Caution After Mineral Exports' Ban Is Lifted

www.ucmp.ug The Uganda Chamber of MINESMINES && PETROLEUMPETROLEUM Issue: 14 MWC2015 Edition September, 2015

MORE INVESTMENTS EXPECTED AFTER TAX WAIVERS CAUTION AFTER MINERAL EXPORTS’ BAN IS LIFTED

MINING RESUMES AT KILEMBE

COST CUTTING CHINA MINING TO CONTINUE GIANT EYES - PWC UGANDA

Private Sector Seeks More Participation in EAC projects Plot 11/13 Lower Kololo Terrace Fax: +256 (0) 312 229 234/5 Website: www.aon.com

2 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, Adewale Fayemi, Chairman COUNCIL

Partner – Kampala General Manager, Total E&P, Associated Advocates and Uganda Chairman dfcu bank, Nile Breweries, BAT and other companies

Hon Richard Kaijuka, Kellen Kayonga, Vice Chairman COUNCIL

Chairman, EA Gold & Africa Managing Director, of Askar Gold Reﬁnery Security Services

Paul Sherwen Jimmy Mugerwa, General Secretary COUNCIL

Tullow, Uganda Country 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 Sentiba Herman Kasekende ADVISOR ADVISOR

Astor Finance Plc Standard Chartered Bank, Managing Director

Joshua Tuhumwire ADVISOR

Mining consultant, Gondwana Geoscience Denis Kusaasira, Consulting Ltd. Also former ADVISOR Commissioner of the Uganda Department of ABMAK Geological Survey & Mines Managing Partner

Igor Markov ADVISOR

Semliki Rift Trading

Sam Thakkar, ADVISOR

A. H. Thakkar & Sons Gerald Mukyenga ADVISOR

Multilines International

Daniel Pettersson, ADVISOR

Hima Cement, Country Manager

The Uganda Chamber of Mines & Petroleum 5 6

The UgandaChamber ofMines&Petroleum Chairman’s Note W s T I e t Thi i The UCMPwas ( i The Headsof c F w numerous roads thatare beingconstructedacross thecountry. Thisinfrastructure w We ofUganda’s applaudtheGovernment focusoninfrastructuraldevelopment ( t I N i The doorshaveindeedbeenswun f r e Y Mines andPetroleum (UCMP) buteveryoneintheindustryandcountryatlar This developmentisveryexcitingfornotonlymembersoftheUganda o O sector forthenexttwoyears-fillsuswith I In addition,President Museveni’s recent appointmentoftheUCM n or mplementation of14majorprojectsCorridorInte undertheNorthern n un t n fact,come nvestors N MW r his ma o comeandattendourfla eviewin ven eas rude oilex xp ou mayreca urt urselves andtheEastAfricanpeopletoreap thebenefitsofth i ature blesseduswith. ur challengeastheU ill takeU ith atleastfourbi en h C s wast an l IP h orat dly wung wideope g C) he doorshave been ermore, t l k anizin oc ) framework. you. inabigway, becauseUganda’s miningsectorisnowreawakened.

g f i g ki or on; t nitude. Theinvolvementoftheprivatesectorinsuchdeliberationsmakesit i had frustratedthesectorfor M hen heliftedthebanonmineralexportsrecently, President Yoweri thelawsandre er an R ng h g i oun useven g e nvestors. anda eversoclosertoextensivebeneficiationintheminin p thefirstre ort h fi U O ll h e wa rst t d d t gan e agreement ctober 1st&2nd,weareminingcommunity askingtheinternational S

g f h T aster to tate intheregion are doingafantasticjobinfast-trackingthe i reatly honored, whenwewere askedustoleadtheprivatesecto at recent a p i i me t d remove bl i eline iscommendable. ver was a g e -toc ’ hydro powerplantscomin s m g h C at ional forumanddinnerontheN h i MP andthebusinesscommunityin g n armon l b d y w ulations onminin g i h ng potent g us ac b ship interactiveforum,theMineralWealth Conference amp rante y t i h ness matterswere g en weas h l og i ze i e government o e government on t d g . i wideopentowelcomeanyinvestorinterested b n t M h est pract q i a e commerc ore part uite sometime. h l

e i n anyo k g d e reat pride. eve d g t tomakethele i i h ces cu l opment o e government toremovee government taxeson f l f g

ar i a U a upsimultaneouslybesidesth i i n t l gan ven prece l asp y wet b out 50m h e reg d C i rat a an IP initiativeinJune,2015. f t h i an h on i on. e m d g MP t d k s ofUganda’s mining t al re n e ese great i ence atasumm t P tothePresidential i general h nera of UgUga h at o i n e o i ng g g g gand l ime trulyuser he Pr f ration Projects s t g overnment overnment

andan K sector. i n C enya ont Preside h d is toready d initiatives. hamber o at a ustry t s M m ot i t o h h g f h or er at e. g e e 161 - r f f

contents Tax waivers to make 15Uganda more competitive 18 New Life in Mining Industry, Amidst Caution

27 . China Private Sector Seeks more mining giant 22eyes Uganda participation in EAC projects

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.

The Uganda Chamber of Mines & Petroleum 7 31

Summit Makes Case for Business

‘‘Uganda oil developments need 35to pick up pace’’

Pipeline Zakhem will support route to Uganda’s local guide oil content aspirations 38ﬁrms’ FIDs 42

47. Business44 Growth Is Top Environmental concerns as Govt Priority – Rugunda Uganda shortlists 16 oil ﬁrms

8 The Uganda Chamber of Mines & Petroleum The Uganda Chamber of Mines & Petroleum 9 MWC2015 I sectors. Theworkshopwillbe sponsored bytheAfrican building session,opentoboth theprivateandpublic AON Ugandawillholdapre-conference oneweekcapacity This yeartheUCMP, inassociationwithENSAfricaand per annum. real Gross DomesticProduct (GDP)growth rateof8.2% economy intoamiddleincomecountrywithanaverage 2 (NDPII)whichisprojected totransformthecountry’s Uganda’s 2040andtheNational DevelopmentPlan Vision to Development”,theMWC2015isorganizedinlinewith Held underthetheme“MineralsValue Addition–Road practices from visitingdelegates. thebest have becomeimportantplatformstolearn addition toUganda’s minerals,thesenetworking sessions President YoweriWith KagutaMusevenibackingvalue serious localplayers. sector, butto alsocreate jointventure partnershipswith mining majorstoinvestinUganda’s promising mining The primaryobjectiveoftheMWCistonotonlyencourage countries. DRC, SouthSudan,NigeriaandKenyaamongstother regional playerslikeTanzania, Ghana,Zambia,Botswana, Canada, Australia,China,SouthAfrica,andUSA delegatesfrom400 international miningmajorssuchas Every October, theconference welcomesmore than forefront ofadvancingmineraldevelopmentinUganda. Petroleum, theMineralWealth Conference (MWC)isatthe Organized bytheUgandaChamberofMinesand carried out. uncharted aslargescaleexplorationhasnotyetbeen 10 However, Uganda’s mineralsectorremains largely cannot beignored. the potentialforaﬂourishingminingindustryinUganda nickel, platinumandphosphateamongstmanyothers gold, iron ore, vermiculite,tin,tantalite,tungsten, n acountrythatisblessedwithdepositsofcopper, MWC2015 backsUganda’s Vision2040 dream The UgandaChamber ofMines&Petroleum Steel giantRooﬁngs’iskeenon MINISTRY OFENERGY&MINERALDEVELOPMENT adding valuetoUganda’siron of thecountryandregion. and economictransformation mineral resourcesforsocial mineral sectorandutilizethe investment inUganda’s Overall Objective: To attract ABOUT MWC2015: 1st -2ndOctober2015SheratonKampalaHotel THE REPUBLICOFUGANDA Partners: Bronze Sponsors Sub Theme:"MineralstoSpurDevelopment" Theme: "MineralsValueAddition-“Roadto MINISTRY OFFOREIGNAFFAIRS THE REPUBLICOFUGANDA ore MINERAL WEALTH CONFERENCE 2015 CALL: 0393-516695,http://mwc2015.ucmp.ug/ E-Mail:[email protected]; [email protected], E-Mail: [email protected],[email protected] Mr. UwimanaYves, Tel: +256-793201178,+256-752178. E-Mail: [email protected];[email protected] Mr. RonaldAyebare onTel: +256-794515802. sponsor orexhibitoratMWC2015/GeneralRegistrationcontact CONTACT USTODAY: To registerasadelegate,speaker, Development" Silver Sponsors to organizethisevent,”says it wouldn’t havebeenpossible and sponsorswithoutwhom specially thankourpartners “Once againwewouldliketo and Krone Uganda. United BankforAfrica(UBA) Energy, Tororo Cement, Chartered Bank,Swala Uganda, ENSAfrica,Standard Bank, HimaCement,AON Facility (DGF),Stanbic the DemocraticGovernance Construction, International The sponsorsincludeZakhem Support Facility. Consultancy andAfricanLegal 4Africa Win Network, Win Foreign Affairs, AfricaMining Development, Ministryof Ministry ofEnergyandMineral in partnershipwiththe The MWC2015isorganised Development Bank. UCMP CEO. Irene IvyNakalyango, the www.ucmp.ug Other Sponsors Gold Sponsors MWC2015

MWC2015MWC2015 Assorted Speakers at MWC2015

ƐŚĂƐŽŌĞŶďĞĞŶƚŚĞĐĂƐĞ͕ƚŚĞ ƉůĂŶƚĂƚsĂƐŝŶĚŶĞĂƌDƵŵďĂŝ͘/ƚƐŐůŽďĂů ƚŚŝƐƉŽƐŝƟŽŶ͕ŚĞǁĂƐĂWŽůŝĐǇKĸĐĞƌ DŝŶĞƌĂůtĞĂůƚŚŽŶĨĞƌĞŶĐĞǁŝůů ŽƉĞƌĂƟŽŶƐŝŶĐůƵĚĞĂƉůĂƚĞĂŶĚƉŝƉĞŵŝůů ĨŽƌ/ŶĚƵƐƚƌǇŝŶƚŚĞƐĂŵĞĞƉĂƌƚŵĞŶƚ͕ ŚĂǀĞŶƵŵĞƌŽƵƐƐƉĞĂŬĞƌƐĨƌŽŵ ŝŶƚŚĞh^͘/ŶŽƌĚĞƌƚŽƐĞĐƵƌŝƟǌĞƌĞƐŽƵƌĐĞƐ͕ ƉƌŽŵŽƟŶŐƚŚĞĨƌŝĐĂ͛ƐŝŶĚƵƐƚƌŝĂůŝǌĂƟŽŶ A ƚŚĞĐŽŵƉĂŶǇŚĂƐĂĐƋƵŝƌĞĚŵŝŶŝŶŐĂƐƐĞƚƐ ĚŝǀĞƌƐĞďĂĐŬŐƌŽƵŶĚƐĂĐƌŽƐƐƚŚĞǁŽƌůĚ͖Ă ĂŶĚďĞƩĞƌŵĂŶĂŐĞŵĞŶƚŽĨƚŚĞ ĨĂĐƚŽƌƚŚĂƚŚĂƐĂůǁĂǇƐŐƵĂƌĂŶƚĞĞĚůŝǀĞůǇ ŝŶŚŝůĞ͕h^ĂŶĚDŽǌĂŵďŝƋƵĞ͘ ĐŽŶƟŶĞŶƚ͛ƐŵŝŶĞƌĂůƌĞƐŽƵƌĐĞƐƚŚƌŽƵŐŚ ĚĞďĂƚĞƐĂŶĚŝŶǀĂůƵĂďůĞůĞĂƌŶŝŶŐ͘ Maureen ƚŚĞŝŵƉůĞŵĞŶƚĂƟŽŶŽĨƚŚĞĨƌŝĐĂDŝŶŝŶŐ :ĂŶŐƵůŽ sŝƐŝŽŶ͘ƌ͘^ƵŵĂŚŽůĚƐĂ͘^Đ͘ĞŐƌĞĞ 'ŝǀŝŶŐƚŚĞ Dlamini, CEO, ŝŶĐŽŶŽŵŝĐƐĨƌŽŵƚŚĞhŶŝǀĞƌƐŝƚǇŽĨ ŬĞǇŶŽƚĞ ŚĂŵďĞƌŽĨ ^ŝĞƌƌĂ>ĞŽŶĞ͕ĂWŽƐƚ'ƌĂĚƵĂƚĞŝƉůŽŵĂŝŶ ĂĚĚƌĞƐƐŽŶĂǇ DŝŶĞƐŽĨ /ŶƚĞƌŶĂƟŽŶĂůĐŽŶŽŵŝĐƐĨƌŽŵƚŚĞ:ŽŚŶƐ ϭǁŝůůďĞDr. ĂŵďŝĂ͕ǁŝůů ,ŽƉŬŝŶƐhŶŝǀĞƌƐŝƚǇ͕^ĐŚŽŽůŽĨĚǀĂŶĐĞĚ Zwelini ĂůƐŽŵĂŬĞĂ /ŶƚĞƌŶĂƟŽŶĂů^ƚƵĚŝĞƐ;^/^Ϳ͕ĂŶDŝŶ Mkhize, ƉƌĞƐĞŶƚĂƟŽŶ͘ /ŶƚĞƌŶĂƟŽŶĂů^ƚƵĚŝĞƐĨƌŽŵƚŚĞŝƉůŽŵĂƟĐ Treasurer DƐůĂŵŝŶŝ͕ŝƐĂ ĐĂĚĞŵǇŝŶsŝĞŶŶĂĂŶĚhŶŝǀĞƌƐŝƚǇ General, Maureen Jangulo Dlamini ŚŝŐŚůǇ ŽĨsŝĞŶŶĂ͕ĂŶDWŝŶ/ŶƚĞƌŶĂƟŽŶĂů ĞǀĞůŽƉŵĞŶƚĨƌŽŵƚŚĞhŶŝǀĞƌƐŝƚǇzŽƌŬ͕ African ĞǆƉĞƌŝĞŶĐĞĚ͕ Dr. Zwelini Mkhize KƉĞƌĂƟŽŶƐǆĞĐƵƟǀĞǁŚŽŚĂƐ ĂŶĚĂWŚ͘ŝŶZĞŐŝŽŶĂůĐŽŶŽŵŝĐƐĂŶĚ EĂƟŽŶĂů ĞǀĞůŽƉŵĞŶƚĨƌŽŵƚŚĞsŝĞŶŶĂhŶŝǀĞƌƐŝƚǇ ŽŶŐƌĞƐƐ;EͿ͘ƌDŬŚŝǌĞŝƐĂůƐŽƚŚĞ ĚĞŵŽŶƐƚƌĂƚĞĚƚŚĞĂďŝůŝƚǇƚŽůĞĂĚĚŝǀĞƌƐĞ ƚĞĂŵƐŽĨƉƌŽĨĞƐƐŝŽŶĂůƐƐƵĐĐĞƐƐĨƵůůǇŝŶ ŽĨĐŽŶŽŵŝĐƐĂŶĚƵƐŝŶĞƐƐ͘ ĨŽƌŵĞƌWƌĞŵŝĞƌŽĨ<ǁĂƵůƵͲEĂƚĂů͘ ŚŝŐŚůǇĐŽŵƉĞƟƟǀĞ͕ĨĂƐƚƉĂĐĞĚŵĂƌŬĞƚƐ͘ ^ƚĞƉŚĞŶdƵƌǇĂŚŝŬĂǇŽ͕ĂŵŝŶĞƌĂů ,ŝƐĐŽƵŶƚĞƌƉĂƌƚ͕Ms Jean Chawapiwa, the tŝƚŚŽǀĞƌϭϬǇĞĂƌƐŝŶƚŚĞĮŶĂŶĐŝĂů ĐĞƌƟĮĐĂƟŽŶĞǆƉĞƌƚĂŶĚĐƵƌƌĞŶƚůǇ ĨŽƵŶĚĞƌĂŶĚDĂŶĂŐŝŶŐŝƌĞĐƚŽƌŽĨtŝŶͲ ƐĞƌǀŝĐĞƐƐĞĐƚŽƌĂƚǆĞĐƵƟǀĞůĞǀĞů͕ƐŚĞŚĂƐ ĐŽŽƌĚŝŶĂƟŶŐƐƵƉƉŽƌƚĨŽƌŵŝŶĞƌĂů tŝŶ^ŽůƵƟŽŶƐϰĨƌŝĐĂŽŶƐƵůƚĂŶĐǇĨƌŽŵ ĂĐƋƵŝƌĞĚǀĂƐƚƚĞĐŚŶŝĐĂůĂŶĚďƵƐŝŶĞƐƐ ĐĞƌƟĮĐĂƟŽŶŝŵƉůĞŵĞŶƚĂƟŽŶŝŶĮǀĞ ĞǆƉĞƌŝĞŶĐĞŝŶƐƚƌĂƚĞŐŝĐƉůĂŶŶŝŶŐ͕ďƵƐŝŶĞƐƐ :ŽŚĂŶŶĞƐďƵƌŐ͕ŝƐĂůƐŽƐĐŚĞĚƵůĞĚƚŽƐƉĞĂŬ ĐŽƵŶƚƌŝĞƐŝŶƚŚĞ'ƌĞĂƚ>ĂŬĞƐZĞŐŝŽŶ͕ǁŝůů ƵŶŝƚĚĞǀĞůŽƉŵĞŶƚĂŶĚƉƌŽĚƵĐƚĂŶĚƉƌŽũĞĐƚ ŽŶƚŚĞƐĂŵĞĚĂǇ͘ ƐƉĞĂŬĂďŽƵƚƚŚĞƐĞŶƐŝƟǀĞƚŽƉŝĐŽĨŵŝŶĞƌĂů ŵĂŶĂŐĞŵĞŶƚ͘ŶĞǆĐĞůůĞŶƚĐŽŵŵƵŶŝĐĂƚŽƌ͕ ĐĞƌƟĮĐĂƟŽŶ͘ WƌĞƐĞŶƟŶŐĂ ŚĞƌǁŽƌŬĞǆƉĞƌŝĞŶĐĞŝŶĐůƵĚĞƐďĞŝŶŐŚŝĞĨ ƉĂƉĞƌƟƚůĞĚ ǆĞĐƵƟǀĞKĸĐĞƌŽĨĂŵďĞǌŝŝƌůŝŶĞƐ͕ ^ŽŵĞŽĨƚŚĞŽƚŚĞƌƐƉĞĂŬĞƌƐŝŶĐůƵĚĞ͗ “WŽƚĞŶƟĂůĨŽƌ ^ĞŶŝŽƌ'ĞŶĞƌĂůDĂŶĂŐĞƌ/ŶǀĞƐƚŽƌ ĚƵĐĂƟŽŶĂƚƚŚĞ:ŽŚĂŶŶĞƐďƵƌŐ^ƚŽĐŬ x DĞůŽĚǇ<ǁĞďĂͲWƌĞƐŝĚĞŶƚͲ^ŽƵƚŚĨƌŝĐĂ ĐŽŶŽŵŝĐdƌĂŶƐ tŽŵĞŶŝŶDŝŶŝŶŐ ĨŽƌŵĂƟŽŶ ǆĐŚĂŶŐĞ͕ĂŶĚǆĞĐƵƟǀĞ,ĞĂĚŽĨƚŚĞ ƚŚŽƌŽƵŐŚ ĨƌŝĐĂŽĂƌĚĂƚƚŚĞ:ŽŚĂŶŶĞƐďƵƌŐ^ƚŽĐŬ x KƚƐŝůĞDĂƚůŽƵͲŝƌĞĐƚŽƌDŝŶŝŶŐE^ DŝŶĞƌĂů ǆĐŚĂŶŐĞ͕ǆĞĐƵƟǀĞ,ĞĂĚŽĨŽƌƉŽƌĂƚĞ ĨƌŝĐĂ īĂŝƌƐĂƚ>ŝŽŶKĨĨƌŝĐĂ/ŶƐƵƌĂŶĐĞ tĞĂůƚŚ͟ǁŝůůďĞ x >ǇŶĚĂƵƌŶĞƩͲDĂŶĂŐŝŶŐŝƌĞĐƚŽƌͲ^ŝƉĂ ŽŵƉĂŶǇŝŶ:ŽŚĂŶŶĞƐďƵƌŐ^ŽƵƚŚĨƌŝĐĂ͘ Dƌ͘ĚŝĞů ǆƉůŽƌĂƟŽŶhŐĂŶĚĂ Mr. Adiel Gitari Gitari, the ^ŚĞƐŝƚƐŽŶƚŚĞŽĂƌĚƐŽĨWƌŽŇŝŐŚƚĂŵďŝĂ Chairman, ĂŶĚEǇŝŽŵďŽ/ŶǀƐƚŵĞŶƚƐ>ŝŵŝƚĞĚĂŶĚŚĂƐ x DƐ͘:ĞŶŶŝĨĞƌ,ŝŶƚŽŶͲŝƌĞĐƚŽƌƵƌĂŶĚĂ <ĞŶǇĂŚĂŵďĞƌŽĨDŝŶĞƐ;<DͿĂŶĚ ƌĞĐĞŶƚůǇďĞĞŶĂƉƉŽŝŶƚĞĚĞƉƵƚǇŚĂŝƌĨŽƌ DŝŶĞƌĂůƐ ŝƌĞĐƚŽƌ͕^ƚŽƵƚDŝŶŵĞƚĂůƐ>ƚĚ͕ĂŵŝŶĞƌĂůƐ ƚŚĞhŶŝǀĞƌƐŝƚǇŽĨĂŵďŝĂ͕^ĐŚŽŽůŽĨDŝŶĞƐ͕ x WƌŽĨ͘,ĂŶǇĞƐĂĚĂͲZĞŐŝŽŶĂůĚǀŝƐŽƌͲ ĚǀŝƐŽƌǇŽĂƌĚ͘ ĞǆƉůŽƌĂƟŽŶĂŶĚŵŝŶŝŶŐĐŽŵƉĂŶǇ͘Dƌ ĨƌŝĐĂŶDŝŶĞƌĂůƐĞǀĞůŽƉŵĞŶƚĞŶƚƌĞ 'ŝƚĂƌŝŚĂƐďĞĞŶĂƚƚŚĞŚĞůŵŽĨ<DĨŽƌƚŚĞ ;DͿͲ^ƉĞĐŝĂů/ŶŝƟĂƟǀĞƐŝǀŝƐŝŽŶ ůĂƐƚĮǀĞǇĞĂƌƐ͘ ƌ͘ĂƵĚĂ ;^/ͿͲhŶŝƚĞĚEĂƟŽŶƐĐŽŶŽŵŝĐ Dƌ͘E͘D͘WĂƚŶĂŝŬ͕DΘKĂƚĚŝƚǇĂ &ŽĚĂǇ^ƵŵĂ͛Ɛ ŽŵŵŝƐƐŝŽŶĨŽƌĨƌŝĐĂ;hEͿ ŝƌůĂDŝŶĞƌĂůƐ>ƚĚ;ĂƐƵďƐŝĚŝĂƌǇŽĨ ƚŽƉŝĐŽĨ x ůŝǌĂďĞƚŚ^ĂŐĂǇͲZĞůĂƟŽŶƐŚŝƉŝƌĞĐƚŽƌ͕ ,ŝŶĚĂůĐŽ/ŶĚƵƐƚƌŝĞƐͿǁŝůůŵĂŬĞƚŚĞŬĞǇŶŽƚĞ ĚŝƐĐƵƐƐŝŽŶŝƐ Kŝů^ĞƌǀŝĐĞƐΘ>ŽĐĂůŽŶƚĞŶƚͲŶĞƌŐǇ ƉƌĞƐĞŶƚĂƟŽŶŽŶKĐƚŽďĞƌϮ͕ϮϬϭϱ͘ ĂůƐŽƚŚĞ ĂŶŬhW> ůƐŽĨƌŽŵ/ŶĚŝĂ͕DƌDĂŶŽũZĂƐƚŽŐŝ͕ DtϮϬϭϱ ƚŚĞŵĞ x DƵǇŝǁĂŬŝŶǇĞŵŝͲ,ĞĂĚ͕ŽƌƉŽƌĂƚĞ sŝĐĞWƌĞƐŝĚĞŶƚŽǀĞƌƐĞĂƐďƵƐŝŶĞƐƐ ͞DŝŶĞƌĂůƐsĂůƵĞ ĂŶŬŝŶŐ͕hĨƌŝĐĂ^ƵďƐŝĚŝĂƌŝĞƐ ĚĞǀĞůŽƉŵĞŶƚ:^t͕ǁŝůůďĞƐƉĞĂŬŝŶŐŽŶ ĚĚŝƟŽŶͲZŽĂĚ x Dƌ͘ŶƚŚŽŶǇEĚĞŐǁĂͲ^ƚĂŶĚĂƌĚĂŶŬ ĂǇϮŽĨƚŚĞDtϮϬϭϱ͘ ƚŽ Dr. Dauda Suma x ĂĐŚĂƌǇĂŐƵŵĂͲŐ͘ƐƐŝƐƚĂŶƚ ĞǀĞůŽƉŵĞŶƚ͘͟ :^t^ƚĞĞůŝƐƚŚĞůĞĂĚŝŶŐƐƚĞĞůƉƌŽĚƵĐĞƌ ŽŵŵŝƐƐŝŽŶĞƌ'ĞŽůŽŐǇͲŝƌĞĐƚŽƌĂƚĞŽĨ ŝŶ/ŶĚŝĂ͛ƐƉƌŝǀĂƚĞƐĞĐƚŽƌĂŶĚĂŵŽŶŐƚŚĞ ƌ^ƵŵĂŝƐĂŶ/ŶƚĞƌŶĂƟŽŶĂůĞǀĞůŽƉŵĞŶƚ WƌŽĨĞƐƐŝŽŶĂůǁŝƚŚƐƉĞĐŝĂůĞǆƉĞƌƟƐĞŽŶ 'ĞŽůŽŐŝĐĂů^ƵƌǀĞǇΘDŝŶĞƐ ǁŽƌůĚ͛ƐŵŽƐƚŝůůƵƐƚƌŝŽƵƐƐƚĞĞůĐŽŵƉĂŶŝĞƐ͘ dƌĂĚĞĂŶĚ/ŶĚƵƐƚƌŝĂůĞǀĞůŽƉŵĞŶƚ/ƐƐƵĞƐ͘ x ŶĚŽƚŚĞƌƐĨƌŽŵƌŶƐƚΘzŽƵŶŐ͕,ŝŵĂ dŚĞŐůŽďĂůĐŽŶŐůŽŵĞƌĂƚĞƐƉƌĞĂĚŽǀĞƌƐŝǆ ^ŝŶĐĞϮϬϬϳ͕ŚĞŚĂƐďĞĞŶǁŽƌŬŝŶŐĂƚƚŚĞ ĞŵĞŶƚĞƚĐ ůŽĐĂƟŽŶƐŝŶ/ŶĚŝĂ͕ǁŝƚŚĂĨŽŽƚƉƌŝŶƚƚŚĂƚ ĞƉĂƌƚŵĞŶƚŽĨdƌĂĚĞĂŶĚ/ŶĚƵƐƚƌǇŽĨƚŚĞ &ƌŽŵƚŚĞKŝůΘ'ĂƐ^ĞŐŵĞŶƚ͗ ĞǆƚĞŶĚƐƚŽƚŚĞh^͕^ŽƵƚŚŵĞƌŝĐĂĂŶĚ ĨƌŝĐĂŶhŶŝŽŶŽŵŵŝƐƐŝŽŶŝŶĚĚŝƐďĂďĂ͘ ĨƌŝĐĂŚĂƐĂŶĞƚǁŽƌƚŚŽĨĂďŽƵƚΨϵďŝůůŝŽŶ͘ ,ĞŝƐĐƵƌƌĞŶƚůǇĂ^ĞŶŝŽƌdƌĂĚĞKĸĐĞƌŝŶ x ZĞƉƌĞƐĞŶƚĂƟǀĞƐĨƌŽŵƚŚĞ:sWĂƌƚŶĞƌƐͲ dƵůůŽǁhŐĂŶĚĂ͕dKd>ΘW͕EKK dŚĞŇĂŐƐŚŝƉĐŽŵƉĂŶǇŽĨ:^t'ƌŽƵƉ͕ ĂŶĚŚŝƐƌĞƐƉŽŶƐŝďŝůŝƟĞƐŝŶĐůƵĚĞƉƌŽŵŽƟŶŐ :^t^ƚĞĞůŝƐƚĞƐƚĂŵĞŶƚƚŽĚĞĐĂĚĞƐ ĨƌŝĐĂŶ/ŶƚĞŐƌĂƟŽŶƚŚƌŽƵŐŚƚŚĞ hŐĂŶĚĂ ŽĨĞǆƉĞƌŝĞŶĐĞĂŶĚĂĚǇŶĂŵŝĐĐƵůƚƵƌĞ ŝŵƉůĞŵĞŶƚĂƟŽŶŽĨƚŚĞWůĂŶŽĨĐƟŽŶĨŽƌ x ƌ͘ĂǀŝĚDĞƐƚƌĞƐZŝĚŐĞͲKĂŶĚ ŽŽƐƟŶŐ/ŶƚƌĂͲĨƌŝĐĂdƌĂĚĞ;/dͿĂŶĚƚŚĞ ƚŚĂƚŚĂǀĞĐƵůŵŝŶĂƚĞĚŝŶƚŚĞĐŽŵƉĂŶǇ DĂŶĂŐŝŶŐŝƌĞĐƚŽƌͲ^ǁĂůĂŶĞƌŐǇ ĞƐƚĂďůŝƐŚŵĞŶƚŽĨƚŚĞŽŶƟŶĞŶƚĂů&ƌĞĞ ďĞĐŽŵŝŶŐƚŚĞůĞĂĚŝŶŐƉƌŽǀŝĚĞƌŽĨ >ŝŵŝƚĞĚ ƐƉĞĐŝĂůŝǌĞĚƐƚĞĞůƐŝŶ/ŶĚŝĂ͘ dƌĂĚĞƌĞĂ;&dͿ͘ x Dƌ͘ZŝĐĂƌĚŽďŽƵĚͲĂƐƚĨƌŝĐĂ ,ĞĂůƐŽǁŽƌŬƐŽŶĐŽŽƌĚŝŶĂƟŶŐĂŶĚ ƵƌƌĞŶƚůǇĂƌŽƵŶĚǁŽƌƚŚΨϭϭďŝůůŝŽŶ͕:^t DĂŶĂŐĞƌͲ'KŝůΘ'ĂƐ 'ƌŽƵƉ͛ƐĨŽƌĂǇŝŶƚŽƐƚĞĞůŵĂŶƵĨĂĐƚƵƌŝŶŐ ĐŽŶƐŽůŝĚĂƟŶŐĐŽŵŵŽŶĨƌŝĐĂŶƉŽƐŝƟŽŶƐ ďĞŐĂŶŝŶϭϵϴϮ͕ǁŚĞŶŝƚƐĞƚƵƉƚŚĞ:ŝŶĚĂů ǁŝƚŚƌĞŐĂƌĚƐƚŽƚŚĞĐŽŶƟŶĞŶƚ͛ƐƚƌĂĚĞ /ƌŽŶĂŶĚ^ƚĞĞůŽŵƉĂŶǇǁŝƚŚŝƚƐĮƌƐƚƐƚĞĞů ǁŝƚŚƚŚĞƌĞƐƚŽĨƚŚĞǁŽƌůĚ͘WƌŝŽƌƚŽ

