŽŶĂů Uganda. The revised Mining Act growth while ensuring that ƚŽŽ ǁŝůů ĚĞĮŶŝƚĞůǇ ƚĂĐŬůĞ ŵĂŶǇ

The Uganda Chamber of Mines & Petroleum 35 Steel Titan, ROOFINGS "T?EPA@ By Mining

/KKłJCO*! 0EG=J@AN)=H=JE leads UCMP members on a tour of -NKOLA?PO the Namanve plant

PAAH LNK@Q?PO I=JQB=?PQNEJC CE=JP /KKłJCO NA?AJPHU SNA?AERA@ PSK ENKJ KNA ATLHKN=PEKJ HE?AJOAO =O EP OAAGO PKATL=J@EPOKQPNA=?DEJPDAIEJEJCEJ@QOPNUR=HQA?D=EJ J@=??KN@EJCPKOliver Lalani (R), an Executive Director =J@ PDA OKJ KB BKQJ@AN =J@ ?D=ENI=J 0G=J@AN )=H=JE /KKłJCOSEHHJKPOPKL=PPDAPSKHE?AJ?AOCKPPAJOKB=N >QP SEHH?KJPEJQAOLQNOQEJC=@@EPEKJ=HKJAOOEJ?AEPO=JPE?EL=PA@ EJRAOPIAJPSEHHNAMQENAH=NCAMQ=JPEPEAOKBENKJKNA#KNJKS PDA ?KIL=JU EO EJ PDA LNK?AOO KB ?=NNUEJC KQP CAKHKCE?=H OQNRAUOPK@APANIEJAPDAMQ=JPEPEAO=J@MQ=HEPUKBPDAKNAKJ A=?DHK?=PEKJ ,HERANJKPAO&JPDEOEJPANREAS DAATLKQJ@O KJ /KKłJCO BQPQNA LH=JO =O B=N =O PDA IEJEJC EJ@QOPNU EO ?KJ?ANJA@>AOE@AOOD=NEJCOKIAKBPDAMQ=HEPEAOPD=PD=RA GALPPDA?KIL=JUKJPKLġ

4D=P =NA /KKłJCO Ġ=J@ 2C=J@=O SEPD łJ=J?ANO I=?DEJA OQLLHEANO Going forward, how much steel chances of adding value to the iron and of course the local authorities to @KUKQEJPAJ@PKNAłJAKQPKBHK?=H ore in the country in the current see how soon, and in what capacity iron ore to feed your plant? Will you times where electricity is limited we will install the machines. We continue importing raw materials? and some raw materials like coal are fully aware that energy is the are still not available in the country? main determinant and this will be a QNNAJPHU /KKłJCO EO LQN?D=OEJC critical part of our studies in the next close to 20% of scrap from outside Currently we are still doing the few weeks/months. Uganda. And as I mentioned, we are feasibility study for our investment. still in the process of determining We do not have the technology on How much scrap are you sourcing the exact capacity which we want site yet but have engaged extensively from outside Uganda currently? to install. It will probably be in the

36 The Uganda Chamber of Mines & Petroleum ?KJOQIAN =J@ LNKFA?PO @ARAHKLANO “To produce ﬂat coils from iron ore is a huge alike. investment of >$1bn, and requires adequate How can government address /KKłJCO AHA?PNE?EPU JAA@O Ġ= infrastructure like a deep sea port, close to 35MW dedicated line apparently) especially seeing that the entire 1000mw of electricity, coal in plentiful or electricity generated in the country is all still way below what Uganda natural gas, etc. It will be some time before needs? East Africa can justify investment in such an Electricity, as I mentioned earlier is a main requirement for steel operation, so in manufacturing. The electricity generating and distributing short, we will not be substituting all our companies have gone a long way to provide us with continuous raw materials imports into the country” electricity for our production. However, the quality of the power range of 350 metric tons per day, our company. They are helping us which we are receiving is still not which translates into an annual with knowledge transfer, technical up to the international standard. The production capacity of 64,000 assistance and extensive training service provider is fully aware and tons. This plant will produce long for our engineers and operators. committed to solve this concern. steel, which means that we will The Japanese school of thought The commissioning of additional be able to make wire rod, billet, is to continuously improve your generation capacity will surely help re-enforcement bars (steel bars), ABł?EAJ?EAO MQ=HEPU OP=J@=N@O =J@ us all in growing our manufacturing angles, and some small sections employee belongingness to the activities, which is already underway of beams, columns etc. However, company. We have learned a lot at several locations in Uganda. SA=HOKQOAŃ=POPAAHEJLQPOBKNPDA from them over the years and have I=JQB=?PQNA KB /KKłJC ODAAPO implemented the same school of Apart from electricity what are the PQ>AO LH=PAO LNKłHAO AP? 1K PDKQCDP =P /KKłJCO PDNKQCDKQP KPDAN ?D=HHAJCAO /KKłJCO SKQH@ LNK@Q?A Ń=P ?KEHO BNKI ENKJ KNA EO our 20 year history in Uganda. like to see ironed out? = DQCA EJRAOPIAJP KB >J =J@ 1DNKQCDAJD=J?EJCABł?EAJ?EAO=J@ requires adequate infrastructure like producing in large scales, we are We would like to see more emphasis a deep sea port, close to 1000mw =>HA PK AJFKU A?KJKIEAO KB O?=HA KJ = HARAH LH=UEJC łAH@ SEPDEJ PDA of electricity, coal in plentiful or which reduces our unit cost. This steel sector. It has come to our natural gas, etc. It will be some makes our product affordable in the attention that not all manufacturers PEIA >ABKNA "=OP BNE?= ?=J FQOPEBU market, despite being of the highest are playing by the same rules, investment in such an operation, so quality. which really hits us bad in the in short, we will not be substituting competitiveness of our products. all our raw materials imports into Every manufacturer should ensure #QNPDANIKNA PDA ?KJPEJQKQO the country. Nevertheless, we can that they provide the right quality development of our infrastructure easily say that close to 20% of our products to the Ugandan and East like roads, bridges and railway will imports will be substituted, without African population because we are help us access deeper markets across considering that other players in our directly responsible for the standard PDANACEKJ#EJ=HHUARAJPDKQCDPDA OA?PKNSEHH=HOKłJ@EP>AJAł?E=HPK available on the market. However, skill sets are improving amongst buy from us so that they can take Uganda is still quite a price sensitive graduates, the availability of local advantage of proximity, freight, and market so some manufacturers expertise should be improved across our trademark quality products. łJ@ EP A=OEAN PK OAHH EB PDAU ?=J PDA?KQJPNU/KKłJCO$NKQLEOGAAJ cut corners and sell substandard to help with this, and is already Having started distributing your products cheaply in the market. doing so. With more industries like products to a more restrictive We strongly believe that this way of /KKłJCO/KHHEJC*EHHOEJ+=I=JRA Kenya market recently, your quality operating is not sustainable in the coming up, surely we will see a standards must be of high repute. long run. Uganda and the region wider set of technical skills available %KSIQ?DAILD=OEO@KAO/KKłJCO will continuously require higher in the labor market. put on quality? Why should every qualities as the complexity and scale company emulate your quality of infrastructural and commercial There have been calls for more standards? development rises. Additionally, involvement by local Ugandan with such a high population growth łNIOEJ/KKłJCOOQ??AOOOPKNUAC .Q=HEPUEO=S=UKBHEBA=P/KKłJCO and rapid urbanization, the price handling distribution of product. Group. At every stage of our decision of land is also shooting up which 4DUEOEPEILKNP=JPBKN/KKłJCOPK I=GEJC MQ=HEPU?KIAOłNOP4DAPDAN is resulting in large residential handle its entire value chain? it is in the machineries we purchase, AOP=PAO >AEJC ?KJOPNQ?PA@ #EJ=HHU the partners we work with, the staff as household incomes continue to QNNAJPHU /KKłJCO SKNGO SEPD we train, the raw materials we use grow, and the regional consumers 150+ distributors and dealers in as inputs or the extensive tests we become more sensitized about Uganda alone. We provide credit, carry out before dispatching our the effects of using poor quality transport, and in time delivery products to the market, we ensure to products I am sure that the quality to all these customers and have do it to the best of our ability. We cautious segment of the market will helped their businesses grow along =NA SKNGEJC SEPD = '=L=JAOA łNI =HOK ?KJPEJQA PK CNKS #KN =HH PDEO the years. We are very proud to which has been in the business for /KKłJCO $NKQL EO BQHHU LNAL=NA@ say that some of these businesses 75 years who also hold equity in and able to meet the criteria of the D=RA CNKSJ EJPK I=FKN LH=UANO EJ

The Uganda Chamber of Mines & Petroleum 37 the steel and hardware distribution can be attributed to our continuous is in the best interest of the Ugandan sector. We do subcontract some investment in innovation, capacity, economy. We are largely an import of our services also, such as food people, branding and systems based economy and that is not so catering, transport, and other SDE?D PN=JOH=PAO EJPK ABł?EAJ?U positive with regards to the balance services so that we can focus on consistency, quality, value for of trade of the country. We have our core business of manufacturing. money and superb customer vast resources and by adding value Having said that it helps greatly for service. Our investments in Uganda to them we can substitute value /KKłJCO PK D=RA OKIA LNAOAJ?A are for the long term and I think added imports and get more value in the retail market also so that we PDA NALQP=PEKJ SDE?D /KKłJCO BKN KQN ATLKNPO 1DA FK> ?NA=PEKJ are sure that all our customers are has gained as a responsible steel technology advancement and all able to access our products when manufacturer has helped us to the downstream business activity they want them. It has happened stay ahead of the competition. We related to investing in mineral that our customers have purchased would like to thank our customers, development through processing JKJ/KKłJCO LNK@Q?PO =P ?ANP=EJ the government and all stakeholders are all very much needed for the stores across the country under BKN PDA ?KJPEJQKQO ?KJł@AJ?A =J@ manufacturing sector in Uganda. the pretext that the product was trust bestowed on us. The manufacturing sector will need ours. With combined sensitization a lot of support from the government and support in bringing highest Having said that, the prices of in terms of the infrastructure quality products to the country, our steel products like iron sheets has =R=EH=>HA BKN OQ?D LNKFA?PO 0PNKJC legitimate dealers and us will have not gone down much in the last 5 legislation and control is also to ensure that our genuine products years yet your industry is raking in required especially when it comes =NA?HA=NHUI=NGAPA@ >AJAłPEJCPDA DQCALNKłPOĠLNKLLA@QL>U=JARAN to mineral development, so that construction sector in all places. growing construction industry)? the revenues generated therefrom are re-invested appropriately to 4D=P EO /KKłJCO PKP=H KQPLQP 0EJ?A PDA ?KILHAPEKJ KB /KKłJCO >AJAłPPDAOA?PKN#EJ=HHU =OIQ?D currently? Rolling Mills Phase III, a cold rolling as local productivity is crucial, mill and coil coating complex, we further emphasis should be placed QNNAJPHU /KKłJCO EO LNK@Q?EJC are producing our own galvanized on regional development within the close to 200,000 tons of steel per and color coated coils which are East African Community. Accessing =JJQI PDEOłCQNA SEHH?KJPEJQA PK PDAJ I=@A EJPK NKKłJC ODAAPO the regional market and the ability increase as our new plants mature Before we started in September last to use regional resources as inputs and enter higher levels of capacity year the price of one galvanized will be of great importance going utilization. Our capacity to produce sheet was around UShs17,500, forward. I feel that the mineral sector is closer to 350,000 tons per annum. today we are selling the same sheet is heading in the right direction and at UShs14,500 which translates into we are seeing more interest from It has been suggested that at least a 20% cost cut. Higher capacity and the private sector as well as the over 60% of the steel product lower global steel prices are both government. As long as we can market in Uganda is controlled by creating this trend. Other products continue to engage in dialogue and /KKłJCO =IE@OP =P HA=OP KPDAN like tubes, plates, nails, etc have understand each other better, act in steel plants. How have you become also followed the same trend. the best interest of the country by this dominant? I=J=CEJC PDA NAOKQN?AO ABł?EAJPHU As a company involved in value and responsibly, there is no limit PK PDA >AJAłPO SDE?D 2C=J@=O Currently the steel consumption per addition, what is your take on President Museveni’s call for minerals could bring to the domestic, capita in Uganda is 12kg. With a and regional economies alike. population of roughly 37 million that >AJAł?E=PEKJEJ2C=J@=OIEJAN=HO means that the total market is around industry? And how best can Uganda 440,000 tons. This means that we CK=>KQPPDEO>AJAł?E=PEKJ@NERA are at about 40% market share at the moment. I think our dominance I strongly feel His Excellency’s call

/KKłJCO*! 0EG=J@AN)=H=JEI=GAO= LKEJP=O2 *- D=ENI=J"HHU(=NQD=JC= 0PQ=NP*SAOECS= /KKłJCO QOEJAOO =J@3E?A D=ENI=J/E?D=N@(=EFQG=HKKG !ARAHKLIAJP*=J=CAN KJ

38 The Uganda Chamber of Mines & Petroleum The Uganda Chamber of Mines & Petroleum 39 Miners’ ﬁngers crossed, as Uganda

Roadside traders sell their foodstuffs by builds a Karuma dam construction signpost

extract each tonne of mineral. Miners companies have gone a long way to are grappling with these increasing provide us with continuous electricity power costs while commodity prices tighten, for our production. However, the resulting in ever-narrowing operating quality of the power we are receiving margins.” is still not up to international standards. The service provider is fully aware Uganda’s energy dilemma is well- and committed to solve this concern. plants documented. The country produces The commissioning of additional less than 1000MW of power. Roughly generation capacity will surely help 15 per cent of the country’s 36 million us all in growing our manufacturing people is connected to the national activities, which is already underway power grid. Demand for power is at several locations in Uganda,” says The spluttering sounds of running growing at 10 per cent annually, Oliver Lalani, an Executive Director at CAJAN=PKNONAI=EJ=LANI=JAJPłTPQNA =??KN@EJC PK CKRANJIAJP łCQNAO 1DA /KKłJCO at many of Uganda’s mining sites, power plants coming on stream cannot especially among those located in match this demand. Work on two huge energy plants – the rural areas where there is no access 600MW Karuma hydropower dam to national-grid energy. With many The report notes that, “In emerging and the 180MW Isimba hydropower łNIO UAP PK >NA=G ARAJ PDA LNKOLA?P and frontier countries, the need for dam – which Lalani alludes to above, of spending colossal sums of money alternative energy sources is further is already ongoing. However, none of on diesel to power their plants is =ILHEłA@ =O IEJEJC =J@ IAP=H these plants is expected to come on something they dread. companies have to compete with both stream by 2017 at the earliest. governments and communities for A new report by Ernst and Young, these scarce resources.” The Ernst and Young report details the titled, “Renewables in mining: futuristic PNKQ>HAO IEJEJC łNIO CK PDNKQCD PK KN NA=HEOPE? =@REOAO IEJEJC łNIO PK It adds: “Rarely does the economic power their plants. seriously consider dealing with their value created with energy use come energy challenges or else face the into allocation decisions. This has a “Despite having extensive energy prospect of spending more money that direct impact on the industry’s all-too- requirements, many mines are located could eat into their returns. important social license to operate.” in remote locations far from the power grid. Therefore, miners often “Mining is an energy-intensive industry /KKłJCO$NKQL PDA >ECCAOP OPAAH deal with transporting diesel fuel over and energy is an essential operational products manufacture, which is soon extremely long distances to feed on- consideration. Energy access is embarking on iron ore mining, offers a site generators. The more remote the >A?KIEJC EJ?NA=OEJCHU @EBł?QHP =J@ clear example of the pressures mining mine, the more likely alternative power expensive in many regions of the world, łNIOB=?ASDAJPDAU?KILAPASEPDPDA solutions are required,” the report with global energy prices leaping by public for the limited energy resources. noted. 260% since 2000,” the report, which /KKłJCOJAA@O=PHA=OP*4KBLKSAN was authored by Mike Elliot, Ernst daily to run its steel plant in Namanve. Uganda has a plan to deepen its rural and Young’s Global Mining and Metal That amount of power is more than AHA?PNEł?=PEKJLNKCN=IIA1DA?KQJPNU Leader, points out. enough to power an entire town. O=UO EP JAA@O =>KQP >EHHEKJ BKN EPO NQN=HAHA?PNEł?=PEKJ LNKCN=IIA EJ The report further points out that ļ"HA?PNE?EPU EO = I=FKN NAMQENAIAJP EJ order to increase the access to power ļ#=HHEJCCN=@AONAMQENAIKNAAJANCUPK steel manufacturing. The electricity to a quarter of the population by 2022.

40 The Uganda Chamber of Mines & Petroleum A number of energy plants have applied for licenses to produce electricity using the country’s gas reserves – in the oil-rich Albertine Graben. Uganda has about 500 billion cubic feet of non-associated gas (independent gas), which translates to about 90 million barrels KBKEHAMQER=HAJP =??KN@EJCPKKBł?E=H łCQNAO

The mining industry will hope that these energy plans do not stay on paper.

