www.ucmp.ug The Uganda Chamber of MINESMINES && PETROLEUMPETROLEUM Issue: 9 September 2013 It’s On Legal Reforms To Boost Mining IDLE LICENCES FACE REVIEW GOLD IS THE COLOUR FOR GREENSTONE RESOURCES KILEMBE WORKS START IN OCTOBER Plot 11/13 Lower Kololo Terrace Fax: +256 (0) 312 229 234/5 Website: www.aon.com Bollore Africa Logistics Uganda Ltd. Plot M-611, Ntinda Road. | P.O. Box 5501, Kampala. | Tel: +256 414 336000, +256 312 211000. Fax: +256 414 286345 /289 191 | Email: [email protected] www.bollore-africa-logistics.com BolloreAfricaLogisticsUganda UCMP COUNCIL MEMBERS CHAMBER COUNCIL Hon. Elly Karuhanga Loic Laurandel Chairman COUNCIL President – Tullow Oil, Uganda, Total E&P, Uganda Country Managing Partner – Kampala As- Manager sociated Advocates and Director dfcu bank, Nile Breweries and other companies Hon. Richard Henry Kaijuka Kellen Kayonga, Vice Chairman COUNCIL Chairman EA Gold and Manag- Managing Director, of Askar ing Director, Berkeley Reef Ltd, a Security Services fully-fledged Mining and Mineral Exploration Company Paul Sherwen Jimmy Mugerwa, GEN.SECRETARY COUNCIL President & COO of IBI’s 30% Tullow, Uganda Country owned affiliate company Grey Manager Crown Resources Ltd. Also the Finance Director of Strategic Logistics Ltd Jeff Baitwa Matthew Tallarovic Treasurer COUNCIL Partner, Deloitte (Uganda) Ltd Director ThreeWays Shipping Services [Group] Ltd Xiao Zong Wei Irene Nakalyango COUNCIL COUNCIL CNOOC, Uganda, CEO, UCMP President Xiao Zong Wei 4 The Uganda Chamber of Mines & Petroleum UCMP COUNCIL MEMBERS ADVISORS Gordon Setimba Herman Kasekende ADVISOR ADVISOR Astor Finance Plc Standard Chartered Bank Joshua Tuhumwire Denis Kusaasira ADVISOR ADVISOR Mining consultant, Gondwana ABMAK Associates Geoscience Consulting Ltd. Also former Commissioner of the Uganda Department of Geological Survey & Mines Igor Markov Sam Thakkar ADVISOR ADVISOR Semliki Rift Trading A H Thakkar & Sons Matthew Tallarovic COUNCIL Partner, Deloitte (Uganda) Ltd Gerald Mukyenga Philip Odera ADVISOR ADVISOR Multilines International Uganda Bankers Association The Uganda Chamber of Mines & Petroleum 5 contents Mineral Wealth 10 Conference 2013 Law reviews 34 set to boost mining Resolve land conflicts 37 to ease mining Kilembe set to 42 resume operations 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. 6 The Uganda Chamber of Mines & Petroleum Peter Lokeris 44 Interview Idle licenses to 50 be clamped down Uganda issues first 68 oil production license The Uganda Chamber of Mines & Petroleum 7 Uganda’s mineral strength will shock the world As we toast to China National Offshore Oil Company CNOOC’s acquisition of the first production license in Uganda’s petroleum industry, it is also equally important to thunderously put our hands together for another transaction that has been long overdue. And like has become commonplace of late, what with its ever expanding global outreach, this other deal has Chinese fingerprints all over it. Enter Tibet-Hima. The Chinese consortium is the new holder of the concession rights to the assets of sleeping copper giant Kilembe Mines Limited. A very significant transaction to Uganda’s mining industry, if ever there was one! In limbo for over 3 decades, Kilembe was for a long time the fulcrum of the country’s mining industry which at peak levels in the 1950s and 1960s, the sector accounted for up to 30% of Uganda’s export earnings. A combination of bad governance in the late 1970s and subsequently poor world prices of cobalt and copper, amongst other challenges had been central to Kilembe’s collapse. With its rebirth though, it is safe to proclaim the return of the mining industry to the high-table. The new cash injection in the Tiira, Busia goldfields by Greenstone Resources is another great development that could see Uganda matching up to the likes of Tanzania - seeing its goldfields in the greenstone belt geologically extends to our southern neighbour’s. And already, a growth in exploration licenses across the country demonstrates a sector on the up. Of course this would not have been possible without a government dedicated to diversifying the economy like President Yoweri Museveni’s has