TheThe Uganda Chamber of Mines & Petroleum 11 ENABLING EAST AFRICA’S EXTRACTIVE INDUSTRIES TO GROW

Years of Global 50Experience, 40 in East Africa

- Oil & Gas Pipelines - Sewage and Waste Water Schemes - Refinery Infrastructure Support - Water Pipelines - Oil and Water Tanks - Roads, Highways, Buildings, - Power Plants Housing Estates, Hospitals, - Water Supply Systems Marina Works, Hotels and Leisure Facilities

ZAKHEM - UGANDA Zakhem International Construction (Kenya) Ltd 2nd Floor - Soliz Floor Plot No. 23 Lumumba - Kampala Tel: +256 772-403 221, +256-713-403 221 Web.www.zakhem.co.uk Web.www.zakhem.co.uk Web.www.zakhem.co.uk

12 The Uganda Chamber of Mines & Petroleum MWC2015

Zakhem will boost Uganda’s extractive industries

ou would be hard pressed to find In Kenya, Zakhem completed the at more than 200 million metric tonnes Ya more rounded construction and Mombasa to Nairobi, 452km pipeline (proven) with the unproven deposits are engineering company anywhere in Africa in 1977 and the 450km Western Kenya projected to scale a billion metric tonnes. like Zakhem International Construction Pipeline Extension in 1993 that have On the other hand, the oil gas ratios Ltd (ZIC) of the Zakhem International S.A. over the years played a great part in the for the different fields in the Albertine Group. transportation of oil products across Graben are estimated at 173 and 500 the wider East African region; seeing billion cubic feet of associated and non- IMS certified, with an Integrated that neighboring Uganda, Rwanda and associated gas respectively, according Management System consisting Burundi are landlocked and hence depend to the Petroleum Exploration and of ISO 9001:2008 – Quality on the Mombasa Port for vital imports. Production Department. Management System; OHSAS 18001:2007 – Occupational Health As such, we can proudly say that we have Furthermore, whereas the Hoima-Kigezi and Safety Management System and played our part in the strengthening of gas pipeline and the associated energy ISO 14001:2004 – Environmental the East African Community. plants could address the coal problem, Management System, Zakhem, has it would also mean that Uganda gets And as the next petroleum industry consistently delivered maximally on any an immediate return on its gas reserves frontier, Zakhem hopes to continue of the multi-million dollar development instead of flaring it like has unfortunately playing a major role in East Africa’s projects it has undertaken across the been the case elsewhere in Africa. growth. Uganda’s petroleum resources world. are now estimated at 6.5 billion barrels Zakhem has over the years diversified Zakhem was founded in Lebanon in 1963 of oil initially in place; Kenya on the into other fields of construction and to meet the expanding construction other hand has discovered over 600 broadened its range of services to needs of the Middle East and Africa. million barrels of oil while Tanzania and the extractive sectors to include oil Since then, its excellent work is now Mozambique have unearthed world- & gas pipelines, power plants, water evident in Nigeria, Senegal, Sierra Leone, class gas deposits offshore. South Sudan supply systems, sewage and waste Ghana, Congo, Algeria, Libya, Kenya too is looking to partner with the EAC in water schemes, water pipelines, roads, and Tanzania. Syria, UAE, Kuwait, Iraq, the refinery and export pipeline projects. highways, buildings, housing estates, Qatar, Jordan, USA, United Kingdom, hospitals, marina works, hotels and Luxembourg, Cyprus and Italy are the Gas Energy for Iron Smelting leisure facilities. As such, we can other beneficiaries of our services. confidently proclaim that when the call By extension, our pipeline and energy comes, we will be ready to not only offer As the fastest growing region currently, expertise will also come in handy in the direct infrastructural services to the at over 4.5% economic growth rates per proposed construction of a 400km gas East African and African oil and mining annum, Africa presents us with even more pipeline from the oil-rich Hoima to the industries but also to build support potential opportunities to demonstrate iron ore-gifted Kigezi region in South our globally renowned expertise; which is Western Uganda where gas power plants infrastructure as well. always on time and of the highest quality. will be built. Without coal deposits, I Thank You, Uganda is considering using gas as a Whereas the traditional oil producers like reducing agent in the refining of its iron Ibrahim S. Zakhem, Nigeria have enjoyed the full experience ore. of our petrochemical industry expertise, Zakhem International Construction Ltd the East African region is yet to totally get Currently the country imports close to (ZIC) a feel of what we are famous for across 60% of its steel making inputs hence President, Africa the entire value chain. it is very important to add value to the huge iron ore reserves which now stand

The Uganda Chamber of Mines & Petroleum 13 MWC2015 Tororo Cement Remains on Top

ororo Cement Limited (TCL) Tcontinues to dominate cement manufacturing in Uganda after expanding its annual production capacity to 1.8 million tons; up from 1.4 million tons. This is after the addition of ultramodern technology, cement grinding mills, rotary packers and storage silos. “Our wish has always been to stay at the very top of Uganda’s mining and ϐ Ǥ ǡ Cement contributes about Shs1.5 billion ($0.6m) annually to the annual revenues of Uganda,” notes B.M. Gagrani, the Managing Director. A boda boda rides past the Tororo Cement’s factory Operating in the districts of Tororo (manufacturing) and Kapchorwa and Moroto (mining), the company has been sales services. We also ensure that Others include a UWESO donation for keen to keep on the right side of the staffers and all the stakeholders in the HIV project assistance and another to country’s mining and environmental company are committed to the quality Busiro North Development Foundation. regulations. management system objectives through Clean water natural springs at six places regular training and education,” Gagrani in Tororo district have also been set up Growth Path says. while a Public Health Clinic has been constructed for the local community. Tororo Cement Ltd’s owners gave Social Economy In Karamoja, a fully equipped Mobile the company its present name after Health dispensary is run by the company. acquiring it in 1995 from the Government Tororo Cement directly employs 900 of Uganda. A carefully executed staff people while providing approximately TCL is also a proud sponsor of the UCMP recruitment drive coupled with well 16,000 indirect jobs in the Tororo district organized Mineral Wealth Conference, tested operational strategies has seen area. This is notwithstanding its mining slated for October 1st and 2nd, 2014. the company emerge as the leading operations in Kapchorwa and Moroto and largest manufacturer of cement in districts where clinker and marble are Challenges procured respectively. Uganda over the years. Tororo Cement has had its fair share TCL has not limited itself to producing Besides that, TCL also boasts being a top of challenges. Foremost being the high only cement – albeit various types – seven revenue contributor to the Uganda foreign exchange conversion costs paid it also manufactures and distributes Revenue Authority. on the many imports needed in the numerous construction materials like running of the company. “Uganda being Amidst all this, the company has landlocked, there is a high importation of corrugated iron sheets, nails, chain link ϐ and barbed wire under the reputable major inputs like fuel, minerals, spares assistance and building materials to among others,” notes Gagrani. brand Nyumba. various district and national projects. The high quality of its products, which Reliable electric power is also a These include constructing a school in rarity which means the cost of fuel is has since attracted UNBS and ISO Kapchorwa near its mining lease plus ϐ ǡ another concern. Besides, there is too bridges, culverts, roads, school and a noticeable lack of a sizeable pool of build a huge customer base across the dispensary in Karamoja. Need students East African landscape in addition to the skilled manpower and other support ϐ infrastructure. Democratic Republic of the Congo and school fees and scholarships from South Sudan markets. TCL. In Tororo, building renovations “Conversely there are positive steps These expansion and upgrading projects (Osukuru School) and road repairs have by the state to improve the road have happened in phases. Since 1995, been carried out by the company while it network, skilled labour, banking TCL has invested more than $150m to has also offered food stuffs to internally and telecommunication plus rapid upgrade the clinkerzation plant and to displaced people at the district. Primary industrialization. These developments expand (with updated technology) the school children around the factory have will play a very positive role our industry cement-grinding, storage and electronic also had their meals taken care of by TCL once they come to fruition,” he adds. packing system. with the company mainly feeding them off its 200 acres of banana plantation. By joining UCMP – an association TCL also undertook a major expansion charged with encouraging, protecting ϐ and fostering responsible the steel section with the goal of exploration and participation adding stylish and innovatively Our wish has always been to stay at in the mining and petroleum colored iron sheets to the market. the very top of Uganda’s mining and sectors – Tororo Cement Ltd will now have counterparts “Tororo Cement’s policy is to ϐ Ǥ ǡ with similar concerns; which continuously satisfy its customers ͳǤͷ should make pleading its case through supply of consistently to the state easier. superior products under effective ȋ̈́ͲǤ͸Ȍ quality management system, in revenues of Uganda - GM ϐ

14 The Uganda Chamber of Mines & Petroleum Tax free mining equipment could come in handy for these Busoga artisanal miners

“Previously licensees were not allowed to register because they do not make Tax waivers to make taxable supplies during the exploration and development stages, which is a requirement for refund of VAT on inputs,” Uganda more competitive Kasaija said during the reading of the 2015/16 national budget. he Uganda Chamber of Mines Tand Petroleum has hailed the long Income Tax Act now provides for a overdue scrapping of value added tax on comprehensive regime for the petroleum exploration and other upstream activities and mining sectors so that they are taxed in the extractive sector, as a major step in accordance with the commercial forward in attracting more investments rules, under which they operate, noted into the country. the minister. In addition, the Act now provides for the tax rate applicable to “The tax was a bottleneck for investors. non-residents providing goods and Now that the doors have been opened, services to the licensee. we are likely to see even new players who have been waiting to join the sector It has been the contention of the mining come in. This will make us competitive,” and oil and gas companies that charging said Elly Karuhanga, the UCMP VAT was premature at this stage because chairman. it amounts to taxing investment as opposed to proﬁt. Because exploration Finance Minister Matia Kasaija said is a hit and miss exercise, the mining that investors in oil and mining will only and oil investors have argued that Finance Minister, Matia Kasaija be taxed when they start production. taxing them before making a discovery Companies could register for VAT during is irrational and completely undermines exploration but they would access plants the process of exploration itself. and machinery VAT-free, he added. a President Yoweri Museveni has sided VAT in Uganda stands at 18%. with them on this, noting: “Taxing prospectors, to me, I think is total “In order to unlock investment in the madness. How do you tax someone petroleum and mining sector, we have who has not even started mining?” made changes to the Value Added Tax Act to allow licensees to register for VAT The scrapping of the tax follows during the exploration and development relentless lobbying by the UCMP stages of their operations. This will through the ofﬁces of the President and enable them to obtain relief from VAT that of the Prime Minister. payable on goods and services supplied to them.”

The Uganda Chamber of Mines & Petroleum 15 after the lifting of the ban on mineral exports

UCMP VC, Hon Richard Kaijuka (C) makes a point as Sam Thakkar (L) and Irene Nakalyango, the UCMP CEO listen in

he Uganda Chamber of Mines and Petroleum has assurances that the ban will not happen again out of the blue, welcomed the lifting of the ban on mineral exports, as it raises credibility issues with their customers. Twhile calling for a more balanced approach to the value addition strategy in the country’s nascent mineral sector. Greenstone Resources’ Nimit Patel shares the same view, noting how it will be difﬁcult to regain the trust of his clientele President Yoweri Museveni issued a directive to lift the ban on after failing to honor supply contracts. all minerals exports, but those of iron ore and copper, at the Presidential Investors Roundtable (PIRT) in August. Their concerns echo those raised by Hon Richard H. Kaijuka, the Vice Chairman of the Chamber and also a former Minister This followed an outcry from UCMP members in the mining of Energy and Mineral Development. sector whose operations had suffered immense setbacks following the ban in February 2015. For iron ore, the sanction Addressing the press in July before the sanctions were lifted, has prevailed for over 2 years now. he said: “The UCMP supports and encourages its members to embrace minerals value addition as a strategic policy for the However, despite the relief across the mining industry, players country. However, the omnibus ban on all minerals creates a are urging for a more predictable business climate that can credibility crisis for Uganda. We cannot be saying that we are guide the industry. attracting investment in the mineral sector and at the same time we impose a ban on mineral exports.” Ikrom Muminov, the operations director at 3T Mining Ltd, a tungsten and coltan mining ﬁrm, says the industry need

16 The Uganda Chamber of Mines & Petroleum First Mining company’s tin site in in Insingiro

Numbers

draft report prepared by the A Directorate of Geological Survey and Mines, reviewing the performance of the minerals sector in the last ﬁnancial year (July 2014/June 2015) shows a signiﬁcant drop in prospecting and exploration license fees in the last quarter of April to June, 2015.

Prospecting License fees dropped from UGX8m in the January to March quarter to UGX1.8m in the next quarter. Exploration License fees and rents on the other hand, dropped from UGX103.6m to UGX29.84m in the same period.

Similarly, the Mineral Dealers’ license fees fell from UGX44.5m to UGX18m while Royalties went from UGX1.6bn in to UGX721.9m during that phase.

Defining value addition on a case by case I now totally agree that for wolfram, tin and basis is one way how a middle ground can other small minerals, the ban should be lifted.” be reached, notes Sam Thakkar, an advisor to the UCMP and also to Sipa Exploration, Cement manufacturing from limestone and Uganda, which holds a number of exploration marble amongst other minerals remains licenses in Kitgum, northern Uganda. the most noticeable beneficiation project in Uganda to date. Chinese conglomerate, “What do we define as value addition?” Tibet Hima, which holds the Kilembe copper wonders Thakkar, “Value addition has different mines concession is also setting up plants meaning for different minerals. It is not a to manufacture copper products in western standard that final products are manufactured Uganda. locally using minerals that have come out of our ground. A case by case approach is More and more similar factories will be set needed when determining how much value up in due course as Uganda’s infrastructure should be added to a particular mineral.” improves by the day and more favourable laws are enacted to support the mining The 3Ts (tungsten, tantalite, tin) for instance are sector, notes, Hon Elly Karuhanga, the UCMP largely used in the manufacture of electronic Chairman. products; which factories are nonexistent in Uganda currently. Besides the proven mineral “We are thrilled by the energy sector’s reserves so far are not that big, rendering a construction of at least 4 large and medium big smelting plant and electronics factory sized hydro power plants in one go besides unviable. the numerous roads that are being built across the country. More particularly we “We enrich the ore from 5%-25% to a thank the government for waiving taxes on concentrate of 65-80% before we export mineral exploration and also reviewing the the tungsten. That is as far as we can go in laws and regulations on mining to make the adding value locally,” says Ronald Murisa, the legal regime truly user-friendly for investors. operations manager at Krone-Avan Mines, These streamlined laws and modern which runs a tungsten mine in Kabale. infrastructure take Uganda ever so closer to extensive beneficiation in the mining sector,” To his credit, President Museveni owned up says Karuhanga. to his mistake noting: “I think I over-reacted.

The Uganda Chamber of Mines & Petroleum 17 NEW LIFE IN MINING INDUSTRY, AMIDST CAUTION

hehe liftinglifting ofof thethe banban on mineralmineral exportsexports was akinakin to thethe hhadad not ononlyly breached the contracts with investors but had Tremovalremoval ofof a frustratingfrustrating ccloglog iinn thethe developmentdevelopment ofof ffrustratedrustrated any developmentsdevelopments thatthat theythey wouldwould havehave beenbeen thethe miningmining industryindustry accordingaccording to HonHon Elly Karuhanga,Karuhanga, thethe lookinlookingg forward to,” KaruhangaKaruhanga noted. Chairman, Uganda Chamber of Mines and Petroleum (UCMP). This is what this development means to some of the “Remember all the mining companies had been issued with exploration and mining companies in Uganda currently: licenses and they were of legal value; so enacting the ban Krone lawsuit still on despite ban lift OLLOWING the February 2015 blanket ban In July, Ronald Murisa, the operations Fon mineral exports, Krone Uganda Ltd, manager Krone-Avan Mines said they were which operates the Nyamuliro mine in Kabale, stuck with more than 80 metric tonnes “We plead for clarity, was sued for failing to fulfill supply contracts (with a market value of $720,000) of the concentrated mineral themselves that for tungsten with smelting plants in Europe. couldn’t reach the market due to the export transparency, and A British firm that had at least 60 metric ban. On their part, Avan, Krone’s Uzbekistan simplicity regarding a tonnes of the mineral concentrate it had joint venture partner also had a separate 40 procured from Krone stuck in stores in metric tonnes stockpiled away in the same sensible and pragmatic Kampala is still going ahead with the lawsuit period. to recover losses made on the deal despite On the issue of value addition, going forward, policy for the export of the recent lift of the ban. Krone has always maintained that there was minerals from Uganda. If no additional value that can be added beyond what they are already doing – processing the this does not occur, the tungsten to concentrate level. “We do appreciate the value addition entire minerals business sentiment; but there is nothing we can add to will collapse before it even improve on the quality after we have enriched it to the level of a mineral concentrate that gets going” - Sipa is between 65-80% in terms of value added from an ore of 5%-25%,” said Muriisa. Avan’s Rauskan Abdujaparov, notes that Currently there are only about seven major a Russian company had been seriously smelting plants of the kind in the world, he considering setting up a $20m value addition adds. plant here. However, for Uganda to attract a smelting plant investor to be able to process Despite the weight of the lawsuit and other tungsten and its related metals like tantalite losses the company has endured, Muriisa (coltan) and tin further, it would require a is however grateful that at least 1,500 mine discovery of huge deposits of the 3Ts notes workers can return to their jobs now that the Muriisa. ban has been lifted. Workers at the Krone-Avan site in Nyamuliro, Kabale 3T Mining Happy But Cautious coupled with penalties on pending contracts with its buyers, at least 50 of the labourers were discharged with the expert staff too leaving. The unlucky workers’ fortunes are set to change for the better now that the company is set to resume out-and-out activities. “The lifting of the ban on exports is a good development. We are already working on exports,” said Ikrom Muminov, the Operational Manager at 3T Mining Ltd. With $3m borrowed from lending firms, servicing the loans can resume with exports. 3T Mining’s Ikrom Muminov The company he said was already working 3T influence in a phone The firm currently has 20 tonnes and 6 tonnes of well processed tungsten (wolfram) on building another high-cost enrichment T Mining Ltd has so far invested over and columbo-tantalite (coltan) material factory (processing plant) that would improve 3US$6m in its two mines – Wampewo Mine respectively ready for export, with similar the wolfram from 0.3/0.5% to 60/65%; the in Wakiso and Buyaga Mine in Lyantonde – amounts ready for processing. highest stage of value addition that can be reached in Uganda for now. while employing a support staff 160 casual Muminov remains cautious however. labourers. He too does not think there are enough “We need assurances that it won’t happen reserves now to justify a plant to process the But having averaged $60,000 in losses every again. There is an issue of credibility,” he product further beyond those percentages. month because of the reduction in revenues noted.