The report argues that “The role that renewables will play is not 4AE@KJC=J@-NAOE@AJP6KSANE*QOARAJE?KIIEOOEKJPDA0QGQHQLDKOLD=PAOLNKFA?P1DAO?DAIASEHH as remote or futuristic as you may LNK@Q?ALDKOLD=PABANPEHEOANO OPAAHLNK@Q?PO OQHLDQNE?=?E@ =J@N=NAA=NPDIEJAN=HO think. The arguments for large investments in renewable energy go beyond sustainability and social Sukulu phosphates shake industry responsibility, and have now become a solid economic reason for miners.” he commissioning of the Sukulu 2015 as the second-phase exploration TPhosphate Comprehensive Industrial area. Companies like Hima Cement, the !ARAHKLIAJP -NKFA?P KJ QCQOP H=NCAOP łNI IEJEJC HEIAOPKJA EJ 2014 was a landmark event in Uganda. “In order to mitigate the displacement Uganda, produces some percentage KBPDALNKFA?P =J@EJKN@ANJKPPKBNAA of its own power using coffee husks. "=NI=NGA@ =O KJA KB PDA BKQN Ń=CODEL potential mineral prospective areas in Kilembe Mines, which deals in LNKFA?PO=EIA@=P@ARAHKLEJC2C=J@=O the Exploration Licence, we requested copper, also has its own hydropower mineral resources, it was important for 600 acres of land from Government, generation plant. PD=P PDA KRAN I LNKFA?P GE?GO KBB where the factory complex will be sooner rather than later, as the country located. We are glad, and appreciate According to the report, many other readies itself to develop its rich mineral the support Government has provided mining companies globally are paying potential. by granting us the 600 acres of land,” closer attention to power prices. Weidong added. Mr. Lv Weidong, the president of the “Many of the world’s largest mining DEJAOA łNI $Q=JCVDKQ !KJCOKJC Guangzhou Dongsong, he notes, plans companies are evaluating greater Energy Group, the holders of the PKAOP=>HEOD=IEJA=J@=>AJAł?E=PEKJ mineral rights, noted how it is only a plant with annual capacity of 2 million use of renewable energy plants — a matter of time before Uganda sees its tons, a phosphate fertilizer plant of trend set to intensify rapidly. This is łNOPLDKOLD=PABANPEHEVANLH=JP annual production of 300,000 tons, a part of a broader strategy to lock in sulfuric acid plant of annual production HKJCPANI łTA@ AHA?PNE?EPU LNE?AO With a strong agricultural potential, the of 400,000, a 12MW waste heat-based and availability while minimizing addition of a fertilizer plant should come power generation plant and a steel mill exposure to regulatory changes, as a great boost to Uganda’s farming of annual production of 300,000 tons. market pricing and rising residential community. demand,” it notes. ļ1DEO LNKFA?P SEHH I=TEIEVA PDA R=HQA Weidong notes that 5 months of of resources from Sukulu Phosphate 1DAOKHQPEKJOPKIEJEJCłNIO@A=HEJC extensive exploration work starting !ALKOEP J@ HK?=H >AJAł?E=PEKJ with their energy shortages are in September 2013, on the 26.5sqkm and value addition will take us a available, with new innovations Exploration License of the Sukulu step further in converting resources taking the lead. The report points Phosphate Deposit, by Yunnan advantages into economic advantages, and demonstrating that it is possible out that “The big turning point will Geological Survey Bureau had revealed several exciting numbers. for African countries to maximize be improving battery technology in >AJAłPO BNKI PDAEN IEJAN=H NAOKQN?AO both scale and cost, so renewable ļ4A BKQJ@ KQP PD=P PDA łNOPLD=OA as President Museveni has relentlessly energy from solar power and wind exploration area covering 12.27 square emphasized,” he added. consistently power mining’s 24-hour kilometers contains 217 million tons operation.” of iron and phosphate minerals, which Needing about 50 MW for the phosphate includes 62.45 million apatite, 429.8 plant and about 200MW for the steel It concludes by asserting that “What thousand tons of niobium pentoxide plant, Sukulu presents yet other energy will really make an impact are the and 890.6 thousand tons of Rare Earth worries for an industrializing Uganda. things that bring down the costs and Elements, mainly distributed in West improve the reliability — and they Valley, North Valley and South Valley,” “We shall need to purchase sulfur and are the things that are more likely to said Weidong. coking coal, which will provide market be delivered in the next two to three for some of the products from the Oil years.” The exploration work of the rest 14.23 /AłJANU 4AE@KJCO=E@ square kilometers will be completed in

The Uganda Chamber of Mines & Petroleum 41 To attract big investments government must make the minerals industry a priority

Though it has demonstrated great Uganda has well over a billion tonnes promise, Uganda’s mineral sector on of iron ore deposits if you consider the the whole, remains largely uncharted. occurrences – both in the west and Essentially the country’s mineral east of the country. We may never K??QNNAJ?AOD=RAKJHU>AAJE@AJPEłA@ exhaust this resource, but as a country, through aeromagnetic surveys and we need to move to establish an other simple means with thorough integrated iron and steel industry into MQ=JPEł?=PEKJPDNKQCDATLHKN=PEKJOPEHH the economy that will without a doubt way off. move Uganda’s manufacturing sector to another level. As it is, exploration money is high risk. Just the other day, Neptune (Tower /AłJEJC 2C=J@=O ENKJ KNA SKQH@ KB /AOKQN?AO OLAJP KRAN 20I EJ course require coking coal as a fuel petroleum exploration in northern and a reducing agent (which coal 2C=J@=SDEHA!KIEJEKJOLAJPI we would have to import). However, in the west, but both unfortunately we may have another option in the encountered dry wells. These risks are recently discovered gas reserves that real, as such, very few individuals and are estimated at 500 billion cubic feet. łNIO=NASEHHEJCPK>APPDAENO=REJCOKJ exploration. AOE@AO =J=@E=J łNI *QN?DEOKJ Minerals (locally operating as Pearl Having mineral potential is one thing, Mining) and Sipa Resources are also in >QP QJPEH OECJEł?=JP IKJAU EO OLAJP PDA LNK?AOO KB MQ=JPEBUEJC OECJEł?=JP KJIEJAN=HATLHKN=PEKJPK@AłJASD=P reserves of nickel, copper and platinum resources are in the ground, there is CNKQLIAP=HOJA=NPDA*QN?DEOKJ#=HHO still a long way to go before the big Moving such discoveries to production players are attracted and mines are will too require further investment to established like is now the case with explore it further. PDALDKOLD=PAOLNKFA?PEJ1KNKNK The iron ore and nickel discoveries, I am positive, that in the long run, the investment in Kilembe by earnings from the Uganda’s mining %EI= 1E>AP PDA 20I 0QGQHQ Hon. Richard H. Kaijuka sector could even exceed those from LDKOLD=PAO LNKFA?P >U $Q=JCVDKQ oil and gas, once thorough minerals Dongsong Energy Group of China exploration is done and we move to =NA OECJEł?=JP EJ 2C=J@=O MQAOP PK the production stage. breathe new life into the mining sector as well as attracting new investors. There is indeed evidence to support Another example are the Mukutu what I am saying. Two mining aluminous clays in the east of the companies; one from China and country. Initial studies show that these the other India, that are engaged in clays which contain alumina and rare exploring for iron ore in Kigezi have earth elements [REEs] are estimated to so far discovered over 200 million >ASKNPD>EHHEKJ tonnes. But to successfully attract exploration Judging by the limited exploration that and mining investments off countries has been carried out so far, we think like Zambia, Namibia, Mozambique,

42 The Uganda Chamber of Mines & Petroleum DR Congo, Mali and Ivory Coast – the Petroleum’s (UCMP) Mineral Wealth To put it bluntly though, I am of the leading countries in Africa in terms of Conference held every October, can view that the minerals sector deserves @N=SEJC#KNAECJ!ENA?P&JRAOPIAJPEJ continue generating great debates on as much support as that granted to the mining sector currently – Uganda how to move the minerals industry the oil and gas industry. And this may have to think outside the box forward. backing should not stop at only and have government supplement ATLHKN=PEKJłJ=J?EJC>QPODKQH@=HOK private sector efforts in exploration to It is true that we, at the UCMP include giving the DGSM incentives; determine what lies underground. have always emphasized the need essentially the mining department to increase the funding to the should be put at the same level as the Once such mineral resources are Department of Geological Survey oil and gas department so that there @AłJA@ =J@ MQ=JPEłA@ =J@ PDEO and Mines (DGSM), but I understand is enthusiasm and vibrancy from the information is made available to the PDANA =NA ?KJŃE?PEJC LNEKNEPEAO EJ workforce. EJRAOPIAJP ?KIIQJEPU łJ=J?EJC Government. or indeed attracting the big mining The writer is the Vice President of players cannot fail. In the meantime, the Uganda Chamber of Mines and international symposiums like the Petroleum and a former Energy Uganda Chamber of Mines and Minister

President Museveni speaks at the MWC2013

The Uganda Chamber of Mines & Petroleum 43 insuring against project delays

By Munyaradzi Daka #NQOPN=PEKJ&JOQN=J?AEOKJABKNIKBPDEO !=I=CAPK KJPN=?PKNOLNKLANPU=J@ protection that can be purchase among equipment nvestment into the highly lucrative the various options of political risks mining or oil and gas sector is a highly insurance and covers the eligible losses !AH=U =O = NAOQHP KB EHHJAOO @A=PD KN Irisky business considering the many resulting from political and commercial EJFQNUPKGAULANOKJKNLANOKJO parameters that often are associated risks. SEPDOQ?DRAJPQNAO=J@LNKFA?PO1DANA =J?AHH=PEKJ SEPD@N=S=HKN are often a myriad of challenges and Unfortunately the risks for the investors JKJEOOQ=J?A KB ?ANPEł?=PEKJ >U PDA hurdles that the investor has to endure do not stop only with these scenarios as -NKFA?P?ANPEBUEJC=QPDKNEPU >ABKNAPDALNKFA?PARAJGE?GOKBB DECDHECDPA@>QP?KJPEJQAEJPKPDALNKFA?P LD=OA4DAJPDALNKFA?PEO>AEJCBQJ@A@ To avoid further income losses and Most of these challenges come with PDNKQCD LNKFA?P łJ=J?EJC QOQ=HHU PDANA anticipated future losses it is advisable addressing of the national laws that PK P=GA KQP @R=J?A )KOO KB LNKłPO govern the exploration of the resources policies or Delay in Start Up Insurance. and in markets where the exploration is Delay in Start Up (DSU) insurance is EPOEJB=J?UKNFQOP?KIIAJ?EJCPDEOKBPAJ ͞/ƚŝƐĂĚǀŝƐĂďůĞƚŽ intended to compensate the Insured NAOQHPOEJLNKFA?P@AH=UO ĠPDAEJRAOPKN BKNHKOOKBCNKOOLNKFA?PA@ ƚĂŬĞƵƉĐƵƐƚŽŵŝǌĞĚ LNKłP=J@ATLAJOAOOQBBANA@@QAPKPDA These delays whether perceived or ŝŶƐƵƌĂŶĐĞ postponement of the start-up date or real present income loss scenarios @AH=U EJ ?KILHAPEKJ KB PDA LNKFA?P =O to the investing entities as plans are ƐŽůƵƟŽŶƐĨŽƌĞĂĐŚ scheduled. shelved and start up dates are shifted or postponed. The investor having already ƉĞĐƵůŝĂƌƉƌŽũĞĐƚ͟ Delay in Start UP insurance is thus set up camp and invested in capital designed to secure the portion of expenditure and recruited personnel revenue which the principal requires P=GA = łJ=J?E=HDEPSDAJPDAOA@AH=UO EO?KHH=PAN=HEO=PEKJKBHK=JOSEPDLNKFA?P to service debt and realise anticipated occurs. assets and their repayment purely on LNKłP&PLNKRE@AOB=ENHU>NK=@LNKPA?PEKJ PDA>=OEOKBLNKFA?PA=NJEJCO1DANABKNA against Insurance plays a role by mitigating the revenue generation capability some of these risks associated with >A?KIAO = ?NEPE?=H łJ=J?EJC B=?PKN delays arising from physical damage delays in start-up and related challenges. and usually strict terms and conditions caused by any type of the insured losses. NAC=N@EJC @AH=UO EJ O?DA@QHA@ LNKFA?P It is advisable to take up customized completion will be factored into the The losses arising under the Delay in Start insurance solutions for each peculiar NAOQHP=JP ?KJPN=?P >APSAAJ łJ=J?EANO Up insurance will be become payable LNKFA?P=J@PDAOA?=J>AEJPDABKNIKB and principal(the investor in this case). according to the trigger date contained structured political and trade insurance There are many scenarios which can in the policy. It is the agreed date the policies. Depending on the extent of =BBA?PPDAPEIAHU?KILHAPEKJKB=LNKFA?P LNKFA?PS=O=JPE?EL=PA@PK>A?KILHAPA economic and political exposure as !AH=UOEJ?KILHAPEKJKBPDALNKFA?P?=J and the company’s commercial perceived by the investor they will result from any of the following operations were to commence and such NAMQENA OLA?Eł? KN KJAKBB LNKPA?PEKJ date may be linked to a contractually linked to a particular context, period !AH=U@QAPKPDAJAS>QEH@B=?EHEPEAO @AłJA@PANI and market. The coverage sought being lost or damaged would be for any of the following , Lastly, normally a Contractors All Risks changing legislation, contract breaches, -DUOE?=H>HK?G=CA=J@KNK>OPNQ?PEKJ policy is recommended to cover the expropriation, nationalization, armed at ports of material or equipment losses to the actual build or facility and ?KJŃE?P H=>KQNQJNAOP =?POKBPANNKNEOI ?NEPE?=HPKPDALNKFA?P the compensation will be for rebuilding or simply bureaucratic delays. Contract such. The Contractor policy covers PDA LANEK@ PD=P PDA LNKFA?P EO >AEJC zconstructed and normally the relevant maintenance period after completion of the physical infrastructure.

The author is an Insurance Consultant, who until recently was a technical expert at the African Management Services Company (AMSCO) in Nigeria. Email: munyah2001@yahoo. MultilinesEA trucks whose purchase targeted the oil sector co.uk

44 The Uganda Chamber of Mines & Petroleum The Uganda Chamber of Mines & Petroleum 45 With headquarters in Germany and subsidiaries with the oil & gas multinational companies we can all over East Africa, Achelis Group of Companies provide solutions for all stages of the exploration and represents a number of well-known equipment production process,” Hinterberger notes. manufacturers across the world. Popular brands like Hyster, Utilev, Bomag, New Holland Construction, Bornemann Multi-Phase Pumps Karcher and Manitou are all associated with the ﬁrm – a factor that is likely to have contributed to its He notes that Bornemann Pumps GmbH produces a dominating of the East African regional market for at range of pumps which are most suited for pumping least 50 years. the quality of crude oil found in the East African region. “Because of the high viscosity and high Now the company is looking at consolidating its top content of parafﬁn in the crude oil coming out of the position in the next half century as the region readies regional soils, special solutions are required,” says itself to fully exploit its rich extractives’ potential. Hinterberger.

“Achelis is well established and best suited to As such Bornemann has developed pumps which provide the nascent East African oil & gas and mining can handle the oil in Uganda without the requirement industries with quality equipment and technical of heating, he contends. A specialty of Bornemann’s, services,” says Hans-Georg Hinterberger, Managing adds Hinterberger, are their multi-phase pumps Director, Achelis, Uganda. which allow oil & gas to be processed without the environmental harmful flaring of the gas. Adding: “For the mining industry, Achelis has a product range best suited to solve many of the industry’s most Drilling Fluids serious challenges. High quality, durable in rough environment and suited for extraction and processing As distribution partner of Kareva from Germany, of primary resources.” Achelis provides drilling fluids of high quality to the exploration activities of the oil industry. In the oil and gas industry segment, Achelis has already demonstrated global prominence in both the “In geotechnical engineering, drilling fluid is used non-core services as well as providing equipment for to aid the drilling of boreholes into the earth. Often the extraction and processing of crude oil and gas. used while drilling oil and natural gas wells and on exploration drilling rigs, these fluids are also applied “As the local partner and representative of in much simpler boreholes, such as water wells,” manufacturers who have been working for decades Hinterberger explains.

