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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 The doors have been swung wide open hen he lifted the ban on mineral exports recently, President Yoweri Museveni removed a clog in the development of the mining industry that Whad frustrated the sector for quite some time. This development is very exciting for not only members of the Uganda Chamber of Mines and Petroleum (UCMP) but everyone in the industry and the country at large. You may recall that recently when we asked the government to remove taxes on exploration; the waiver was granted. More particularly we thank the government for reviewing the laws and regulations on mining to make the legal regime truly user- friendly for investors. The doors have indeed been swung wide open to welcome any investor interested in unlocking Uganda’s mining potential in any of about 50 minerals that Mother Nature blessed us with. In fact, come October 1st & 2nd, we are asking the international mining community to come and attend our flagship interactive forum, the Mineral Wealth Conference (MWC) in a big way, because Uganda’s mining sector is now reawakened. We applaud the Government of Uganda’s focus on infrastructural development with at least four big hydro power plants coming up simultaneously besides the numerous roads that are being constructed across the country. This infrastructure161 will take Uganda ever so closer to extensive beneficiation in the mining sector. Furthermore, the agreement by the government of Uganda and that of Kenya on the crude oil export pipeline is commendable. The Heads of State in the region are doing a fantastic job in fast-tracking the implementation of 14 major projects under the Northern Corridor Integration Projects (NCIP) framework. Chairman’s Note Chairman’s The UCMP was greatly honored, when we were asked us to lead the private sector in organizing the first regional forum and dinner on the NCIP initiative in June, 2015. This was the first time that business matters were given precedence at a summit of this magnitude. The involvement of the private sector in such deliberations makes it even easier and faster to harmonize best practices in the region. In addition, President Museveni’s recent appointment of the UCMMPP toto thehe PresidentialPrPreside Investors Round Table - to champion the commercial aspirations of Uganda’sUgUgagandandanda s miningm g sector for the next two years - fills us with great pride. Our challenge as the UCMP and the business community in general is to ready ourselves and the East African people to reap the benefits of theese great iinitiatives. I thank you. 6 The Uganda Chamber of Mines & Petroleum 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 MWC2015 backs Uganda’s Vision2040 dream Development Bank. The MWC2015 is organised in partnership with the Ministry of Energy and Mineral Development, Ministry of Foreign Affairs, Africa Mining Network, Win Win 4 Africa MWC2015 Consultancy and African Legal Support Facility. The sponsors include Zakhem International Construction, the Democratic Governance Facility (DGF), Stanbic Bank, Hima Cement, AON Uganda, ENS Africa, Standard Chartered Bank, Swala Energy, Tororo Cement, United Bank for Africa (UBA) and Krone Uganda. “Once again we would like to specially thank our partners n a country that is blessed with deposits of copper, Steel giant Roofings’ is keen on and sponsors without whom gold, iron ore, vermiculite, tin, tantalite, tungsten, adding value to Uganda’s iron it wouldn’t have been possible nickel, platinum and phosphate amongst many others ore to organize this event,” says the potential for a flourishing mining industry in Uganda Irene Ivy Nakalyango, the cannot be ignored. UCMP CEO. However, Uganda’s mineral sector remains largely Iuncharted as large scale exploration has not yet been carried out. www.ucmp.ug Organized by the Uganda Chamber of Mines and Petroleum, the Mineral Wealth Conference (MWC) is at the forefront of advancing mineral development in Uganda. MINERAL WEALTH Every October, the conference welcomes more than 400 international delegates from mining majors such as Canada, Australia, China, South Africa, and USA and CONFERENCE 2015 regional players like Tanzania, Ghana, Zambia, Botswana, DRC, South Sudan, Nigeria and Kenya amongst other countries. Theme: "Minerals Value Addition-“Road to The primary objective of the MWC is to not only encourage Development" mining majors to invest in Uganda’s promising mining sector, but to also create joint venture partnerships with Sub Theme: "Minerals to Spur Development" serious local players. 1st - 2nd October 2015 Sheraton Kampala Hotel With President Yoweri Kaguta Museveni backing value ABOUT MWC2015: CONTACT US TODAY: To register as a delegate, speaker, Overall Objective: To attract sponsor or exhibitor at MWC2015 /General Registration contact addition to Uganda’s minerals, these networking sessions investment in Uganda’s have become important platforms to learn the best mineral sector and utilize the Mr. Ronald Ayebare on Tel: +256-794 515 802. mineral resources for social E-Mail: [email protected]; [email protected] Mr. Uwimana Yves, Tel: +256-793 201 178, +256-752 201 178. practices from visiting delegates. and economic transformation E-Mail: [email protected], [email protected] of the country and the region. Held under the theme “Minerals Value Addition – Road E-Mail:[email protected]; [email protected], CALL: 0393-516695, http://mwc2015.ucmp.ug/ to Development”, the MWC2015 is organized in line with Uganda’s Vision 2040 and the National Development Plan Partners: 2 (NDP II) which is projected to transform the country’s Gold Sponsors economy into a middle income country with an average real Gross Domestic Product (GDP) growth rate of 8.2% THE REPUBLIC OF UGANDA THE REPUBLIC OF UGANDA MINISTRY OF FOREIGN AFFAIRS per annum. MINISTRY OF ENERGY & MINERAL DEVELOPMENT Bronze Sponsors Silver Sponsors Other Sponsors This year the UCMP, in association with ENS Africa and AON Uganda will hold a pre-conference one week capacity building session, open to both the private and public sectors. The workshop will be sponsored by the African 10 The Uganda Chamber of Mines & Petroleum 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
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