18 The Uganda Chamber of Mines & Petroleum Greenstone faced with uncertain market future export sanctions – stuck with close to 6 And without a bullion market in Uganda kilograms by July, 2015. in addition to a very small, weak jewelry one, Patel does not see any “We are quite happy about the lifting of commercially viable locally reason to the ban but it has cost us heavily,” says add value beyond what Greenstone Patel, also the company’s Managing Resources is already achieving. Director. “We are already reﬁning the mined gold in house; up to 98 % in fact. But we have to export it since there are no Ugandan banks or investors involved in bullion Greenstone Resources’ Nimit Patel (R) trading. Besides, the jewelry market is The Tira gold mine in Busia, which very small,” says Patel. had been in limbo for at least 7 years The good news for the Tira, Busia due to various land conﬂicts, had only community is that with the veto’s resumed operations after Nimit Patel’s lifting, some life can now return to the Greenstone Resources bought in, in Eastern Uganda town seeing most of 2012 and changed the name from The Greenstone Resources mine in Busia the labourers are largely drawn from the Busitema Mining Co. His guarded demeanor is not only surrounding community. Greenstone From February 2013, further investment because of concerns about the skilled had laid off over 200 workers following in exploration, plant refurbishments staff the company has lost and the care the ban. and equipment procurement plus staff and maintenance costs since the ban, However, rehiring the 20 or so foreign training, followed before the mining of but also how to regain the trust of the experts and the other highly trained staff gold kicked off in April 2014. At least market. as the company resumes operations $5m has been sunk in so far by the new “Customers with whom we had entered may not be as easy as with the menial owners. into supply contracts with have lost faith workers since many have joined other But only two and a half months after in us. It will take a long time to recover,” companies. starting the export of the mineral, says Patel. Greenstone had to contend with the

to develop mineral resources in northern Sipa expects exploration financing to resume Uganda due to the poor roads, rail and Following the interpretation of the data by electricity infrastructure. the late Nick Archibald, Sipa has – through As such, Sipa’s continued investment in careful and thorough scientific modern exploration in Uganda was wholly dependent exploration methods – found indications that on its ability to mine, process and ultimately nickel copper sulphide systems and zinc lead export the mineral products. sulphide systems exist. Going forward, Sipa acknowledges the Typical exploration methods include soil need for “clarity, transparency, and simplicity sampling, ground and more detailed airborne regarding a sensible and pragmatic policy for geophysics, shallow RAB drilling and deeper the export of minerals”. Because without this, diamond core drilling. the entire minerals business would collapse However, it is yet to ascertain whether before it even go going. Sipa’s Akelikongo Ni Cu Sulphide discovery in June 2014 these systems are economic or not as the The base metals like nickel, copper, lead hen a blanket ban was enacted on the exploration was still in the early stages. and zinc that are found on the Sipa license Wexport of all unprocessed minerals Sipa Hence, no return is guaranteed on the $8m require onsite processing to concentrate to a Exploration Uganda, was of the view that an already spent on this process, as commercial level which may be acceptable to a smelter industry that had been attempting redemption deposits have not yet been ascertained. prepared to buy such a concentrate. had been brought to a shuddering halt. With the lifting of the ban, Sipa can now Smelters are purpose built facilities in parts of “The ban means no further investment by breathe a sigh of relief as additional funding the world, usually where there is cheap power Sipa in this country and more importantly for exploration in the form of private equity, and port facilities. Smelters are generally not no initial or further investment by any other public equity or from other larger mining economic to build in their own right without mineral explorers or companies interested companies through joint ventures can be an extensive and world class resource base in mining in this country,” Sam Thakkar, an procured again. to supply them. advisor of the company noted earlier. Without certainty of tenure and the ability to Unlike the other minerals Sipa has Sipa holds a number of exploration licenses export, it would be impossible to find new discovered, copper exports remain banned; in what is a new mining province of Kitgum capital to fund such exploration works, Sipa with the concessionaire of Kilembe copper in northern Uganda – with potential for base had warned. mines Tibet Hima Mining Co Ltd, already set metals like Nickel, Copper, Zinc and Lead – “In the event that minerals are unable to be to build smelting and product manufacturing sinking in about of $8m in exploration since exported, typically in concentrate form, no plants in Kasese as their agreement with the 2012. further investment would occur on Sipa’s government of Uganda stipulates, Before Uganda carried out aeromagnetic projects; whether it is by Sipa or any other Copper deposits in Kilembe are significantly geophysical surveys between 2004 and party potentially involved in the project,” large and maybe the Kitgum copper, once 2007, where new geophysical and geological Thakkar, who is also a UCMP, council advisor certified to be of commercial value may find datasets were realized, no mineral exploration had further noted. its way to the Kasese smelters. had ever taken place in the area Sipa Adding that even without any restrictions on operates. exports, it was still an enormous challenge

The Uganda Chamber of Mines & Petroleum 19 Namekara eyes quick return to world market

best I meet up with them face to face,” he characteristics of the composite materials notes. and also reduces cost and weight of the Mambo though remains optimistic that the brake pads. However, it is misleading to export volumes for vermiculite will pick up in say that you can manufacture either paint the medium term. or brake pads using vermiculite,” explains Mambo. Improving Awareness Secondly, he adds, vermiculite is used in a To avoid a repeat however, he believes number of highly specialized applications more discussions should be held with the where the manufacturers or end users hold state authorities to help them understand the patents to those applications. As such exactly how the vermiculite industry in there is no law that compels companies general, works. that use vermiculite in their processes to “The biggest challenge we face is an disclose their formulae. Given that scenario, Mambo (2nd L) explains the beneficiation process at the asymmetry of information and knowledge it would only make sense for a manufacturer Namekara vermiculite mine between the miners and the authorities to share their technology in return for about how the industry works. So we as securing their supply of raw material if the y the time the ban on mineral exports an industry need to continue engaging with market were characterized by shortages. Bwas lifted in August, 2015, Namekara the authorities and to share information to “The vermiculite market is however currently Mining Company Ltd was on the verge discourage a reoccurrence,” says Mambo. oversupplied, and there are still a number of collapse; unable to pay its employees, Adding, “That is critical for both the industry of projects that are still coming on stream. creditors and suppliers. The Manafwa and the country because as we saw over Uganda currently accounts for less than district based, vermiculite exporter was the course of the ban, no one benefited 1% of global supply and has absolutely stuck with about 1400 tonnes of processed at all: not the miners, not the government, no leverage in influencing how the market vermiculite concentrate worth $260,000. not the employees and certainly not the works,” he notes. A relieved Henson Mambo, the Country communities around these operating Thirdly, vermiculite use in the various Director, says everything is now in place mines.” jurisdictions is largely influenced by to resume operations and reopen the At Namekara, Mambo says they mine legislation and climate factors. distribution doors. at average grades of 30% and locally In Europe and North Africa for instance, However, he is quick to add that it will not beneficiate at their plant to produce a every building is by law required to have fire be easy. concentrate of 95% vermiculite, which is protection which must be installed during then exported to Europe, North America “We are operating in a very competitive the construction stage. and Japan. market; and after 7 months away it will be “This legal requirement has spawned the difficult to get back in since many of our In his view, several factors need to be taken birth of a big fireproofing products’ industry clients had cancelled their orders after we into account when looking at the feasibility in which vermiculite finds application. This could not execute them on time due to the of establishing a vermiculite final product easily guarantees a market,” says Mambo. mineral export ban. It is a bit akin to starting factory in Uganda. Firstly, vermiculite on its While it is not inconceivable that in future, all over again”, he said. own is not used in any industrial process to produce what one would call a “vermiculite vermiculite may find increasing use and In mid-September, the Vermiculite final product”. In reality, vermiculite is used application in Africa, it is also important Association (TVA) which is the industry trade as a mere additive in the manufacture of to realize that a profit making, private-led promotion body converges in Palaborwa, already existing products where it lends its venture to locally manufacture “vermiculite South Africa for a conference. Mambo, useful properties to those products. final products” cannot be economic not who plans to attend the forum, will seek to just in Uganda, but in any country where reassure his clients that these interruptions “For example vermiculite can be added to the domestic and regional consumption for are a thing of the past. paint to produce fire resistant paints, and these products is none existent, he reasons. it can also be used in the manufacture of “It takes time for our customers to fully brake pads where it improves the handling understand what this is all about. So it is

him at State House, Nakasero to negotiate a ban lift. The President encouraged the Iron ore miner not losing hope company officials to solicit for other partners hough the continuation of the ban on “We have people in Kenya and Tanzania who are already in steel manufacturing to Tall iron ore exports is disappointing, who are willing to buy what we have and come and invest in Uganda so that a final BNN Roa, of Uganda International Mining with that we think we will be able to sustain product is produced locally. Company Ltd (UIMCL), refuses to throw in our operations until major investments to During his budget speech earlier this year the towel just yet, build a smelter come on board,” said Roa. Museveni also noted the need to attract Iron ore miners have experienced the longest UIMCL which has so far invested $7.5m has stronger investors who will not only mine but ban on mineral exports and unfortunately for been in limbo for over a year and a half; with manufacture products out of the minerals them, the wait for a reprieve continues as only care and maintenance works ongoing. too. the recent lift on the same was not extended Its mining lease extends to 262 acres. to iron ore and copper. Uganda International Mining Company workers before President Yoweri Museveni has always operations halted. Roa remains hopeful however that with time, defended the ban of the export of the state will give his company the green unprocessed iron ore on the fact that it was light to export some ore as other options are crucial in the making of the steel used in considered. construction, which a developing Uganda needed in bulk. For now, his first wish is to be granted the option to export the already mined 100,000 He repeated the same remarks last year tonnes lying neglected at the company’s when officials from UIMCL led by Ashok mine in Kanungu district. Mustapure, the Managing Director, met with

20 The Uganda Chamber of Mines & Petroleum OPINION Uganda Improves Mineral ĞƌƟĮĐĂƟŽŶĂƉĂĐŝƚǇ

dƌĂŝŶŝŶŐŽĨ'^DŵŝŶĞŝŶƐƉĞĐƚŽƌƐ͕ƚĞĐŚŶŝĐĂůĂŶĚƐĞŶŝŽƌƐƚĂī

ŝŶĐĞ DĂǇ ϮϬϭϱ͕ WĂƌƚŶĞƌƐŚŝƉ ĨƌŝĐĂ ĂŶĂĚĂ ͻ ǁŽƌŬ ƉůĂŶ ĂŶĚ ƌŽĂĚŵĂƉ ĨŽƌ ŝƌĞĐƚŽƌĂƚĞŽĨ'ĞŽůŽŐŝĐĂů^ƵƌǀĞǇĂŶĚDŝŶĞƐ ^;WͿŚĂƐĞŵďĂƌŬĞĚŽŶĂƐŝǆŵŽŶƚŚƚƌĂŝŶŝŶŐ ŝŵƉůĞŵĞŶƚĂƟŽŶ ŽĨ ƌĞŐŝŽŶĂů ŵŝŶĞƌĂů ƚŽůĞĂĚƚŚĞĐĞƌƟĮĐĂƟŽŶƉƌŽĐĞƐƐ͘ ƉƌŽŐƌĂŵŵĞ ƚŽ ĞŶŚĂŶĐĞ ĐĂƉĂĐŝƚǇ ŽĨ hŐĂŶĚĂŶ ĐĞƌƟĮĐĂƟŽŶŵĞĐŚĂŶŝƐŵŝŶhŐĂŶĚĂ͘ ŵŝŶĞ ŝŶƐƉĞĐƚŽƌƐ ĂŶĚ ƚĞĐŚŶŝĐĂů ƐƚĂī ŝŶ ƚŚĞ ͻ &Ƶůů ƐĐĂůĞ ŵŝŶĞ ƐŝƚĞƐ ŝŶƐƉĞĐƟŽŶ ĂŶĚ ŝƌĞĐƚŽƌĂƚĞ ŽĨ 'ĞŽůŽŐŝĐĂů ^ƵƌǀĞǇ ĂŶĚ DŝŶĞƐ ͻ WƌĞůŝŵŝŶĂƌǇ ĐŽƐƚ ĞƐƟŵĂƚĞƐ ĨŽƌ ĐĞƌƟĮĐĂƟŽŶ͘ dŚŝƐ ƐŚĂůů ĐůĂƐƐŝĨǇ ŵŝŶĞ ƐŝƚĞƐ ƚŽ ĞīĞĐƟǀĞůǇ ŝŵƉůĞŵĞŶƚ ƚŚĞ ƌĞŐŝŽŶĂů ŵŝŶĞƌĂů ŝŵƉůĞŵĞŶƚĂƟŽŶ ŽĨ ƌĞŐŝŽŶĂů ŵŝŶĞƌĂů ŝŶƚŽ ƚŚƌĞĞ ĚŝƐƟŶĐƚ ĐĂƚĞŐŽƌŝĞƐ ŝ͘Ğ͘ 'ƌĞĞŶ ĐĞƌƟĮĐĂƟŽŶŵĞĐŚĂŶŝƐŵ͘ ĐĞƌƟĮĐĂƟŽŶ ŵĞĐŚĂŶŝƐŵ ĂŶĚ ƚĂŬŝŶŐ ŝŶƚŽ ;ĞƌƟĮĞĚͲĐĂŶ ƉƌŽĚƵĐĞ ĨŽƌ ĞǆƉŽƌƚͿ͕ zĞůůŽǁ ĐŽŶƐŝĚĞƌĂƟŽŶƚŚĞhŐĂŶĚĂŶĐŽŶƚĞǆƚ͘ ;hŶĐĞƌƟĮĞĚďƵƚĐĂŶƐƟůůƉƌŽĚƵĐĞĨŽƌĞǆƉŽƌƚ W ŝƐ ĂŶ ŽĸĐŝĂů ƉĂƌƚŶĞƌ ŽĨ ƚŚĞ /ŶƚĞƌŶĂƟŽŶĂů ƐŝŶĐĞŝƚŝƐĚŽĞƐŶŽƚǀŝŽůĂƚĞĂŵĂũŽƌƐƚĂŶĚĂƌĚ ŽŶĨĞƌĞŶĐĞ ŽĨ ƚŚĞ 'ƌĞĂƚ >ĂŬĞƐ ZĞŐŝŽŶ ;/'>ZͿ ͻ DŽĐŬ ŵŝŶĞ ŝŶƐƉĞĐƟŽŶ ĂŶĚ ĐĞƌƟĮĐĂƟŽŶ ĐƌŝƚĞƌŝĂ͘ /Ɛ ŐŝǀĞŶ ϲ ŵŽŶƚŚƐ ƚŽ ƌĞĐƟĨǇ ƚŚĞ ĂŶĚŚĂƐƉĂƌƟĐŝƉĂƚĞĚŝŶƚŚĞĚĞǀĞůŽƉŵĞŶƚŽĨƚŚĞ ĂƐ ƉĂƌƚ ŽĨ Ă ƚĞƐƚ ƌƵŶ ĨŽƌ ƚŚĞ ĚƌĂŌ ŵŝŶĞ ŝƐƐƵĞƐ ƌĂŝƐĞĚ ďĞĨŽƌĞ ĂŶŽƚŚĞƌ ŝŶƐƉĞĐƟŽŶ Ɛŝǆ ƚŽŽůƐ ƉĂƌƟĐƵůĂƌůǇ ƚŚĞ ƌĞŐŝŽŶĂů ĐĞƌƟĮĐĂƟŽŶ ƐŝƚĞ ŝŶƐƉĞĐƟŽŶ ĂŶĚ ĐĞƌƟĮĐĂƟŽŶ ƚĞŵƉůĂƚĞ͘ ŝƐ ĐŽŶĚƵĐƚĞĚͿ ĂŶĚ ZĞĚ ;hŶĐĞƌƟĮĞĚ ĂŶĚ ŵĞĐŚĂŶŝƐŵ;ZDͿƵŶĚĞƌƚŚĞƌĞŐŝŽŶĂůŝŶŝƟĂƟǀĞ /Ŷ ĂĚĚŝƟŽŶ͕ ƚŚŝƐ ŚĂƐ ďĞŶĞĮƚĞĚ ŵŝŶĞƐ ĐĂŶŶŽƚƉƌŽĚƵĐĞĨŽƌĞǆƉŽƌƚƐŝŶĐĞŝƚǀŝŽůĂƟŶŐ ƚŽ ĐŽŵďĂƚ ŝůůĞŐĂů ĞǆƉůŽŝƚĂƟŽŶ ŽĨ ŶĂƚƵƌĂů ŝŶƐƉĞĐƚŽƌƐ ĂƐ Ă ĮĞůĚ ƚƌĂŝŶŝŶŐ ƉůĂƞŽƌŵ ĂŵĂũŽƌƐƚĂŶĚĂƌĚĐƌŝƚĞƌŝĂͿ͘ ƌĞƐŽƵƌĐĞƐ͘ ŽŶ ĂƉƉůŝĐĂƟŽŶ ĂŶĚ ƵƐĞ ŽĨ ƚŚĞ ŵŝŶĞ ƐŝƚĞ ŝŶƐƉĞĐƟŽŶĂŶĚĐĞƌƟĮĐĂƟŽŶƚĞŵƉůĂƚĞ͘ ͻ ƩƌĂĐƟŶŐ ĂŶĚ ƌĞŐƵůĂƟŽŶ ŽĨ ĐŽŵƉĞƚĞŶƚ /Ŷ ĂĚĚŝƟŽŶ͕ W ŚĂƐ ĞǆƚĞŶĚĞĚ ƚĞĐŚŶŝĐĂů ĐŚĂŝŶ ŽĨ ĐƵƐƚŽĚǇ ;ƚƌĂĐĞĂďŝůŝƚǇͿ ƐĞƌǀŝĐĞ ĂƐƐŝƐƚĂŶĐĞ ĂŶĚ ĐĂƉĂĐŝƚǇ ďƵŝůĚŝŶŐ ƚŽ /'>Z dŚĞƐĞ ĂĐŚŝĞǀĞŵĞŶƚƐ ĂƌĞ Ă ďŽŽƐƚ ƚŽ hŐĂŶĚĂ͛Ɛ ƉƌŽǀŝĚĞƌƐŝŶƚŽhŐĂŶĚĂ͘ ŵĞŵďĞƌ ƐƚĂƚĞƐ ŝŶ ƐƵƉƉŽƌƚ ŽĨ ƚŚĞŝƌ ĞīŽƌƚƐ ĞīŽƌƚƐ ŝŶ ŝŵƉůĞŵĞŶƟŶŐ ƚŚĞ /'>Z Ɛŝǆ ƚŽŽůƐ ƚŽ ŝŵƉůĞŵĞŶƚ ƚŚĞ Ɛŝǆ ƚŽŽůƐ ĂŐĂŝŶƐƚ ŝůůĞŐĂů ĂŶĚ ƉĂƌƟĐƵůĂƌůǇ ƚŚĞ ƌĞŐŝŽŶĂů ĐĞƌƟĮĐĂƟŽŶ ͻ /ŶĚĞƉĞŶĚĞŶƚ ƚŚŝƌĚ ƉĂƌƚǇ ĂƵĚŝƚƐ ŽĨ ĞŶƟƌĞ ĞǆƉůŽŝƚĂƟŽŶ ŽĨ ŶĂƚƵƌĂů ƌĞƐŽƵƌĐĞƐ͕ ĂŶĚ ŵĞĐŚĂŶŝƐŵ͘ ĐĞƌƟĮĐĂƟŽŶ ƐǇƐƚĞŵ ĂŶĚ ƉƌŽĐĞƐƐĞƐ ďǇ ƚŚĞ ƉĂƌƟĐƵůĂƌůǇƚŚĞZD͘ /'>Z ĂĐĐƌĞĚŝƚĞĚ ĂƵĚŝƚŽƌƐ ƚŽ ŵŽŶŝƚŽƌ ĂŶĚ EĞǀĞƌƚŚĞůĞƐƐ͕ƚŚĞƌĞŝƐƐƟůůŵŽƌĞƚŚĂƚŶĞĞĚƐƚŽďĞ ƌĞƉŽƌƚ ŝĨ ŝƚ ŝƐ Žƌ ŶŽƚ ĐŽŵƉůŝĂŶƚ ǁŝƚŚ ƚŚĞ dŚĞ ƐƉĞĐŝĮĐ ĂĐŚŝĞǀĞŵĞŶƚƐ ƐŽ ĨĂƌ ƵŶĚĞƌ ƚŚŝƐ ĂĐŚŝĞǀĞĚĨŽƌŵŝŶĞƌĂůĐĞƌƟĮĐĂƟŽŶƚŽƚĂŬĞƌŽŽƚŝŶ ƐƉĞĐŝĮĞĚƐƚĂŶĚĂƌĚƐ͘ ƉƌŽŐƌĂŵŵĞŝŶĐůƵĚĞ͗ hŐĂŶĚĂ͘dŚĞƐĞŝŶĐůƵĚĞ͗ /ŶĐŽŶĐůƵƐŝŽŶ͕ŵŝŶĞƌĂůĐĞƌƟĮĐĂƟŽŶŝƐĂĐŚŝĞǀĂďůĞ ͻ ĚƌĂŌŵŝŶĞƐŝƚĞŝŶƐƉĞĐƟŽŶĂŶĚĐĞƌƟĮĐĂƟŽŶ ͻ ŽŵĞƐƟĐĂƟŽŶŽĨƚŚĞ/'>ZƉƌŽƚŽĐŽůƐ͘ ŝŶhŐĂŶĚĂ͘/ƚŝƐǁŽƌƚŚƌĞŵĞŵďĞƌŝŶŐƚŚĞ/'>Z ƚĞŵƉůĂƚĞ ĨŽƌ ĐŽŶĚƵĐƟŶŐ ŝŶƐƉĞĐƟŽŶ ĂŶĚ ĐĞƌƟĮĐĂƚĞ ďĞĐĂŵĞ ŵĂŶĚĂƚŽƌǇ ŽŶ ĞĐĞŵďĞƌ ĐĞƌƟĮĐĂƟŽŶŽĨŵŝŶĞƐŝƚĞƐŝŶhŐĂŶĚĂ͘ ͻ ĚŽƉƟŽŶ ŽĨ ƚŚĞ ƌĞŐŝŽŶĂů ĐĞƌƟĮĐĂƟŽŶ ϭϬ͕ϮϬϭϮĨŽƌĂůů/'>ZŵĞŵďĞƌƐƚĂƚĞƐƉƌŽĚƵĐŝŶŐ ŵĂŶƵĂůĂŶĚƐƚĂŶĚĂƌĚƐŝŶƚŽƚŚĞŵŝŶŝŶŐĂĐƚ ƟŶ͕ ƚĂŶƚĂůƵŵ͕ ƚƵŶŐƐƚĞŶ ĂŶĚ ŐŽůĚ͘ dŚĞ /'>Z ͻ dƌĂŝŶĞĚƚĞĂŵŽĨ'^DŵŝŶĞŝŶƐƉĞĐƚŽƌƐ;ϰͿ͕ ĂŶĚƌĞŐƵůĂƟŽŶƐƚŽĐƌĞĂƚĞĂůĞŐĂůĨƌĂŵĞǁŽƌŬ ĐĞƌƟĮĐĂƚĞĚĞǀĞůŽƉĞĚĂŶĚŝƐƐƵĞĚďǇƚŚĞŵĞŵďĞƌ ƚĞĐŚŶŝĐĂů ;ϳͿ ĂŶĚ ƐĞŶŝŽƌ ƐƚĂī ;ϭϬͿ͘ dŚĞƐĞ ĨŽƌ ŝŵƉůĞŵĞŶƚĂƟŽŶ ŽĨ ƚŚĞ ƌĞŐŝŽŶĂů ƐƚĂƚĞŝƐƚŚĞƐŽůĞĂĐĐĞƉƚĂďůĞƉƌŽŽĨƚŚĂƚŵŝŶĞƌĂůƐ ĂƌĞ ƚŽ ƌĞŵĂŝŶ ĐƌŝƟĐĂů ƉŝůůĂƌƐ ƚŚƌŽƵŐŚŽƵƚ ĐĞƌƟĮĐĂƟŽŶ ŵĞĐŚĂŶŝƐŵ͘ dŚŝƐ ĐŽƵůĚ ďĞ ŽƌŝŐŝŶĂƟŶŐ ĨƌŽŵ ƚŚĞ ŐƌĞĂƚ ůĂŬĞƐ ƌĞŐŝŽŶ ĂƌĞ ŝŵƉůĞŵĞŶƚĂƟŽŶ ŽĨ ƚŚĞ /'>Z Ɛŝǆ ƚŽŽůƐ ĚŽŶĞ ďǇ ĞŝƚŚĞƌ Ă ƐƚĂƚƵƚŽƌǇ ŝŶƐƚƌƵŵĞŶƚ Žƌ ĐŽŶŇŝĐƚĨƌĞĞ͘>ĞƚƵƐĂůůǁŽƌŬƚŽǁĂƌĚƐĂĐŚŝĞǀŝŶŐ ĂŶĚ ƉĂƌƟĐƵůĂƌůǇ ƌĞŐŝŽŶĂů ĐĞƌƟĮĐĂƟŽŶ ƚŚĞŽŌĞŶůŽŶŐĞƌƉĂƌůŝĂŵĞŶƚĂƌǇƉƌŽĐĞƐƐ͘ ƚŚŝƐ ĨŽƌ Ă ŶŽďůĞ ĐĂƵƐĞ ĂŶĚ ƚŽ ƌĞĂůŝǌĞ ƚŚĞ ĨƵůů ŵĞĐŚĂŶŝƐŵ ĂŶĚ K ĚƵĞ ĚŝůŝŐĞŶĐĞ ƉŽƚĞŶƟĂů ĂŶĚ ĞŶũŽǇ Ăůů ƚŚĞ ďĞŶĞĮƚƐ ŽĨ ŽƵƌ ŐƵŝĚĂŶĐĞ ĨŽƌ ƌĞƐƉŽŶƐŝďůĞ ŵŝŶĞƌĂů ƐƵƉƉůǇ ͻ ĞƐŝŐŶĂŶĚƉƌŽĚƵĐƟŽŶŽĨĂĨŽŽůƉƌŽŽĨ/'>Z ŵŝŶĞƌĂůƐĞĐƚŽƌ͘ ĐŚĂŝŶƐ ĨƌŽŵ ĐŽŶŇŝĐƚͲĂīĞĐƚĞĚ ĂŶĚ ŚŝŐŚ ƌŝƐŬ ĐĞƌƟĮĐĂƚĞĨŽƌhŐĂŶĚĂ͘ ĂƌĞĂƐ͘ ^ƚĞƉŚĞŶdƵƌǇĂŚŝŬĂǇŽŝƐĂDŝŶĞƌĂůĞƌƟĮĐĂƟŽŶ ͻ ƐƚĂďůŝƐŚŵĞŶƚŽĨĂĐĞƌƟĮĐĂƟŽŶƵŶŝƚŝŶƚŚĞ ǆƉĞƌƚͬŶŐůŽƉŚŽŶĞŽƵŶƚƌǇŽŽƌĚŝŶĂƚŽƌ͕W

The Uganda Chamber of Mines & Petroleum 21 The Shandong delegation meeting with the Prime Minister, Dr Ruhakana Rugunda.

ganda has a very good investment Shandong Province led by President climate conducive for viable mining Yoweri Museveni in April, this year. Hon projects, the chief executive officer, Elly Karuhanga, the Chairman UCMP, was UShandong Provincial Bureau of Geology & also part of the President’s lobby group, Mineral Resources Corporation has said. which held a business forum with the mining giant. “There is big potential here because Uganda is very gifted with many minerals. At that first meeting, a cooperation The people are also very good and nice,” China agreement was signed between the said Hou Xinwen, CEO of the Chinese UCMP and the Shandong Provincial conglomerate, who was here in June Bureau of Geology & Mineral Resources 2015, on the invitation of the Uganda Corporation, where the latter agreed to Chamber of Mines and Petroleum. invest in different areas of the mining sector in Uganda. These areas include While in Uganda, Xinwen and his high- mining building a modern mineral laboratory, level team of geologists and experts carrying out mineral exploration, in various fields met with the Prime supplying specialized mining equipment, Minister, the Rt. Hon Dr. Ruhakana with a mobile mining unit in addition to Rugunda, the Chinese Ambassador to manufacturing some equipment here. Uganda, His Excellence Zhao Yali and Hon The agreement also involves offering Peter Lokeris, the Minister of State for giant human resource training and technology Mineral Development. exchanges.