Bornemann pumps at Shell Nigeria (L) and at ENI AGIP site in Tunisia

46 The Uganda Chamber of Mines & Petroleum Murchison area shows good signs of Base & Platinum A location map of the Murchison Project Group metals

Whereas it has caught the eye because Exploration completed to-date by that have yet to be explained by drilling. of its petroleum deposits, the Murchison Murchison Minerals has mostly focused Only visibly mineralized sections have area in north western Uganda is showing on the 12 km-long Karuma body, being been assayed to-date in these four holes. promise on the minerals front. PDAH=NCAOPKBPDAOAQHPN=I=ł?P=NCAPO Given the shallow nature of the nickel A Canadian exploration company, Work completed on the Karuma body mineralization intersected in the initial Murchison Minerals Limited, through its includes detailed interpretation of diamond drilling program, the company Uganda subsidiary of Pearl Mining (U) the airborne data, plus the historical proposes to drill additional shallow Limited is actively exploring for base regional gravity data, regional and NARANOA?EN?QH=PEKJĠļ/ DKHAOĠOQ>FA?P metals, precious metals and platinum detailed soil geochemical sampling, PKłJ=J?EJC ĠA=?D=LLNKTEI=PAHUI group metals, in the Murchison region ground magnetics, gravity geophysical to test the continuity and lateral extent where it controls Exploration Licences OQNRAUO IKREJCHKKL=J@łTA@HKKL"* of the mineralization located by the over an area of approximately 1,200 surveys and detailed mapping. diamond drill holes as well as the two km2. other nearby nickel soil anomalies. The ground EM surveys over the The company, Murchison Minerals (=NQI= D=RA E@AJPEłA@ OKIA “Down-the-hole” EM surveys are also Limited, was created as a result of a conductors spatially related to high planned for some of the drilled in order recent reverse takeover transaction gravity signatures. Soil geochemistry has PK HK?=PA =J@ >APPAN @AłJA OLA?Eł? between Manicouagan Minerals Inc. ?KJłNIA@ PDA LNAOAJ?A KB =JKI=HKQO IKREJCHKKL=J@łTA@HKKL?KJ@Q?PKNO =J@#HAIEOD$KH@ KNL values of nickel, copper, chrome, cobalt, platinum, palladium and gold in &JPDA=@@EPEKJPKPDA=>KRA=J@OQ>FA?P The Murchison property covers most distinct anomalies also spatially related PK łJ=J?EJC *QN?DEOKJ =HOK LNKLKOAO KB SD=P EO EJPANLNAPA@ >U #HAIEOD BNKI to the EM conductors. In addition to the to drill 3 lines of shallow RAB (Rotary =EN>KNJAI=CJAPE?@=P==O=JASI=FKN above, several extensive zones enriched Air Blast) holes totaling at least 800 m to I=ł?QHPN=I=ł?EJPNQOERA?KILHAT in scandium (up to 118 ppm) have been test the Katulikire gold anomaly which E@AJPEłA@ 1DA I=LLEJC D=O ODKSJ occurs in soils overlying metasediments #HAIEODO @AL KOEPI K@AH EO P=NCAPEJC disseminated sulphides have also been to southeast of the Karuma body. magma conduits that are the feeders observed in country rocks straddling the Here values of up to 0.76 g/t Au were PK I=FKN I=ł?QHPN=I=ł? EJPNQOEKJO Karuma target area. recorded in soil sampling, associated Some of the world’s largest Ni-Cu-PGE with up to 192 ppm As, 418 ppm Cr and deposits are hosted in magma conduits The results of a recent of the 1,013 metre 3,440 ppm Ba. The gold anomaly covers e.g. Norilsk-Talnakh, Voisey’s Bay and diamond drilling program completed in an area of approximately 2 km by 3 km. Jinchuan. July 2014 on the Karuma area: three of the four widely spaced drill holes drill “There is available infrastructure in the The exploration work completed over holes intersected potentially economic area to support its operations. Building PDA L=OP UA=NO D=O ?KJłNIA@ PDA grades of near surface, as well as of a 600MW power plant at Karuma is prospective nature of Murchison’s land deeper seated nickel mineralization. already underway, while oil activities L=?G=CA SDE?D DKOPO >KPD QHPN=I=ł? All four holes intersected sulphide nearby have also helped in opening and sedimentary rock formations. mineralization. up other infrastructure like roads,” says Analysis of the data generated by a Mr. J.C. Potivin, the CEO/President of government regional airborne magnetic 1DA NAOQHPO ?KJłNI PDA LKPAJPE=HPK Murchison Minerals Limited. OQNRAU E@AJPEłA@ KRAN I=CJAPE? @AłJA>KPD+EOQHLDE@APULA@ALKOEPO=O bodies within the licence package. One well as Nioxide type deposits at Karuma 1K PDA SAOP KB PDA *QN?DEOKJ LNKFA?P of these bodies, the Karuma body, is and support the notion that a large area is also a top tourist area, the LKOPQH=PA@PK>AH=NCABKH@A@QHPN=I=ł? tonnage shallow, low grade/low strip *QN?DEOKJ #=HHO +=PEKJ=H -=NG PDA rock bodies which have the potential to N=PEK JE?GAH@ALKOEPĠO I=U>AE@AJPEłA@ biggest in Uganda. Animals such as host massive sulphide deposits. #QNPDANIKNA PDANA=NAłRA@AALOA=PA@ elephants, crocodiles, giraffes, among EM conductors located within the 500 others are in the National Park. ppm Ni contour of the soil anomalies

The Uganda Chamber of Mines & Petroleum 47 New Renault Trucks Boost Productivity

ith this new range, Renault The manufacturer also provides a points worldwide, Renault Trucks WTrucks makes the truck a tool ƌĂŶŐĞŽĨƐĞƌǀŝĐĞƐ͖KƉƟĨƵĞů^ŽůƵƟŽŶƐ͕ ĞŶƐƵƌĞƐ Ă ƋƵŝĐŬ ƌĞƐƉŽŶƐĞ ǁŝƚŚ ĨŽƌ ĐƵƐƚŽŵĞƌ ƉƌŽĚƵĐƟǀŝƚǇ͘ ZĞŶĂƵůƚ to help customers reduce their fuel ŵŝŶŝŵƵŵǀĞŚŝĐůĞĚŽǁŶƟŵĞ͘ dƌƵĐŬƐŚĂƐŵĂĚĞƚŚŝƐƚŽŽůĂƐĞĸĐŝĞŶƚ ĐŽŶƐƵŵƉƟŽŶŽŶĂĚĂŝůǇďĂƐŝƐ͘ as possible to enable hauliers to &ŽƌĂƚƌƵĐŬƚŽďĞĐŽŵĞĂƚƌƵĞƉƌŽĮƚ The design of the new vehicles ĐĂƌƌǇ ŽƵƚ ƚŚĞŝƌ ĂƐƐŝŐŶŵĞŶƚ͘ dŚŝƐ ŝƐ centre, from vehicle design stage, ĂŶĚ ƚŚĞŝƌ ĞƋƵŝƉŵĞŶƚ ŐƵĂƌĂŶƚĞĞƐ because the manufacturer believes Renault Trucks has put vehicle ƚŚĞŝƌ ĚƌŝǀĞƌ ŵĂǆŝŵƵŵ ƐĂĨĞƚǇ ĂŶĚ ƚŚĂƚƚŚĞƚƌƵĐŬŝƐĂƉƌŽĮƚĐĞŶƚƌĞǁŚŝĐŚ robustness at the centre of its focus. ĐŽŵĨŽƌƚ͘ ŽŶƟŶƵŽƵƐ ŝŵƉƌŽǀĞŵĞŶƚ should never let its customer down, Renault Trucks has adopted the to on-board living and working should make its drivers feel proud ŵŽƐƚĞĸĐŝĞŶƚƚŽŽůƐĂŶĚŵĞƚŚŽĚƐƚŽ ĐŽŶĚŝƟŽŶƐ ŝƐ Ă ŵĂũŽƌ ĐŽŶĐĞƌŶ ĨŽƌ and should protect the customer’s guarantee its customers enduring Renault Trucks. business. ƌĞůŝĂďŝůŝƚǇ͘ ŶĚ ŝŶ ƟŵĞƐ ŽĨ ŶĞĞĚ͕ ŚĂƌĂĐƚĞƌŝƐĞĚ ďǇ ƚŚĞŝƌ ƌŽďƵƐƚŶĞƐƐ͕ Renault Trucks also provides ĞĸĐŝĞŶĐǇ ĂŶĚ ĐŽŵĨŽƌƚ͕ ƚŚĞ ŶĞǁ ZĞŶĂƵůƚ dƌƵĐŬƐ ŽīĞƌƐ Ă ĐŽŵƉůĞƚĞ ŝƚƐĐƵƐƚŽŵĞƌƐĨĂƐƚ ĂŶĚ ĞīĞĐƟǀĞ Renault Trucks Euro 3 range of range of Euro 3 vehicles dedicated ƐƵƉƉŽƌƚ͘dŚĂŶŬƐŝŶƉĂƌƟĐƵůĂƌƚŽŝƚƐ vehicles is available now at Victoria to Long Haul with the Renault network of 1600 sales and service Motors. dƌƵĐŬƐƌŽĂĚ͕ƚŽŽŶƐƚƌƵĐƟŽŶǁŝƚŚ the Renault Trucks C and K and ƚŽŝƐƚƌŝďƵƟŽŶ ĂĐƟǀŝƟĞƐ ǁŝƚŚ ƚŚĞ Renault Trucks D Wide and D Cab 2.1 m. Designed and developed in co- ŽƉĞƌĂƟŽŶ ǁŝƚŚ ŝƚƐ ŝŶƚĞƌŶĂƟŽŶĂů customers, the vehicles in the new range have undergone the most ƐƚƌŝŶŐĞŶƚ ƚĞƐƟŶŐ ŝŶ ƚŚĞ ŚŝƐƚŽƌǇ ŽĨ Renault Trucks. In terms of vehicle design, this is ƌĞŇĞĐƚĞĚ ŝŶ ƚŚĞ ĐŽƌĞ ƐƉĞĐŝĮĐĂƟŽŶƐ of this new range. Each component has been designed to respond to Ă ĨƵŶĐƟŽŶĂů ƌĞƋƵŝƌĞŵĞŶƚ͕ ƚŽ ďĞ ĞĸĐŝĞŶƚ ŽŶ ƚŚĞƌŽĂĚ ĂŶĚ Ăƚ ƚŚĞ ƐĂŵĞ ƟŵĞ͕ ƚŽ ŵĂŬĞ ŝƚƐ ŽǁŶĞƌ Žƌ the person driving it feel proud. The design of the new vehicles and their ĞƋƵŝƉŵĞŶƚ ŐƵĂƌĂŶƚĞĞƐ ƚŚĞŝƌ ĚƌŝǀĞƌ ŵĂǆŝŵƵŵƐĂĨĞƚǇĂŶĚĐŽŵĨŽƌƚ͘

ZĞŶĂƵůƚ dƌƵĐŬƐ ŽīĞƌƐ Ă ǁŝĚĞ ƌĂŶŐĞ of engines and cabs suited to the ŶĞĞĚƐĂŶĚĂĐƟǀŝƚǇŽĨƚŚĞĐƵƐƚŽŵĞƌ͘

48 The Uganda Chamber of Mines & Petroleum KUOSKNGEJC=P=?KLLANIEJAEJOKQPDA=OP!/ KJCK =IL=ECJANOOPNAOOPD=PNA>AHIEHEPE=O=NA>AEJCBQJ@A@ PDNKQCD?KNNQLPIAP=HOPN=@EJCĠ+AP-DKPK

*EJAN=H ANPEł?=PEKJ 4D=P2C=J@=,QCDPPK(JKS=J@ KJOE@AN

and Gold that are Designated Minerals mining laws and regulations should BKN?ANPEł?=PEKJ=J@?KJOE@ANA@PK>A=P be revised to accommodate mineral By Stephen Turyahikayo the center of illegal mineral exploitation ?ANPEł?=PEKJ1DANACEKJ=H?ANPEł?=PEKJ in the Great Lakes region. These are I=JQ=H =J@ OP=J@=N@O @AłJAO =HHPD=P ganda is a member state of the the same minerals targeted under the JAA@OPK>A@KJAEJ=OB=N?ANPEł?=PEKJ UInternational Conference of the 2JEPA@0P=PAO!K@@#N=JG?P OA?PEKJ is concerned and therefore the mining Great Lakes Region (ICGLR). In 2006, KJ?KJŃE?PIEJAN=HO=J@PDEO=HOK legislation review process should seek it was one of the signatories to the enacted into law in 2010. to incorporate these into the Ugandan ICGLR protocol on illegal exploitation Mining Act and Regulations. of natural resources that set in motion 1DA IEJAN=H ?ANPEł?=PEKJ LNK?AOO PDA LNK?AOO BKN IEJAN=H ?ANPEł?=PEKJ requirements and compliance standards Mine Site Inspection On 15th December 2010, the Lusaka =NA=HH@AłJA@EJPDA& $)/?ANPEł?=PEKJ Declaration of the ICGLR Special manual and standards in addition to This is intended to classify mine sites 0QIIEP PK łCDP EHHAC=H ATLHKEP=PEKJ KB the different roles of the stakeholders into distinct categories i.e. either natural resources in the Great Lakes in the process. In summary, mineral GREEN or YELLOW or RED depending Region was signed by the ICGLR ?ANPEł?=PEKJ?KJOEOPOKBġ= )ACEOH=PEKJĢ KJ PDAEN ?KILHE=J?A SEPD PDA @AłJA@ member states, Uganda inclusive. In b) Mine Site Inspection; c) Chain of OP=J@=N@O EJ PDA ?ANPEł?=PEKJ I=JQ=H particular, this declaration endorsed the Custody Tracking; d) Third Party Audits $/""+ ?H=OOEłA@ IEJA OEPAO =NA six tools developed to curb the illegal =J@ !=P=>=OA KB *EJAN=H#HKSO A compliant with the standards i.e. there exploitation of natural resources in the & $)/ ANPEł?=PA=J@"TLKNP-NK?A@QNA EOJAEPDAN=JUBKNIOKB=NIA@?KJŃE?PO great lakes region. The six tools include; f) Independent Mineral Chain Auditor. nor human rights abuses associated = /ACEKJ=H ANPEł?=PEKJ*A?D=JEOIĢ> activities at this mine site. This mine Harmonization of National Legislation; Legislation OEPA EO ?ANPEłA@ =J@ ?=J LNK@Q?A BKN ? /ACEKJ=H!=P=>=OAKJ*EJAN=H#HKSOĢ ATLKNP 6")),4 ?H=OOEłA@ IEJA OEPAO @ #KNI=HEV=PEKJKBPDANPEO=J=H*EJEJC Member states are responsible for are partially compliant having failed on Sector; e) Promotion of the Extractive putting in place an appropriate legal KJAKBPDA@AłJA@OP=J@=N@O%KSARAN Industry Transparency Initiative (EITI); framework for implementation of mine site is neither associated with f) Whistle Blowing Mechanism. ?ANPEł?=PEKJLNK?AOOEJPDAENNAOLA?PERA =NIA@ ?KJŃE?PO JKN DQI=J NECDPO ?KQJPNEAO *EJAN=H ?ANPEł?=PEKJ EO JKP abuses. This mine site can still produce The ICGLR Lusaka Declaration further provided for in the Mining Act, 2003 for export and has a six months grace acknowledges some of these six tools is and Mining Regulations 2004. This LANEK@ PK ?KNNA?P PDA E@AJPEłA@ JKJ still work in progress that needs further creates a huge challenge in as far compliant areas. Another inspection NAŃA?PEKJ =J@ NAłJAIAJP >QP ?=HHO KJ compliance is concerned in Uganda. has to be conducted after the six the relevant institutions in the member In addition, it is necessary for the months to determine if this has been states to implement the regional respective protocols to be domesticated corrected. If corrected, mine site gains ?ANPEł?=PEKJ IA?D=JEOI PD=P S=O to pave the way for integration of $/""+ OP=PQO =J@ >A?KIAO ?ANPEłA@ developed for monitoring and control IEJAN=H ?ANPEł?=PEKJ EJPK PDA NAHAR=JP to produce for export. If not corrected, of the exploitation and trade of natural mining laws and regulations. As a IEJA OEPA >A?KIAO /"! Ń=CCA@ resources in the Great Lakes Region. way forward, the relevant institutions and cannot produce for export until The implementation of the regional in Uganda (i.e. Ministry of Justice and highlighted issues are corrected. RED ?ANPEł?=PEKJ IA?D=JEOI EJ =HHPDA Constitutional Affairs and Ministry of ?H=OOEłA@IEJAOEPAEOAEPDAN=OOK?E=PA@ member states is based on and guided #KNAECJ BB=ENO AP? =NA AJ?KQN=CA@ PK SEPD =NIA@ ?KJŃE?PO KN CNKOO DQI=J >U PDA /ACEKJ=H ANPEł?=PEKJ *=JQ=H consider domestication of the relevant rights abuses. Such mine site is totally =J@ 0P=J@=N@O *EJAN=H ?ANPEł?=PEKJ & $)/LNKPK?KHO=OPDAłNOPOPALPKS=N@O non compliant and cannot produce focuses on Tin, Tantalum, Tungsten compliance. Thereafter, existing for export until highlighted issues are

