INTERVIEW: Mining JERVOIS: Bringing INTERVIEW: “Artisanal Industry Will Lift Off Uganda to the Forefront Mining Is the Springboard Soon – PS Kasande of the “Green Revolution” The Industry Needs” ...... PAGE 14 ...... PAGE 37 ...... PAGE 44 The Uganda Chamber of MINESMINES && PETROLEUMPETROLEUM Issue: 22 October, 2019 STATE PARTICIPATION: Is Production Sharing in Mining Projects Tenable? Time for Kilembe Shaping DGSM’s Karamoja Community In Model To Get on Board next 100 years Agreement With Mining Firm ...... PAGE 62 ...... PAGE 17 ...... PAGE 65 INSURANCE & RISK MANAGEMENT Minet is a trusted Pan African Advisor that meets the uncertainties of tomorrow by delivering Risk and Human Capital today. Minet oers a wide range of both insurance solutions and risk management in the Energy and Mining sectors. 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RicHaRd KaijuKa (F.c.i.B) Berkley Reef DEPUTY CHAIRMAN MEMBER TREASURER JIMMY MUGERWA GORDON Sentiba DR. KELLEN Kayongo Tullow, Uganda Astor Finance Plc Askar Security Country Manager COUNCIL, ADVISORY COMMITTEE Finance Health, Safety & Environment Insurance MR. GIBSON NANGONO MR. HAKIM MWesigWA MR. Paul Kavuma Barclays/Absa All Terrain Services uganda insurers association international Relations Investment, Legal & advisory MR. AGGREY ASHaba MR. WILLIAM KIZito MS. DOREEN BYENGOMA GCC Services Finlaw associates Hima cement Ltd Local content Logistics Minerals MR. TONY O. Otoa MR. HitesH SHAH DR. JENNIFER Hinton Stanbic Bank union Logistics Ltd jervois Mining Public Relations Training and Skills development Youth & Gender Matters MS. CYNTHIA Mpanga MR. FRANKLIN BOUGUEP MS. Carol ATHiyo Standard chartered Bank Solid Rock LB Minet uganda Special advisor to the chairman Sustainable development General advisory MR. PETER BitarakWate & Social Performance MR. GERALD MUKYENGA Zahkem international construction MR. NICHOLAS RAMSDEN Multilines international Montrose The Uganda Chamber of Mines & Petroleum 5 UCMP COUNCIL CHairperson: VICE CHairperson: GENERAL Secretary: HON. DR. Elly KARUHANGA MR. Patrick MWEHEIRE MR. SaM THakkaR FCCA (uK) cPa(u) Partner – Kampala Associated CEO- Stanbic Bank CEO UHY Thakkar & Associates Certified Advocates Public Accountants Treasurer: MEMBER MEMBER MR. Geoffrey BAITWA MS. PAMELA Natamba MR. ZHao SHUNQIANG Director- Threeways Partner - PWC President – CNOOC Uganda Shipping Group MEMBER MEMBER MEMBER MEMBER MR. PIERRE Jessua MR. NICHOLAS ECIMU MR. ABDUL KIBUUKA CatHERINE NIWamanya General Manager Partner – Sebalu & Lule Executive Director - Wabomba – Total E&P Uganda Advocates True North Africa Ag. CEO- UCMP 6 The Uganda Chamber of Mines & Petroleum THIS WAY ContentsIN MR. ROBERT PG KASANDE: MINING INDUSTRY WILL 15 LIFT OFF SOON MWC2019 SEEKS PG BETTER ENVIRONMENT FOR MINING 10 PG NEW MINING LAW TO PROMOTE INDUSTRY 20 – GOVERNMENT SHAPING PG DGSM’s NEXT 100 YEARS 17 PG INTERVIEW: “ARTISANAL PG MINING IS THE TIME FOR SPRINGBOARD KILEMBE TO 44 THE INDUSTRY 62 GET ON BOARD Needs” PG JERVOIS: BRINGING UGANDA TO THE FOREFRONT OF THE “GREEN Revolution” IN 37 GLOBAL TRANSPORTATION TRIBUTE: HON. PG EDWARD ATHIYO LORIKA, KARAMOJA’s GEM WILL KEEP SHINING 68 8 The Uganda Chamber of Mines & Petroleum Creating AN enabling ENVironment FOR MINING IN Uganda The title of this note is borrowed, word for word, from the theme of our 8th Mineral Wealth Conference (MWC2019), scheduled for October 2nd and 3rd 2019. The repetition is to emphasize our belief that it is high time the country benefited from its highly promising mining and minerals sector, like has been the case before. We all appreciate that for this to happen however, we will need to have the best conditions in place; hence the MWC2019 theme. Putting in place a new policy and legal framework is a good starting point by the Government of Uganda. Last year, the Cabinet approved the Mining and Mineral Policy for Uganda 2018, replacing the Mineral Policy 2001. And at present, the Ministry of Energy and Mineral Development is conducting consultative meetings countrywide, to gather stakeholder views on the draft Mining and Minerals Bill 2019. The Chamber has also prepared its observations on the same, which the Ministry will receive soon. Some of these are captured in this very magazine in the detailed analytical essay by Mr Denis Kusaasira titled “State Participation under the Minerals and Mining Bill, 2019: Is Production Sharing in Mining Projects Tenable?” of which I encourage all of you, and especially the Government officials to read and internalize. We would also like to applaud the state for securing a loan from Spain to fund the aeromagnetic survey of Karamoja, after