The Chinese team that included, Cao Fa “While we have had small mining Wei, Wan Zhongjie, Andy Lu Yongan, Yu companies coming to invest in Uganda, Xishun and Challie Zhang, also visited this is the first time that we are the Roofings steel plant at the Namanve eyes having a very big multinational mining Industrial Park, a mini-show room of conglomerate showing interest in granite tiles at UMA Show Grounds Uganda’s promising minerals industry,” belonging to Building Majesties Ltd Karuhanga said. besides holding several business-to- Uganda business (B2B) sessions with various The Shandong Provincial Bureau of mining license holders in the country. Geology & Mineral Resources Corporation INVESTMENTS is a state owned organization in China, Their 2015 visit followed a similar with 22 subsidiaries – making it the trip by a Ugandan delegation to the biggest mining business in China. Its

22 The Uganda Chamber of Mines & Petroleum revenues were over $1bn in 2014. It team noted the need for thorough Lu said that they would critically examine also has a presence in Namibia, DRC, exploration to ascertain mineral reserves the data they had gotten from the mining Chile, Colombia, and Australia in the in Uganda. firms, visit the fields and carry out their field of exploration plus other mining own basic geological work on them investments. Through its subsidiaries, Kaijuka was making a case for further before selecting the best ones to move they have ten state-of-the-art labs investment in East African Gold’s gold forward with. The company already has with 60 years of experience, a mineral exploration license in Kaabong, Karamoja, Ugandan based geologists who will be equipment manufacturing company, where further exploration still needs to be tasked with these follow-ups. training centers, 7,000 employees with done despite millions of dollars already 2,000 geologists. At least 90% of all having been spent on the venture. He, “We cannot do everything. We will find minerals in China have been discovered together with Kweri’s David Kyagulanyi the key ones,” he noted. by them. They also have the third largest also highlighted the potential of the gold reserve (offshore) in the world aluminous clays in Makuutu, Eastern To establish a large scale mine by world estimated at 6500 metric tons. Uganda which are likely to be rich with standards, at least $5m to $100m is rare earth elements/minerals. needed in the exploration process – from With their visit coming within two months discovery to proving viability. However, of signing the agreement, the impressed “Uganda’s mineral sector is largely, due to a fall in commodity prices and a Prime Minister identified the Shandong at the exploration stage. At this stage, global economic downturn, exploration Corporation as serious partners that mineral anomalies have been identified expenditure has plummeted by at least would help move the Ugandan mining through mainly aeromagnetic surveys. 30% worldwide with an additional 15% industry forward. Yes there is strong mineral potential but to 20% decline in exploration investment until significant amounts of money are in Africa predicted in 2015 and beyond. “Your quick follow up on the bilateral spent on exploration to determine proven An estimated 90% of junior exploration agreements that were signed only a reserves, we cannot talk seriously. That is companies that existed in 2010 are no couple of months ago shows more; hence there exists a how serious you are about very strong competition for Uganda. This can only foster this high-risk capital globally. further development here,” Dr Rugunda noted. Uganda also lacks modern laboratories hence it is Adding: “At long last we have currently impossible to get a serious group that will quick mineral identification help Uganda to efficiently tests done locally. Currently explore and exploit its mineral samples have to be flown resources. Unemployment out to Tanzania, South Africa, is high here and therefore Canada, Australia and Europe this mineral exploration and for thorough laboratory tests; exploitation can be a source which is not only expensive of jobs and consequently but also time consuming. eradicate poverty.” A solution to this problem As such the Premier further is round the corner though, encouraged the UCMP to with the Shandong Mineral continue supporting the state Resources Corporation only in attracting more serious awaiting a suitable location international investments in to set up the first modern the mining and petroleum Mr Xinwen, hands the PM a gift minerals laboratory in sectors. why we are excited that a firm with the Uganda. So far, the available land in the capacity that Shandong has is interested Namanve Industrial Park has not been The Chinese Ambassador also said he in Uganda,” he said. found appropriate for the project; with a would help in the same regard; noting that more serene environment preferred. in this instance, his countrymen would Shandong’s Lu agrees with Kaijuka about bring in modern mineral exploration and the need for thorough exploration. All things considered, the Shandong exploitation equipment that is currently delegation feels everything went as well lacking in Uganda while also entering “Once you know where the mineral is, it would, especially for a first visit. joint ventures with local players. the important thing to do is to know how big the reserve is and then we can move “We have gotten a positive response “My presence here is to show support to the development stage. We are very from the government of Uganda at and assure the people of Uganda about strong in exploration and we know what different levels – from the Prime Minister Chinese investments here,” he said. to do,” he said. to Hon Lokeris – and of course from our hosts the Uganda Chamber of Mines and B2B & Exploration Need The Chinese delegation also interacted Petroleum. Everyone supports us and with Kelen Kayongo, John Muruli we will definitely be making follow ups Hon Richard Kaijuka, the UCMP vice Muyambi and several other miners who as soon as possible,” said Lu at Entebbe chairman who held a B2B (business-to- also hold various exploration licenses Airport, just before the delegation caught business) session with the Shandong across the country. the flight back home.

The Uganda Chamber of Mines & Petroleum 23 24 The Uganda Chamber of Mines & Petroleum Copper ore mined at Kilembe recently. This was last done in 1978

Alex Kwatampora, Project Manager MINING RESUMES AT KILEMBE MINES

fter more than 3 decades in limbo, machinery and rehabilitating old plants. ŚĂůůĞŶŐĞƐ Amining of copper at Kilembe Mines in Kasese district has resumed. A milling plant has been rebuilt and While at the current metal prices, it would another installed in addition to a new be overly optimistic to expect Kilembe’s Managed by Tibet-Hima, the Chinese conveyor system and transformers for the copper fortunes to impact Uganda’s consortium that was granted a 25 year mills. Also added are new high frequency economy as much as they did in the concession in September 2013, Kilembe furnaces. Other additions are locally 1960s and 1970s, the jury is still out Mines’ recommencement of operations fabricated copper and cobalt floatation on Tibet-Hima. For turning around the is a very significant development in cell banks plus ore transportation tram sleeping giant is no walk in the park. Uganda’s fledgling mining industry. This cars, ore harvesting earthmovers and is mainly because Kilembe’s copper drilling equipment installed underground. Of urgent concern for now however is the exports alone were once contributing at increasingly regular problem of seasonal flooding resulting from a silt-laden River least 30% to the country’s GDP during the “Having always had a functional foundry Nyamwamba. Kwatampora says Tibet mine’s heydays. (a factory producing metal castings) even when mining operations were grounded, Hima has since acquired a heavy duty At least more than 1200 metric tonnes of it has been easy to locally fabricate a lot excavator and is desilting portion by portion of the river which flows through ore at an average grade of 1.70% has been of the needed stuff,” noted Kwatampora. the Kilembe valley. This unforeseen, mined so far, says Alex Kwatampora, the unbudgeted for costly process has taken project manager. The last time copper ore The company is also setting up value- its toll on the company though, and was mined at the western Uganda based addition mini-plants to produce end-user Kwatampora says the intervention of mine was in 1978. products like electric copper wires, as the state as had been earlier promised, its agreement with the government of would be very beneficial. At the commencement of the concession, Uganda stipulates. Tibet Hima committed to make an Thus far, the government of Uganda has initial investment of $135m towards The mining operations will follow the only replaced a bridge up the river at rehabilitation of the mine and the Kilembe mines copper belt from Kilembe, Kyanjuki. upgrade of Mobuku Power Plant from Katadoba and Kihara in Kasese town 5MW to 12MW. onwards to Kiraro in the Rwenzori “More, sustained desilting remains an Mountains national park following the urgent need though,” says Kwatampora. To date, Kwatampora says, the consortium approval of the environmental impact has spent over $19m installing new assessment studies.

The Uganda Chamber of Mines & Petroleum 25 Cost Cutting By Mining Majors To Continue – PwC “While the mining industry had been indicating for the last two years their intention to reduce capital spending, such reductions were actually realised in 2014 as expenditures on significant projects declined 20%”

ͻKǀĞƌĂůůŵĂƌŬĞƚǀĂůƵĞƐ ĚĚŝŶŐ͗ ͞ŬĞǇ ŵĞĂƐƵƌĞ ŽĨ ƚŚĞ ŝŶĚƵƐƚƌǇ͛Ɛ ŝŶǀĞƐƚŵĞŶƚ ĂŐĞŶĚĂ͕ ĐĂƉŝƚĂů ǀĞůŽĐŝƚǇ͕ ƉůƵŵŵĞƚĞĚΨϭϱϲďŝůůŝŽŶ ƐůŽǁĞĚ ƚŽ ũƵƐƚ ŽǀĞƌ ϭϮй ǁŝƚŚ ĨƵƌƚŚĞƌ ĚƵĞƚŽĐŽŵŵŽĚŝƚǇƉƌŝĐĞ ĚĞĐƌĞĂƐĞƐ ĞǆƉĞĐƚĞĚ ŝŶ ϮϬϭϱ ĂŶĚ ĨŽƌ ƚŚĞ ĮƌƐƚƟŵĞ͕ƚŚĞƚŽƚĂůĂƐƐĞƚďĂƐĞƐŚƌƵŶŬϭй͘͟ declines dŚĞ ƌĞƉŽƌƚ ĂŶĂůǇƐĞĚ ϰϬ ŽĨ ƚŚĞ ůĂƌŐĞƐƚ ͻ &ƌĞĞĐĂƐŚŇŽǁƚƵƌŶĞĚ ůŝƐƚĞĚ ŵŝŶŝŶŐ ĐŽŵƉĂŶŝĞƐ ďǇ ŵĂƌŬĞƚ ƉŽƐŝƟǀĞĂŐĂŝŶƚŽΨϮϰ ĐĂƉŝƚĂůŝƐĂƟŽŶ͘ dǁŽ ŽĨ ƚŚĞ ƚŚƌĞĞ ŶĞǁ ĞŶƚƌĂŶƚƐŝŶƚŚŝƐǇĞĂƌ͛ƐdŽƉϰϬǁĞƌĞŚŝŶĞƐĞ ďŝůůŝŽŶ͖ďƵƚŶĞƚƉƌŽĮƚĚŽǁŶ ĐŽŵƉĂŶŝĞƐĂŶĚŽŶĞǁĂƐEŽƌƚŚŵĞƌŝĐĂŶ͘ dŚĞĮŶĂŶĐŝĂůŝŶĨŽƌŵĂƟŽŶĨŽƌϮϬϭϰĐŽǀĞƌƐ 9% ƚŚĞƌĞƉŽƌƟŶŐƉĞƌŝŽĚƐĨƌŽŵϭƉƌŝůϮϬϭϯƚŽ ͻ ĂƉŝƚĂůǀĞůŽĐŝƚǇĚĞĐůŝŶĞĚ ϯϭĞĐĞŵďĞƌϮϬϭϰ͕ǁŝƚŚĞĂĐŚĐŽŵƉĂŶǇ͛Ɛ ƌĞƐƵůƚƐŝŶĐůƵĚĞĚĨŽƌƚŚĞϭϮͲŵŽŶƚŚĮŶĂŶĐŝĂů ĨŽƌƚŚĞĮƌƐƚƟŵĞƐŝŶĐĞ ƌĞƉŽƌƟŶŐ ƉĞƌŝŽĚ ƚŚĂƚ ĨĂůůƐ ŝŶƚŽ ƚŚŝƐ ƟŵĞ ϮϬϭϬĂŶĚĐŽŶƟŶƵĞƐƚŽ ĨƌĂŵĞ͘ ƐůŽǁ tŚŝůĞĐŽŵŵŽĚŝƚǇƉƌŝĐĞƐĚĞĐƌĞĂƐĞĚĂĐƌŽƐƐ Ă ŶƵŵďĞƌ ŽĨ ĐŽŵŵŽĚŝƟĞƐ ĂŶĚ ĚƌŽǀĞ ͻŝǀŝĚĞŶĚǇŝĞůĚƐĂƚĂŶĂůůͲ ůŽǁĞƌ ƌĞǀĞŶƵĞƐ͕ ƚŚĞ ƌĞƉŽƌƚ ĨŽƵŶĚ ƚŚŝƐ Marble mining in Moroto, Karamoja. More ǁĂƐƉĂƌƟĂůůǇŽīƐĞƚďǇŝŶĐƌĞĂƐĞĚǀŽůƵŵĞƐ͕ government incentives would boost the industry ƟŵĞŚŝŐŚŽĨϱй ƉĂƌƟĐƵůĂƌůǇ ŝŶ ŝƌŽŶ ŽƌĞ ǁŚĞƌĞ ƐƵƉƉůǇ ͻ'ŽǀĞƌŶŵĞŶƚŝŶƚĞƌǀĞŶƟŽŶ ĞǆƉĂŶĚĞĚŽŶƚŚĞďĂĐŬŽĨůĂƌŐĞĞǆƉĂŶƐŝŽŶ ǁĞĂůƚŚ ŽĨ ŶĞǁ ĚĞǀĞůŽƉŵĞŶƚ ƉŽƚĞŶƟĂů ƉƌŽŐƌĂŵƐŽĨƚŚĞƉĂƐƚĨĞǁǇĞĂƌƐ͘ ŝŶ ĞŵĞƌŐŝŶŐ ŵĂƌŬĞƚƐ ĂŶĚ ĚŝīĞƌŝŶŐ ĂŶĚĐŽŶŇŝĐƚĂďŽƵŶĚǁŝƚŚ ƐŚĂƌĞŚŽůĚĞƌ ĞǆƉĞĐƚĂƟŽŶƐ͕ ĐŽŶƟŶƵĞƐ ƚŽ ͞dŚĞĚĞĐůŝŶĞŝŶƚŚĞŝƌŽŶŽƌĞƉƌŝĐĞŝƐŚĂǀŝŶŐ ĐƌĞĂƚĞĚŝǀĞƌŐĞŶĐĞ͘͟ ƐƚƌĂƚĞŐǇĚĞďĂƚĞƐĂƐĞīĞĐƚ ĂƐŝŐŶŝĮĐĂŶƚŝŵƉĂĐƚŽŶƚŚĞƚŽƉϰϬŵŝŶĞƌƐ͘ ŽĨůŽǁĞƌƉƌŝĐĞƐĨĞůƚďǇ tŚŝůĞ ƐůŽǁĞƌ ĚĞŵĂŶĚ ĨƌŽŵ ŚŝŶĂ ŝƐ ͞,Žǁ ƚŚĞ ŝŶĚƵƐƚƌǇ ǁŝůů ŐƌŽǁ ŝŶ ƚŚĞ ǇĞĂƌƐ ŵĂŬŝŶŐ ŚĞĂĚůŝŶĞƐ͕ ƚŚĞ ƉƌŝĐĞ ĚĞĐůŝŶĞƐ ĂƌĞ ĂŚĞĂĚ ǁŝůů ďĞ ŝŵƉĂĐƚĞĚ ďǇ Ă ŶƵŵďĞƌ ŽĨ ŵĂŶǇ ŵŽƌĞƌĞůĂƚĞĚƚŽƚŚĞĐƵƌƌĞŶƚŽǀĞƌƐƵƉƉůǇŝŶ ĨĂĐƚŽƌƐ͕ŝŶĐůƵĚŝŶŐƚŚĞĂďŝůŝƚǇŽĨƟĞƌϭĂƐƐĞƚƐ ĐĐŽƌĚŝŶŐ ƚŽ Wǁ͛Ɛ ĂŶŶƵĂů ͚DŝŶĞ͛ ƌĞƉŽƌƚ ƚŚĞŵĂƌŬĞƚ͘ ƚŽƉƌŽĚƵĐĞƐƵďƐƚĂŶƟĂůƋƵĂŶƟƟĞƐĂƚĐŽƐƚƐ ƌĞůĞĂƐĞĚ ŝŶ :ƵŶĞ͕ ƚŚĞ ŝŶŝƟĂů ƐĐŽƌĞĐĂƌĚ ĨŽƌ ƐŝŐŶŝĮĐĂŶƚůǇ ďĞůŽǁ ĂǀĞƌĂŐĞ͖ ƚŚĞ ĚĞŵĂŶĚ ƚŚĞůĂƌŐĞƐƚϰϬŵŝŶĞƌƐǁĂƐŵŝǆĞĚĂŶĚŶŽǁ ͞tŝƚŚĨĞǁĞǆĐĞƉƟŽŶƐ͕ŵĂƌŬĞƚƐƵƉƉůǇĂŶĚ ĨŽƌ ĐŽŵŵŽĚŝƟĞƐ ĨƌŽŵ ŚŝŶĂ ĂŶĚ ŽƚŚĞƌ ƚŚĞ ŐůŽǀĞƐ ĂƌĞ Žī ĨŽƌ ƚŚĞ ŝŶĚƵƐƚƌǇ ǁŝƚŚ ĚĞŵĂŶĚƚƌĞŶĚƐƌĞƐƵůƚŝŶŵŝŶĞƌƐŽƉĞƌĂƟŶŐ ĞŵĞƌŐŝŶŐŵĂƌŬĞƚƐ͖ƚŚĞŝŵƉĂĐƚŽĨĐŚĂŶŐŝŶŐ ǁŝĚĞƐƉƌĞĂĚ ŐŽǀĞƌŶŵĞŶƚ ŝŶƚĞƌǀĞŶƟŽŶ͕ ŽŶƚŚĞĂƐƐƵŵƉƟŽŶƚŚĂƚůŽǁĞƌĐŽŵŵŽĚŝƚǇ ƚĂǆ͕ ĞŶǀŝƌŽŶŵĞŶƚĂů ĂŶĚ ďĞŶĞĮĐŝĂƟŽŶ ŝŶƚĞƌŶĂů ŝŶĚƵƐƚƌǇ ĐŽŶŇŝĐƚƐ ĂŶĚ ƌŝƐŝŶŐ ƉƌŝĐĞƐ ǁŝůů ĐŽŶƟŶƵĞ ĂŶĚ ƚŚĞ ĨŽĐƵƐ ǁŝůů ƌĞŐŝŵĞƐ͖ ĂŶĚ ƚŚĞ ǁŝůůŝŶŐŶĞƐƐ ďǇ ƚŚĞ ƐŚĂƌĞŚŽůĚĞƌ ĂĐƟǀŝƐŵ͘ ŌĞƌ Ăůů͕ ϮϬϭϰ ǁĂƐ ƚŚĞƌĞĨŽƌĞƌĞŵĂŝŶŽŶĐŽŶƚĂŝŶŝŶŐŽƉĞƌĂƟŶŐ ŝŶĚƵƐƚƌǇƚŽĞŶƚĞƌŝŶƚŽŐƌĞĞŶĮĞůĚƉƌŽũĞĐƚƐ͕ ĞǆƉĞĐƚĞĚƚŽďĞĂƚŽƵŐŚĮŐŚƚĨŽƌƚŚĞŐůŽďĂů ĐŽƐƚƐ ĂŶĚ ŵĂŝŶƚĂŝŶŝŶŐ ĐĂƉŝƚĂů ĚŝƐĐŝƉůŝŶĞ͕͟ ŝŶƐƚĞĂĚ ŽĨ ŽŶůǇ ĚĞǀĞůŽƉŝŶŐ ƐŵĂůůĞƌ ŵŝŶŝŶŐ ŝŶĚƵƐƚƌǇ ǁŝƚŚ ĐŽŵŵŽĚŝƚǇ ƉƌŝĐĞƐ ĂĚĚƐ<ŽƚǌĞ͘ ďƌŽǁŶĮĞůĚƉƌŽũĞĐƚƐ͕͟ĐŽŶĐůƵĚĞƐZŽƐƐŽƵǁ͘ ĚŽǁŶĂŶĚƐŚŽƌƚͲƚĞƌŵǀŽůĂƟůŝƚǇŝŶĐƌĞĂƐŝŶŐ͘ ͚DŝŶĞ͛ĂůƐŽĨŽƵŶĚ͕ĨŽƌƚŚĞƐĞĐŽŶĚǇĞĂƌ͕ƚŚĞ &Žƌ ĂǀŝĚ <ǇĂŐƵůĂŶǇŝ͕ <ǁĞƌŝ ĚŝƌĞĐƚŽƌ ŶĞǁ ĂŶĂůǇƐŝƐ ŽĨ ƚŚĞ ϰϬ ůĂƌŐĞƐƚ ŐůŽďĂů ŵĂũŽƌŝƚǇŽĨƚŚĞůĂƌŐĞƐƚŵŝŶŝŶŐĐŽŵƉĂŶŝĞƐ ĂŶĚ ŵŝŶŝŶŐ ĐŽŶƐƵůƚĂŶƚ͕ ƚŚŽƐĞ ŵŝŶŝŶŐ ŵŝŶĞƌƐĨƌŽŵWǁƐŚŽǁƐƚŚĂƚŝŶϮϬϭϰƚŚĞ ĐĂŵĞĨƌŽŵĞŵĞƌŐŝŶŐŵĂƌŬĞƚƐƌĂǌŝů͕ĞŶƚƌĂů ĐŽŵƉĂŶŝĞƐƚŚĂƚĐŽŶƟŶƵĞƚŽĞŶũŽǇǀĂƌŝŽƵƐ ŝŶĚƵƐƚƌǇ ƚƌŝŵŵĞĚ ƐƉĞŶĚŝŶŐ ĂŶĚ ůĂƌŐĞůǇ ΘĂƐƚĞƌŶƵƌŽƉĞ͕ŚŝŶĂ͕/ŶĚŝĂ͕ĂŶĚ^ĂƵĚŝ ĨŽƌŵƐĮŶĂŶĐŝĂůĂŶĚƚĞĐŚŶŝĐĂůŝŶƚĞƌǀĞŶƟŽŶƐ ŵĂŶĂŐĞĚ ĞǆƉĞĐƚĂƟŽŶƐ ƚŚƌŽƵŐŚ ŚŝŐŚĞƌ ƌĂďŝĂ͕ ƌĂƚŚĞƌ ƚŚĂŶ ƚŚĞ KƌŐĂŶŝƐĂƟŽŶ ĨŽƌ ĨƌŽŵ ƚŚĞŝƌ ŐŽǀĞƌŶŵĞŶƚ ǁŝůů ĐŽŶƟŶƵĞ ƚŽ ƉƌŽĚƵĐƟŽŶ ĂŶĚ ƵŶĞǆƉĞĐƚĞĚ ŚĞůƉ ĨƌŽŵ ĐŽŶŽŵŝĐ ŽŽƉĞƌĂƟŽŶ ĂŶĚ ĞǀĞůŽƉŵĞŶƚ ĚŽŵŝŶĂƚĞ ŝŶ ƚŚĞ ƉŽƐŝƟǀĞ ďĞŶĞĮƚƐ ŽĨ ƚŚĞ ĐƵƌƌĞŶĐǇ ĚĞǀĂůƵĂƟŽŶƐ ĂŶĚ ůŽǁĞƌ ŝŶƉƵƚ ;KͿ ŵĂƌŬĞƚƐ͕ ǁŝƚŚ ĂŶŽƚŚĞƌ ƚǁŽ ƚŽƉ ŵŝŶŝŶŐƐĞĐƚŽƌ͘ ĐŽƐƚƐ͕ ĚĞƐƉŝƚĞ ĐŽŶƟŶƵĞĚ ŚĞĂĚǁŝŶĚƐ ĨƌŽŵ ĞŶƚƌĂŶƚƐ ĨƌŽŵ ŚŝŶĂ ĂŶĚ Ă ůŽǁĞƌ ŽǀĞƌĂůů ǁĞĂŬĐŽŵŵŽĚŝƚǇƉƌŝĐĞƐ͘ ĚĞĐůŝŶĞŽĨŽŶůǇϳйͲĐŽŵƉĂƌĞĚƚŽĂŶK ͞dŚĞƐĞ ƐĂŵĞ ĐŽŵƉĂŶŝĞƐ ĨƌŽŵ ƚŚĞƐĞ ĚƌŽƉŽĨϮϭйͲŝŶŵĂƌŬĞƚĐĂƉŝƚĂůŝƐĂƟŽŶ͘dŚŝƐ ƐĂŵĞ ĐŽƵŶƚƌŝĞƐ ǁŝůů ƉƌŽďĂďůǇ ĚŽŵŝŶĂƚĞ DŝĐŚĂů<ŽƚǌĞ͕,ĞĂĚŽĨWǁ͛ƐĨƌŝĐĂDŝŶŝŶŐ ĚĞĐƌĞĂƐĞ ǁĂƐ ĚĞƐƉŝƚĞ Ă ůŽǁĞƌ ĂĚũƵƐƚĞĚ ƚŚĞ ŽǁŶĞƌƐŚŝƉ ŽĨ ŵŝŶĞƌĂů ƌĞƐŽƵƌĐĞƐ͕ ŽŶ ĞŶƚƌĞ ŽĨ ǆĐĞůůĞŶĐĞ͕ ƐĂǇƐ͗ ͞dŚĞ ƐƵĐĐĞƐƐ ƉƌŽĮƚĐŽŶƚƌŝďƵƟŽŶĨƌŽŵĐŽŵƉĂŶŝĞƐŝŶƚŚĞ ďĞŚĂůĨŽĨƚŚĞŝƌŽǁŶĐŽƵŶƚƌŝĞƐ͕ŝŶŵƵĐŚŽĨ ŽĨ ĐŽƐƚͲƐĂǀŝŶŐ ŝŶŝƟĂƟǀĞƐ ďĞĐĂŵĞ ŵŽƌĞ ĞŵĞƌŐŝŶŐŵĂƌŬĞƚƐ͘ ƚŚĞƌĞƐƚŽĨƚŚĞǁŽƌůĚ͘ŶĚƚŚĞǇǁŝůůŵŽƐƚ ĂƉƉĂƌĞŶƚ ŝŶ ϮϬϭϰ ĂƐ ŽƉĞƌĂƟŶŐ ĐŽƐƚƐ ƉƌŽďĂďůǇ ďĞ ƚŚĞ ŽŶĞƐ ůĞŌ ƐƚĂŶĚŝŶŐ ŝĨ ƚŚĞ ĚĞĐƌĞĂƐĞĚϱй͘tŚŝůĞƚŚĞŵŝŶŝŶŐŝŶĚƵƐƚƌǇ ŶĚƌŝĞƐZŽƐƐŽƵǁ͕WǁƐƐƵƌĂŶĐĞWĂƌƚŶĞƌ͕ ĚŽǁŶƚƵƌŶ ĐŽŶƟŶƵĞƐ ĨŽƌ ůŽŶŐ͕͟ ŚĞ ĂĚĚĞĚ͕ ŚĂĚďĞĞŶŝŶĚŝĐĂƟŶŐĨŽƌƚŚĞůĂƐƚƚǁŽǇĞĂƌƐ ƐĂǇƐ͗ ͞DŝŶŝŶŐ ĐŽŵƉĂŶŝĞƐ ĨƌŽŵ ĞŵĞƌŐŝŶŐ ŶŽƟŶŐ ƚŚĞ ŶĞĞĚ ĨŽƌ ĨƌŝĐĂŶ ŐŽǀĞƌŶŵĞŶƚƐ ƚŚĞŝƌŝŶƚĞŶƟŽŶƚŽƌĞĚƵĐĞĐĂƉŝƚĂůƐƉĞŶĚŝŶŐ͕ ŵĂƌŬĞƚƐ ƚĞŶĚ ƚŽ ĨŽĐƵƐ ŽŶ ŵŝŶŝŶŐ ŝŶ ƚŚĞŝƌ ƚŽƋƵŝĐŬůǇĞŵƵůĂƚĞƚŚĞĞŵĞƌŐŝŶŐĐŽƵŶƚƌŝĞƐ ƐƵĐŚ ƌĞĚƵĐƟŽŶƐ ǁĞƌĞ ĂĐƚƵĂůůǇ ƌĞĂůŝƐĞĚ ŽǁŶ ũƵƌŝƐĚŝĐƟŽŶƐ ǁŚĞƌĞĂƐ ƚŚŽƐĞ ŝŶ ƚŚĞ ĂŶĚ ǁŚŽůĞƐŽŵĞůǇ ƐƵƉƉŽƌƚ ƚŚĞ ĞǆƚƌĂĐƟǀĞ ŝŶ ϮϬϭϰ ĂƐ ĞǆƉĞŶĚŝƚƵƌĞƐ ŽŶ ƐŝŐŶŝĮĐĂŶƚ K ƚĞŶĚ ƚŽ ŚĂǀĞ ŵŽƌĞ ĚŝǀĞƌƐĞ ŐůŽďĂů ƐĞĐƚŽƌ͕ĨŽƌƚŚĞďĞŶĞĮƚŽĨƚŚĞŶĂƟǀĞƐ͘ ƉƌŽũĞĐƚƐĚĞĐůŝŶĞĚϮϬй͘͟ ƉŽƌƞŽůŝŽƐ͘ dŚŝƐ ĚŝǀŝĚĞ͕ ĐŽƵƉůĞĚ ǁŝƚŚ ƚŚĞ