The Uganda Chamber of Mines & Petroleum 49 ?KNNA?PA@ /"! ?H=OOEłA@ IEJA OEPA EO & $)/?ANPEł?=PAEJLH=?ABKN2C=J@=JKN AEPDAN=OOK?E=PA@SEPD=NIA@?KJŃE?POKN has it requested for an extension of the gross human rights abuses. Such mine ͞DŝŶĞƐŝƚĞƐŝŶƚĞŶĚĞĚƚŽ phase in period. Serious consideration site is totally non compliant and cannot of these shall reduce pressure hanging produce for export. ĞǆƉŽƌƚĂƌĞƌĞƋƵŝƌĞĚƚŽ on producers of designated minerals in Uganda. Who are the recognized entities to carry ƐƵďŵŝƚƚŚĞŝƌƉĂƉĞƌǁŽƌŬ out these mine site inspection? ƚŽƚŚĞƌĞůĞǀĂŶƚĂŐĞŶĐǇ 2J@AN & $)/ ?ANPEł?=PEKJ IA?D=JEOI member states are required to put Government mine site inspectors are the ƉƌŝŽƌƚŽĞǆƉŽƌƚĂŶĚĂƚƚŚŝƐ in place an export procedure for sole recognized entities to undertake designated minerals produced in their these inspections in the respective ƉŽŝŶƚƚŚĞĚĂƚĂďĂƐĞŽĨ respective borders. Mine sites intended member states. Uganda has able and ĞǆƉŽƌƚĞƌƐŝƐĐŽŶƐƵůƚĞĚĨŽƌ to export are required to submit their competent mine site inspectors for this paper work to the relevant agency in the Geological Survey and Mines ŝŶĨŽƌŵĂƟŽŶŽŶƚŚĞƐƚĂƚƵƐ prior to export and at this point the under the Ministry of Energy and database of exporters is consulted for Mineral Development. In the absence of of the mine site intending information on the status of the mine competent government mine inspectors, ƚŽĞǆƉŽƌƚ͟ site intending to export. In addition, ICGLR accredited inspectors are the the information regarding the export other recognized entities that can is shared with the ICGLR secretariat. perform such mine site inspections. If the mine site is either GREEN or for responsible mineral sourcing from YELLOW, then exporting progressing ?KJŃE?P =BBA?PA@ =J@ DECD NEOG =NA=O What is required of the member states can continue. If the mine site is RED ICGLR accredited third party auditors after these inspections? Ń=CCA@ PDAJ ATLKNP LNK?AOOEJC OPKLO are already in place and the recognized and material is impounded. In addition, entities to perform such audits. A member state is required to share the member state is supposed to put in the inspection reports with the ICGLR LH=?A=OAPKBPSKKBł?E=HOPKD=J@HAPDA A public regional database to track secretariat within thirty (30) days after export procedure. Exports that meet all =HH IEJAN=H ŃKSO =J@ ATLKNPO EJ PDA completion of this inspection. the requirements are issued an ICGLR regions is in place. The purpose of this ?ANPEł?=PA PD=P NAI=EJO R=HE@ BKN database is to help track and balance Chain of Custody Tracking @=UO1DAPSKCKRANJIAJPKBł?E=HO=NA the production, purchases and exports both required to sign on issued ICGLR of designated minerals in the region. Member states are required to have chain ?ANPEł?=PAO Member states are obligated to provide of custody systems at mine sites to track their collected chain of custody data to =HH IEJAN=H LNK@Q?A =P ?ANPEłA@ IEJA Independent Mineral Chain Auditor the ICGLR secretariat for inclusion in sites and along the mineral supply chain this regional database with exception of to ensure they are neither associated The ICGLR Independent Mineral Chain pricing information which can remain SEPD =NIA@ ?KJŃE?PO JKN CNKOO DQI=J Auditor is appointed by the ICGLR ?KJł@AJPE=H rights abuses. The member states have secretariat and responsible for assessing either option to develop their own =J@ MQ=HEł?=PEKJ KB =HH PDA =>KRA & $)/ ANPEł?=PA=J@"TLKNP-NK?A@QNA traceability systems or consider private ?ANPEł?=PEKJ OPALO =?NKOO PDA IAI>AN sector players (e.g. Geotraceability, states to ensure compliance with the 1DA NACEKJ=H ?ANPEł?=PEKJ IA?D=JEOI iTSCi etc) for this service. The mineral OLA?EłA@?ANPEł?=PEKJOP=J@=N@O OLA?EłA@ = PSK UA=N LD=OA EJ LANEK@ ?ANPEł?=PEKJ I=JQ=H =J@ OP=J@=N@O for the member states before ICGLR allows member states to have as many *EJAN=H?ANPEł?=PEKJEJ2C=J@=?=J>A ?ANPEł?=PAO >A?KIA I=J@=PKNU BKN =HH chain of custody systems i.e. can achieved. In spite of all the above steps, designated minerals (i.e. tin, tantalum, either be for each designated mineral it is a simple process. The Ministry of tungsten and gold) from the Great Lakes or geographical region etc. Member Energy and Mineral Development is region. During this phase in period, states are required to enter binding already welcoming chain of custody member states were expected to develop agreements with traceability service tracking service providers into the PDAEN& $)/?ANPEł?=PAO=J@EILHAIAJP providers specifying all collected chain country. This is a commendable step IA=OQNAO BKN ?ANPEł?=PEKJ KB PDAEN of custody data by their systems remains but more is yet to be done. Care must be designated minerals. On 15th December the property of the member state and exercised not to mistake chain of custody 2012, exactly two years after the Lusaka must be transmitted to the member state PN=?GEJCSEPD?ANPEł?=PEKJ1DABKNIANEO !A?H=N=PEKJ & $)/?ANPEł?=PAO>A?=IA for sharing with the ICGLR secretariat all FQOPKJAKBPDA?KILKJAJPOKBPDAH=PPAN I=J@=PKNUBKN@AOECJ=PA@IEJAN=HŃKSO times without any hindrance. Therefore, Therefore, creation of an enabling legal EJ PDA NACEKJ J & $)/ ANPEł?=PA mineral traceability service is a MUST at framework through domestication of for Uganda is not in place as yet and all tin, tantalum, tungsten and gold mine ICGLR protocols is a crucial starting this complicates export of designated OEPAO QJ@AN PDA IEJAN=H ?ANPEł?=PEKJ LKEJP BKN OQ??AOOBQH ?ANPEł?=PEKJ EJ minerals originating from Uganda. mechanism. =@@EPEKJ PK EJPACN=PEJC PDA ?ANPEł?=PEKJ manual and standards into the Mining Nevertheless, a provision exists for Third Party Audits and Database of Act and Regulations. Complying fully IAI>AN OP=PAO SDKOA ?ANPEł?=PAO =NA *EJAN=H#HKSO SEPD & $)/ ?ANPEł?=PEKJ IA?D=JEOI not ready by this time to request for is adequate for Ugandan minerals to a one year extension of the phase in Third party audits are undertaken by access international markets. period but indicating their reasons to independent auditors to ensure that the ICGLR secretariat. If the secretariat is =HHLNK?AOOAO=P?ANPEłA@IEJAOEPAO=NA The author is an Expert on Regional convinced, then it may grant this request compliant with the ICGLR standards. *EJAN=H ANPEł?=PEKJ =J@ ?=J >A =J@ IEJAN=HO ŃKSO BNKI PDA =BBA?PA@ 1DAOA =Q@EPO QJ@AN & $)/ ?ANPEł?=PEKJ contacted on +256773967697 or country can continue using the existing mechanism are intended for compliance [email protected]). export documents i.e. export permit in with the OECD due diligence guidance the case of Uganda. There is neither an

50 The Uganda Chamber of Mines & Petroleum GeoTraceability continues ﬁght against conﬂict minerals To ensure full compliance with EJPANJ=PEKJ=H ?KJŃE?PBNAA NAMQENAIAJPO #KN IKNA EJBKNI=PEKJ KJ PDA APPAN for all its customers, GeoTraceability has Sourcing Program or to see an on-line also partnered with the Better Sourcing demo of the GeoT platform, please email Program (BSP) to offer the Ugandan [email protected]. mineral sector a full and comprehensive Etruntem is cae tem atie es, Caturob mineral chain of custody and due sestere esimmordis faucon res, sena, diligence compliance package. This nihiliciti, Palessignos audes in hae will enable producers and exporters of IAJPA JKJKOQH ?KJBA?QHE?=A łJPE= tin, tantalum and tungsten ore, as well manteme it; iam catuam ad ma, Catume as gold, to gain access to international patquer ritebatus, clervis hus, ubliurbem markets and meet their obligations under listrae tum opos opubli, que pultorente Apple’s iPhone 6; its latest product. The company has moved against the sourcing of minerals like tantalum the ICGLR RCM. BSP is supported by the ?KJ RE@ANJQI OQHE?PQ NK>QJ?A NłNEQO – used in capacitors and resistors in its devices – from KJŃE?P #NAA 0KQN?EJC &JEPE=PERA Ġ #0& nostiestem proximus cae, vivered ?KJŃE?P=NA=O a group of downstream companies cavehebendam ceressi linatquius On December 13, 2013, and industry associations operating the hachum publicu lestiam. Geotraceability Limited (a subsidiary KJŃE?P#NAA 0IAHPAN -NKCN=I = GAU Nos hocae fac vit. Grachus hocultilium of PriceWaterhouseCoopers, UK) component of current due diligence sedet, tem igil vid demultore ad pl. Iris received formal approval from the efforts by manufacturers and end- conducentrum quit ad anum interei ex Government of Uganda to engage with users to ensure their supply chains do num nortus An ta Simperit opos stris. the country’s producers and exporters not contribute to the funding of armed Upimo C. Sat, que rebem morae, of tin, tantalum, tungsten and gold, ?KJŃE?POEJPDA!AIK?N=PE?/ALQ>HE?KB etrenatum ducepsed nos, viur, perfere with a view to provide mineral chain of Congo (DRC). BSP and GeoTraceability RE?=QO IKAJPNQI OAJP =@DQ?KJł?=Ģ custody services supporting compliance are already active in other ICGLR Catiliculiam nonferi derio, nirmiliam with the International Conference of the member states such as the Republic omno. Is aucit omanultus iam ubli Great Lakes Region (ICGLR) Regional of Congo where they are supporting publinc is supicie nducide ssimunultus ANPEł?=PEKJ*A?D=JEOIĠ/ * ?KJŃE?PBNAA P=JP=HQI ATLKNPO PK OQLEKNQI =JQI MQA ł?QI NA JQI EJPANJ=PEKJ=H?KJŃE?PBNAA OIAHPANO mante, es vit furbi conum dit patiferum Uganda is a member state of the pra me tabus ad della pl. Catum dem que ICGLR and the process of national GeoTraceability’s services for Uganda taste, quo verum clerter nictor patum implementation of the RCM framework and the Great Lakes Region aim to quitidii sus concleri, ut publica tanteri is ongoing. Therefore exporting these ABł?EAJPHU OQLLKNP KLAN=PKNO PKS=N@O OOAJEPĢEJ?RANłNE?=ILKPEOOAONAP=Q@=?P= minerals requires the implementation meeting their compliance requirements tiquod intraet pere diena, eres rei sic of a mineral chain of custody system while accompanying their operational ocaed invent, Castilicatum dem, stam along their supply chain, to demonstrate development. BSP also offers a degree publibem is sereis ad neme prortu ium PDAEN KNECEJ =J@ ?KJŃE?PBNAA J=PQNA &J KB ŃATE>EHEPU SDE?D EO JA?AOO=NU PK at. Ebatimpl. Veriora? quondam hena, addition, designated mineral producers =??KIIK@=PAPDAOLA?Eł??EN?QIOP=J?AO omnit feritamere, menenih inverur suppl. are expected to periodically make their of each producer, operator and supply $N=0ANEKJł?=REORA MQ=OP2JQHK?NAEO chain of custody data available to the chain, with a view to stimulate on-going ent? Nim propublinam pubit. ICGLR regional database of mineral improvement of upstream supply chain ŃKSO conditions, improve communication and attract further investment into the sector.

*ATE?K&J+AS*EJA0LEHH This pool of water with sulphuric acid is used to extract copper #KHHKSEJCPDANALKNPOKB=JASOLEHH=CA PDAIEJEJC?KIL=JU stones inside the “Buena Vista” copper mine, a subsidiary of O=E@=OPKNIKRANŃKS=BPANDA=RUN=EJOD=@?=QOA@=JASHA=G Grupo Mexico. Grupo Mexico said in a statement the company had contained In September, the Mexican authorities issued a new alert it with pumps and suction. The Sonora state civil protection about a toxic spill into a river from a copper mine run by the agency said it was ending its relationship ith the mining mining giant Grupo Mexico. company because it was continuing to discharge toxic substances into the river. ,Bł?E=HO EJ PDA JKNPDANJ OP=PA KB 0KJKN= =OGA@ LAKLHA JKP to use water from the Bacanuchi river after an orange stain The company has denied the accusations and has set up a appeared in it. IPNQOPPKL=U@=I=CAO&PO=UOEPD=O=HOK>AAJ?KJ@Q?PEJC =I=FKN?HA=JQLKLAN=PEKJ On 7 August gallons of sulphuric acid poured into the river. PPDAPEIAHK?=HKBł?E=HO=??QOA@PDA?KIL=JUKBPNUEJCPK More than a quarter of Mexico’s mining activity is located in conceal the accident and of lax supervision. The chemical, the north-western region, making it the country’s top producer which is used to dissolve copper from ore, turned a 60km of gold, copper and graphite. (40-mile) stretch of the Sonora River orange, causing the authorities to shut down the municipal water supply to 20,000 people in seven towns.

The Uganda Chamber of Mines & Petroleum 51 7=I>E=J IEJAO ?D=I>AN =LLA=HO BKN31NABQJ@ The Chamber of Mines of Zambia recently appealed to the government to refund withheld value-added tax (VAT) so that the mining industry could continue to contribute optimally to the country’s economy.

“Our sincere appeal is that VAT’s rule 18 be looked at urgently and resolved,” said the chamber, which added that exporting mining companies had been meeting all the claim requirements, bar the stipulation of proof of arrival in receiving countries, for which it was impossible to obtain customs documentation, owing to the potential for commodities to change hands several times before reaching PDAENłJ=HLKEJPKB?KJOQILPEKJ

The chamber emphasized that while mining had the potential to continue to be the engine of the Zambian economy for a long time to come, it needed to be nurtured to generate the revenues needed for the economic @ERANOEł?=PEKJ KB PDA ?KQJPNU SDE?D *EJEOPNUKB"JANCUKBł?E=H $=>NEAH!=P=Ġ) ?KJOQHPO=HK?=HHA=@AN according to mining research consultancy at the Kanan mining camp in Utut village, Muruita in Nakapiripirit, Wood Mackenzie, already imposes a Karamoja relatively high overall effective tax rate of 45% on mining companies.

The Extractive Industries Transparency (=N=IKF=PK>AI=LLA@ Initiative reports that Zambia’s mining revenue nearly doubled to Kwacha 7.7-billion &ŝŶĂůůǇ͕ŝƚǁŝůůďĞƉŽƐƐŝďůĞƚŽŚĂǀĞĂďĞƩĞƌƉŝĐƚƵƌĞŽĨŚŽǁŚƵŐĞ<ĂƌĂŵŽũĂ͛Ɛ in 2011, a year in which the mining industry ŵŝŶĞƌĂůƉŽƚĞŶƟĂůŝƐ͘ contributed 44% of the total tax take, up from only 5% from 1997 to 2006.

'ŽǀĞƌŶŵĞŶƚŚĂƐƐĞƚĂƐŝĚĞ^ŚƐϯϳďŝůůŝŽŶƚŽĮŶĂŶĐĞĂŝƌďŽƌŶĞŐĞŽƉŚǇƐŝĐĂů In a media statement released to Mining surveys for the region, which is known to be rich in some of the most Weekly Online, the chamber appealed for an ƉƌĞĐŝŽƵƐŵĞƚĂůƐƐƵĐŚĂƐŐŽůĚ͘dŚĞŵŽŶĞǇǁŝůůďĞƐƉĞŶƚƚŚŝƐĮŶĂŶĐŝĂůǇĞĂƌ͕ urgent resolution to rule 18 and outlined how ϮϬϭϰͬϮϬϭϱ͘ failure to pay withheld VAT refunds would force the cash-constrained industry to cut ŶƵŵďĞƌ ŽĨ ŵŝŶŝŶŐ ĐŽŵƉĂŶŝĞƐ ĂƌĞ ĂůƌĞĂĚǇ ŽƉĞƌĂƟŶŐŝŶ<ĂƌĂŵŽũĂ͘ >=?G KJ ?=LEP=H LNKFA?PO HKSAN LNK@Q?PEKJ ,ŽǁĞǀĞƌ͕ƚŚĞ ƌĞŐŝŽŶ ŚĂƐ ŶŽƚ ďĞĞŶ ĞǆƉůŽŝƚĞĚ ƚŽ ŝƚƐ ĨƵůů ƉŽƚĞŶƟĂů ƉĂƌƚůǇ make suppliers wait longer for their money, because of the limited geophysical data. interrupt certain corporate social investment LNKFA?PO =J@ @EIEJEOD PDA ?KHHA?PEKJ KB ͞ůƚŚŽƵŐŚ͕ <ĂƌĂŵŽũĂ ƌĞŐŝŽŶ ǁĂƐ ŶŽƚ ŵĂƉƉĞĚ͕ ƚŚĞ ƌĞŐŝŽŶ ĐŽŶƟŶƵĞƐ ƚŽ revenue by the Zambia Revenue Authority. ƌĞŐŝƐƚĞƌ ŵŝŶĞƌĂů ŝŶǀĞƐƚŵĞŶƚ ǀĞŶƚƵƌĞƐ ĚƵĞ ƚŽ ŝƚƐ ŵŝŶĞƌĂůƉŽƚĞŶƟĂů ĂŶĚ ĨĂǀŽƵƌĂďůĞŐĞŽůŽŐŝĐĂůƐĞƫŶŐ͕͟ĂĐĐŽƌĚŝŶŐƚŽĂƉƌŽũĞĐƚƐƚĂƚƵƐďƌŝĞĨĨƌŽŵƚŚĞ Conversely, a refund would place Zambia’s ŵŝŶŝƐƚƌǇŽĨŶĞƌŐǇ͕ǁŚŝĐŚǁĂƐƌĞůĞĂƐĞĚŝŶDĂǇƚŚŝƐǇĞĂƌ͘ mining industry in a position to return to its customary winning ways of increasing dŚĞ ƐƵƌǀĞǇƐ͕ ǁŚĞŶ ĐŽŵƉůĞƚĞ͕ ǁŝůů ƚƵƌŶ ĂƌŽƵŶĚ <ĂƌĂŵŽũĂ͛Ɛ ŽƵƚůŽŽŬ͕ mining investment, boosting manufacturing according to the ministry. LNK@Q?PEKJ=J@OQOP=EJEJC=J@?NA=PEJCFK>O

