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Mining in Uganda A) Examine the Problems Affecting the Mining Industry in Uganda B) What Are the Solutions , Steps and Measures to the Problems Approach

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Mining in Uganda A) Examine the Problems Affecting the Mining Industry in Uganda B) What Are the Solutions , Steps and Measures to the Problems Approach Mining in Uganda a) Examine the problems affecting the mining industry in Uganda b) What are the solutions , steps and measures to the problems Approach . Define mining . Status/situation . Types/ areas . Sketch map with types and areas . Problems (b) Suggesting solutions, steps and measures Mining is the extraction of organic and inorganic substances found in rocks naturally like metallic, none metallic and mineral, fuels. Status/ solutions; I. Contributes from 1.2%-6.3% to GDP II. Negative trend in production since 1999 III. None active mining areas copper in kilembe, tin in kitagate, phosphates,asbestos in Tororo. IV. Small scale mining gold in karamoja, busia V. Large scale mining , limestone in Tororo and Hima VI. Oil still under exploration in Bundibujo VII. Positive trend with sand, clay and quarrying VIII. Cobalt is being recycled at kasese IX. Mining is small scale and contributes less to GDP Types/ areas . Gold Busia, Karamoja, Bushenyi . Tin Ruhama, Kitagate . Oil Semuliki basin around L Albert . Sand,clay at Kajjansi . Copper and cobalt at Kilembe . Salt lake Katwe . Iron ore wolfram, tungstain, Kabala, berrythum, Kisoro plains. A sketch map of Uganda showing mining areas KEY; Co copper w wolfram s salt a apatite Cb cobalt o oil cl clay b berryllium G gold m manganese sa sand l limestone I iron ore m mica u uranium Problems facing mining are physical and human Exhaustion of minerals like wolfram in kabala, tin in kitagate. High cost of mineral exploration like oil around L Albert and gold in karamoja Minerals in small qualities and scattered like iron ore and tin in kabala, gold in Busia, Karamoja Poor quality minerals which are unecommercial like copper in kilembe,iron ore in kabala Poor science and technology affecting exploitation like oil in semuliki valley, gold in karamoja. Limited capital for investment leading to mining on a small scale like copper in kilembe oil in Bundibujo. Price fluctuations on the world market affecting copper mining and cobalt in Kasese. Limited market causing low production like copper in kilembe Limited power supply causing low production like copper in kilembe. Political instabilities scaring labour supply and investors like LRA by Kony hindering mining in karamoja, ADF rebels hindering oil in Bundibujo. Rugged and steep slopes affecting exploitation like copper in kilembe oil in Bundibujo, tin in kabala. Harsh climatic conditions affecting labour productivity like heat in karamoja, coldness in Mt Rwenzori for copper Accidents in the mines destroying people and property like gold mining in Bushenyi. Limited research on mineral exploitation like oil in Bundibujo, gold in karamoja. Poor transport affecting marketing and the movement of workers like gold in karamoja, copper in kilembe. Competition on the world market because of other countries and substitutes like copper and cobalt and with other sector like agriculture. Competition and embezzlement like katwe salt project. Profit repatriation by foreign investors causing capital out flow like Heritage gas for oil in Bundibujo, Hima and Tororo cement companies. Restrictions from environmentalists like cobalt in Rwenzori national park and limestone and sand, clay mining in wetlands of Buganda,Ankole Hostile tribes scaring investors and workers like the karamajong affecting gold mining and oil exploration. Poor government policies like not giving loans gazetting mining areas and beaucracy. Presence of physical obstacles making expensive like hard rocks for copper in kilembe. Solutions to the problems of mining ways of development in Uganda; Economic intergration like the revival of EAC, COMESA,PTA. This will help in joint investment, bargaining power and reduce on unfair competition e.g. phosphates in Tororo by PTA, EAC. Anti smuggling. This is being monitored by Uganda revenue authority. It increases on taxation and environmental protection, protectionism. Economic diversification. Developing other economic activities to reduce on problems of economic dependence like price fractuations, unemployment, BOP, T.O.T. it supplements other activities like tourism, agriculture, and fishing. Political stability through regional cooperation like EAC, OAU, internal defense, good governance (constitution). This help in attracting local and foreign investors and limit expenditure on defense, develop infrastructure. Development of transport by constructing railway lines and using water transport because minerals are bulk and heavy they need cheap means of transport like port bell connecting to dar-es-salam,kasese railway