26 The Uganda Chamber of Mines & Petroleum Private Sector Seeks more participation in EAC projects

The three Presidents, Kagame, Uhuru and Museveni arrive for the dinner

he private sector in the East African This was the first time that business He explained that some of the top region believes infrastructural matters were given precedence at a private equity funds were “looking for Tprojects in the region can ably summit of this magnitude, and the private yield in the region,” meaning that foreign be funded with the right environment in sector used the opportunity to implore players were willing to spend money place. the presidents to involve it in key issues on investments that could bring them like infrastructure developments so as to higher interest earnings. Private equity This was the sentiment shared at a not only hasten their success rate but to funds usually channel money through dinner hosted by the Uganda Chamber also advise on their structuring. financial institutions such as banks. of Mines and Petroleum, to give the private sector a look-in into the Northern Speaking at the dinner, Patrick Mweheire, A report by Ernst and Young, released Corridor Integration Projects (NCIP) Stanbic Bank, Uganda’s Managing last year, notes that East Africa, will framework as the Kampala leg of Director, made continue to attract the Northern Corridor Infrastructure a strong case private equity summit got underway. for the banking President Kenyatta funds for the years industry’s ability ahead. In attendance was President Yoweri to finance said the private sector Museveni of Uganda, President Paul investment “As growth rates Kagame of Rwanda and Kenya’s Uhuru should take the lead projects, noting: “ declined across Kenyatta. “Capital is in executing development most of the no longer a ventures while developed world The NCIP initiative seeks to fast track the scarce resource in the aftermath of implementation of 14 projects ranging anymore.” governments concerned the credit crunch, from road and railway construction to themselves with creating private equity (PE) energy generation, ICT, social economic Stanbic is the an enabling environment firms turned to development and security cooperation. largest bank in emerging markets Uganda in terms for business to thrive” as an engine of assets. of growth,” the

The Uganda Chamber of Mines & Petroleum 27 President Museveni makes a point as his counterparts from Rwanda and Kenya look on report, titled Private Equity Roundup Some of the 14 projects that the summit “Your excellences, we suggest that Africa, noted. is focussing on include: two petroleum before you endorse policies and pipelines, the oil reﬁnery in western regulations in the region, get our views It further noted that “East Africa will Uganda, the standard gauge railway so that we do not register shortcomings be attractive partly because it is doing between Uganda and Kenya, the one while transacting our businesses,” more than most other African regions to stop border points, ICT, among others. Kaijuka said. become integrated, thereby facilitating easier cross-border activity and For the projects to be impactful Kaijuka also noted that the private attracting investors.” however there was need for the regional sector “can do wonders” as it had governments to consult the private demonstrated in various sectors like The report pointed out that there are sector before embarking on them, Hon education and health. already private equity funds targeting Richard H. Kaijuka, told the Heads of the continent’s infrastructure projects. State at the Speke Resort Munyonyo Agreeing with him was President It listed Convergence Partners as one dinner. Kenyatta, who noted that the of those that recently announced a ﬁrst governments had no business close of $145m on an infrastructure fund undertaking the projects on their own. for information and communications He said that the private sector should technology investments across the take the lead in executing them while continent. Harith General Partners governments concerned themselves is also said to be fundraising for an with creating an enabling environment infrastructure fund targeting $1.2b, for business to thrive. which will be invested in projects across the continent. Sithe Global, a company President Yoweri Museveni however majority-owned by a fund managed was against leaving everything to the by Blackstone Group, helped partly private sector, noting that key sectors develop Uganda’s Bujagali hydropower like electricity needed government project to a tune of $116 million. participation. The Bujagali hydropower project, he said, was distributing More of these funds are expected to expensive energy because the private target the projects under East Africa’s players had to service costly loans they northern corridor programme. had borrowed for its construction.

The Northern Corridor Infrastructure He acknowledged that his government summit is an initiative that was launched was already listening to the concerns of in 2013 to implement a number of the private sector by creating the right programmes, most of which are trade- environment for the extractives sectors. related, to support economic growth He pointed to the abolition of Value around the region. This was the 10th Added Tax on exploration for minerals meeting where the presidents discussed and oil. the progress of the different projects. Hon Richard Kaijuka, UCMP Vice Chairman

28 The Uganda Chamber of Mines & Petroleum Patrick Mweheire, Stanbic Bank Uganda, MD

on such things like feasibility studies, among others, which, he was said, was too much money.

It is the private sector’s concerns, such as those involved in the sensitive tourism industry, about the political risk that could pose a bigger headache for the presidents.

Museveni also thanked Kenyatta for facility on behalf of Uganda Property President Paul Kagame of Rwanda said creating a comfortable environment for Holdings Limited at Mombasa, said there was political will to address some Ugandan importers in Kenya. Ugandan importers would appreciate of the concerns of the private sector and it if Kenya implemented the electronic also push ahead with the infrastructure “Before Kenyatta came, there used to cargo system, which partly eases the projects. But that, he added, was not be a mentality that they are doing us clearance of goods. sufficient. a favour by allowing our goods to go through Kenya. These were enemies… She said TradeMark East Africa has a “There is political will. But political will I am happy that Kenyatta has dealt with fund that facilitates the implementation alone is not enough. There is need for this mentality,” he said. of this system, and that Uganda is urgency,” he advised already benefiting from it. He was pointing to the numerous Elly Karuhanga, Chairman, UCMP, said complaints from Ugandan traders who Stanbic’s Mweheire also said some of throwing a dinner alone did not offer said they faced harsh conditions at the investors’ main concerns centred the private sector and the presidents Kenya’s busy port of Mombasa. on credit risk and political risk. On credit enough time to brainstorm all the issues risk, Mweheire said a lot of money holding back development in the region. Jeniffer Mwijukye, who is a part owner was spent on the preparation stage. He asked for a full day to do so, a request of Unifreight Cargo Handling Limited, He estimated that about five to 10 per that President Museveni granted. which also manages an inland port cent of the total project cost was spent

The Uganda Chamber of Mines & Petroleum 29 In picture

30 The Uganda Chamber of Mines & Petroleum Summit Makes Case for Business Sense in Uganda’s Oil Industry

he Uganda Chamber of Mines and Petroleum’s first Oil & the pipeline and refinery infrastructure were extensively Gas convention held under the theme, ”Delivering Uganda’s deliberated upon. This was especially in their relation to the Potential in the Oil & Gas Sector”, went out of its way to final investment decisions (FIDs) of the Joint Venture partners Tdebate in great detail issues that remain pertinent in Uganda’s of Total E&P, Tullow and CNOOC. drive to become an oil producing country. Despite being singled out as the main cause of the frustrating This convention drew together the business and public sector delays, the government of Uganda was also commended for to reflect on key issues and enablers in the development of having an astute technical team leading its foray into what was, Uganda’s emerging Industry. until a decade ago, a largely unknown industry.

The standout discussion revolved around the frustration Generally the summit provided a great platform for stakeholders of the private sector as regards the endless lulls in activity in Uganda’s petroleum industry to reexamine themselves and in the petroleum industry. This meant that government reassess their strengths and weaknesses as they seek to representatives were always called upon to make a case for maximize the benefits from the sector, going forward. their slow decision making. Following are some of the highlights from the first annual Oil & The delays in the issuance of Production Licenses to the oil firms Gas Convention: plus the socio-economic and multinational factors surrounding

Delays My other worry is the uncertainty on the Andrew Mwenda – Business Sense Jimmy Mugerwa – Fears route-to-market. As an upstream player my work is to ensure that the oil is on the surface. And by the time it is on the Our regulator, the Ministry of Energy surface, I would like it to be clear where has done a good job, seeing how much the oil will go; so the refinery and pipeline they have to contend with under tight need to be ready by then. schedules. The Lake Albert Basin project is a very good one and can be a world And it is important to note that the crude class development, when you consider export pipeline is key to unlocking the the amount of oil we have found in just developments of this country. 40% of the area. This is because 80% to 90% of the exported crude will belong to government, and also because, a $10bn investment has to be underpinned to a certain market - the domestic market is not big enough to be able to mobilise the project financing that will be required. We need some kind In military science, it is said that the of international market assurance. So basic principle of a commander on the while it is important to have a refinery battlefield is selection and maintenance to produce for the local market, we also of the aim or goal. need an export pipeline. Uganda’s oil sector is generally lacking an My other concern is that we are trying overall aim that has a timeframe. Our aim We have several concerns, however. to launch 3 or 4 major projects at the is to produce and export oil and we are same time. In other oil countries, at least working with partners who have invested Firstly, I would hope that the Production a pipeline or refinery already exists. So it private capital like Tullow’s $3bn. But if Licenses (PLs) are issued as soon as is a tricky situation as the projects are all we seek to make the best deal for Uganda possible. For some of us who have inter-related and hence create a project by squeezing the last coin out of the oil invested $3bn, we start having negative on project risk. What comes first? companies and perhaps push them into thinking with every delay, as our business bankruptcy, then we will make Uganda’s Managing expectations – the is seriously affected. Without PLs, we oil unviable. If I invest $3bn and am communities, the state, the investors, can’t do anything from enacting the delayed by bureaucratic wrangling for 10 name it – is also another major concern resettlement action plan to advertising years, then my investment isn’t making for me. for EPC (engineering, procurement & a return, which means Uganda is again construction) etc. not attractive to genuine investment; and ______

The Uganda Chamber of Mines & Petroleum 31 therefore may only start attracting the Uganda is not reinventing the wheel, worst companies. seeing that we are not the first country to discover oil. If we fear making mistakes, There needs to be a point when the we can always learn from countries that management of the production process have done it right. It is not viable to spend of oil has to move from geologists to 10 years, saying we are trying to do the business people (those with MBAs), so right thing, yet on the other hand we have that they are able to balance the interests encouraged local Ugandans to invest in of the oil companies and those of Uganda. the sector. Many local businesses, for who joined the oil industry for the first Assuming, for the next five years, I engage time, have since been foreclosed by the myself in the discussion with Tullow, banks because they borrowed heavily Total and CNOOC over whether the to build capacity in logistics and the like recovery rate of a given oil well should be after encouragement by the state and Do not assume that both the investors 25% or 22%. From a business viewpoint, oil companies. The oil firms claim they and the Government have common I must also ask myself whether the 3%, cannot do much since government is interests. can justify a delay of 5 years. The time not making decisions. So who do we go From a commercialization perspective value of money has to be considered. I to? The slow pace of decision making by for instance, where the investors wanted have seen a lack of business sense in the government is the biggest problem as it the oil that has been found to be quickly current negotiations on how to proceed creates uncertainty, and we all end up transported to open markets where to get oil out of the ground. The $10bn suffering. today is better than the $20bn gotten a buyers are many, the Government is decade later. So whereas there are very many projects interested in using these resources coming up, who is going to do them to contribute to industrialisation by Uganda also needs to start considering locally? The banks cannot lend me money developing a refinery. how to achieve a balance between because I have no contract; which I Here you have two interests that are effective regulation and oversight and cannot get it from Total because it will genuine, by partners, but different. facilitation of business. A government say it has no license. It’s a chicken and can choose to focus on regulation and egg situation. stifle the ability of the private sector to And so in a situation like this, it’s not a matter of taking decisions, it’s actually act. Uganda’s private partners who have The cost of doing business is very high. a negotiation so that you come to a win- committed a lot of money need to recover All the oil companies have scaled down. their money as quickly as possible. win situation. So why isn’t government doing what they ______are supposed to do? Who will bail us out in the private sector? Keith Muhakanazi, Finance Ministry PS Bob Kabonero – Compensation ______- First Oil Curse I would like to thank Keith Muhakanizi, Earnest Rubondo – Varying Interests the Permanent Secretary at the Ministry of Finance, for coming out bluntly and It’s important to recognize that investors appreciating that there is something in the petroleum sector fall in two wrong; which wrongs have made we in broad categories. There are those that the private sector suffer. acquired rights to develop the oil and gas resources; and they were contracted I think it comes down to government not by government to do the exploration, knowing the cost of business. I guess, production and development. with all due respect to the government technocrats, they are assured of a salary Then there are those companies and at the end of every month, so however individuals that are providing a service long it takes, they don’t mind. to the licensed oil firms and they too are investors in the oil and gas industry.

On a broad scale they both want a return on their investment whether they are the ones that were licensed or they are the ones contracted to provide services. Very slow decision-making has been the major problem in the industry; with the It is very important to recognise that fear of going wrong very strong. I think licensees have interests and equally, this is an Oil Curse already. How do we it’s also very important to appreciate get out of this problem? that sometimes the interests of these firms are not the same as those of the Is there anyone that will never make a Government or the country. mistake? I think the time has come for us to deal with this time wasting problem so that the industry can move forward.

32 The Uganda Chamber of Mines & Petroleum Having said that, I think the laws are now recognize what to do in a low-price round has been announced which will in place. We agreed and worked on tax environment. We have deliberately be a new set of investments. So in a issues. We have also started working on decided to take out costs. For instance situation like this, we do not expect to infrastructure though we still need to do we have renegotiated contracts with the see all the fields come to a close at the more. Parliament needs to pass the loans drillers – taking out almost $3bn. same time. All this is happening because so we move very fast on infrastructure. we have several stages.

As far as the Government of Uganda is Ade Adeola, on National Oil Companies concerned, the oil and gas industry has a commendable history.

Agreements have caused some turmoil in some countries and Uganda has been able to overcome this by signing sustainable agreements that are not leading into any crisis. With exploration, we have had a success rate of over 88%, which is way above the global standard of 25%.

Also in a low price environment, other Over 6.5 billion barrels of oil have been countries, like the UK and Iran, have given discovered after investing about $3bn incentives to the oil companies so that – meaning the cost of finding a barrel they can keep their capital in their fields is below $1 – a great plus for Uganda. in the North Sea. Maybe Uganda should Globally, the cost of finding a barrel is also be thinking the same, to ensure between $20 and $25. There is a growing influence of National there is no further capital flight out of Oil Companies (NOCs) on the African Why am I saying this? Uganda has the country. Some of the PSA terms are continent. This is good but NOCs should not gone through the next phases pretty difficult at this material time. be run commercially, independently and (development and production) and hence should be able to commercialise and it’s difficult for me to say everything will ______take decisions that will create long term be done well. All I can assure you is that the journey we have walked so far is an value for government, Ugandans and the Ready partners it chooses to work with. We have admirable one and everything is going to be done to extend the success we have seen too many instances where NOCs Ernest Rubondo – Commendable history are underfunded and create challenges had up to this point. for potential partners. Uganda can learn For the next phase, we expect more from NOCs of other countries – some and bigger participants; therefore have done well and some not so well; the coordination is going to be extra but we must remember the NOC’s major necessary so it is important everybody objective is to ensure energy security for plays their part very well. As far as the the country. Ministry is concerned, we have a good Adeola, on impact of global prices on history and would want to commit that Uganda’s oil prospects this is the excellence we wish to continue with going forward. I believe that East Africa and Uganda is particularly fortunate because the cost ______of drill and complete is about $10-15 Hon Richard Kaijuka – Exciting per barrel since onshore drilling is a lot Opportunities cheaper than offshore drilling. In places like Angola, Nigeria, Ghana – the cost The oil and gas sector in Uganda is ranges between $25-30 per barrel in evolving. Some of the challenges we are terms of drill and complete. facing are because we are going through this for the first time. It’s very clear Ade is MD, Standard Chartered Bank though that the fields Uganda discovered (Head, Energy and Chemicals) on National first are all entering the development Oil Companies stage at the same time. What happens in ______other countries is that they have several cycles of an activity. That’s why you hear Mugerwa on the dropping oil price:- that in some countries they have several licensing rounds – even up to 10 rounds. Tullow is off course concerned about The impact therefore is less than it is in price; but the important thing to note Uganda where we are taking forward the is that the oil prices have always been first licensing fields. We see these oil and gas discoveries volatile. The important thing is to as a great moment in our history. The Besides a first competitive licensing

The Uganda Chamber of Mines & Petroleum 33 challenges surrounding the development Jimmy Mugerwa – MoU plan of the oil industry will open up the great investment opportunities therein, The MoU implementation plan was Elly Karuhanga _ coordination within which our youthful population must drafted by the oil companies and we have Govt bodies exploit. Imagine the field developments now shared it with Government. There investments that are valued to over is an Implementation Committee that As the Uganda Chamber of Mines and $10bn. The lull since the end of the has been put in place and it will be jointly Petroleum, we don’t see coordination. exploration phase has seen a scale down owned. It is jointly owned because there We would like to see more coordination of employees at the oil companies which are some actions which are specific to between the Ministry of Finance and that has worried many. But no one should government like the inter-governmental of Energy plus all the other Government worry because the future is very exciting; agreements between Uganda and agencies that will play a part in the next and youngsters should continue training. Kenya and there are some actions that stage of developing the oil and gas sector. I know that with the big upcoming are specific to the oil companies. Going ______infrastructural developments, the forward, the Implementation Plan will financiers may be worried about the Dutch be used to track actions as agreed during Mugume, PS Foreign Affairs _ Disease. But I have no doubt in my mind the Presidential Investors Round Table. coordination within Govt bodies that it is possible if there is coordination, ______realignment and commitment and we are Having worked with the EAC Presidents all focused on getting the job done. Rubondo – Local Talent for the last 2 years, the key words are fast-track and implementation. The slow Hon Kaijuka, is the Vice Chairman of the The oil and gas sector is progressive. At decision making is recognized as being UCMP the start, during exploration, there were a bad for business. And in fact the reason lot of geologists, geo-physicists required. why the Northern Corridor Integration ______As we moved to the drilling stage, a lot of Projects summits came up was because petroleum engineers and drill engineers we were too slow; so the presidents Keith Muhakanizi – Financial stability were hired. Over the last two years, the said, let us get things done. So every 2 Government has been trying to build months now, the Presidents meet and No we are doing a good job but we human capacity in refinery and pipeline the bureaucrats explain to them how far need to improve – that is a fact. On engineering. we are from the targets. We have also whether we have the mechanism of realized we need to work with the private managing the volatility that is expected The department (PEPD) currently has sector hence the summit in Munyonyo once oil revenues begin to come in, the 166 people working for it and over half of where we will interact freely in joint answer is yes. In our macro-economic them are professionals in this field. sessions. The private sector is in it to management, which is now enshrined ______make money, so it is willing to participate in the Public Finance Management Act in the fast-tracking. The Ministry of is that much of the money which will not Jimmy Mugerwa – Recovery Foreign Affairs is coordinating with be remitted within the Macro-economic Actually a recovery rate of 30% is very other countries regionally; however at Framework will be saved to be used in good because the world average is about the national level we have to coordinate the future and probably kept outside the 25% but the reality is Mother Nature the other government bodies to ensure country. So a stabilisation mechanism is has produced different fields, different Uganda is ready and progress is being in place. characteristics, and different structures made. Kenya is taking the lead on the ______in the ground. So sometimes you have pipeline, whereas Uganda is focused prolific fields like is the case in the north on the refinery and the railway. I think Rubondo _ Coordination Buliisa fields and sometimes there will be the private sector has been skeptical as I would like to assure you that the shallow wells and the recovery will not regards government’s commitment, but Ministry of Energy works very solidly be so good. So we have a mixture of both I think if they find us prepared to fast- with the Finance and Justice ministries on average the recovery factor that we track, they will come on board. before any agreements are concluded. hope to get out as a joint venture is 25%, This coordination is increasing as we take which is actually very good compared to the oil and gas sector forward. the world.