͞ ǀŝďƌĂŶƚ ŵŝŶĞƌĂů ďƵƐŝŶĞƐƐ ŝŶ <ĂƌĂŵŽũĂ ǁŝůů ďƌŝŶŐ ŐƌĞĂƚĞƌ ĞĐŽŶŽŵŝĐ When the Zambian mining industry was in ďĞŶĞĮƚƐ ƚŽ ĞŶŚĂŶĐĞ ŽƉƉŽƌƚƵŶŝƟĞƐ ĨŽƌ ĞŵƉůŽǇŵĞŶƚ͕ ŝŵƉƌŽǀĞŵĞŶƚ ŽĨ private hands for more than 40 years from ŚŽƵƐĞŚŽůĚŝŶĐŽŵĞĂŶĚƌĞǀĞŶƵĞƚŽĞŶĂďůĞ<ĂƌĂŵŽũĂůŽĐĂůŐŽǀĞƌŶŵĞŶƚƐƚŽ the late 1920s, consistent investment led to earn revenue to improve social services, security and infrastructure in the copper production reaching 750,000 t/y and region,” the brief points out. @ENA?PFK>OSANA?NA=PA@ >QPSDAJEP was placed in State hands for 24 years from 'ŽǀĞƌŶŵĞŶƚ ŽĸĐŝĂůƐŚĂǀĞ ĐŽŶĚƵĐƚĞĚ ƐĞŶƐŝƟǌĂƟŽŶ ƐĞƐƐŝŽŶƐ ĂƌŽƵŶĚ 1972, copper production fell to 250 000 t/y ƚŚĞ<ĂƌĂŵŽũĂƌĞŐŝŽŶƚŽĞĚƵĐĂƚĞƚŚĞƉĞŽƉůĞƚŚĞƌĞĂďŽƵƚƚŚĞďĞŶĞĮƚƐŽĨ =J@AILHKUIAJP?=IA@KSJPKFK>O ŵŝŶŝŶŐ͘ŵŽŶŐƚŚĞŝƐƐƵĞƐƚŚĞǇĚŝƐĐƵƐƐĞĚǁĞƌĞ͗ƉƌŽũĞĐƚĂĐƟǀŝƟĞƐ͕ŵŝŶŝŶŐ When privatized again from 1997 to 2000, laws, environment, health and safety of miners, EJRAOPIAJP NKOA PK >EHHEKJ =J@ IEJEJC among others. expanded beyond the traditional Copperbelt into the North Western province, which /ƚǁĂƐŝŵƉŽƌƚĂŶƚƚŚĂƚƚŚĞŵŝŶŝƐƚƌǇŽĨŶĞƌŐǇƵŶĚĞƌƚŽŽŬƐƵĐŚƐĞŶƐŝƟǌĂƟŽŶ resulted in copper production rising beyond ƐĞƐƐŝŽŶƐďĞĐĂƵƐĞƚŚĞƌĞƚĞŶĚƐƚŽďĞĐŽŶŇŝĐƚďĞƚǁĞĞŶůŽĐĂůƌĞƐŝĚĞŶƚƐĂŶĚ PEJ=J@@ENA?PFK>OEJ?NA=OEJC ƚŚĞ ŵŝŶĞƌƐ ŽǀĞƌ ůĂŶĚ ĞŶĐƌŽĂĐŚŵĞŶƚ ĂŶĚ ĞŵƉůŽǇŵĞŶƚ ŽƉƉŽƌƚƵŶŝƟĞƐ͘ to 90 000 in the same year. (miningweekly. Some mining projects in Uganda have stalled as a result of such tensions. com)

52 The Uganda Chamber of Mines & Petroleum earthbeat trains miners in mercury usage

U0PALDAJ1QNU=DEG=UK safety and health equipment “Every gold miner and distributor as part of awareness Earthbeat Solutions campaign to appreciate the #KQJ@=PEKJ EO = 0SEOO JKP and whoever enjoys jewellery importance of their personal BKN LNKłP JKJ CKRANJIAJP safety and health during the organization at the forefront will understand the necessity of gold mining process. of supporting artisanal and small scale gold miners ŚĂƌŵŽŶŝǌĂƟŽŶ ŽĨ ƚŚĞ ǀĂůƵĞ ĂŶĚ In addition, the miners were around the world to improve taken through an introductory their mining situation for a prosperity of all players across the course and demonstration better livelihood and socio- training on possible value economic transformation ŐŽůĚ ƐƵƉƉůǇ ĂŶĚ ǀĂůƵĞ ĂĚĚŝƟŽŶ addition methods using their across these gold mining locally produced gold. This communities. chain.” process guided the miners to produce a gold band using At Earthbeat Solutions across the gold supply and working conditions, mining their local gold. #KQJ@=PEKJ SA OD=NA = value addition chain. This and mineral processing positive vision of our world sense of responsibility is to methods, fair market Uncontrolled use of toxic in which extraction of natural become the standard and not access, environment mercury during gold NAOKQN?AO BKN PDA FASAHNU the exception. management, value addition, processing is a serious industry is in harmony with organizational and business environment and health nature and humanity, mine Available statistics suggests management skills etc. concern among artisanal workers get appreciation that more than 200,000 and small scale gold mining for their work, governments women and men directly Through Heartbeat Uganda communities. As an interim obtain their taxes and depend on artisanal and -NKFA?P "=NPD>A=P 0KHQPEKJO measure, Earthbeat Solutions above all miners and their small scale mining and more #KQJ@=PEKJ EO AJC=CEJC #KQJ@=PEKJ PDNKQCD ?KIIQJEPEAO AJFKU H=OPEJC than 800,000 indirectly artisanal and small gold %A=NP>A=P 2C=J@= -NKFA?P prosperity. The global future depend on ASM for their mining communities in has donated Mercury Retorts of the gold extractive industry economic livelihood. Uganda towards happy PK PDA >AJAł?E=NU CKH@ is that every mine which Approximately 10% of these and responsible mining. mining communities for safe extracts gold, every business women and men miners are &J #A>NQ=NU SKIAJ use of mercury during their which distributes it and directly engaged in artisanal and men gold miners in gold processing stage. The ARANUKJASDKAJFKUOFASAHNU and small scale gold mining. Busia District became the future focuses on identifying will understand the necessity +ARANPDAHAOO OECJEł?=JP łNOP >AJAł?E=NEAO QJ@AN KQN and extending appropriate of harmonization of the value challenges still exist in initiatives in Uganda and mercury free best practice and prosperity of all players areas of formalization, these received a donation of technologies relevant to the context and scope of these gold miners. We appreciate our Environment is our future and together let us conserve it for the present and future generations. We encourage this for all miners, humanity and related activities.

Earthbeat Solutions #KQJ@=PEKJ?KJPEJQAOPK>QEH@ a critical mass and awareness to drive improvements in artisanal and small scale gold mining towards happy and responsible gold mining. Therefore, national governments, international agencies, like minded non government organizations, public and private sector players, women and men artisanal and small scale gold miners are appreciated as crucial stakeholders and success partners. All stakeholders are welcome and shall be engaged for their One of the beneﬁciary miners (R) receives the donated mercury retorts and safety gloves from the author contribution.

The Uganda Chamber of Mines & Petroleum 53 NPEO=J=HIEJANOEJ(=N=IKF=NPEO=J=HIEJANOQOQ=HHUODKSJKNAOLA?PBKNPDAAJRENKJIAJP

MITIGATING THE RISKS Investment and Sustainable Development in the Mining Sector

UD=IU=0=I QPOU= extensive government involvement and external factors relating to the in their extraction and sale. host country and global economic ining as an economic activity situation. The investor would require Mhas been described by various Mining is a risky venture because the host government to meet some commentators as “the extraction and of the associated risk in respect to conditions or offer guarantees before exploitation of natural resources,” the accuracy of the geological data, the investment decision is made in the word mining is frequently used size of the deposits, and quality of respect to reliability and accuracy to describe the whole process and the ore/reserves, whether they are of of the geology and data in respect any stage within the process from commercial viability to warrant further to the mineral deposit, political PDA =?PQ=H ATPN=?PEKJ PK PDA łJEODA@ ATLHKEP=PEKJ =J@ łJ=H @ARAHKLIAJP stability and security, protection of product. However with in the mining of the mine. The monies spent during investment from nationalisation, sector mining is mainly used to the initial process are sunk costs and security of land tenure and access OLA?EBUFQOPPDAIEJALNK@Q?PEKJSEPD cannot be recovered if the discovery PKH=J@ LNKCNAOOERAłO?=H HAC=H=J@ other stages taking different names. EO QJRE=>HA DAJ?A LNKFA?P łJ=J?EJC regulatory policies and laws, mineral of the exploration of any mine or and mining rights, reliability and *EJAN=HO =NA ?H=OOEłA@ EJ R=NEKQO mineral deposit is rarely heard of and security of power supply as well as classes being, Energy Minerals, most exploration is done using equity reasonable infrastructure (roads, Metallic Minerals and non-metallic of the shareholders and promoters. railways, ports). metals that are mainly construction and industrial. However this article The investment decision to develop It is equally important to consider shall not focus on the energy metals a mine or venture into a mining the host countries perspective and as they are treated separate and their FQNEO@E?PEKJ EO >=OA@ KJ OARAN=H expectations from the investor which exploitation is normally regulated factors both internal relating to normally include, the guarantee >U OLA?Eł? H=SO =J@ PULE?=HHU D=RA the investor/company position of a fair share of the revenues

54 The Uganda Chamber of Mines & Petroleum from the exploited resource, Discussion, Community Involvement, actual development of the mine, Environmental Considerations, application of modern technologies Economy and its Performance, that are environmentally friendly, Institutional Arrangements and use of best practices and procedures The pillars of Governance Structures, Synthesize in the extraction process, waste and Continuous Learning to Improve management and mining closure, Capacity this is meant to ensure respect and compliance to the sustainable responsible mining is carried out and domestic and municipal laws/ limit the negative externalities of any regulations, technology transfer and LNKFA?P =J@ PNU PK AJOQNA NA=HEO=PEKJ human resource development, local development of sustainable development and content emphasis in the procurement investment in the mining sector. and supply chain and well as >AJAł?E=PEKJ =J@ R=HQA =@@EPEKJ KB originally centred In bid to realise reasonable levels the minerals mined. or progression towards sustainable development, there is need to ensure It is important that as the investor on environmental, and develop inter-sectorial linkages and government look at how best between the mining industry and to position themselves in respect to the other sectors of the society and PDA>AJAłPO=??NQEJCPKAEPDANL=NPU social and economic economy like the service sector, they should consider the needs of agriculture, trade and industry, the current and future generation human development and social EJ NAH=PEKJ PK PDA łJEPA ATLHKEPA@ infrastructure improvement to ensure NAOKQN?A >A?=QOA PD=P SEHH @AłJA issues, however it that once the resource is/has been and determine how the state/current exploited and or depleted, the present generation exploited the resources generation has been able to plan and to address their needs and whether was later realised put in place systems, structures and or not they did consider those of mechanisms that would address their the future generation. This concept needs as well ensure that the future of thinking and approach towards that minus the CAJAN=PEKJ SKQH@ OPEHH >AJAłP BNKI the exploitation and development the investment and development of of natural resources was coined out the resource. from the Brundtland Report, “,QN political support KIIKJ #QPQNA, published by the Countries that have tried with varying World Commission on Environment success to exploit their natural and Development in 1987 and from the home resources and plan for the future, later emphasised during the United those that have almost succeeded Nations Conference on Environment are Norway, Saudi Arabia, Chile and and Development at the Rio de governments, very Botswana these countries have tried Janeiro summit in Brazil in 1992. and set up sovereign wealth funds where most of the revenue collected The Brundtland Report gave the little progress would from the royalties and taxation ļ?H=OOE? @AłJEPEKJ KB 0QOP=EJ=>HA is saved to cater for the future Development as: “development that generation. meets the needs of the present without be achieved compromising the ability of the future Controlled consumption and generation to meet their own needs”. expenditure as well as wise Although looked at initially from the concurrently to try and ensure investment, planning and savings of environmental aspect following the I=TEIQI >AJAłP BNKI PDA NAOKQN?A the current earnings coupled by sober growing international concerns of for the current and future generation. political leadership and constant global warming and climate change, In trying to reach the balance review of the laws and policies will sustainable development has evolved between investment and sustainable crate and attractive environment to to encompass a broader scope than development in the mining sector further attract and retain investment climate change and environmental there often are clashes between the into the host countries economy and issues. The pillars of sustainable investor’s needs, host government mining sector as well as ensure that development originally centred on expectations, the local community PDA?KQJPNU?=JCNA=PHU>AJAłPBNKI environmental, social and economic and civil society in respect to the the exploited resource to be able to issues, however it was later realised land use and access, environmental OAP = łNI BKQJ@=PEKJ BKN PDA BQPQNA that minus the political support from issues, social and local community generation to build upon and address the home governments, very little concerns as well as the economic their own needs. progress would be achieved without considerations. the recognition and inclusion of The author is an advocate, LLM the political support from the home The International Council of Minerals Petroleum Taxation and Finance governments to achieve sustainable (Dundee), development in the natural resource and Metals (ICMM) has encouraged mining industry. the mining companies, governments, communities, private investors and LLM Mineral Law and Policy other stake holders to clearly address (Dundee) and Managing Partner Sustainable development is not an the country’s position and the broad end point but a continuous process implications of issues that are likely Petroleum Energy and Mining involving the above four mentioned to arise through; Engagement and Consult Limited (PEMCO) pillars interfacing and working

The Uganda Chamber of Mines & Petroleum 55 Uganda’s Mining Sector Needs Careful Trade-Offs

By Jeff Mbanga Road construction works on the Kampala-Masaka highway. The new road was commissioned early this year . KNPDAłNOPPEIAEJNA?AJPIAIKNU #PDA OECJEł?=J?A KB 2C=J@=O mining industry was one of the key LKEJPO PD=P PDA ?KQJPNUO łJ=J?A minister, Maria Kiwanuka, made when she read the national budget speech in June. It did not go without notice that mining, a sector that has been neglected for decades, was now a key factor in Uganda’s ambitions to become a middle income country by 2040.

When Kiwanuka read some of the łCQNAO =NKQJ@ 2C=J@=O IEJAN=H wealth, they were mindboggling. She said iron ore discoveries, attract mining heavyweights such as &OEI>=LKSANLNKFA?P >KPDKBSDE?D estimated at over 200 million tones, African Barrick Gold or Anglo Gold =NA >AEJC L=NPHU łJ=J?A@ >U PDA in some parts of western Uganda, Ashanti to the country. Exim Bank of China and the Uganda D=@ = CNKOO R=HQA KB >EHHEKJ government, should be able to bring This means that most of the mining more than half the country’s current close to 800MW of power on the łNIO KLAN=PEJC EJ 2C=J@= PK@=U $NKOO !KIAOPE? -NK@Q?P KB grid by 2018 at the earliest. =NA FQJEKN ?KIL=JEAO SEPD ?=LEP=H billion. Vermiculite reserves at EJRAOPIAJPO KB JKP IKNA PD=J 1K łJ=J?A PDAOA EJBN=OPNQ?PQNA Namekhara in Eastern Uganda, she million. LNKFA?PO CKRANJIAJP SEHH D=RA PK =@@A@ SANAR=HQA@=P>EHHEKJ łJ@ PDA IKJAU BNKI OKIASDANA Gold reserves totaling 7.8 million OEPEO PDANAEOFQOPPKKIQ?D>QN@AJ most probably through tax. With all ounces had a total gross value of KJ PDAOA łNIO KIIAN?E=H >=JGO the monetary wealth of Uganda’s >EHHEKJ =NAJKPNA=@UPKłJ=J?AOQ?DDECD minerals, the industry looks like an risk operations, while the capital If you add up these numbers, without easy target. It is not. markets and private pension bodies, looking at other mineral deposits which could offer another avenue of Government faces a delicate act such as rare earths elements, the łJ=J?A =NAOPEHHEJPDAENEJB=J?U balance of taxing the mining mining industry alone is far bigger industry and attracting investments than Uganda’s current economy. At least government has remained there. If government is to offer steadfast in improving the country’s These numbers should get the incentives to the industry in order to energy supply and road network. government thinking about attract investors, how far and deep The mineral industry will need supporting the sector. Infrastructure should the trade-off be? more than that, however. A investments that the government is railway network remains key to #KN=JEJ@QOPNU=OUKQJC=O2C=J@=O making in energy and roads should the mining industry. Government mining, there might be some tax target some of these areas where has signed a new Memorandum of incentives that government will mineral exploration is taking place. 2J@ANOP=J@EJCSEPD= DEJAOAłNI have to put on the table for mining Without government support, it is to build a standard railway gauge companies. However, government @EBł?QHP PK =PPN=?P EJRAOPKNO PK PDA between Tororo and Pakwach, a line has to put in place measures to country. Uganda’s mineral sector is that could play an important role in ensure that these incentives are not still considered high-risk. There have supporting the mineral industry. abused as has been the case in other not been substantial discoveries to sectors. The Karuma power plant and the