a very long wait. This should encourage more investments in the mineral-rich region. The Government can also directly participate in extensive exploration to help quantify our mineral resource, which will subsequently attract the big players. Currently, the sector contributes only 0.3% to the gross domestic product (GDP) per annum, yet in the 1960s, when mineral production played an important role not only in export earnings but also in supplying raw materials to local industries, it contributed about 30% to GDP. This is the kind of potential that we continue to sit on. We commend Sipa Exploration, Jervois Mining, Samta Mines, Wagagai Mines, Rwenzori Rare Metals, Consolidated African Mineral Resources, African Panther and many others that are carrying out extensive exploration work in the country. The Chamber is committed to protracted lobbying at Government’s doors until Uganda’s mining industry takes off. We believe that with a more predictable and favourable legal regime and therefore an enabling environment, we will more than double the current investment in our mining and minerals sector overnight. We congratulate the Directorate of Geological Survey and Mines (DGSM) for clocking 100 years of existence and look forward to a more vibrant and productive century. I thank you. Chairman’s Note Chairman’s Enjoy, the deliberations, Dr. Elly Karuhanga, Chairman UCMP Council Magazine AD FINAL.pdf 1 9/11/2019 12:08:22 PM Tilenga project area is located in the Northern part of Lake Albert, and comprises of six oil fields - Jobi-Rii, Ngiri, Gunya, Kasamene - Warindi, REALISING Nsoga and Kigogole which will be developed together via a single Central Processing Facility Uganda's Oil and Gas Potential (CPF) with a production capacity of 190,000 barrels per day of oil. A total of about 400 wells will be drilled from over 30 wellpads. TOTAL is C leading the activities of the Tilenga project in M partnership with CNOOC and TULLOW. Y www.tilenga.com CM MY CY CMY K UNLOCKING East Africa’s Potential The East African Crude Oil This trans-border infrastructure shall be developed and Pipeline(EACOP), is a 1,443km crude oil operated as a private sector project by the EACOP export pipeline that will transport part Company, in which the Lake Albert Upstream Partners; Uganda's oil from Kabaale-Hoima in TOTAL, CNOOC and TULLOW, the Uganda National Oil Uganda to the Chongoleani Peninsula Company(UNOC) and the Tanzania Petroleum near Tanga Port in Tanzania for export Development Corporation (TPDC) will be shareholders. to the international market. www.eacop.com 10 The Uganda Chamber of Mines & Petroleum MWC2019 Seeks Better Environment For Mining The Uganda Chamber of Mines and Petroleum (UCMP) in partnership with the Ministry of Energy and Mineral Development is hosting the 8th annual Mineral Wealth Conference (MWC2019) on October 2nd and 3rd, 2019, under the theme ‘Creating an Enabling Environment for Mining in Uganda’. UCMP Council CM, Dr Elly Karuhanga, Chamber Ag CEO, Mrs Cathy Wabomba, Africa Union’s Mr Frank Mugyenyi, UCMP BOT CM Hon Richard Kaijuka and Mr Gabriel Data from DGSM The Uganda Chamber of Mines & Petroleum 11 censing process easier and and JV Agreement with Rio Tinto faster for the investor, while to underpin accelerated nickel- enhancing transparency in the copper exploration at the Kit- sector. Uganda also agreed gum Pader Base Metals Project We are excited to see large to sign up to the Extractive in Northern Uganda in which Rio players like Australia’s Industries Transparency Ini- Tinto can fund up to US$59M of Jervois coming into the tiative (EITI), an international exploration expenditure to earn scheme that promotes open- up to a 75% interest in the proj- market and the return of ness and trust in the oil and ect. In the latest company report, world class companies gas and mining industries. Sipa quotes a total spend of over $15 million in direct exploration like Rio Tinto. More Discussions at the MWC2019 costs and taxes to the Ugandan have been structured to look investments are expected government since exploration back at the glory days – where in the industry, and as commenced in late 2012. mining was a crucial contribu- Ugandans we need to tor to the economy, examine On the other hand, Jervois Min- cash in, especially through the challenges that led to its ing, who has already invested offering different support collapse and then finally ex- several million dollars in explora- plore options and suggestions tion over the past year and a half, services that create a great foundation recently announced that it had for revamping the sector to approved a $1.5 million explora- MRS.