34 The Uganda Chamber of Mines & Petroleum in Kampala reiterated the need to speed up things outlining a number of concerns that stem directly from the slowed-down processes especially on the Government side.

“Our current estimate of first oil in Uganda is 2019. That assumes that everything goes as per plan,” Mugerwa said.

According to Mugerwa, the one item that is sticking out – central to Uganda’s path to becoming an oil producer are the Production Licences, which the Government has been promising to issue for the last 18 months or more.

“If you look back, this time last year we were told we would have the licences by end of December, both parties were working to have the licences by end of December, unfortunately that did not happen, then a new date was put to ensure they were finalised by Easter, that did not happen and the new date is June and we hope it will be the right date,” noted Mugerwa.

Mugerwa referred to the stage where President Museveni is keen on reﬁning Uganda’s oil locally Uganda’s oil sector stands as financial closing saying that as far the three joint partners are concerned, it is the Uganda Government that is at the centre of “Uganda oil developments engagement before they go back to their different boards with a bankable project. need to pick up pace” He said: “Our bosses in London, Paris and Beijing will want to see the commercial, aving slowed down to a snail’s port, Adeola said Uganda must move fiscal and regulatory aspects of the pace, developments in Uganda’s oil from the mode of trying to achieve the project covered and the risks pointed out and gas sector need to pick up pace best possible outcome to an optimal before they will commit investment. “ Hto reduce the associated costs that will outcome. come once oil starts flowing, Ade Adeola, “They will want to see the route to Managing Director, Head of Energy and He said that unless Uganda is able to get market, all necessary licensing, financing Chemicals at Standard Chartered Bank production going within a given time- and that we have identified all the risks London has said. frame, the country will be competing and that there is an acceptable return on against an investment environment that their investment.” Tax wrangles between Uganda and oil will make Uganda uncompetitive as an companies Heritage Oil & Gas and Tullow investment destination. Raising a number of concerns at this Oil have been largely responsible for a stage of the development process, massive slow-down in activity, suffice to Adeola said: “Think about what is Mugerwa said the upstream fiscal terms mention bureaucratic red tape on project happening; China is not demanding as are very tough – Uganda takes about approvals for a refinery, an export pipeline much oil right now; India is growing 80-90 percent of project revenue which and a host of attendant infrastructure. massively but you have Iraq coming leaves them playing with a margin of 10- into the market with large volumes. The 20%. Independent experts and oil company good news is a lot of your partners; Total, executives are calling for an increased CNOOC are in those markets and they “So if there is a slip is schedule, a slip in pace in developments. have got priorities in terms of the dollars project cost, or a delay in FID the MPV they are investing. just gets smaller and smaller for the “Right from the approvals to development project and that is one of the things that as well as permits, how do we shrink the “So it is important that on top of fiscal as worries us a lot,” he said. time for each activity? Every single day well as other approval processes, things that you spend doing nothing or shipping need to move swiftly.” Mugerwa said once the production a rig or taking no action, you are actually licences are issued, the next stage they costing the country,” Adeola said. Jimmy Mugerwa, the General Manager & will go into will be engineering designs, Director for Tullow Uganda’s operations mapping of environmental and social Using the analogy of a ship that has left in his presentation at an Oil Convention

The Uganda Chamber of Mines & Petroleum 35 impacts of the project, after which they and predictable. 850 tonnes of bulk material that needs will drill the production wells and then to come through the port at Mombasa to conclude with constructing of their Mugerwa said: “Until the last Presidential Uganda, it is a big challenge and we kind production facility. Investor’s Round Table, we were of need to find a solution as far as the still complaining about the VAT, the logistics are concerned,” Mugerwa said. “That is how much work we still need to Withholding tax and that makes planning do as a joint venture – it is a lot of work a project like this pretty difficult so Mugerwa said the joint venture partners and oil can only flow after we have done it’s important that we kind of have a would like to get what he called a all of the above,” he said. predictable regime as far as taxes and “coordinated final investment decision” the different royalties are concerned. given that each of the refinery and export In terms of the environmental and social Otherwise it becomes difficult taking this pipeline create a risk on the other if their impacts, the Tullow boss acknowledges project for banking to our boards.” implementation is not synchronised or that they have to come up with the coordinated. cumulative impacts of the project and all The other concern the three oil companies the associated facilities. have is managing project investments in He said expectations need to be managed what is a tough environment currently. more as Uganda moves to the next stage “We are talking about the entire region ahead of first oil. and not only about where our central “You saw the graph of where the oil price processing facility will be,” explained is. That is fine because the oil prices are “Everybody has different expectations, Mugerwa. volatile. What we have done over the everyone wants to go and study a last nine months since oil prices began Masters in Oil and Gas, we can only “We have tried to look at the entire basin coming down by almost 46% is to re-look employ so many people,” said Mugerwa. taking in the people, the biodiversity, the at the internal costs,” explained Mugerwa. fisheries, the grazing and that is why we “So as we work through this project we are doing the environment and social To make the Uganda project viable, should also work to ensure we manage assessment and we have already started Tullow, Total and CNOOC have had to expectations of stakeholders, the local the work – which should take us between look at the project economics, and are suppliers who are investing their money, 8 to 12 months.” reducing costs, re-negotiating contracts the people who are going to work with with their contractors and have had to let us – so that is key as far as the project is In terms of resettling the people that go of very experienced staff. concerned.” will be displaced by the oil production infrastructure and developments, Mugerwa said that because the Mugerwa said the MoU Implementation Mugerwa revealed they are working on upstream fiscal terms are tough, delays Plan discussions are important because resettlement planning. are resulting into their margins shrinking they will deliver the integrated project further – a situation he referred to as a and agreement of the pipeline routing Joint Venture Concerns big worry. and ownership structure are critical to upstream development of Uganda and Since various projects have slowed The other concern is the reliability of the the region as a whole. down with the Government failing to available infrastructure. “When you have hit timelines it has set itself, the three joint venture partners naturally have numerous concerns.

Mugerwa said the agreement on the pipeline is a key success factor either in Uganda or Kenya so the earlier the Governments agree or align their plans, the better it will be for all the parties involved.

“One of the key risks we have is what can delay this project if there is no alignment between the two Governments. The key objective is cost efficiency but also a technically robust implementable project that takes in the concerns we have raised on the ground,” said Mugerwa.

For the joint venture partners, Mugerwa said the timing of the issuance of production licences has a significant impact on the project’s schedule.

The other big concern for the joint venture partners according to Mugerwa is a fiscal Buliisa district town centre and regulatory framework that is stable

36 The Uganda Chamber of Mines & Petroleum Pipeline is crucial - Total f all the major infrastructure projects needed in place Obefore Uganda can adequately become an oil producing country, the crude oil export pipeline is the most crucial and hence should be given top priority, says Antonin Fotso, Total E&P’s Senior Adviser for Africa.

Fotso made his remarks during a panel discussion at the Oil Presidents Uhuru Kenyatta of Kenya and Museveni of Uganda & Gas Convention in Kampala. Uganda, he says, will find it very costly to have all the needed infrastructural projects up at once, and may as such make a Lamu preferred for quick return on crude oil exports via the pipeline.

Apart from a $2.5bn, 1300km pipeline from the oil region oil export pipeline of Bunyoro to the Indian Ocean coast, Uganda also plans to develop the 29sqkm land acquired in Kabaale, Hoima as he Northern Route financing arrangements; a petroleum based industrial park with a $4bn refinery, an from Hoima in Western Kenya guaranteeing security international airport, export hub, energy based industries, Uganda to Lokichar in on its side of the pipeline petro-chemical industries, crude oil and product storage TTurkana County and onwards while ensuring transit fees/ facilities on site and other associated facilities as well as a to the Port of Lamu on the tariff not higher than any of 205-kilometer product pipeline to a terminal near Kampala. Kenyan coast is the preferred the alternative routes plus also route of choice for a crude oil guaranteeing no delays in the “Economically it may not export pipeline, for Uganda and implementation of the project. be easy to do all those Kenya. projects at a go that’s In the same meeting, why it is better to go with This selection follows a President Museveni also the oil pipeline first,” says meeting in Kampala hosted reiterated Uganda’s position Fotso. by President Yoweri Museveni to develop her oil refinery, during the 3-day state visit of noting that protracted However, Elly Karuhanga, his Kenyan counterpart, Uhuru engagement with the industry the UCMP chairman, Kenyatta in August, 2015. A players on its importance had disagreed with Fotso, State House communiqué says delayed commercialization. noting that it would that the two leaders noted Uganda’s refinery project not be wise to focus on the importance of expediting is to be developed under a exporting all the crude the commercialization of public private partnership away without seeking to the petroleum resources (PPP) arrangement with the develop an internal oil seeing that Uganda had first Government holding 40% industry, since it would discovered oil 9 years ago in equity. Kenya and other East be akin to giving away all 2006. African Community partner the jobs and revenues that Antonin Fotso, Senior Adviser for states have shown interest accrue from a refinery and Africa, Total E&P Kenya made its own in participation in the Public a petrochemical industry. commercial discoveries in Shares. 2012, with its deposits now “Surely we cannot keep exporting Africa’s wealth away like estimated at about 1 billion A Russian consortium, RT Nigeria, which only started adding value to its oil recently barrels. Uganda’s reserves on Global Resources was the despite over 50 years of producing oil. What can Uganda do the other hand are currently preferred bidder selected to avoid this?” Karuhanga challenged Fotso. estimated at 6.5 billion barrels. to lead the building of the 60,000bpd refinery. The Total executive agreed that indeed there were lessons A feasibility study and design to learn for Uganda from the mistakes committed by other by Japan’s Toyota Tsusho Related to the Albertine countries, who he noted mainly failed to protect their oil valued the potential Hoima- refinery, the Heads of State wealth 50 years ago because they lacked a sizeable skilled, Lokichar-Lamu 1,300km agreed to develop a reverse human resource, technology and infrastructure which should export pipeline at $4bn. This is flow petroleum product not be the case today. the least cost route, hence its pipeline capable of transporting choice. imported petroleum products He advised Uganda to develop a strong local content policy to Uganda from Mombasa via to benefit more from its oil wealth, noting that the country According to the communiqué, Eldoret to Kampala and also was in a better position than the other African countries however, the development from the refinery in Uganda to which discovered their oil half a century ago. However, he of the crude oil pipeline is warned that this would take quite some time to put in place. subject to agreeing on the Kenya.

The Uganda Chamber of Mines & Petroleum 37 ϐǯ

Jimmy Mugerwa, Tullow’s Country Manager

study the routes. We have walked the routes from Hoima to the coast and we know the terrain and we know what to do,” said Mugerwa. Mugerwa said that while the decision ganda and Kenya prefer the Northern an Oil and Gas Convention in Kampala on the pipeline is a Government-to- Route for the crude oil pipeline crude that was called to address current U Government one, it is important that the oil export pipeline; following a meeting opportunities and concerns. route they choose is as cost-efficient between President Museveni and “When the lenders walk in here they will as possible and that it is shipper-led as President Kenyatta. This 1,300km route look at the GDP of the country and that is opposed to being Government-led. runs from Hoima in Western Uganda to their basis for lending. So it is important Lokichar in Turkana County and onwards “The pipeline is not a profit centre, it is a we have the world as the market, so that to the Port of Lamu on the Kenyan coast. means to an end and that is the message we can underpin some of the financing we are pushing but it’s the Government Toyota Tsusho Corporation from Japan that is required.” that will help us and what we are doing was contracted in November 2014 According to Mugerwa, the agreement is to advise what the best route should to carry out a feasibility study and on the pipeline is a key success factor be,” he said. preliminary engineering design for the either in Uganda or Kenya so pipeline and it proposed two possible Britain’s Tullow Oil, with stakes the earlier the Governments routes. One was running from the in Uganda and Kenya, has conclude, the better as it Albertine rift through North Kenya to previously said it expects helps the oil companies Lamu and the other followed an existing to decide on whether to meet a set schedule. “WŚŝůĞƚŚĞĚĞĐŝƐŝŽŶ products pipeline further South and that proceed with investment would run from the production facilities in “One of the key risks we ŽŶƚŚĞƉŝƉĞůŝŶĞŝƐ in early 2016. the Albertine rift to the port of Mombasa have is what can delay Ă'ŽǀĞƌŶŵĞŶƚͲƚŽͲ France’s Total and with a loop to Lokichar in northern Kenya. this project if there is 'ŽǀĞƌŶŵĞŶƚŽŶĞ͕ŝƚŝƐ China’s CNOOC are also no alignment between While the finer details confirming the investing in Uganda, the two Governments. ŝŵƉŽƌƚĂŶƚƚŚĂƚƚŚĞƌŽƵƚĞ Northern Route choice are not yet known, while Tullow’s partner The key objective is ƚŚĞǇĐŚŽŽƐĞŝƐĂƐĐŽƐƚͲ the definite conclusion on its selection in Kenya is Africa Oil. cost efficiency but also is eagerly awaited as this will guide the ĞĸĐŝĞŶƚĂƐƉŽƐƐŝďůĞĂŶĚ a technically robust Kenya has previously joint venture oil firms in making their implementable project ƚŚĂƚŝƚŝƐƐŚŝƉƉĞƌͲůĞĚ͟ talked of piping oil along Final Investment Decisions (FIDs). that takes in the concerns a corridor of land in the Oil executives say they cannot make we have raised on the north of the country to progress with their FIDs on developing ground,” he said. Lamu, where it wants to build discoveries in Uganda and Kenya until the a new port to serve the region. Behind-the-scenes work is already pipeline route and related costs are clear. underway on the pipeline as the two Mombasa is an established but also “Without a pipeline we don’t have Governments of Uganda and Kenya are crowded port that already serves as the a project because the amount of engaging each other to work out the main trade gateway for Kenya, Uganda investment required cannot be under- modalities of what would become the and other landlocked African states in the pinned by the domestic market alone,” longest heated pipeline in the world. region. This is probably why it is second Jimmy Mugerwa, the General Manager best. “From the joint venture perspective, we Tullow Uganda Operations said during have spent almost 18 months trying to

38 The Uganda Chamber of Mines & Petroleum EAC states eye joint oil ǡǯ

Location Map of the Norhern Corridor

he Government of Uganda is The Northern Corridor is the transport earliest. Wrangling over taxes and the awaiting feedback from its corridor linking the landlocked countries viability and/or an export pipeline of the neighbours on whether they will of the EAC including Uganda and Rwanda refinery has delayed crude production. Ttake up interest in a 40% public stake to Kenya’s maritime Port of Mombasa. that is available for the US$2.5 billion It also serves DR Congo, Burundi, South RT Global Resources, owned by Russian oil refinery that will be constructed in Sudan and northern Tanzania. defence conglomerate Rostec, leads a Kabale, Hoima district. consortium that also includes Russian The framework of the Northern Corridor oil producer Tatneft and VTB Capital, Uganda put aside shares in the refinery Integration Projects is designed to the investment banking unit of Russia’s for the East African Community (EAC) generate and sustain the political will No. 2 bank VTB. Others partners include states. necessary to get the projects like the South Korea’s GS and Telconet Capital Ltd refinery implemented. These projects lie in Partnership. “To-date, Kenya has pledged 2.5 percent the realm of infrastructural development, towards its initial equity shareholding energy generation, security cooperation, The development of the Refined in the refinery,” Ambassador James ICT and socio-economic development. Petroleum Products pipeline from Mugume, the permanent secretary Eldoret through Kampala to Kigali is yet in the Ministry of Foreign Affairs, the The refinery’s private developer, Russia’s another deliverable under the Northern coordinating agency for the Northern RT Global Resources and partners will Corridor Integration Projects - a critical Corridor Integration Projects said. take up the remaining 60% stake, in component of the oil and gas sector. the 60,000 bpd. The first phase of the “The remaining partner states are refinery is expected to be in place by Mugume said the product pipeline, which expected to pronounce themselves on 2018. today ends at Eldoret will continue to the equity shareholding they would wish Kampala, link with the planned refinery to take up in the project soon.” Uganda struck oil in 2006 but commercial in Hoima and continue to Kigali, the production has been delayed and is Rwandan capital. not expected to start until 2018 at the

The Uganda Chamber of Mines & Petroleum 39 He said mobilisation of funds for the According to Mugume, Uganda is Creation of Power Pools are in line with petroleum pipeline by the project partners also working on a Memorandum of AU Policy which encourages regional to the tune of $1.6 billion is on-going. Understanding for the western and power pools to be created to facilitate southern links from Kampala to Kasese, sharing with other regions in need. “Partner states are currently engaged in Mpondwe, Bihanga, Mbarara to Mirama To this extent, harmonization with determining the pipeline corridor as part Hill in Ntungamo and Kigali plus the spike Ethiopia in this continental infrastructure of the greater infrastructure corridor,” to Muko for the iron ore project that is development is underway. As such, said Mugume. planned. the regional countries are embarking on upgrading power transmissions to Standard Gauge Railway “The MoU for those two is about to be 400Kv level. A Norwegian Company is to concluded and jointly signed with the undertake feasibility study of the project. The Standard Gauge Railway (SGR) Republic of Rwanda,” said Mugume. is another infrastructure project that Human skills is priority for the Northern Corridor Similarly, Rwanda and South Sudan are member states but will also play a critical engaged with contractors on MoU for the Under the Human Resource Capacity role in the oil and gas value chain once SGR to link with Ugandan sections. Building Cluster, the partner states are production starts. also rolling out a Regional Skills Audit. “What is important to note is that the SGR The Audit is to establish the skills gap Kenya has already commenced would be one single project, seamless that exists and recommend the means of construction of the Mombasa-Nairobi and managed under one management bridging these gaps. section having received support from structure,” said Mugume. China. Meanwhile for the Nairobi-Malaba “We cannot dream of delivering on any Section, feasibility and engineering Energy of these critical infrastructure projects designs are nearing completion in without addressing the aspect of human preparation for sourcing of financing Mugume said no amount of investment capacity. Workforce skills development to ahead of construction works. will succeed without adequate energy sustainably support and manage the oil as a driver for all infrastructure projects. and gas industry as well as all the other In Uganda, construction was launched Continuous investment in the energy key infrastructure projects is critical. We on October 8, 2014 and an engineering sector by the partner states in both hydro have realized the urgency and critical role procurement contract for the eastern and geothermal capacity is underway. the skilled people play in the delivery of and northern section was signed on the project,” says Mugume. March 30, 2015 when President Yoweri At the regional level the Partner States Museveni visited China. of the Northern Corridor have concluded The private sector participation in all both Power Purchase Agreements and of these projects is key, he adds, either Uganda was also granted some $15 Power Wheeling Agreements to enable through investments or manpower and million under the Uganda-China creation of power pools and standardizing equipment (local content). Cooperation to enable the final feasibility wheeling charges. studies to enable construction to begin.

Prime Minister Dr Ruhakana Rugunda shares a light moment with Energy State Minister, Simon D’Ujang (R)

40 The Uganda Chamber of Mines & Petroleum Scope of Work Is Immense

Road works leading to the Kingﬁsher oil ﬁeld. The road was treacherous when it rained.

UCMP CM, Hon Elly Karuhanga

meetings and arrangements. The pipeline project will need to employ and accommodate over 3000 people. To keep the pipeline warm, every 30km, there will be need for a substation to heat it etc. Decisions will need consultations across borders; for instance, compensating

people living along that route amongst other headaches. Also, roads will be damaged and some roundabouts fully destroyed as heavy equipment needed in constructing the refinery is being transported to Hoima. When I visited the second largest refinery in the world in South Korea, I learnt that the pipe network therein can stretch from the earth to the moon if enjoined.

This unfolding situation leaves everyone wondering about the timeframes and when they will unleash their investment in Uganda.

Tullow’s Jimmy Mugerwa has told us that the Final Investment Decisions By Elly Karuhanga the licensing for the new 6 oil blocks. (FID) from his fellow JV partners will be This is not forgetting the legal headache probably be finalized in 2016. Which he Bujagali Hydropower project the Uganda government is already poses the questions: How many people had about 100 agreements to be contending with as it negotiates various will companies employ or lay off between signed; which process of course agreements with the players already now and then? How many trucks do you Tneeded lawyers. I learnt recently during here – Tullow, CNOOC and Total. buy if you are in logistics? a presentation I attended with the vice chairman, Hon Kaijuaka, at Total that Those are serious investment decisions Uganda’s crude export pipeline will need For us in the private to make. We are talking about bringing in at least 40 agreements signed – hence sector, we are ready $10 to $20bn. That’s the GDP of Uganda the state has to find the lawyers for this. in one sector alone with our lawyers. Similarly, government needs a legal This whole story is a little bit too team to handle the refinery agreements With regard to the pipeline route, there complicated for me to fathom but I think in addition to the contracts involving will be need for serious multi-lateral for government it’s easy to understand.

The Uganda Chamber of Mines & Petroleum 41 “Zakhem will support Uganda’s local content aspirations”

By Ibrahim Zakhem I don’t see the worry over a lack of local Ibrahim S. Zakhem, human resource manifesting in Uganda, Zakhem CEO / Managing Director s many of you know Zakhem because you have enough craftsmen, skill, International Construction, is a pioneer education and managerial training to run any in the construction of pipelines, company regardless of its size and magnitude. Arefineries, power plants in Kenya, Tanzania and hopefully will do so in Uganda too. Zakhem Strengths

Our sponsorship of this very successful Apart from being pioneers in the oil pipeline conference is manifest of Zakhem’s construction industry, we have also been commitment for the development of the oil a pioneer in financing projects; and we are and gas sector in Uganda. currently dealing in that.

We are very interested and excited at the We are committed to financing projects of the possibility of being part of the development of same magnitude in Uganda particularly the the oil sector here. pipeline sector and the power plants. Zakhem is an EPC (engineering, procurement & Local Content construction) contractor and an EPC/Finance contractor. When we started the construction of the Mombasa-Nairobi pipeline in Kenya in the With the progress we are making in the oil early 1970s, you could hardly find a Kenyan exploration sector, we look forward to seeing who knew what a pipeline was or one who Uganda becoming an active member of OPEC. would operate an excavator and the like. This is a very good position for the country We had to import about 200 expatriates and the people. to operate the machines and to weld the pipeline. Soon after we completed the first As pipeline manufacturers, we rely on time, one, we were engaged on another pipeline in quality and highly skilled human resource. Kenya. On the issue of time, we have demonstrated the ability and capability to complete projects And I will not be exaggerating if I say that within agreed schedules which is very 90% of the expatriates we had used in the important since a delayed project shortens its Mombasa-Nairobi pipeline were replaced by income generating period. Kenyans. We had set up training centres to skill the locals. Our high quality standards are evident with regard to the pipeline we built in Kenya in Kenya Pipeline Company was eager to operate 1975; which is to date still operating at more the pipeline after its completion and engaged than half its original capacity yet it had a many well trained Kenyans. lifetime of just 30 years.

Similarly, Ugandans should participate and be So we do not compromise on quality. Neither very instrumental in the management of their do we compromise on the human resource. own oil and gas sector. We intend to select and train local Ugandans to work with us in line with the Local Content policy that is a concern of the authorities here.

42 The Uganda Chamber of Mines & Petroleum ‘Uganda has to take lead on gas monetisation’ Gas is a natural hydrocarbon mixture of methane (good as a fuel component), ethane, butane, propane, nitrogen, hydrogen and carbon dioxide.

In hydrocarbon rich grounds like the Albertine Graben, where oil exploration is taking shape, the presence of natural gas is high and is usually found in the natural rock formations along with underground water and oil.

When natural gas is refined it produces Compressed Natural Gas (CNG), Liquefied Natural Gas (LNG) and Liquefied Petroleum Gas (LPG); all used differently for domestic purposes like cooking, heating and automobile fuel. il companies will not invest in the O100 billion cubic feet of gas that has Strategically, the Uganda Government been discovered alongside the oil in the plans to use the current gas reserves for Albertine rift and as such, the Uganda the generation of large scale electricity Government has to take the lead to supply to add to the current power supply produce power from it, Ade Adeola, the of 805 megawatts. Given the size of the Head Energy and Chemicals at Standard reserves, some of the power that will be Chartered Bank London, has said. produced can be exported to neighbours Rwanda, Burundi, DR Congo and South Adeola said the Uganda Government will Sudan. have to lead in the conversion of the gas to power by owning and putting special The actual amount of gas reserves is not funding around it as the private sector yet ascertained because appraisal of the players are not ready to spend CAPEX to discoveries is still on-going. However, gas develop it. has been found in Nzizi, Ngiri, Kasamene, Kigogole, Ngege, Jobi-Rii, Ngassa, Nsoga “Many Governments all over Africa and Jobi East wells. have believed that the oil companies will develop the gas but the truth of the Other wells where gas has been found are matter is many oil companies cannot Kasamene, Kigogole, Nsoga, Wairhindi, lead this. Unless a way of rewarding the Ngara, Lyec, Mpyo, Gunya, Ngiri and Jobi- oil companies is found, they have no Rii. incentive to produce power from the gas,” Adeola said. Standard Chartered Bank’s Ade Adeola The current findings are not final, since only a fraction of the entire Albertine The expectation is that joint venture stretch has been appraised and as such partners Tullow Oil, CNOOC and Total will “It might not be necessarily commercially more discoveries are in the offing. invest in the gas for power. viable on a stand-alone basis but it is The government through the Ministry something Governments need to own Yet experts like Adeola have realised of Energy and the Electricity Regulatory and put special funding around,” said over time that gas and power are the Authority (ERA) are trying to fast track all Adeola. “And there is a lot of support components of the oil and gas sector plans to commence electricity production. for it from the International Finance that resonates well and creates an even Corporation (IFC) and the World Bank.” bigger impact with the people as they get The selection of a company to set up to light their homes. the Integrated Power Project which is Since the commercial discovery of oil in expected to produce between 50 and 80 Uganda, less has been said about the Adeola said Uganda has the potential to megawatts of electricity is in advanced vast potential of natural gas reserves become a net exporter of power if the stages. The project will utilise gas from that coexist alongside the 6.5 billion available gas reserves are tapped and the Nzizi field in addition to crude from barrels of oil so far discovered. developed. the Mputa oil field.