56 The Uganda Chamber of Mines & Petroleum *EJEJC łNIO ODKQH@ GJKS PD=P these tax perks are not free. Optimism as government makes Government needs to be strict on implementing performance progress on oil pipelines >AJ?DI=NGO BKN IEJEJC łNIO EB these incentives are to make any meaning. The habit of holding O PSK ?KJOKNPE= /QOOE=O /1 $HK>- ?KJOPNQ?PEKJ KB = QOAN @ALKP =P PDA onto mining licenses without any =H /AOKQN?AO =J@ 0KQPD (KNA=O 0( LELAHEJAPANIEJ=HEJ(=IL=H= substantial investment to follow $NKQL REA BKN PDA ?KJPN=?P PK ?KJ- that, as is rampant today, needs to OPNQ?P 2C=J@=O NAłJANU PDA ?KQJPNU 1DAOPQ@UBKNPDA@ARAHKLIAJPKBLELA- be dealt with. EO=HOKEJPDAłJ=HOP=CAOKB=PPN=?PEJC HEJAO =J@ OPKN=CA B=?EHEPEAO KB LAPNK- EJRAOPKNOPK@ARAHKL=JAPSKNGKBLELA- HAQI?KIIK@EPEAOĠ?NQ@AKEH=J@C=O HEJAOPD=PSEHHPN=JOLKNP>KPD?NQ@AKEH There should also be stronger BNKIPDAłAH@OPKPDANAłJANUS=OQJ- =J@NAłJA@LNK@Q?PO @ANP=GAJ>U#E?DPJAN*"&,EH=J@$=O screening for the investors coming BNKI $ANI=JU =J@ ?KJ?HQ@A@ @QNEJC into the sector. Companies need GEHKIAPNA HKJC LELAHEJA EO *=N?D to demonstrate their capability in LH=JJA@ BNKI %KEI= PK (=IL=H= =O łJ=J?EJCPDALNKFA?P =J@OKQN?EJC L=NP KB PDA NAłJANU LNKFA?P PSK BA=- -H=JJEJC BKN PDA PN=JOLKNP=PEKJ KB PDAATLANPEOAPK?=NNUKQPPDAFK> OE>EHEPU OPQ@EAO =NA ?QNNAJPHU KJCKEJC ?NQ@AKEHBNKIPDAKEHłAH@OPKPDANA- before being awarded a license. BKN PSK KPDAN LELAHEJAO PDA "H@KNAP łJANU=J@BKNATLKNPD=O?KIIAJ?A@ Short of that, Uganda could be (=IL=H=Ġ QHK>= LELAHEJA SDE?DSEHH a magnet for companies moving >AGIHKJC=J@PDA(=IL=H=(EC=HE OPQ@U?KRANEJCPDA@EOPNE>QPEKJ=J@ illicit funds around without any LELAHEJA OPKN=CA B=?EHEPEAO KB LAPNKHAQI LNK@- substantial investments on the Q?POBNKIPDANAłJANUPKI=NGAPOS=O ??KN@EJC PK PDA -APNKHAQI "TLHK- QJ@ANP=GAJ >U - 0 1N=JO?KI BNKI ground. N=PEKJ =J@ -NK@Q?PEKJ !AL=NPIAJP =J=@==J@?KJ?HQ@A@@QNEJC+KRAI- Ġ-"-! PDA OAHA?PEKJ KB HA=@ ?KJOQH- >AN Government policy on sensitive P=JPPK?=NNUKQP=BA=OE>EHEPUOPQ@U=J@ areas like land needs to be made -NAHEIEJ=NU"JCEJAANEJC!AOECJKBPDA 2C=J@=D=ONA?AJPHUNAREOA@QLS=N@O OPNKJCAN PKK 0KIA IEJEJC łNIO %KEI=)KGE?D=N)=IQ?NQ@AKEHLELA- EPOKEHNAOANRAOBNKIPK>EHHEKJ are already battling artisanal line is also on-going. >=NNAHO miners, which has slowed down LNKFA?PO HNA=@U QOPN=HE=J ?KJOQHPEJC CE=JP 1DA CKRANJIAJPO KB (AJU= 2C=J@= 4KNHAU-=NOKJO EO OAP PK ?KILHAPA AO- =J@ 0KQPD 0Q@=J =CNAA@ PK LNK?QNA There is a need to sensitize P=>HEODEJC=OPN=PACUBKNPDA1N=JOLKN- KJAHA=@?KJOQHP=JPPK?=NNUKQPLNA- P=PEKJ =J@ 0PKN=CA B=?EHEPEAO KB LNK@- indigenous communities about HEIEJ=NU @AOECJO BKN PDA ?KJOPNQ?PEKJ Q?POPDEOUA=N KB =J KEH LELAHEJA PK PN=JOLKNP PDA PDA>AJAłPOKBIEJAN=HLNKFA?POEJ ?NQ@A their areas. The local people need -NKCNAOO EJ PDA @ARAHKLIAJP KB PDA PKBAAHPDAU=NAL=NPKBPDALNKFA?P LELAHEJA >KKOPO PDA OA?PKN SEPD KL- *AIKN=J@QIKB2J@ANOP=J@EJCBKN PEIEOI >A?=QOA PDA EJBN=OPNQ?PQNA EO PDA @ARAHKLIAJP KB PDA LELAHEJA S=O *EJEJC łNIO ?=J @K PDEO >U JAA@A@ PK PN=JOLKNP ?NQ@A AOLA?E=HHU OECJA@ A=NHU PDEO UA=N =J@ = /AMQAOP ensuring that the local youth are the =O2C=J@=JA=NOPDALNK@Q?PEKJLD=OA #KN -NKLKO=H Ġ/#- BKN PDA FKEJP LNK- łNOP PK >AJAłP BNKI PDA =R=EH=>HA AOPEI=PA@PKOP=NP>U ?QNAIAJP KB = HA=@ ?KJOQHP=JP @ARAH- employment opportunities. KLA@ $KRANJIAJP =J@ PDA PDNAA KEH ?KI- *EJEJC łNIO ODKQH@ =HOK L=JEAO 1QHHKS +,, =J@ 1KP=H 1DACKRANJIAJPOKB(AJU==J@2C=J- =CNAA@PKD=RA=LELAHEJA=J@=NAłJ- deepen their corporate social @=PKCAPDANDKH@=ĠA=?D ANUKB >=NNAHOLAN@=UOP=NPEJC OD=NAEJPDALELAHEJALNKFA?P SDEHALNE- responsibility activities. There is SEPD=LD=OAKB >@>U R=PAEJRAOPKNOSEHHD=RA=OP=GA no reason as to why indigenous people living around mining areas &JEPOłJ=J?E=HNALKNPEOOQA@A=NHEANEJ -NKFA?P0PAANEJC KIIEPPAA?KILNEO- should struggle to access such LNEH PDEO UA=N 1QHHKS ,EH -H? JKPA@ EJCKB-ANI=JAJP=J@-NEJ?EL=H0A?NA- basic amenities like clean water PD=P>KPD(AJU==J@2C=J@==CNAA@PK P=NEAOKBPDANAOLKJOE>HAHEJA*EJEOPNEAO and medical services. Only then >QEH@PDALELAHEJA BNKI PDA L=NPE?EL=PEJC IAI>AN OP=PAO can all the mineral wealth that EO=HOKEJLH=?A Uganda boast of make an impact In this arrangement, Kenya is to con- on ordinary citizens. OPNQ?PPDALELAHEJABNKI)KGE?D=N=J@ *A=JSDEHA KJ PDA (AJU=J OE@A PDA 2C=J@=BNKIPDA)=GAH>ANPNEBP>=OEJ (AJU=-ELAHEJA KIL=JUĠ(- OECJA@ PK HEJG QL SEPD PDA (AJU=J LELAHEJA =?KJPN=?PSEPD)A>=JAOA?KJOPNQ?PEKJ The author is a partner at Deep 0KQPD0Q@=J=J@/S=J@==NA=HOKAT- łNI 7=GDAI &JPANJ=PEKJ=H PK ?KJ- Earth International, a company LA?PA@PK?KJJA?PPKPDAOALELAHEJAO OPNQ?P=LELAHEJAHEJGEJC*KI>=O==J@ that covers the oil, gas, mineral +=ENK>E JKPEJC PD=P PDA KH@ LELAHEJAO and energy sectors in East Africa. 1DALELAHEJAKJPDA2C=J@=JOE@ASEHH SANAPKKKH@=J@RQHJAN=>HA =HOKD=RA=JKBBODKKPHEJAPK'EJF==J@

The Uganda Chamber of Mines & Petroleum 57 58 The Uganda Chamber of Mines & Petroleum Chamber Pictorial

The Uganda Chamber of Mines & Petroleum 59 Chamber Pictorial

60 The Uganda Chamber of Mines & Petroleum Chamber Pictorial DFCU @ 50! Housing Finance

The Uganda Chamber of Mines & Petroleum 61 ADT AFRICA (U) LTD Plot 7, Spring Close ( off 5th Street), Bugolobi Office: (+256) 414 221 565 Ph: (+256) 782 660 926 www.adtafrica.com [email protected]

62 The Uganda Chamber of Mines & Petroleum Tororo Cement eyes growth

Tororo Cement Limited (TCL) has 1DAOAATL=JOEKJ=J@QLCN=@EJCLNKFA?PO school children around the factory have >A?KIA PDA H=PAOP ?KIL=JU PK FKEJ have happened in phases. Since 1995, also had their meals taken care of by TCL the Uganda Chamber of Mines and 1 ) D=O EJRAOPA@ IKNA PD=J I PK with the company mainly feeding them Petroleum. The Eastern Uganda based upgrade the clinkerzation plant and to off its 200 acres of banana plantation. łNISEHH>NEJC?KJOE@AN=>HA?HKQPPKPDA expand (with updated technology) the Others include a UWESO donation for budding UCMP seeing that it is one of cement-grinding, storage and electronic %&3 LNKFA?P =OOEOP=J?A =J@ =JKPDAN PK the mainstays in the country’s recent packing system. QOENK+KNPD!ARAHKLIAJP#KQJ@=PEKJ mining history. 1 )=HOKQJ@ANPKKG=I=FKNATL=JOEKJ Clean water natural springs at six places The largest manufacturer of cement in =J@@ERANOEł?=PEKJ?=IL=ECJEJPDAOPAAH in Tororo district have also been set up Uganda – for long producing 1.4 million section with the goal of adding stylish while a Public Health Clinic has been tons annually – Tororo Cement has since and innovatively colored iron sheets to constructed for the local community. expanded its capacity to 1.8 million tons the market. &J (=N=IKF= = BQHHU AMQELLA@ *K>EHA after adding ultramodern technology, a Health dispensary is run by the “Tororo Cement’s policy is to cement grinding mill, rotary packers and company. continuously satisfy its customers storage silos. through supply of consistently superior TCL is also a proud sponsor of the UCMP “We have strived to stay at the very top products under effective quality organized Mineral Wealth Conference, in Uganda’s mining sector; operating management system, in time delivery slated for October 1st and 2nd, 2014. in the districts of Tororo, Kapchorwa, =J@ ABł?EAJP =BPAN O=HAO OANRE?AO 4A Moroto. And we do all this within the also ensure that staffers and all the Challenges country’s mining and environmental stakeholders in the company are Tororo Cement has had its fair share regulations. As such, Tororo Cement committed to the quality management KB?D=HHAJCAO#KNAIKOP>AEJCPDADECD ?KJPNE>QPAO=>KQP0DO>EHHEKJĠI OUOPAI K>FA?PERAO PDNKQCD NACQH=N foreign exchange conversion costs annually to the exchequer,” says B.M. training and education,” Gagrani says. paid on the many imports needed in Gagrani, the Managing Director. Social Economy the running of the company. “Uganda being landlocked, there is a high "TL=JOEKJ Tororo Cement directly employs 900 EILKNP=PEKJ KB I=FKN EJLQPO HEGA BQAH Tororo Cement Ltd’s owners gave the people while providing approximately minerals, spares among others,” notes company its present name after acquiring EJ@ENA?PFK>OEJPDA1KNKNK@EOPNE?P Gagrani. it in 1995 from the Government of area. This is notwithstanding its mining Reliable electric power is also a Uganda. A carefully executed staff operations in Kapchorwa and Moroto rarity which means the cost of fuel is recruitment drive coupled with well districts where clinker and marble are another concern. Besides, there is too tested operational strategies has seen procured respectively. a noticeable lack of a sizeable pool of the company emerge as the leading Besides that, TCL also boasts being a skilled manpower and other support and largest manufacturer of cement in top seven revenue contributor to the infrastructure. Uganda over the years. Uganda Revenue Authority. “Conversely there are positive steps TCL has not limited itself to producing Amidst all this, the company has by the state to improve the road only cement – albeit various types – ?KJPEJQA@PK@ENA?PHU?KJPNE>QPAłJ=J?E=H network, skilled labour, banking it also manufactures and distributes assistance and building materials to and telecommunication plus rapid various construction materiels like R=NEKQO@EOPNE?P=J@J=PEKJ=HLNKFA?PO industrialization. These developments corrugated iron sheets, nails, chain link will play a very positive role our industry and barbed wire under the reputable These include constructing a school in once they come to fruition,” he adds. brand Nyumba. Kapchorwa near its mining lease plus bridges, culverts, roads, school and U FKEJEJC 2 *- =J =OOK?E=PEKJ The high quality of its products, which @EOLAJO=NUEJ(=N=IKF=+AA@OPQ@AJPO charged with encouraging, protecting has since attracted UNBS and ISO EJ (=N=IKF= D=RA =HOK >AJAłPA@ BNKI and fostering responsible exploration ?ANPEł?=PEKJ D=O OAAJ PDA ?KIL=JU school fees and scholarships from and participation in the mining and build a huge customer base across the TCL. In Tororo, building renovations petroleum sectors – Tororo Cement Ltd East African landscape in addition to the (Osukuru School) and road repairs have will now have counterparts with similar Democratic Republic of the Congo and been carried out by the company while concerns; which should make pleading South Sudan markets. it has also offered food stuffs to internally its case to the state easier. displaced people at the district. Primary

The Uganda Chamber of Mines & Petroleum 63 NOC, Oil Authority Takes Shape A few years ahead of oil production, President Yoweri Museveni has appointed managers for the two critical oil bodies — the national oil company (NOC) and the petroleum authority of Uganda.

The NOC, which will be 100 per cent state owned, will be mandated with managing the country’s commercial aspects of petroleum activities and the authority with monitoring and regulating exploration, development and production of petroleum, according to the Petroleum (Exploration, Development and Production) Act, 2013.

The Petroleum Exploration and Production Department (PEPD) notes that the Production Sharing Agree- ments (PSAs) provide for state participation of between 15 to 20 percent during production and it is the National Oil Company (NOC) that will take care of the state participation.

After President Museveni forwarded his appointees for the boards of the two bodies, the NOC and oil authority are expected to become operational once parliament fully approves them.

Here are the president’s appointees; National Oil Company Board

Emmanuel Katongole

Katongole, 52, is the current Executive Chair- man, Board of Directors, Quality Chemicals Ltd, he is also the founder company chair- I=J=J@OD=NADKH@ANKB3ANK#KK@&J@QOPNEAO (Uganda) and also the shareholder and director of Tinosoft Ltd, which is a local Uganda IT company.

Katongole won the Africa Business Leadership Award 2012 hosted by the Africa Development Bank, the 2012 Africa Entrepreneurship Award hosted by the Africa Leadership Network and S=O=łJ=HEOPBKNPDA"=OPBNE?="NJOP=J@6KQJC Entrepreneur of the Year 2011 Awards

He holds a Master of Arts Degree in Economic Policy and Planning (MA-EPP) and a Bachelor of Statistics degree both from Makerere

University.

64 The Uganda Chamber of Mines & Petroleum $K@BNAUJ@=I= Francis Twinamatsiko

Currently an operations manager DRACO (U) LTD, Andama worked previously as geologist and Twinamatsiko currently heads the Oil and Gas Taxation LNEJ?EL=HCAKHKCEOP LNKFA?PI=J=CANEJ0EJK*EJAN=HO !EREOEKJ 1=T -KHE?U !AL=NPIAJP *EJEOPNU KB #EJ=J?A Investment Company Ltd, STRATAGEM Ltd, COWI Planning and Economic Development. Consult-Consulting Engineers & Partners NORPLAN (U) Ltd and Ministry of Natural Resources. He has worked in the ministry since May 2000 when DA HABP PDA 2C=J@= QNA=Q KB 0P=PEOPE?O =O = -NKFA?P He has in the past served as a site geologist for Economist. His role includes providing input on Uganda Electricity Board and Geoplan (U) Limited LAPNKHAQI łO?=H NACEIA P=T =@IEJEOPN=PEKJ =J@ PDA and the Principal Geologist- Transaction Advisor for energy policy. He also represents the Ministry on the Divestiture Kilembe Mines Ltd under Serefaco Oil and gas matters such as Task force on petroleum Consultants Limited in Association with JT BOYD of institutional development, Inter ministerial committee USA. KJPDA@ARAHKLIAJPKB)=GAH>ANPEJANAOKQN?AO NAłJANU development, advisory Committee meetings, taxation of Between 1993 and 1995, he secured a Master of petroleum, petroleum revenue policy, petroleum fund Geo-Science at Norwegian University of Science management and negotiations. and Technology (NTNU), 1992 – 1993, a post graduate diploma in Petroleum Exploration and Twinamatsiko holds MSC in Energy Studies Specialising Production, at Norwegian University of Science EJ "JANCU #EJ=J?A BNKI !QJ@AA 2JERANOEPU 0?KPH=J@ and Technology. He got his BSc. (Hons) Geology/ MA in Economic Policy and Planning and BSC degree Chemistry, at Makerere University. with a specialization in Economics from &NAJA-=QHAJA =PAA>A

Since 2009, Bateebe has been a chemical engineer, midstream Petroleum unit, Ministry of Energy and Mineral Development and she was a chemical engineer, Energy for /QN=H1N=JOBKNI=PEKJLNKFA?P>APSAAJ

In 2010, she was part of a study team that was attached PKPDA#KOPAN4DAAHAN"JANCU)P@Ġ#4") LNKFA?PPA=I=O chemical engineer in Reading, UK

0DACKP=J*0?SEPD!EOPEJ?PEKJ EJ/AłJANU@AOECJ=J@ operation (Advanced Chemical Process Design) from The University of Manchester

In 2010, she also got an MSc Mechanical Eng - Sustainable Energy Engineering at Kungligatekniskahögskolan, Sweden (Royal Institute of Technology).

Bateebe got her BSc, Chemical and Process Engineering from University of Dar es Salaam in 2005.

1Q>SEP=$N=?A Francis Nagimesi

Is pursuing a masters in urban Governance and Nagimesi has a BSc.(Hons) degree in Zoology from the Management from UMI, where she also attained a University of East Africa(Makerere), has served as the post graduate diploma in Urban Governance and Sironko LC Chairman and is a member on the Busitema *=J=CAIAJPPK D=O=?ANPEł?=PAEJ2N>=J University Council. Land Management from Kungliga Tekniska högskolan, Sweden and holds a Bachelors in Urban Planning from In 2000, he was the General Manager/CEO Produce Makerere University. Marketing Board and Board Chairman Uganda Coffee Development Authority and previously, the CEO Coffee Marketing Board and Director Uganda Coffee Trade #A@AN=PEKJ =IKJCKPDANO.