line. Attracting foreign investors by giving them subsides. This will lead to capital in flow skilled labour as being done by Uganda investment authority, ministry of finance for example cormens, cobalt, Kasese, Belgians oil L Albert, south Africa, gold Karamoja. Market research through advertisement on radios, news papers, magazines, trade shows (local and foreign international relations, economic integration, presidents office, economic monitoring. Ropession of goods to former owners this has helped in attracting investors, good management and increase in industrial production. Power supply through dam extension like kiira dam and nalubale dam to reduce load shading, developing other potentials like Bujagali falls, kabalega falls, kamudini kitagate, maziba. Developing industries. Industries help in processing minerals for easy exploitation, exportation and minerals are used as raw materials in industries adding on market. Getting loans from development agencies to solve the problem of capital because development agencies give long term loans, charge small interest. The capital is used in purchasing equipment developing infrastructure paying labour like ADB, EADB. Promotion of research in mineral exploration, the quantity, quality depth uses location. This will help in exploitation marketing like gold in karamoja, oil near L Albert. Rehabilitation of mining areas by developing social services like roads, pipeline, power supply drainage for cobalt mining in Kasese by Germans Privatization and liberalization of the mining operations. They help in attracting local and foreign investors with better management leading to increase in production for example, Tororo cement and Hima cement. Formation of agencies to help traders, industrialists, exporters, importers, investors like UIA, URA, UCCI, and UMA. They help in monitoring, mediating with government. They supplement government efforts. Giving initial capitalization fund (entadikwa) to small scale miners, traders because they don’t have security for loans for commercial banks and development agencies. They also use micro finance projects like pride Africa. These are being monitored by ministry of finance. Coordination of government programmes, policies. This will help in resource exploitation for development purposes and environmental protection. Training skilled labour by developing science and technology like MUST,UPK. They will provide skilled labour like engineers, technicians, surveyors. Getting areas with mineral, resources to reduce on excessive exploitation like sand and clay in wetlands. Protection of the infant industries to reduce on unfair competition like importation of some commodities for example cement from Kenya, bambuli Portland, Dar-es-salam. Revision questions; Qn. Asses the contribution of the mining sector to the economy of Uganda Approach; Define mining Status/ situation Types/ areas Sketch map for types and areas Advantages Disadvantages Conclusion Mining is the extraction of earth resources like metallic, non metallic and mineral, fuels which are organic and inorganic substances found in the earth crust naturally. Status / situation . Contributes 6% to GDP . Negative trend in production since 1999 . Active mining in limestone, sand, clay and gold. Closed mines of phosphates, asbestos, tin, iron ore, copper . Exploration of oil in bundibujo . Small scale mining of gold, tungsten, wolfram, iron ore. Mining companies, foreign. Types / areas . Kasese region with copper, cobalt, salt, limestone. Tororo region asbestos, phosphates, limestone . Kigezi highlands tungsten, wolfram, tin, iron ore, volcanic ash . L Victoria basin Buganda region, clay, sand at Kasenyi, shares of L Victoria. Karamoja region gold, oil, lead, zinc, berythum, iron ore. Gold mines in Busia, Ibanda, Bushenyi, Ibanda . L Albert region oil, tin in Ruhama, Kitagate, Kabale. A sketch map of Uganda showing mining areas. KEY C copper t tungsten l limestone Cb cobalt w wolfram a asbestos S salt I iron ore g gold Sa sand v volcanic ash m mica Cl clay p phosphate m manganese o oil Mining has advantages and disadvantages in Uganda’s development Advantages; Development of industries sand, clay for Uganda clays Kajjansi, limestone, cryspum for cement in Tororo and Hima. Foreign exchange by exporting cobalt,tungsten, wolfram, to china, USA, Japan. Employment for high standards of living like Kilembe mines, Tororo, Sukulu hills. Development of towns because of high population and industries like Kasese due to copper Kajjansi clay and sand. Improvement in social services like Mubuku power plant near Kilembe mines. Improvement in transport like a railway to Kasese for copper exploitation and to Hima and Tororo for limestone International relations with importing countries like Japan, Britain, USA, importing gold, cobalt. Economic diversification by influencing other activities like transport, trade, tourism, industralisation like Kasese, Tororo
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