The Uganda Chamber of Mines & Petroleum 43 Business Growth Is Top Govt Priority – Rugunda

Prime Minister pledges unlimited support to extractive industry

ganda’s Prime Minister, ofo water transport and extensive road Ruhakana Rugunda, has praised construction.c the Uganda Chamber of Mines and Petroleum (UCMP) for OtherO structural challenges including Ualways leading from the front when it inadequatei financing, difficulties in comes to marketing Uganda’s investment acquisitiona of land, and environmental capacity in mining and petroleum. riskr management were also being addressed,a Rugunda said. “I commend you for partnering with the government in advancing mineral and TheT Prime Minister made it a point to petroleum development in Uganda. In remindr the business community that several interactions with the Chamber, theyt were partners with government we have been able to learn more about anda hence it was important to sustain Uganda’s mineral potential and the gaps dialogued in developing a strategic that government needs to fix in order to integrativei relationship, rather than have the whole picture mapped out,” said merelym lament the state’s shortcomings. Rugunda, at the Oil & Gas Convention in Kampala. “If“ government is slow in decision making,m what are you doing about it? The upstream capital investments in OurO doors are open for you. Contact us oil and gas grew to about US$2.5b by anda ensure that there is no one slowing 2013. Private investment in the sector down your business. I encourage Rt Hon Dr Ruhakana Rugunda increased from US$1.074b in 2010 to you to continue actively participating US$1.8b in 2012. This was mainly in the through these platforms and other acquisition of seismic data and drilling communication channels to voice your of exploration and appraisal wells. concerns and provide constructive Investments are expected to increase feedback to government on institutional as Uganda embarks on the next stage of and governance issues in this sector,” he field development and production. added. The Prime Minister noted that the “…it was now a Rugunda also explained that it was government was fully cognizant of these now a government of Uganda policy opportunities and was therefore making government of to give anything that rejuvenates and every effort to optimize the benefits accelerates economic activity in the sector would offer to Uganda. As such, he Uganda policy country first priority. This was how the added, the second National Development Value Added Tax on exploration activities Plan, had identified minerals and oil as to give anything came to be scrapped early this year. one of the “three growth opportunities”, in addition to agriculture and tourism. that rejuvenates As such, he was quick to acclaim the vibrancy of the government officials at “The two fundamental factors remain and accelerates the conference, who he felt articulated infrastructure and human capital their points without any encumbrance; development. Fortunately government is economic activity and in so doing were able to give heavily investing here as well,” Rugunda reasonable explanations on some difficult emphasized. ϔ government decisions that may have affected the private sector in one way or The interventions so far include priority.” another. construction of energy projects like Karuma (600MW), rehabilitation of the Rugunda also hailed the conference for existing railway lines and construction having vibrant and enriching ideas and of the Standard Gauge Railway from exchanges that would go a long way in Malaba to Kampala, onwards to shaping Uganda’s petroleum industry. Rwanda, in addition to improvement

44 The Uganda Chamber of Mines & Petroleum Roofings Unveils Premium Iron Bar Steel giant Roofings Group recently 350,000 tonnes yearly however; but only Since it started operations in Uganda introduced the new Roofings TMT+ Grade once demand grows substantially. with its first factory in Lubowa on 500 C iron bar to the market at a colourful Entebbe Road, the company’s investment function at the firm’s Namanve Industrial “We can’t produce to maximum capacity valuation has grown from $2m to stand at Park base. without adequate demand,” says $275m currently. Stuart Mwesigwa, Roofings’ Business The event was graced by three ministers Development Manager. Mwesigwa also notes that Roofings – Matia Kasaija of Finance and Economic recently invested $7.5m in modern Planning, Dr James Mutenda, the State “We urge the Government of Uganda to technology for the production of quality Minister for Trade and Industry as well as involve local manufacturers like ourselves PVC and HDPE pipes for drainage and Kamanda Bataringaya, the State Minister in all major local projects like the Standard water transportation system projects. for Labour Employment and Industrial Gauge Railway, the highways and power Relations. dams. We have the capacity to match Some of the notable projects where the quality of whatever products are Roofings products have been used include According to Oliver Lalani, the Executive imported, so we are ready to participate the Bujagali and Karuma hydropower Director at Roofings, the TMT+ bar fully.” plants, Rwenzori Courts, Hilton Hotel, is of superior quality because it is Kololo Airstrip Pavilion, Nakawa House, manufactured directly from iron ore And the multiplier effects of such a move Mapera House, Church House, the new billets. The average bars on the market could be numerous, reasons Mwesigwa, Nile Bridge in Jinja, Entebbe Express have been gotten out of scrap. noting an obvious raise in employees, Highway, Bugolobi Water Treatment taxes and spending power amongst Plant, Century Hotel in Rwanda, the Gold With these premium iron bars, Roofings others. Mines Project in DR Congo plus several can meet the needs of major projects power transmission lines in the Great like the hydroelectricity dams, express Uninterrupted, affordable electricity Lakes Region. highways the Jinja Bridge amongst others. would also be a major boost to Roofings So far though, its production capacity of which already enjoys a 42MW dedicated On the Corporate Social Responsibility the TMT+ bars stands at only 40% of the line. Industrial power is still about 15 front, the company supports schools installed 72,000 tonnes per annum due to cents per kilowatt in Uganda almost four and donates oxygen to hospitals. It also low demand. times that in Egypt at 4 cents. supplies seedlings though the Roofings Forever forestry projects. A major exporter of steel to the East Hon Kasaija, the Finance Minister, noted African and wider Great Lakes Region, that better electricity terms would come Meanwhile, the leading steel manufacturer Roofings is in total producing close about once the construction of the is also targeting investments in iron ore to 200,000 tonnes of steel annually Karuma, Isimba and other hydropower mining having acquired two exploration currently. The firm can produce up to dams was done. licenses recently.

The Uganda Chamber of Mines & Petroleum 45 ^ĂŶǇWĂƌƚŶĞƌƐǁŝƚŚĞŵƵŐĂ

HINESE heavy machinery maker David Xiao, Sany’s managing director for Kenya and Tanzania since 2007. CSany has appointed Bemuga Heavy Central and Southern Africa. Equipment —a subsidiary of Bemuga Ben Mugasha, Bemuga chairman said Forwarders Ltd — as its dealer for Xiao said Uganda’s plan to develop its oil the new developments will enable Uganda, Rwanda and Burundi. and gas sector will also increase the need local contractors participate in large for construction machinery. government tenders. On the logistic “We are anticipating increased activities front, Bemuga is also a major player in in the construction sector especially Sany — which sells machines such as the oil and gas industry. roads, as the economies of the three excavators, truck cranes, and rough East African countries improve,” said terrain cranes — has had operations in

46 The Uganda Chamber of Mines & Petroleum Environmental concerns as Uganda shortlists 16 oil firms

The Ngassa ﬁeld extends into Lake Albert

ven if several key aspects of the 17 firms that applied to participate in Uganda’s first competitive licensing round for petroleum exploration were assessed, Global Witness believes more cautious scrutiny of Ethe companies’ environmental and social records is needed, especially given the sensitive nature of the oil regions.

Uganda recently concluded the evaluation of Applications for Qualification from the 17 firms, with 16 meeting the evaluation criteria as spelt out in the Request for Qualification document. The true ownership details of the companies and the “The firms were evaluated based on their technical competence, financial contracts they sign needed to be made public too, capabilities, legal qualifications as well as National Content and Health before the process was completed, he added. Safety and Environment track record,” said Fred Kabagambe-Kaliisa, the Permanent Secretary, Ministry of Energy and Mineral Development. The 16 successful firms are African Exploration Venture and SASOL Exploration and Production But while Global Witness hailed the publication of the list of bidders International (South Africa), African Global Resources as “an important step forward for transparency in the country” and “a (a Russian consortium whose member RT Global will welcome first step toward securing the right deal and maintaining the build the Uganda refinery), Armour Energy and Swala trust of the public”, it expressed its grave concerns about drilling for oil in Energy (Australia), Brightoil Petroleum (Hong Kong/ environmentally sensitive areas like Lake Edward, where the Ngaji block China), Glint Energy (USA), MDC Oil and Gas Holding is found. Company (UAE), Oranto Petroleum International, Niger Delta Petroleum Resources and Waltersmith Lake Edward in Western Uganda, borders Virunga National Park, a Petroman (Nigeria). UNESCO world Heritage site in the Democratic Republic of Congo and oil drilling there will seriously undermine the global campaign to protect Others are Oil and Natural Gas Corporation Videsh the park from such activity, George Boden, campaigner at Global Witness (India), Petoil (Turkey), Petrica Energy AS (Norway), says. Rift Energy (Canada) and Tullow (Ireland) which already has operations here. Global Witness is an organization which seeks to expose the hidden links between demand for natural resources, corruption, armed conflict and The Ministry said in a statement that it will in due environmental destruction. course issue the Request for Proposal and the Modal Production Sharing Agreement documents to the “Given that all the blocks overlap with environmentally protected areas qualified firms to bid for the block (s) of their interest the government must at a minimum publish information on the criteria after the mandatory acquisition of data. for selecting companies - including what their environmental and social track record look like,” said Boden. The six biddable blocks are Ngassa, Taitai & Karuka, Ngaji, Mvule, Turaco and Kanywataba.

The Uganda Chamber of Mines & Petroleum 47 drilled vertically into the ground before BLOCKS FOR FIRST PETROLEUM LICENSING ROUND OF UGANDA THE REPUBLIC OF UGANDA THE REPUBLIC OF UGANDA deviating horizontally into Lake Albert. 30°0'0"E 31°0'0"E 32°0'0"E

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30°0'0"E 31°0'0"E 32°0'0"E in the late nineties and early 2000. 3HWUROHXP([SORUDWLRQDQG3URGXFWLRQ'HSDUWPHQW Heritage Oil, the company that, together with its partner Energy Africa, held the license for Turaco, said, back then that Blocks for the first licensing round for petroleum exploration in Uganda, 2015 it had drilled the well to a depth of close to 2,500 metres and “encountered good shows of both methane and higher order The six oil blocks at a glance gasses (C1 to C4) and also shows of live oil.” t least 16 companies have qualified to drilling history. Below is the compilation Abid for exploration blocks in Uganda’s of the performance of these wells. The company added that “the results of oil industry as the country prepares to the well have vindicated the hydrocarbon Ngassa carry out its first competitive licensing potential of the basin and demonstrated round since it discovered oil nine years Of all the six wells on offer, Ngassa the presence of a mature oil source, ago. is perhaps the most promising. This reservoir and seal.” particular well had much prospect that The Ministry of Energy released a Heritage was impressed by the results Tullow Oil, the company that held the shortlist of the companies in August, with of Turaco-1 that it said it would bring in license over it and explored it, said it was Tullow Uganda Operations Pty Limited of a more powerful rig to drill the appraisal one of the biggest wells in the country. Ireland the most easily –recognisable. well, Turaco-2. The well had some characteristics that The six oil blocks are not new as they were were similar to the Kingfisher oil well, Micael Gulbenkian, the chairman and once explored; with commercially-viable which is thought to be one of the biggest CEO at Heritage at the time, said that hydrocarbons not readily ascertained in Uganda. Kingfisher, which is now “the spudding of Turaco-2 is a significant then. Uganda is, however, optimistic that being prepared for production by China’s event in the company’s history, involving the oil blocks are prospective. The new CNOOC, also stretches into Lake Albert. the potential for a world-class discovery companies should find comfort in the fact The well has more than 500 million in an unexplored sedimentary basin, in a that the risk on the blocks is quite low. barrels of oil. country with no domestic supply.” Of much interest to the companies will The Ngassa well stretches into Lake The Uganda government announced that be the features of the oil wells, and their Albert, and will therefore need to be both Turaco-1 and 2 “encountered oil.”

48 The Uganda Chamber of Mines & Petroleum When the wells were all finally tested, otherwise seen fundamental risks in had a “potential oil column of up to 80 Heritage discovered that the well was the Lake Edward Graben of Uganda and metres.” not commercially viable. In early February D.R. Congo. While stronger indications An appraisal well, Karuka-2, was 2005, Heritage put out a statement of hydrocarbons were hoped for, the supposed to offer Tullow a better showing the mixed results it had attained. well supports our planned exploration understanding of the oil features in the program for the whole basin in both “The presence of carbon dioxide in the area. And when Tullow drilled Karuka-2, countries over the next couple of years.” well stream compromised the well the results pointed to moveable waxy test and sampling procedures… The Of the six oil blocks on offer, the Ngaji has crude, although the company also noticed results of the analysis show very high the biggest surface cover of 895km. that the reservoir was “close to a possible concentrations of carbon dioxide with oil-water contact.” Mvule hydrocarbon content of between 10% Karuka is located within the Bugungu and 20%. As a consequence, the well is This was a well that was supposed to wildlife reserve, an area that could attract not believed to be commercially viable,” change Neptune Petroleum’s fortunes in environmental scrutiny. the statement noted. Uganda, after the company had hit two dry wells at Avivi and Iti. The well, like However, at the end of it all the wells did Gulbenkian, nevertheless, had some the other two, is located in block five, not have commercially-viable potential reassuring parting words. sometimes known as the Rhino Camp for oil. The catch, and which is what the “The Turaco-3 well has proved all Basin, in the West Nile region. government of Uganda is banking on to elements of a new hydrocarbon system attract the investors, is that the two wells Before it started drilling the well, in the license area; notably a world-class are close to the prolific Buliisa and Kaiso- Neptune is said to have targeted at least reservoir, an effective seal and mature Tonya oil fields, and therefore might also 80 million barrels of oil at the site. The hydrocarbon source rocks. While the be prospective. well was quite shallow, stretching 600 presence of carbon dioxide represents metres deep. The two wells have a combined surface an additional and hitherto unidentified cover of 565km. exploration risk, the basin nonetheless However, when the well was drilled, remains highly prospective for oil.” Neptune did not find any hydrocarbons. Kanywataba Instead, the well was found to hold water, Turaco covers 425km. The Kanywataba came into Uganda’s oil making it commercially unviable. play after the government had agreed Ngaji In his parting shots before Neptune to a farm-down between Tullow Oil, The Ngaji, formerly known as the left Uganda, Peter Kingston, the CEO Total E&P, and CNOOC after a long tax Silverback, was the first well to be drilled of Tower Resources, the company that dispute. Government issued a six-month within the Lake Edward basin. Dominion, owned Neptune Uganda, said “…while I exploration licence to CNOOC to drill the the company that held its license, took believe that the largest structures have well in Ntoroko district. Although, the quite a risk to venture into a basin that now been tested, I also believe that the three companies each held a one third others had shunned. generation of oil has been established interest in the well. and there remains potential for oil When it was drilled in 2009, Dominion did When CNOOC drilled the well, it found the discoveries in West Nile sometime in the not find any potential for hydrocarbons. reservoir to be water-bearing. The license future.” to the area later reverted to government. That, however, did not mean that Ngaji Whoever takes the Mvule license will was not promising. The Ngaji well is The Wall Street Journal reported that have 344km to work with. located in a special area for an investor CNOOC was supposed to drill three wells looking at exploring for oil in both Uganda Taitai and Karuka but opted for one. and the Democratic Republic of Congo. It Taitai and Karuka in the Butiaba area, In bringing the Kanywataba back to is the reason as to why Dominion decided both of which belonged to Tullow Oil, are the table for the next round of bidding, to take its chances on the basin. two wells that were drilled in 2007, and government says “the prospect has good Andrew Cochran, the Chief Executive were roughly 20 kilometres apart. potential for hydrocarbons in other parts at Dominion, then, stated: “We are which were not drilled.” In May 2008, Tullow Oil announced pleased with the geology observed in promising results from the Taitai – 1, The block covers an area of 344 km. Ngaji as it demonstrates key elements where the company noted that the well of a prospective basin which had

Fayemi is new Total E&P, Uganda boss Mr Adewale Fayemi has been appointed Prior to his appointment in Uganda, various positions in Elf Petroleum General Manager, Total E&P, Uganda. Adewale Fayemi was the Managing The Senior Business Executive, who Director of Total E&P Ivory Coast, from Nigeria, TotalFinaElf EP, Smith has worked with Total for 22 years, June 2014 to August 2015. Before that, International Inc. and Mobil Producing commenced his tenure on August 31, he worked with Total E&P Nigeria as the Nigeria Ultd. 2015. The company has not had a Executive General Manager, Deep Water substantive General Manager, Francois Field Operations, from 2012 to 2014 and Adewale Fayemi is a graduate of the Rafin, left in January this year. General Manager, Akpo Field Operations, University of Lagos and holds a master’s from 2011 to 2012. degree in Chemical Engineering. He has Fayemi will be responsible for preparing also attended various technical and Total E&P Uganda’s operations in the He has also served as management courses at E.N.S.P.M. (IFP) Lake Albert basin during the transition Field Operations Manager in both France, Cranfield School of Management from the exploration and appraisal phase Total E&P Netherlands (2009 to United Kingdom, INSEAD France and

Executive watch Executive Adewale Fayemi, General Manager, Total E&P, to development phase. 2011) and Elf Petroleum Nigeria Harvard Business School, USA. Uganda (2007 to 2009). Prior to this he held

The Uganda Chamber of Mines & Petroleum 49 hŐĂŶĚĂŵƵƐĞƵŵŐĞƚƐƌĞǀĂŵƉĞĚŽŝůƐĞĐƟŽŶ

Muloni unveils the plaque at the launch of the refurbished oil and gas section of the Uganda museum. Looking on is Ahlem Friga-Noy (R)

he oil and gas section at the Uganda Ahlem Friga Noy, the Corporate Affairs TMuseum has been given a facelift by Manager, Total E&P Uganda said the Total E&P, CNOOC and Tullow – the Joint JV partners felt a strong sense of Venture (JV) partners in the country’s responsibility towards the country and petroleum industry. the need to share information on the oil sector with the public. The project aimed at educating and increasing public awareness on the “Because oil and gas is often considered oil and gas industry was graced by a complex subject, the aim of the project the Minister of Energy and Mineral is to present this subject in the most Development, Hon Eng. Irene Muloni. simplified way for the general public using both visual and audio material,” The section is to serve as a centre for she said. basic information and research about oil and gas in Uganda. It consists of “This section is the only one in the historical information and achievements museum which illustrates the past, to date in the Ugandan oil and gas the present and the future. The past sector, the oil cycle like exploration, with the history of the oil discoveries development and production plus and the extraordinary way nature some of the equipment used during through geology enables us to dispose operations and related videos. a sustainable source of energy; the present, with the presentation on the Muloni commended the oil companies pre-development phase and the hopes for their commitment to information that are triggered; the future with the sharing with Ugandans. production and the commercialization through the refinery and the crude “The Ministry is proud to work in export pipeline and the new economic collaboration with the joint venture prosperous era it will open for Uganda,” partners to promote access to Friga Noy added. information, especially seeing that the oil and gas industry is new to most Rose Mwanje, the Commissioner of Ugandans.” Museums and Antiques welcomed the JV partners’ contribution, noting that “This initiative will play a great role in the revamped section would revitalize shaping our future through educating public interest in the museum. the public about the oil, encouraging young minds to pursue academic When oil was discovered in 2006, studies related to the sector and also the museum in conjunction with the possibly push the private sector to Ministry of Energy attempted a small pursue business opportunities within display on oil but it had limitations the industry,” she said. because of poor funding, she said.

50 The Uganda Chamber of Mines & Petroleum PICTORIAL

The Uganda Chamber of Mines & Petroleum 51 PICTORIAL

52 The Uganda Chamber of Mines & Petroleum UCMP MEMBERS 2014-2015

COMPANY CONTACT PERSON SECTOR ϭ͘ dƵůůŽǁKŝů>ƚĚ Dƌ͘ĂǀŝĚKŶǇĂŶŐŽ KŝůĂŶĚŐĂƐĞǆƉůŽƌĂƟŽŶĂŶĚƉƌŽĚƵĐƟŽŶ Ϯ͘ EKKhŐĂŶĚĂ DƐ͘ŚĂŝtĞŝ KŝůĂŶĚŐĂƐĞǆƉůŽƌĂƟŽŶΘƉƌŽĚƵĐƟŽŶ ϯ͘ dŽƚĂůΘWhŐĂŶĚĂ Dƌ͘ŚůĞŵ&ƌŝŐĂͲEŽǇ KŝůĂŶĚŐĂƐĞǆƉůŽƌĂƟŽŶΘƉƌŽĚƵĐƟŽŶ ϰ͘ ĂŶŬŽĨĨƌŝĐĂ DƐ͘^ĂƌĂŚDƵŚĂŝƐĞ ĂŶŬŝŶŐ ϱ͘ ,ŽƵƐŝŶŐ&ŝŶĂŶĐĞĂŶŬ DƐ͘:ƵĚŝƚŚKǁĞŵďĂďĂǌŝ ĂŶŬŝŶŐ ϲ͘ ĂŬŚĞŵ/ŶƚĞƌŶĂƟŽŶĂůŽŶƐƚƌƵĐƟŽŶ>ƚĚ Dƌ͘WĞƚĞƌŝƚĂƌĂŬǁĂƚĞ KŝůΘ'ĂƐ/ŶĨƌĂƐƚƌƵĐƚƵƌĞ

Chamber Gold Members COMPANY CONTACT PERSON SECTOR ϳ͘ &hĂŶŬ Dƌ͘:ĂŵĞƐDƵŐĂďŝ ĂŶŬŝŶŐ ϴ͘ KƌŝĞŶƚĂŶŬ Dƌ͘EŝĐŚŽůĂƐ^ĞŶŶƵŶŐŝ ĂŶŬŝŶŐ ϵ͘ ,ŝŵĂĞŵĞŶƚ>ƚĚ Dƌ͘ĂŶŝĞůWĞƩĞƌƐƐŽŶ ĞŵĞŶƚDĂŶƵĨĂĐƚƵƌĞƌƐ ϭϬ͘^ƚĂŶďŝĐĂŶŬ Dƌ͘:ĂŵĞƐ<ĂƌĂŵĂ ĂŶŬŝŶŐ ϭϭ͘^ƚĂŶĚĂƌĚŚĂƌƚĞƌĞĚĂŶŬ DƐ͘ǇŶƚŚŝĂDƉĂŶŐĂ ĂŶŬŝŶŐ ϭϮ͘>ŝŽŶƐƐƵƌĂŶĐĞŽ͘>ƚĚ Dƌ͘EĞǁƚŽŶ:ĂǌŝƌĞ /ŶƐƵƌĂŶĐĞ ϭϯ͘hŶŝƚĞĚĂŶŬĨŽƌĨƌŝĐĂ;hͿ>ƚĚ Dƌ͘tŝďƌŽĚKǁŽƌ ĂŶŬŝŶŐ ϭϰ͘ĂƌĐůĂǇƐĂŶŬ Dƌ͘'ŝďƐŽŶEĂŶŐŽŶŽ ĂŶŬŝŶŐ ϭϱ͘ZŽŽĮŶŐƐ'ƌŽƵƉ Dƌ͘^ƚƵĂƌƚDǁĞƐŝŐǁĂ ^ƚĞĞůDĂŶƵĨĂĐƚƵƌŝŶŐ ϭϲ͘ĞŶƚĞŶĂƌǇĂŶŬ DƌƐ͘ĞĂƚƌŝĐĞ>ƵŐĂůĂŵďŝ ĂŶŬŝŶŐ ϭϳ͘ƚĚ Dƌ͘tŝůůŝĂŵDƵƚůŽǁ DŝŶĞƌĂůdƌĂĚŝŶŐΘDŝŶŝŶŐ ϭϵ͘E^&Z/ Dƌ͘ůĞǆĂŶĚĞƌ<ŝďĂŶĚĂŵĂ >Ăǁ&ŝƌŵ ϮϬ͘DƵŬǁĂŶŽ/ŶĚƵƐƚƌŝĞƐhŐĂŶĚĂ>ƚĚ Dƌ͘ůŝZĞǌĂ DĂŶƵĨĂĐƚƵƌŝŶŐ Ϯϭ͘^ĞďĂůƵΘ>ƵůĞ Dƌ͘EŝĐŚŽůĂƐĐŝŵƵ >Ăǁ&ŝƌŵ ϮϮ͘dŝďĞƚ,ŝŵĂDŝŶŝŶŐŽ͘>ƚĚͲ<ŝůĞŵďĞDŝŶĞƐ Dƌ͘ůĞǆ<ǁĂƚĂŵƉŽƌĂ ŽƉƉĞƌDŝŶŝŶŐ Ϯϯ͘^ŽŐŝƐƟĐƐhŐĂŶĚĂ>ƚĚ Dƌ͘,ƵďĞƌƚsĞƌŵĂĂŬ &ƌĞŝŐŚƚ&ŽƌǁĂƌĚŝŶŐͬ>ŽŐŝƐƟĐƐ Ϯϰ͘^dΘƐƐŽĐŝĂƚĞƐ Dƌ͘^ĂŵdŚĂŬŬĂƌ dĂǆĚǀŝƐŽƌǇ͕ĐĐŽƵŶƟŶŐ Ϯϱ͘/ŶƚĞƌŶĂƟŽŶĂůŶĞƌŐǇdĞĐŚŶŝŬ;hͿ>ƚĚ Dƌ͘ŝŶĂŶĂƚŚzĂĚĂǀ ůĞĐƚƌŝĐĂůŶŐŝŶĞĞƌŝŶŐ