The Uganda Chamber of Mines & Petroleum 65 Biwaga Stella Marie poverty through Human Rights resource (MSTCD) Management MS Awareness”. Training Centre for Development Biwaga is currently the program Cooperation, Tanzania, and I=J=CAN=J@IAI>ANKB#A@AN=PEKJ She is pursuing a post graduate one in legal practice form Law KB4KIAJ)=SUANOĠ#&! =J@D=O Diploma in Monitoring and Development Centre and Bachelors SKNGA@ =O HAC=H KBł?AN "PDEKLE= Evaluation at Uganda Management of Law from Makerere University. Women Lawyers Association (2008) Institute, has a Post Graduate =J@ *>=HA LNKFA?P KJ ļ"N=@E?=PEJC Diploma in Governance and Natural

National Petroleum Authority

an MSc. Petroleum Geology -NKB0=J@U0PARAJO1E?GK@NE (Geophysics option) imperial 1KC>K= College of Science andTechnology, London University (1987) and Tickodri, 65, is a former Acting a Diploma, Management of !ALQPU 3E?A D=J?AHHKN Ġ#EJ=J?A Petroleum operations, international and Administration), Makerere programme for petroleum University; founding University management and Administration secretary of Gulu University, (PETRAD), Stavanger, Norway. member of Muni University Council and Victoria University council. He received the Konrad Gerber Award for contributing to the African Tickodri has served as deputy ,EH &J@QOPNU BKN PDA łNOP A@EPEKJ KB chairman Uganda electricity his book, The Story of Petroleum in Board, inaugural chairman of Uganda Exploration in Uganda1984 Uganda Electricity Generation /AQ>AJ(=OD=I>QVE Ģ=*=PPANKB#=EPD Company Ltd,(UEGCL) after UEB was unbundled and is to date, the Kashambuzi, 65, was between 2010 &II=?QH=PA0OAI=J@=+=GEIAN= Executive director and principal and 2012, a Ministry of Energy Chief EJRAOPEC=PKN (&&/ "2 LNKFA?P Technical Advisor for the National Currently, Nakimera, 60, represents currently KIIRA Motors Corporation. Oil and Gas sector, National Oil Africa on the Past Global Changes Company, Petroleum Directorate (PAGES) Steering Committee, a Tickodri also served as a Dean and National Petroleum Authority. body that focuses on paleo-climate Undergraduate Affairs, Makerere research at the international University, Asst. professor and head #NKI DA HA@ = PA=I level. She is has served as Senior KB"JCEJAANEJCI=PDAI=PE?O #=?QHPU of geophysicists and technicians Lecturer, Department of Geology of Technology Makerere University- in extensive and detailed gravity and Petroleum Studies, Makerere 2004-2009, Senior lecturer and and magnetic ground follow up in University and also chaired the head of English Mathematics, the graben collecting crucial data second Biennial Conference of that resulted into promotion of the Makerere University. the Association of African Women country’s oil potential, worked with Geoscientists. World Bank for the IDA Credit, was (ENUKS=(ES=JQG= Assistant expert and full UN expert Between 1979-2004, Nakimera for the UNDP between 19 79 to Kiwanuka, 41, is a former Legal was a geologist at the department 1983. Kashambuzi also served as Associate with Mulira and Co. of Geological Surveys and Mines, geophysicist in Tanzania’s water Advocates, Partner, Kiryowa Entebbe. She has a PhD in Panology department and a geologist at the Kiwanuka & Co. Advocates and from Makerere University and an UN Volunteer Organisation for the currently, a Partner, Kiwanuka and Msc.LaMaitrise Des Sciences de la development of heavy clay industry Karugire Advocates. Terre from the Universite de Droit, in Lesotho in 1976 to 1978. d’Economicet des science, Aix- He has advised on the procurement Kashambuzi secured his Bachelors *=NOAEHHA&&& #N=J?A BKN PDA ?KJPN=?PKN BKN PDA QF=C=HE of Science in Geophysics and LKSAN LNKFA?P =J@ (=NQI= %U@NK Geological science in 1975 at the "HA?PNE?EPU-KSAN-NKFA?P(ES=JQG= University of Vancouver, Canada, =HOK NALNAOAJPA@ HAT=J@AN #KN>AO

66 The Uganda Chamber of Mines & Petroleum in the case involving the sinking DANIDA and EU. She trained in +=KIE)QIQPAJC= of a Ugandan Vessel on L.Victoria; cleaner production technology handled the case for termination for sustainable development and Between 2006-2011, Lumutenga KB >AJAłPO ?KIIAJ?A@ =C=EJOP environment management, Sirim was an advisor to the UN Observer, the now defunct Alliance Air and Berhad, Selongo, Malaysia at the UN Secretariat, New York, its former employees and handled Higher Education Manager at transactions for the purchase She holds a Masters of public Health Maidstone Grammar School KB =EN ?N=BP >U AOOJ= #EJ=J?A Leadership, Ugandan Christian between 1991-2013 and a lay Corporation, Texas and advised on University, an MSc. in Agriculture representative for Canterbury taxation, importation and regulation and a Bachelors in Zoology and Diocese on the General Synod and of aircraft. Botany, Makerere university. member of the board of education She also holds a Post Graduate and board on social responsibility in The Attorney General of Uganda diploma in Management, Uganda the Church of England. has since 2001 retained Kiryowa Management Institute (UMI). to provide litigation and advisory Lumutenga has also served as a services on constitutional matters Peter Lominit OAJEKN =??KQJPO KBł?AN =P +=PEKJ=H and in 2013, Kiwanuka represented Water and Sewerage Corporation Kampala City Council Authority )KIEJEP ?QNNAJPHU=łJ=J?AI=J=CAN (NSWC) and teacher of Economics, (KCCA) on the 2013 KCCA Tribunal. AECOM International, Juba, has Geography and Accounts at worked in several organizations in Nabisunsa Girls School from 1981 !KNAAJ(=>=OEJ@E4=J@AN= South Sudan, Kenya and Uganda’s to 1983. Kabasindi, 50, is the Executive *EJEOPNU KB #EJ=J?A -H=JJEJC J@ Director, Uganda Water and Economic Development and also Advisor for the National Oil and Sanitation NGO Network =J =?PEJC OAJEKN łJ=J?A KBł?AN EJ Gas sector, National Oil Company, (UWASNET). She is a lead the Inland revenue Department. He Petroleum Directorate and National conservationist with specialty in holds a Bachelors of commerce, Petroleum Authority. agriculture enterprise, over ten I=FKNEJC EJ =??KQJP=J?U =J@ years of experience in quality łJ=J?A BNKI *=GANANA 2JERANOEPU assurance , 22 years working (1978-1981), MBA (2011 to 2013, with local governments (Masindi, OOK?E=PEKJ KB ANPEłA@ -Q>HE? Nakasongola), central government Accountants, UK-2001-2004 and and international bodies like institute of Public Accountants of USAID, Water AID, World Bank, Uganda (2010-2011).

The Uganda Chamber of Mines & Petroleum 67 SMEs OPPORTUNITIES ABOUND IN THE PETROLEUM INDUSTRY By Michael Akatwijuka through shareholding in licenses and There are international bodies like the provision of goods and services by American Welding Society (AWS) and According to the 2013, Industrial the country’s entrepreneurs shall be Lloyds Register that certify welders for Baseline Survey (IBS) carried out by some of the key avenues to achieve the key operations. There are two broad Tullow Oil, Total E&P and CNOOC, out desired value creation in the country categories of welding i.e. structural of the total manpower required for the from these investments…” – shows the welding and pipeline welding with each Oil and Gas Industry in Uganda, only government’s desire to see local SMEs requiring different levels and forms of 15% are engineers and managers, 60% take part in the petroleum sector. The PN=EJEJC=J@?ANPEł?=PEKJ being technicians and craftsmen, with world over, it has become pivotal in the unskilled workers anticipated to this day and age, for every country to #KN PDA >QOEJAOO IEJ@A@ 2C=J@=JO account for about 25%. ensure that it captures the commanding LNKREOEKJ KB ?ANPEł?=PEKJ OANRE?AO PK heights of its economy, and thus assist welders could be an area to consider, #QNPDAN NARAH=PEKJO BNKI PDA OQNRAU =NA PK?KJłJAEPOSA=HPDSEPDEJEPO>KN@ANO since there is always continuous training PD=P @QNEJC#EAH@!ARAHKLIAJP=OSAHH EJ=@@EPEKJPKLNKRE@EJCFK>OPKPDAARAN and testing. It is possible that there are =O -ELAHEJA =J@ /AłJANU ?KJOPNQ?PEKJ increasing population. excellent welders in Uganda and all about 2,500 technicians will be they lack is to be tested by a recognized required at peak, whilst the demand for Going by the Industrial Baseline Survey, >K@U BKN ?ANPEł?=PEKJ 1DEO EJ AOOAJ?A craftsmen is estimated to peak at 5,500 an entrepreneur should consider the means that, establishment of welding workers. Most of these technicians and provision of technical and craftsmen inspection units in Uganda that have craftsmen are highly employable in services to the petroleum industry professional authorization to certify on other construction related sectors, in the as one of the most lucrative and behalf of globally recognized bodies, event that their services become surplus participatory areas to engage in, during will be a lucrative area to consider. to requirements in the oil industry. #EAH@ !ARAHKLIAJP =O SAHH =O -ELAHEJA This can be done by partnerships with =J@/AłJANU?KJOPNQ?PEKJ already existing companies in other As the selection process for a contractor parts of the world. PK >QEH@ 2C=J@=O łNOP LAPNKHAQI While the requisite capital to invest NAłJANU JA=NO ?KILHAPEKJ ĠSEPD KJHU skilling Ugandan youth may be raised Pipe cleaning & corrosion detection two bidders left in the pool of selection), locally, the technical know-how is it would be prudent for Ugandans to lacking. This is another micro service associated positions themselves to partake in the with pipeline operations. It requires the opportunities that this survey highlights ANPEłA@SAH@EJCOANRE?AO usage of equipment called “Pigs” that is – seeing that the commencement of the designed to clean accumulated sludge long awaited production phase is nigh. 1DANA?=JJARAN>A=LELAHEJAKNNAłJANU and debris off the inside walls of a pipe, ?KJOPNQ?PEKJ LNKFA?P SDE?D EO @ARKE@ or to monitor the pipe for corrosion Local Content Aspirations of voluminous welding operations. In and leakages. On the entrepreneurship a country like Uganda, where levels side, importation and supply of pigs Local content is about building a of industrialization are still very low, can be one of the opportunities to go domestic workforce that is skilled welding is a profession that gets frowned for, whereas on the intending technical whilst building an equally competitive at, probably because of its current AILHKUAAO OE@A @KEJC ?ANPEł?=PEKJ homegrown supplier base. Section 4 informal nature. Mere ability to hold a trainings in pigging and related areas of the Uganda National Oil and Gas welding gun and produce sparks does could give one an edge. Policy 2008 – “…National participation not necessarily make one a welder.

68 The Uganda Chamber of Mines & Petroleum Field power generation In addition, since the pipeline will go and theft detection as well as simulation through bushy and relatively unsafe technology to the oil and gas sector and It should also be noted that welding areas, the need for the security of the others. requires high voltage electricity and thousands of workers will arise and as since the pipeline will obviously OQ?DOA?QNEPUłNIOEJPDA?KQJPNUD=RA Conclusion traverse areas where the national to match the upcoming opportunities in grid cannot be expected, the use of terms of quality service delivery. In conclusion therefore, the only way to DECD RKHP=CA łAH@ CAJAN=PKNO ?=JJKP >A=L=NPKBPDAQL?KIEJCNAłJANU=J@ >A =RKE@A@ 1DEO IA=JO PD=P ?ANPEłA@ SCADA LELAHEJA LNKFA?PO EO PK BQHHU QJ@ANOP=J@ electrical technicians e.g with world the associated micro operations, so as to ?H=OO RK?=PEKJ=H ?ANPEł?=PEKJO HEGA PDA There are lots of other micro services, GJKSSDE?DOLA?Eł?=NA=PKPN=EJEJ BKN &JPANJ=PEKJ=H 3K?=PEKJ=H .Q=HEł?=PEKJO especially during the operation phase PDA ?=OA KB EJPAJ@EJC FK> OAAGANO =J@ (IVQ) of City and Guilds of UK, will KB PDA NAłJANEAO =J@ LELAHEJAO BKN which area to invest in for the case of be required. The supply of electrical instance Supervisory Control and business minded Ugandans. There are equipment like High Voltage generators Data Acquisition (SCADA) Systems, so many other micro activities during and their maintenance services, High which require technicians, who can such developments, the most pivotal voltage capacitors for power factor DAHL NACQH=PA LNAOOQNA =J@ ŃKS >U thing being, knowing them and how regulation and others will automatically monitoring and controlling pump best to be a part of them, and in so be required. All these and others, are operations and the positions of valves. doing, local content will be converted avenues for investment and training This is a computerized system that into local contentment. BKN PDA >AJAłP KB AJPNALNAJAQNO =J@ ?=J >A P=QCDP #KN PDKOA EJPAJ@EJC PK anticipating direct workers. work as such technicians, there are relatively short trainings that can be Waste management taken advantage of in preparation for The author is the founder of PDA QL?KIEJC NAłJANU =J@ LELAHEJA Association of Petroleum Professionals !QNEJC LELAHEJA =J@ NAłJANEAO LNKFA?PO #KN EJOP=J?A NAH=PA@ PN=EJEJC of Uganda (APPU) and a consultant ?KJOPNQ?PEKJ LNKFA?PO H=NCA RKHQIAO can be done at international training at Wigem Petroleum Ltd (www. of waste in terms of steel particles centers zand consultancies like, “Atmos wigempetroleumltd.com). Email – from grinding activities, pieces of International Limited” that provides leak [email protected] used welding rods for the case of arch welding and many others that can be potentially harmful to the environment, inevitably pile up.This implies that services of professional waste I=J=CAIAJP łNIO SEHH >A KJ @AI=J@ and thus an avenue for investment. The Health, Safety, Security Environment Ġ%00" LNKBAOOEKJ=HO SEHH @AłJEPAHU >A required too. Professional trainings such =OAIANCAJ?UłNOP=E@ NEOG=OOAOOIAJPO defensive driving, environmental awareness and many others will also be KJ@AI=J@#KNOQ?D%00"PN=EJEJCOPK >A=??ALP=>HA PDAPN=EJEJCłNIOKQCDP to not only be professional, but be ?ANPEłA@PKKBBANPDAI=OSAHH&JB=?PBKN those interested in building a career as ?ANPEłA@%A=HPD 0=BAPU=J@"JRENKJIAJP (HSE) practioners, could take advantage of HSE, Production Safety and Emergency Responses courses well in advance.

The Uganda Chamber of Mines & Petroleum 69 Chamber Diamond Members

KDWEz KEddWZ^KE ^dKZ ϭ͘ dƵůůŽǁKŝů>ƚĚ Mr. Conrad Nkutu Oil and gas exploration and production Ϯ͘ EKK Ms. Chai Wei Oil and gas exploration & production ϯ͘dŽƚĂůΘW Mr. Ahlem Friga-Noy Oil and gas exploration & production ϰ͘ ^ĐŚůƵŵďĞƌŐĞƌKŝůĮĞůĚ Mr. Denis Bonifay Oil &gas services ϱ͘ ĂŶŬŽĨĨƌŝĐĂ Ms. Sarah Muhaise Banking 6. ,ŽƵƐŝŶŐ&ŝŶĂŶĐĞĂŶŬ Ms. Judith Owembabazi Banking

Chamber Gold Members KDWEz KEddWZ^KE ^dKZ ϳ͘ &hĂŶŬ Mr. James Mugabi Banking ϴ͘ KƌŝĞŶƚĂŶŬ Mr. Ben Lewis Banking ϵ͘ ,ŝŵĂĞŵĞŶƚ>ƚĚ Mr. Daniel Pettersson Cement Manufacturers ϭϬ͘ ^ƚĂŶďŝĐĂŶŬ Mr. James Karama Banking ϭϭ͘ ^ƚĂŶĚĂƌĚŚĂƌƚĞƌĞĚĂŶŬ Ms. Cynthia Mpanga Banking ϭϮ͘ >ŝŽŶƐƐƵƌĂŶĐĞŽ͘>ƚĚ Mr. Newton Jazire Insurance ϭϯ͘ hŶŝƚĞĚĂŶŬĨŽƌĨƌŝĐĂ;hͿ>ƚĚ Mr. Wibrod Owor Banking ϭϰ͘ ĂƌĐůĂǇƐĂŶŬ Mr. Gibson Nangono Banking ϭϱ͘ ZŽŽĮŶŐƐ'ƌŽƵƉ Mr. Stuart Mwesigwa Steel Manufacturing ϭϲ͘ ĞŶƚĞŶĂƌǇĂŶŬ Mrs. Beatrice Lugalambi Banking ϭϳ͘ ƚĚ Mr. Ali Reza Manufacturing Ϯϭ͘ ^ĞďĂůƵΘ>ƵůĞ Mr. Nicholas Ecimu Law Firm 22. Tibet Hima Mining Co. Ltd-Kilembe Mines Dƌ͘ůĞǆ<ǁĂƚĂŵƉŽƌĂ ŽƉƉĞƌDŝŶŝŶŐ Chamber Silver Members