Chamber Silver Members COMPANY CONTACT PERSON SECTOR Ϯϲ͘ŐŝůŝƚǇůŽŐŝƐƟĐƐůƚĚ Dƌ͘>ĂŬƐŚŵŝEĂƌĂƐŝŵŚĂ >ŽŐŝƐƟĐƐ Ϯϳ͘KEZŝƐŬ^ĞƌǀŝĐĞƐ DƐ͘ĂƌŽůŝŶĞƚŚŝǇŽ /ŶƐƵƌĂŶĐĞΘZŝƐŬDĂŶĂŐĞŵĞŶƚ Ϯϴ͘hŵŝŶŝŶŐ>ƚĚ Dƌ͘DŽƐĞƐDĂƐĂŐĂǌŝ 'ŽůĚŵŝŶŝŶŐ Ϯϵ͘d^ĐůĞĂƌŝŶŐΘĨŽƌǁĂƌĚŝŶŐ DƐ͘DĞƌŝĂŶ^ĞďƵŶǇĂ ůĞĂƌŝŶŐĂŶĚ&ŽƌǁĂƌĚŝŶŐ ϯϬ͘'ƌĞĞŶƐƚŽŶĞZĞƐŽƵƌĐĞƐ>ƚĚ Dƌ͘EŝŵŝƚWĂƚĞů 'ŽůĚŵŝŶŝŶŐ ϯϭ͘/'hŐĂŶĚĂ>ŝŵŝƚĞĚ Dƌ͘ĚǁĂƌĚ,ŝƌĞ /ŶƐƵƌĂŶĐĞ ϯϮ͘ŝƟďĂŶŬh>ƚĚ DƐ͘ĂŐŽƌŽŐŽǌĂůĂƌĞ ĂŶŬŝŶŐ ϯϯ͘ŝǀŝĐŽŶ>ŝŵŝƚĞĚ Dƌ͘EŝĐŬĂŵĞƐ DĞĐŚĂŶŝĐĂůΘŝǀŝůŶŐŝŶĞĞƌŝŶŐtŽƌŬƐ ϯϰ͘ĞůŽŝƩĞh>ƚĚ Dƌ͘dĂůůĂƌŽǀŝĐDĂƩŚĞǁ ƵĚŝƚŽƌƐ ϯϱ͘ĂŐůĞůŽŐŝƐƟĐƐƐŽůƵƟŽŶƐůƚĚ Dƌ͘ĂǀŝĚtĂůĂďǇĞŬŝ ƵƐƚŽŵƐůĞĂƌĂŶĐĞ͕,ĞĂǀǇƋƵŝƉŵĞŶƚ,ŝƌĞ ϯϲ͘ĂƐƚĨƌŝĐĂŶŚĂŝŶƐh>ƚĚ Dƌ͘ĂǀŝĚDĂǇĂŶũĂ ĞĂůĞƌƐŝŶDĞĐŚĂŶŝĐĂůdŽŽůƐ

The Uganda Chamber of Mines & Petroleum 53 COMPANY CONTACT PERSON SECTOR

ϯϳ͘KZd'ƌŽƵƉ DƐ͘DŝĐŚĞůĞKƩƌŝĂ >ŝŌŝŶŐ^ĞƌǀŝĐĞƐ ϯϴ͘ƉƐŝůŽŶh>ƚĚ DƐ͘,ĞůůĞŶEĂŵďŝ tĂƐƚĞDĂŶĂŐĞŵĞŶƚ ϯϵ͘ƌŶƐƚΘzŽƵŶŐ Dƌ͘DƵŚĂŵŵĞĚ^ƐĞŵƉŝũĂ ƵĚŝƚŽƌƐ ϰϬ͘&ĂƌŵŶŐŝŶĞĞƌŝŶŐ/ŶĚƵƐƚƌŝĞƐ Dƌ͘d͘^WĂĚŚĂĂů ƋƵŝƉŵĞŶƚ^ƵƉƉůǇ ϰϭ͘&ůĞŵŝƐŚŝŶǀ͘>ƚĚ Dƌ͘ƌƵĐĞDŝůŶĞ DŝŶĞƌĂůǆƉůŽƌĂƟŽŶ ϰϮ͘'^ĞƌǀŝĐĞƐ;hͿ>ƚĚ Dƌ͘tĞƐůĞǇDƵƐŝŶŐĂ &ĂĐŝůŝƟĞƐDĂŝŶƚĞŶĂŶĐĞΘĂƚĞƌŝŶŐ^ĞƌǀŝĐĞƐ ϰϯ͘'ŽŽĚůŝĨĞ;hͿ>ƚĚ Dƌ͘^ŚĞŵEŶĂŐŐĞŶĚĂ dƌĂŝŶŝŶŐ^ŽůƵƟŽŶƐ ϰϰ͘EĂŵĞŬĂƌĂDŝŶŝŶŐŽŵƉĂŶǇ>ŝŵŝƚĞĚ Dƌ͘,ĞŶƐŽŶDĂŵďŽ DŝŶŝŶŐ ϰϱ͘,ĂůůŝďƵƌƚŽŶ/ŶƚĞƌŶĂƟŽŶĂů/ŶĐ͘ DƐ͘EĂƚĂƐŚĂƉĞŶƵ KŝůΘ'ĂƐ^ĞƌǀŝĐĞƐ ϰϲ͘^ĐŚůƵŵďĞƌŐĞƌKŝůĮĞůĚ Dƌ͘ĞŶŝƐŽŶŝĨĂǇ KŝůΘŐĂƐƐĞƌǀŝĐĞƐ ϰϳ͘<ĂŵƉĂůĂƐƐŽĐŝĂƚĞĚĚǀŽĐĂƚĞƐ Dƌ͘ĂǀŝĚDƉĂŶŐĂ >Ăǁ&ŝƌŵ ϰϴ͘<ƌŽŶĞ;hͿ>ƚĚ DƌƐ͘ZŽƐĞZƵŐĂǌŽƌĂ DŝŶĞƌĂůǆƉůŽƌĂƟŽŶͬtŽůĨƌĂŵ ϰϵ͘D<ƐƐŽĐŝĂƚĞƐ Dƌ͘ĞŶŝƐ<ƵƐĂĂƐŝƌĂ >Ăǁ&ŝƌŵ ϱϬ͘>ůŽǇĚƐƌŝƟƐŚdĞƐƟŶŐ Dƌ͘ŶĚƌĞǁĂǀŝĞƐ /ŶƐƉĞĐƟŽŶ͕dƌĂŝŶŝŶŐĂŶĚƐƐĞƐƐŵĞŶƚ ϱϭ͘DĂƌƐŚhŐĂŶĚĂ>ƚĚ Dƌ͘WĂƵůDƵůŝƌĂ /ŶƐƵƌĂŶĐĞΘZŝƐŬDĂŶĂŐĞŵĞŶƚ ϱϮ͘ƐŬĂƌ/ŶǀĞƐƚŵĞŶƚƐ>ƚĚͬƐŬĂƌ^ĞĐƵƌŝƚǇ DƌƐ͘<ĞůůĞŶ<ĂǇŽŶŐĂ DŝŶĞƌĂůǆƉůŽƌĂƟŽŶͬdĂŶƚĂůŝƚĞ ϱϯ͘DƵůƟůŝŶĞƐ/ŶƚĞƌŶĂƟŽŶĂůh>ƚĚ Dƌ͘'ĞƌĂůĚDƵŬǇĞŶŐĂ ůĞĂƌŝŶŐĂŶĚ&ŽƌǁĂƌĚŝŶŐ ϱϰ͘ƐƚŽƌ&ŝŶĂŶĐĞWůĐ>ƚĚ Dƌ͘'ŽƌĚŽŶ^ĞŶƟďĂ DŝĐƌŽͲ>ĞĂƐŝŶŐĂŶĚ&ŝŶĂŶĐŝĂů^ĞƌǀŝĐĞƐ ϱϱ͘KůŝŐŽůĚŵƵƌƵůŝ>ƚĚͬ'ŽůĚŵƉŝƌĞ>ƚĚ Dƌ͘:ŽŚŶDƵƌƵůŝ 'ŽůĚǆƉůŽƌĂƟŽŶ ϱϲ͘KƌǇǆŵŝŶĞƌĂůƐůƚĚ Dƌ͘'ĂƌǀŝŶŽŶǁĂǇ DŝŶĞƌĂůǆƉůŽƌĂƟŽŶ ϱϳ͘KŐĂƐ^ŽůƵƟŽŶƐ Dƌ͘WĂƚƌŝĐŬĂŶĂƵǆ ZĞĐƌƵŝƚŵĞŶƚĂŶĚdƌĂŝŶŝŶŐ ϱϴ͘WƌŝĐĞǁĂƚĞƌŚŽƵƐĞŽŽƉĞƌƐ>ŝŵŝƚĞĚ Dƌ͘&ƌĂŶĐŝƐ<ĂŵƵůĞŐĞǇĂ ƵĚŝƟŶŐ͕dĂǆĂŶĚĚǀŝƐŽƌǇ^ĞƌǀŝĐĞƐ ϱϵ͘ZŝĐŚŇŽ>ŝŌƐĞƌǀŝĐĞƐ Dƌ͘ZŝĐŚĂƌĚDĂŐĞǌŝ >ŝŌ^ĞƌǀŝĐĞƐ ϲϬ͘ŽůůŽƌĞĨƌŝĐĂ>ŽŐŝƐƟĐƐ DƐ͘EĂŶĐǇ<ŝĐŽŶĐŽ >ŽŐŝƐƟĐƐ^ĞƌǀŝĐĞWƌŽǀŝĚĞƌ ϲϭ͘^ĞŵůŝŬŝZŝŌZƌĂĚŝŶŐŽ Dƌ͘WĂƚƌŝĐŬsĂŶWĞĞ >ŝŌ^ĞƌǀŝĐĞƐΘ&ĞƌƌŝĞƐ ϲϮ͘^ŝŶŽDŝŶĞƌĂůƐ/ŶǀĞƐƚŵĞŶƚƐŽ͘>ƚĚ DƐ͘^ĂƌĂŚEĂŵĂƌĂ DŝŶĞƌĂůǆƉůŽƌĂƟŽŶ ϲϯ͘^ƉĞĐŝĂůŝǌĞĚtĞůĚŝŶŐ^ĞƌǀŝĐĞƐͬ^ƚƌĂƚĞŐŝĐ Dƌ͘^ĂŵĞĞƌsǇĂƐ tĞůĚŝŶŐ^ĞƌǀŝĐĞƐ >ŽŐŝƐƟĐƐ ϲϰ͘^ƉĞĚĂŐ/ŶƚĞƌĨƌĞŝŐŚƚh>ƚĚ Dƌ͘ŝůŝƉŚĂŶĚĂƌŝ >ŽŐŝƐƟĐƐ^ĞƌǀŝĐĞWƌŽǀŝĚĞƌ ϲϱ͘dŚƌĞĞǁĂǇƐƐŚŝƉƉŝŶŐ Dƌ͘:ĞīĂŝƚǁĂ >ŽŐŝƐƟĐƐ^ĞƌǀŝĐĞWƌŽǀŝĚĞƌ ϲϲ͘dŽǇŽƚĂh>ƚĚ Dƌ͘ŝŶŽZŽŵĂŶŽŝĂŶĐŚŝ ĂƌĞĂůĞƌƐ ϲϳ͘hŐĂŶĚĂ/ŶƐƵƌĞƌƐƐƐŽĐŝĂƟŽŶ Dƌ͘&ĂŝƚŚŬƵĚƵ /ŶƐƵƌĂŶĐĞ ϲϴ͘hŶŝŽŶ>ŽŐŝƐƟĐƐ Dƌ͘,ŝƚĞƐŚ^ŚĂŶ ůĞĂƌŝŶŐĂŶĚ&ŽƌǁĂƌĚŝŶŐ

ϲϵ͘sŝĐƚŽƌŝĂƋƵŝƉŵĞŶƚ>ƚĚ Dƌ͘WĞƚĞƌ^ĞŬĂŶĚŝ 'ĞŶĞƌĂůDĂĐŚŝŶĞƌǇ ϳϬ͘sŝĐƚŽƌŝĂDŽƚŽƌƐ>ŝŵŝƚĞĚ Dƌ͘ŝĐŬƐŽŶDǁĞƐŝŐǁĂ ĂƌĞĂůĞƌƐ ϳϭ͘tŽŽĚŵŽƌĞŶĞƌŐǇŽŶƐƵůƚĂŶĐǇ>ƚĚ Dƌ͘ĂǀŝĚ<ĂǇĞŵďĂ KŝůΘ'ĂƐŽǁŶƐƚƌĞĂŵ ϳϮ͘ƌŝƟƐŚ,ŝŐŚŽŵŵŝƐƐŝŽŶ Dƌ͘ƌŝĐKůĂŶǇĂ ŝƉůŽŵĂƟĐDŝƐƐŝŽŶ ƌŝƟĐĂůDŝƐƐŝŽŶ^ƵƉƉŽƌƚΘ^ŝƚĞZĞƐƚŽƌĂƟŽŶ ϳϯ͘^ƚĞƌůŝŶŐ'ůŽďĂůKƉĞƌĂƟŽŶƐ͕/ŶĐ Dƌ͘EŽďĞƌƚ&͘ZƵŐƵŶĚĂ ^ĞƌǀŝĐĞƐ ϳϰ͘>Ğƚ͛Ɛ'ŽdƌĂǀĞů DƌƐ͘:ŽĂŶ<ĂŶƚƵůƐĞ dŽƵƌƐΘdƌĂǀĞů ϳϱ͘ĐŚĞůŝƐhŐĂŶĚĂ>ƚĚ Dƌ͘,ĂŶƐ'ĞŽƌŐ,ŝŶƚĞƌďĞƌŐĞƌ ƋƵŝƉŵĞŶƚ^ĂůĞΘZĞŶƚĂů ϳϲ͘ĨƌŝĐĂĐŽŝŶǀĞƐƚ ƌ͘ďĚƵůůĂŚŝ,Ăũũŝ DŝŶŝŶŐΘŶĞƌŐǇ ϳϳ͘WĞĂƌůŶŐŝŶĞĞƌŝŶŐŽŵƉĂŶǇ>ŝŵŝƚĞĚ Dƌ͘'ƵŵŝƐŝƌŝǌĂŝƌĂŶƚĂŶĂ ŽŶƐƚƌƵĐƟŽŶ ϳϴ͘ŶǀŝƌŽƐĞƌǀh>ƚĚ DƐ͘:ĞŶŶŝĨĞƌĂŶŐŝƌĂŶĂ tĂƐƚĞDĂŶĂŐĞŵĞŶƚ ϳϵ͘'ŽůĚƐƚĂƌ/ŶƐƵƌĂŶĐĞŽ͘>ƚĚ Dƌ͘WĂƵů<ĂǀƵŵĂ /ŶƐƵƌĂŶĐĞ

54 The Uganda Chamber of Mines & Petroleum COMPANY CONTACT PERSON SECTOR

ϴϬ͘hW/ŶƐƵƌĂŶĐĞhŐĂŶĚĂ>ƚĚ DƐ͘ZƵƚŚEĚƵŚƵŬŝƌĞ /ŶƐƵƌĂŶĐĞ

ϴϭ͘hŶŝĨƌĞŝŐŚƚĂƌŐŽ,ĂŶĚůŝŶŐ DƐ͘:ĞŶŶŝĨĞƌDǁŝũƵŬǇĞ ĂƌŐŽ,ĂŶĚůŝŶŐ

ϴϮ͘&ŝƌƐƚDŝŶŝŶŐŽŵƉĂŶǇ>ƚĚ Dƌ͘ŽƌĚĞ'ƌƵũŝĐ DŝŶŝŶŐ

ϴϯ͘dŚĞDŝŶĞƌĂů'ƌŽƵƉŽ͘>ƚĚ Dƌ͘ĂƌŶĂďĂƐdĂƌĞŵǁĂ DŝŶŝŶŐ

ϴϰ͘'ƌĂƐ^ĂǀŽǇĞhŐĂŶĚĂ/ŶƐƵƌĂŶĐĞƌŽŬĞƌƐ>ƚĚ Dƌ͘ZŽŶŶŝĞDƵƐŽŬĞ /ŶƐƵƌĂŶĐĞ ϴϱ͘^ŝƉĂǆƉůŽƌĂƟŽŶhŐĂŶĚĂ>ƚĚ DƐ͘EĂƚĂƐŚĂsĞŶƵƐ DŝŶŝŶŐ ϴϲ͘^ŚĞƌĂƚŽŶ<ĂŵƉĂůĂ,ŽƚĞů Dƌ͘/ĂŶƵŶĐĂŶ ,ŽƐƉŝƚĂůŝƚǇ ϴϳ͘ĞƚĂWƌŽũĞĐƚƐ>ƚĚ Dƌ͘EĞůƐŽŶDƵŐĞŶǇŝ WƌŽĐƵƌĞŵĞŶƚΘŽŶƐƵůƟŶŐ

ϴϴ͘dĨƌŝĐĂǆƉůŽƌĂƟŽŶĂůƌŝůůŝŶŐ^ĞƌǀŝĐĞƐ Dƌ͘ĞŶsŝĞƚŶŝĞŬƐ ǆƉůŽƌĂƟŽŶƌŝůůŝŶŐ^ĞƌǀŝĐĞƐ

ϴϵ͘dŽǁĞƌZĞƐŽƵƌĐĞƐƉůĐ Dƌ͘ZĂƐŚŝĚDƵŐĂďĞ KŝůΘ'ĂƐǆƉůŽƌĂƟŽŶĂŶĚWƌŽĚƵĐƟŽŶ

ŝƌďŽƌŶĞ'ĞŽƐƉĂƟĂůĂƚĂĐƋƵŝƐŝƟŽŶ͕ĞƌŝĂů ϵϬ͘ĞƌŽƉŚŽƚŽ^ǇƐƚĞŵƐŶŐŝŶĞĞƌŝŶŐŽ͘ Dƌ͘EĂůƵŬŽŽůĂDƵǁĂŶŐĂ WŚŽƚŽŐƌĂƉŚǇ͕^ƵƌǀĞǇŝŶŐ͕DĂƉƉŝŶŐ ϵϭ͘ĂƐƚĨƌŝĐĂŶ'ŽůĚ ,ŽŶ͘ZŝĐŚĂƌĚ<ĂŝũƵŬĂ DŝŶĞƌĂůǆƉůŽƌĂƟŽŶ ϵϮ͘DĞŐŚĂDŝŶĞƌĂůƐ Dƌ͘^ŝŬĂŶĚĞƌDĞŐŚĂŶŝ DŝŶĞƌĂůǆƉůŽƌĂƟŽŶ Dƌ͘ZŽŶĂůĚƐŝŝŵǁĞ ϵϯ͘ĂƉŝƚĂů>ĂǁWĂƌƚŶĞƌƐ >Ăǁ&ŝƌŵ DŝƚĞŐǇĞŬŽ ŽŶƐƚƌƵĐƟŽŶ͕tĂƌĞŚŽƵƐŝŶŐ͕ĂŵƉƵŝůĚŝŶŐ͕ ϵϰ͘DŝŶĞƌĂů^ĞƌǀŝĐĞƐ>ƚĚ Dƌ͘ĚǁĂƌĚ<ĂďƵĐŚƵ DŽƚŽƌsĞŚŝĐůĞ^ƵƉƉŽƌƚ ϵϱ͘<ĞŶĨƌĞŝŐŚƚ Dƌ͘ŵŽƐǁŽŬĂ &ƌĞŝŐŚƚ^ĞƌǀŝĐĞƐ ϵϲ͘sĞůŽƐŝŽƌƉŽƌĂƚĞ^ĞƌǀŝĐĞƐ Dƌ͘tŝůůŝĞZĂŶŬŝŶ ƐƐĞƚ/ŶƚĞŐƌŝƚǇDĂŶĂŐĞŵĞŶƚ ϵϳ͘&KDŽƚŽƌƐhŐĂŶĚĂ>ŝŵŝƚĞĚ DƐ͘dĂŵŵǇ,ĞŝŶ ĂƌĞĂůĞƌƐ ϵϴ͘^ŝŵďĂDŝŶĞƐĂŶĚDŝŶĞƌĂůZĞƐŽƵƌĐĞƐ>ƚĚ Dƌ͘:ŽŶŶǇ^ĂƐŝƌǁĞ DŝŶŝŶŐ ϵϵ͘DĂŶƚƌĂĐhŐĂŶĚĂ>ƚĚ Dƌ͘tĂůŝĚ,ĂƐƐĂŶ ĂƚĞƌƉŝůůĂƌWƌŽĚƵĐƚƐ ϭϬϬ͘ dŽƌŽƌŽĞŵĞŶƚ>ŝŵŝƚĞĚ Dƌ͘'ĂŐƌĂŶŝ͘D ĞŵĞŶƚDĂŶƵĨĂĐƚƵƌĞƌƐ ϭϬϭ͘ ĞƚĂDŝŶĞƌĂůƐ>ƚĚ DƐ͘:ĞŶŶŝĨĞƌ,ŝŶƚŽŶ DŝŶĞƌĂůǆƉůŽƌĂƟŽŶ ϭϬϮ͘ dƌĂŶƐĨƌŝĐĂƐƐƵƌĂŶĐĞŽŵƉĂŶǇ>ƚĚ Dƌ͘DĂĚŚĂǀ<ƵŵĂƌ /ŶƐƵƌĂŶĐĞ ϭϬϯ͘ >ŝŐŽŵĂƌĐĚǀŽĐĂƚĞƐ Dƌ͘:ŽƐŚƵĂKŐǁĂů >Ăǁ&ŝƌŵ ZŽĂĚƐ͕DŝŶŝŶŐ͕ŽŶƐƵůƟŶŐ͕ŽŶƐƚƌƵĐƟŽŶ͕ ϭϬϰ͘ dƌĂŵŝŶĐŽh>ƚĚ Dƌ͘ĂǀŝĚ<<ĂǁŽŽǇĂ ĂƌƚŚŵŽǀŝŶŐ ϭϬϱ͘ YƵĂŶƚƵŵǆƉƌĞƐƐ>ŽŐŝƐƟĐƐ Dƌ͘'ĞŽƌŐĞKĚĞŬĞ &ƌĞŝŐŚƚ&ŽƌǁĂƌĚŝŶŐ>ŽŐŝƐƟĐƐ^ĞƌǀŝĐĞƐ ϭϬϲ͘ EĂŶŐǁĂůĂ͕ZĞǌŝĚĂ͕ΘŽ͘ĚǀŽĐĂƚĞƐ Dƌ͘EĂŶŐǁĂůĂ:ĂŵĞƐ >Ăǁ&ŝƌŵ ϭϬϳ͘ EŝůĞƚƌĂĐhŐĂŶĚĂ>ƚĚ Dƌ͘DĂƌŬĂǀŝĚƐŽŶ ĞĂůĞƌƐŝŶƉůĂŶƚΘŵĂĐŚŝŶĞƌǇ ϭϬϴ͘ 'ĞŽdƌĂĐĞĂďŝůŝƚǇ Dƌ͘DĂƩŚŝĞƵ'ƵĞŵĂƐ DŝŶĞƌĂůdƌĂĐĞĂďŝůŝƚǇ

Chamber Individual Members Name ^ƉĞĐŝĂůƚǇ ϭϬϵ͘Dƌ͘ƌŝĂŶ<ĂŐŐǁĂ >ĂǁǇĞƌ ϭϭϬ͘Dƌ͘:ŽƐŚƵĂdƵŚƵŵǁŝƌĞ DŝŶŝŶŐ ϭϭϭ͘Dƌ͘DĂůŬŝƚ^ŝŶŐŚ^ĂŝŶŝ ŽŶƐƚƌƵĐƟŽŶ ϭϭϮ͘Dƌ͘DŝŶĂǌ<ĂƌŵĂůŝ ƵƐŝŶĞƐƐŵĂŶ

ϭϭϯ͘Dƌ͘ZĂũĞƐŚĞǁĂŶŝ ŽŶƐƚƌƵĐƟŽŶ ϭϭϰ͘,ĂƌĂůĚsĂŶƵďĞů &ĂďƌŝĐĂƟŽŶ ϭϭϱ͘ZŽƐƐŝŶŝ^ŝůǀĞŝƌĂ KŝůΘ'ĂƐΘZĞŶĞǁĂďůĞŶĞƌŐǇ

The Uganda Chamber of Mines & Petroleum 55

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.

56 The Uganda Chamber of Mines & Petroleum