KDWEz KEddWZ^KE ^dKZ Ϯϯ͘ ŐŝůŝƚǇůŽŐŝƐƟĐƐůƚĚ Mr. Lakshmi Narasimha Logistics Ϯϰ͘ KEZŝƐŬ^ĞƌǀŝĐĞƐ Ms. Caroline Athiyo Insurance & Risk Management Ϯϱ͘ Askar Security Ms. Kellen Kayonga Security Ϯϲ͘ hŵŝŶŝŶŐ>ƚĚ Mr. Moses Masagazi Gold mining Ϯϳ͘ ĞŵƵŐĂ&ŽƌǁĂƌĚĞƌƐ Mr. Ben Mugasha Clearing and Forwarding Ϯϴ͘ d^ĐůĞĂƌŝŶŐΘĨŽƌǁĂƌĚŝŶŐ Ms. Merian Sebunya Clearing and Forwarding Ϯϵ͘'ƌĞĞŶƐƚŽŶĞZĞƐŽƵƌĐĞƐ>ƚĚ Mr. Nimit Patel Gold mining ϯϬ͘ /'hŐĂŶĚĂ>ŝŵŝƚĞĚ Mr. Edward Hire Insurance ϯϭ͘ ŝƟďĂŶŬh>ƚĚ Ms. Magdalene Weya Banking ϯϮ͘ ŝǀŝĐŽŶ>ŝŵŝƚĞĚ Mr. Jason Horsey Mechanical & Civil Engineering Works ϯϯ͘ ĞůŽŝƩĞh>ƚĚ Mr. Tallarovic Matthew Auditors ϯϰ͘ ĂŐůĞůŽŐŝƐƟĐƐƐŽůƵƟŽŶƐůƚĚ Mr. David Walabyeki Customs Clearance, Heavy Equipment Hire ϯϱ͘ ĂƐƚĨƌŝĐĂŶŚĂŝŶƐh>ƚĚ Mr. David Mayanja Dealers in Mechanical Tools ϯϲ͘ KZd'ƌŽƵƉ Mr. Fabrice Rulinda Lifting Services ϯϳ͘ ƉƐŝůŽŶh>ƚĚ Ms. Hellen Nambi Waste Management ϯϴ͘ ƌŶƐƚΘzŽƵŶŐ Mr. Muhammed Ssempija Auditors ϯϵ͘ &ĂƌŵŶŐŝŶĞĞƌŝŶŐ/ŶĚƵƐƚƌŝĞƐ Mr. T. S Padhaal Equipment Supply ϰϬ͘ &ůĞŵŝƐŚŝŶǀ͘>ƚĚ Mr. Bruce Milne Mineral Exploration ϰϭ͘ '^ĞƌǀŝĐĞƐ;hͿ>ƚĚ Mr. Rabih Riad Jaber Catering Services ϰϮ͘ Gold empire ltd Mr. John Muruli Gold Exploration ϰϯ͘ 'ŽŽĚůŝĨĞ;hͿ>ƚĚ Mr. Shem Nnaggenda Training Solutions ϰϰ͘ Gulf Resources Uganda Mr. Henson Mambo Mining

70 The Uganda Chamber of Mines & Petroleum KDWEz KEddWZ^KE ^d/KE ϰϱ͘ ,ĂďŝďKŝů>ƚĚ Mr. Osman Ahmed Noor ϰϲ͘ ,ĂůůŝďƵƌƚŽŶ/ŶƚĞƌŶĂƟŽŶĂů/ŶĐ͘ Mr. Robert Salmon Oil & Gas Services ϰϳ͘ /ŶƐƉĞĐƚĂ/ŶƚĞƌŶĂƟŽŶĂů Mr. William PikeInspection Services ϰϴ͘ /ŶƚĞŐƌĂƚĞĚůŽŐŝƐƟĐƐ Mr. Attila Jonathan Onshore & Offshore Logistics Support ϰϵ͘ <ĂŵƉĂůĂƐƐŽĐŝĂƚĞĚĚǀŽĐĂƚĞƐ Mr. David Mpanga Law Firm ϱϬ͘ <ƌŽŶĞ;hͿ>ƚĚ Mrs. Rose Rugazora Mineral Exploration/ Wolfram ϱϭ͘ D<ƐƐŽĐŝĂƚĞƐ Mr. Denis Kusaasira Law Firm ϱϮ͘ >ůŽǇĚƐƌŝƟƐŚdĞƐƟŶŐ Mr. Andrew Davies Inspection, Training and Assessment ϱϯ͘ DĂƌƐŚhŐĂŶĚĂ>ƚĚ Mr. Paul Mulira Insurance & Risk Management ϱϰ͘ ƐŬĂƌ/ŶǀĞƐƚŵĞŶƚƐ>ƚĚ Mr. Kellen Kayonga Mineral Exploration/Tantalite ϱϱ͘ DƵůƟůŝŶĞƐ/ŶƚĞƌŶĂƟŽŶĂůh>ƚĚ Mr. Gerald Mukyenga Clearing and Forwarding ϱϲ͘ ƐƚŽƌ&ŝŶĂŶĐĞWůĐ>ƚĚ Mr. Gordon Sentiba Micro-Leasing and Financial Services ϱϳ͘ EW<ƌĞƐŽƵƌĐĞƐůƚĚ Mr. Nathan Wanda Mineral Consultancy ϱϴ͘ KůŝŐŽůĚŵƵƌƵůŝůƚĚ Mr. John Muruli Gold Exploration ϱϵ͘ KƌǇǆŵŝŶĞƌĂůƐůƚĚ Mr. Garvin Conway Mineral Exploration ϲϬ͘ KŐĂƐ^ŽůƵƟŽŶƐ Mr. Patrick Danaux Recruitment and Training ϲϭ͘ WƌŝĐĞǁĂƚĞƌŚŽƵƐĞŽŽƉĞƌƐ>ŝŵŝƚĞĚ Mr. Francis Kamulegeya Auditing, Tax and Advisory Services ϲϮ͘ ZŝĐŚŇŽ>ŝŌƐĞƌǀŝĐĞƐ Mr. Richard Magezi Lift Services ϲϯ͘ ^/WD Mr. Henry Magoba Oil and Gas Services ϲϰ͘ ^ĂůŝŶŝŽƐƚƌƵƩŽƌŝ^W Mr. Sergio Pelosini Construction ϲϱ͘ ŽůůŽƌĞĨƌŝĐĂ>ŽŐŝƐƟĐƐ Ms. Monica Kisubi Logistics Service Provider 66. ^ĞĂĨĂƐƚ,ŽůĚŝŶŐƐh>ƚĚ Mr. Michael Majeed Logistics Service Provider ϲϳ͘ ^ĞŵůŝŬŝZŝŌZƌĂĚŝŶŐŽ Mr. Patrick Van Pee Lift Services& Ferries ϲϴ͘ ^ŝŶŽDŝŶĞƌĂůƐ/ŶǀĞƐƚŵĞŶƚƐŽ͘>ƚĚ Ms. Sarah Namara Mineral Exploration ϲϵ͘ Specialized Welding Services Mr. Yvick Robin Welding Services ϳϬ͘ ^ƉĞĚĂŐ/ŶƚĞƌĨƌĞŝŐŚƚh>ƚĚ Mr. Dilip Bhandari Logistics Service Provider ϳϭ͘ ^ƚƌĂƚĞŐŝĐ>ŽŐŝƐƟĐƐ Mr. Paul Sherwen Logistics ϳϮ͘ dĂŵŽŝůĂƐƚĨƌŝĐĂ>ƚĚ Mr. Gamal Bouargob Market &Sale of Crude Oil Products ϳϯ͘ Threeways shipping Mr. Jeff Baitwa Logistics Service Provider ϳϰ͘ dŽǇŽƚĂh>ƚĚ Mr. Dino Romano Bianchi Car Dealers ϳϱ͘ dƌĂŶƐĞĂƐƚ;hͿ>ƚĚ Ms. Sheila H. Graig Transporting ϳϲ͘ hŐĂŶĚĂ/ŶƐƵƌĞƌƐƐƐŽĐŝĂƟŽŶ Mr. Faith Ekudu Insurance ϳϳ͘ hŶŝŽŶ>ŽŐŝƐƟĐƐ Mr. Hitesh Shan Clearing and Forwarding ϳϴ͘ sŝĐƚŽƌŝĂƋƵŝƉŵĞŶƚ>ƚĚ Mr. Peter Sekandi General Machinery ϳϵ͘sŝĐƚŽƌŝĂDŽƚŽƌƐ>ŝŵŝƚĞĚ Mr. Dickson Mwesigwa Car Dealers ϴϬ͘ tŽŽĚŵŽƌĞŶĞƌŐǇŽŶƐƵůƚĂŶĐǇ>ƚĚ Mr. David Kayemba Oil & Gas Downstream ϴϭ͘ ƌŝƟƐŚ,ŝŐŚŽŵŵŝƐƐŝŽŶ Mr. Eric OlanyaDiplomatic Mission ϴϮ͘ DŝŶŝŶŐ͕DŝŶĞƌĂůƐΘDĞƚĂůƐ>ƚĚ Mr. Nari Patel Mining ϴϯ͘ ^ƚĞƌůŝŶŐ'ůŽďĂůKƉĞƌĂƟŽŶƐ͕/ŶĐ Mr. Nobert F. Rugunda Critical Mission Support & Site Restoration Services ϴϰ͘ ĂŶŬŽĨhŐĂŶĚĂ Mzee Juma Binehe Central Bank ϴϱ͘ >Ğƚ͛Ɛ'ŽdƌĂǀĞů Mrs. Joan Kantu Else Tours & Travel ϴϲ͘ ĐŚĞůŝƐhŐĂŶĚĂ>ƚĚ Mr. Hans Georg Hinterberger Equipment Sale & Rental ϴϳ͘ ĨƌŝĐĂĐŽŝŶǀĞƐƚ Dr. Abdullahi Hajji Mining & Energy ϴϴ͘ WĞĂƌůŶŐŝŶĞĞƌŝŶŐŽŵƉĂŶǇ>ŝŵŝƚĞĚ Mr. Gumisiriza Birantana Construction ϴϵ͘ ŶǀŝƌŽƐĞƌǀh>ƚĚ Ms. Jennifer Bangirana Waste Management

The Uganda Chamber of Mines & Petroleum 71 KDWEz KEddWZ^KE ^d/KE ϵϬ͘ 'ŽůĚƐƚĂƌ/ŶƐƵƌĂŶĐĞŽ͘>ƚĚ Mr. Paul Kavuma Insurance ϵϭ͘ hW/ŶƐƵƌĂŶĐĞhŐĂŶĚĂ>ƚĚ Mr. Paul Muhame Insurance ϵϮ͘ hŶŝĨƌĞŝŐŚƚĂƌŐŽ,ĂŶĚůŝŶŐ Ms. Jennifer Mwijukye Cargo Handling ϵϯ͘ &ŝƌƐƚDŝŶŝŶŐŽŵƉĂŶǇ>ƚĚ Mr. Dorde Grujic Mining ϵϰ͘ dŚĞDŝŶĞƌĂů'ƌŽƵƉŽ͘>ƚĚ Mr. Barnabas Taremwa B Mining ϵϱ͘ 'ƌĂƐ^ĂǀŽǇĞhŐĂŶĚĂ/ŶƐƵƌĂŶĐĞƌŽŬĞƌƐ>ƚĚ Mr. Johnny Evans Insurance ϵϲ͘ ^ŝƉĂǆƉůŽƌĂƟŽŶhŐĂŶĚĂ>ƚĚ Ms. Natasha Venus Mining ϵϳ͘ ^ŚĞƌĂƚŽŶ<ĂŵƉĂůĂ,ŽƚĞů Mr. Basil F. Hamadeh Hospitality ϵϴ͘ ĞƚĂWƌŽũĞĐƚƐ>ƚĚ Mr. Nelson Mugenyi Procurement & Consulting ϵϵ͘ dĨƌŝĐĂǆƉůŽƌĂƟŽŶĂůƌŝůůŝŶŐ^ĞƌǀŝĐĞƐ Mr. Ben Vietnieks Exploration Drilling Services ϭϬϬ͘ Tower Resources plc Mr. Rashid Mugabe Oil & Gas Exploration and Production

Airborne Geospatial Data Acquisition, Aerial ϭϬϭ͘ ĞƌŽƉŚŽƚŽ^ǇƐƚĞŵƐŶŐŝŶĞĞƌŝŶŐŽ͘ Mr. Nalukoola Muwanga Photography, Surveying, Mapping

ϭϬϮ͘ ĂƐƚĨƌŝĐĂŶ'ŽůĚ Hon. Richard Kaijuka Mineral Exploration

ϭϬϯ͘ Megha Minerals Mr. Sikander Meghani Mineral Exploration

ϭϬϰ͘ ĂƉŝƚĂů>ĂǁWĂƌƚŶĞƌƐ Mr. Ronald Asiimwe Mitegyeko Law Firm

Construction, Warehousing, Camp Building, Motor ϭϬϱ͘ DŝŶĞƌĂů^ĞƌǀŝĐĞƐ>ƚĚ Mr. Edward Kabuchu Vehicle Support

ϭϬϲ͘ <ĞŶĨƌĞŝŐŚƚ Mr. Amos Dwoka Freight Services

ϭϬϳ͘ sĞůŽƐŝŽƌƉŽƌĂƚĞ^ĞƌǀŝĐĞƐ Mr. Willie Rankin Asset Integrity Management

ϭϬϴ͘ &KDŽƚŽƌƐhŐĂŶĚĂ>ŝŵŝƚĞĚ Ms. Tammy Hein Car Dealers

ϭϬϵ͘ ^ŝŵďĂDŝŶĞƐĂŶĚDŝŶĞƌĂůZĞƐŽƵƌĐĞƐ>ƚĚ Mr. Jonny Sasirwe Mining

ϭϭϬ͘ DĂŶƚƌĂĐhŐĂŶĚĂ>ƚĚ Mr. Simon Manasseh Caterpillar Products

ϭϭϭ͘ dŽƌŽƌŽĞŵĞŶƚ>ŝŵŝƚĞĚ Mr. Gagrani B. M Cement Manufacturers

ϭϭϮ͘ Auranda Minerals Ms. Jennifer Hinton Mineral Exploration

ϭϭϯ͘ dƌĂŶƐĨƌŝĐĂƐƐƵƌĂŶĐĞŽŵƉĂŶǇ>ƚĚ Mr. Kenneth Isiko Insurance

ϭϭϰ͘ >ŝŐŽŵĂƌĐĚǀŽĐĂƚĞƐ Mr. Joshua Ogwal Law Firm Roads, Mining, Consulting, Construction, ϭϭϱ͘ dƌĂŵŝŶĐŽh>ƚĚ Mr. David K Kawooya Earthmoving ϭϭϲ͘ YƵĂŶƚƵŵǆƉƌĞƐƐ>ŽŐŝƐƟĐƐ Mr. George Odeke Freight Forwarding Logistics Services

Chamber Individual Members

EĂŵĞ ^ƉĞĐŝĂůƚǇ

ϭϭϳ͘ Dƌ͘ƌŝĂŶ<ĂŐŐǁĂ Lawyer ϭϭϴ͘ Dƌ͘ĂǀŝĚ<ǇĂŐƵůĂŶǇŝ Mineral Consultant ϭϭϵ͘ Mr. Joshua Tuhumwire Mining ϭϮϬ͘ Mr. Malkit Singh Saini Construction ϭϮϭ͘ Dƌ͘DŝŶĂǌ<ĂƌŵĂůŝ Businessman ϭϮϮ͘ Mr. Rajesh Dewani Construction ϭϮϯ͘ Harald Van Aubel Fabrication ϭϮϰ͘ Mr. Sam Thakkar Accounting ϭϮϱ͘ DƐ͘>ǇĚŝĂĂďŝŶĂŐĂ Procurement and Consultancy

72 The Uganda Chamber of Mines & Petroleum Chamber Members’ Categories

ǁǁǁ͘ƵĐŵƉ͘ƵŐ

ABOUT UCMP

Uganda Chamber of Mines and Petroleum (the Chamber) is a not-for-profit, non-governmental umbrella body representing all aspects of the mining and petroleum sectors in Uganda. It was officially launched by H.E The President of the Republic of Uganda Yoweri Kaguta Museveni together with the South African President H.E Jacob Zuma on 25 March, 2010.

The Mission of the Chamber is, to promote, through the collective action of its members, the growth and development of Uganda's mining and petroleum industries, for the benefit of all Ugandans and investors.

The primary function of the Chamber is to efficiently promote, encourage, protect and foster responsible exploration in the growing mining and petroleum sectors of Uganda to benefit the country and all stakeholders. Other functions include among others;

x Representation of crucial mining and petroleum industry issues to the Government and other relevant bodies on behalf of members. x Dissemination of information about the mining and petroleum industry developments through the Chamber quarterly magazine. x Promoting networking of members.

The Chamber acts as a coordinating and facilitating centre for information and administrative support to prospective and current investors interested in exploiting the exciting opportunities in the mining and petroleum sectors of Uganda.

For more information please contact: Uganda Chamber of Mines and Petroleum

3rd Floor Block A, Amber House Plot 29/33, Kampala Road, Tel: +256 312 516 695, [email protected], www.ucmp.ug

The Uganda Chamber of Mines & Petroleum 73

3rd Floor, Amber House Plot 29/33 Kampala Road P. O. Box 71797 Kampala [email protected] www.ucmp.ug

APPLICATION FORM FOR MEMBERSHIP

To: The Executive Secretary, Uganda Chamber of Mines and Petroleum P.O. Box 71797 Kampala E-mail: [email protected]

I hereby apply for membership of the Uganda Chamber of Mines and Petroleum Company/Organization…………………………………………………………………….. Address:……………………………………………………………………………………. ……………………………………………………………………………………………… Telephone…………………………………………………………………………………... Contact person: …………………………………………………………………………….

Position……………………………………………..Telephone…………………………… E-mail: ……………………………………………………………………………………... Please provide a brief description of your company/investment, its size and its activities. Description......

Signature of Applicant: …………………………….…….… Date: ………………………

Your application will be considered by the Governing Council as soon as possible.

74 The Uganda Chamber of Mines & Petroleum

3rd Mineral Wealth Conference SHERATON HOTEL KAMPALA

ST ND THE REPUBLIC OF UGANDA 1 -2 OCTOBER 2014 MINISTRY OF ENERGY & MINERAL DEVELOPMENT

"Uganda's Transformation: "A New Era in Mining"