been. Together with the World Bank/IDA, African Development Bank and the Nordic Development Fund, the Government of Uganda initiated a project from 2003, that ended recently. It was intended to operationalize the Mineral Policy and address the technical constraints of the mineral sector like a lack of adequate data. As such the acquisition of extensive geoscientific facts such as airborne geophysical survey data covering 80% of the country; geological and geochemical surveys data together with mineral resources assessment figures has directly set-off an upsurge in application for mineral rights across the country. Gold, copper, limestone, rare earths elements, vermiculite, tin, tungsten, phosphates, marble amongst many other minerals can be found all over the country, these studies have shown and the time is now to exploit this great opportunity Mother Nature has presented us. There is willingness by the business community to take the bull by the horns and we pray that Uganda’s political leadership should also continue to move with us like it has done so far. I hope we all have excellent deliberations at the second annual Mineral Wealth Conference 2013. Chairman’s Note Chairman’s Elly Karuhanga 8 The Uganda Chamber of Mines & Petroleum The Uganda Chamber of Mines & Petroleum 9 Kampala Serena Hotel Serena Kampala tial Uganda’s Mining Poten Mining Uganda’s 1st –2nd October 2012 2012 October –2nd 1st SHOWCASING SHOWCASING 012 2 E C EN FER CON LTH LTH EA W AL MINER MINISTRY OF ENERGY & MINERAL DEVELOPMENT MINERAL & ENERGY OF MINISTRY THE REPUBLIC OF UGANDA OF REPUBLIC THE PROGRAMME MINERAL WEALTH CONFERENCE 2013 THE REPUBLIC OF UGANDA MINISTRY OF ENERGY & MINERAL DEVELOPMENT PRE-CONFERENCEMINER AL WEALTH MONDAY 30TH SEPTEMBERCON 2013FER ENCE 2012 10:00-16:30 Registration of Participants and Set up of Exhibition Stands SHOWCASING 1st –2nd October 2012 18:30Uganda’s- 21:00 Welcome Mining Boat Cruise Potenon Lake Victoriatial at Speke ResortKampala Munyonyo Serena Hotel DAY ONE 1ST OCTOBER 2013 TIME TOPIC PRESENTER COMPANY DESIGNATION 8:30 - EARLY MORNING COFFEE 9:00 AM 9:00 – PRAYER AND NATIONAL ANTHEM REV. AARON PRESIDENTS OFFICE- SENIOR 9:05 AM MWESIGYE STATE HOUSE- PRESIDENTIAL INVESTMENT UNIT ADVISOR 9:05 – WELCOME REMARKS HON. ELLY UGANDA CHAMBER OF CHAIRMAN 9:15 AM KARUHANGA MINES & PETROLEUM SESSION 1: REGULATORY FRAMEWORK FOR INVESTING IN UGANDA’S MINING SECTOR CHAIRED BY PERMANENT SECRETARY MINISTRY OF ENERGY & MINERAL DEVELOPMENT 9:15 – TBA MR. BAGUMA DEPARMENT OF ASSISTANT 9:30 AM ZACHARY GEOLOGICAL SURVEY COMMISSIONER & MINES 9:30 – TRANSFORMING UGANDA’S MR. DENIS ABMAK ASSOCIATES PARTNER 9:45 AM MINERAL POTENTIAL INTO KUSASIRA MINERAL WEALTH: ISSUES AND OPTIONS FOR REFORM 9:45 – “SUSTAINABLE MINING - DANIEL HIMA CEMENT GENERAL MANAGER 10:00 AM MAXIMISING MINING BENEFITS PETTERSSON VIS A VIS ENVIRONMENTAL AND SOCIAL IMPACTS” 10:00 – REGULATORY CERTAINTY: MR. OTSILE ENS AFRICA DIRECTOR 10:15 AM CREATING AN INVESTOR MATLOU FRIENDLY NATURAL RESOURCES DESTINATION 10:15 – BALANCING REGULATION & MR. TOM DENTONS/KAMPALA PARTNER/PARTNER 10:30 AM ATTRACTING INVESTORS ELDRIDGE/MR. ASSOCIATED DAVID MPANGA ADVOCATES 10:30 - PANEL DISCUSSION 11:00 AM 11:00 – HEALTH BREAK 11:30 AM SESSION 2: CHAIRED BY HON. ELLY KARUHANGA CHAIRMAN UCMP 11:30 – TBA HON. ENG. MINISTRY OF ENERGY MINISTER 11:45 AM IRENE MULONI & MINERAL DEVELOPMENT 11:45 – KEYNOTE ADDRESS MRS. MMAKAU MINING CHAIRPERSON 12:15 PM BRIDGETTE RADEBE 12:15 – SPEECH BY GUEST OF HONOUR 12:45 PM 12:45 – RECOGNITION OF SPONSORS 1:00 PM 1:00 – 1:15 TOUR OF THE EXHIBITION STANDS BY GUEST OF HONOUR & KEYNOTE SPEAKER P10M The Uganda Chamber of Mines & Petroleum 1:15 – LUNCH BREAK 2:00 PM 3rd Floor Block A Amber House Kampala Uganda; Tel: +256-312-516695; Website: www.ucmp.ug 1 PRE-CONFERENCE MONDAY 30TH SEPTEMBER 2013 10:00-16:30 Registration of Participants and Set up of Exhibition Stands 18:30- 21:00 Welcome Boat Cruise on Lake Victoria at Speke Resort Munyonyo DAY ONE 1ST OCTOBER 2013 Kampala Serena Hotel Serena Kampala tial Uganda’s Mining Poten Mining Uganda’s TIME TOPIC PRESENTER COMPANY DESIGNATION 1st –2nd October 2012 2012 October –2nd 1st SHOWCASING SHOWCASING 8:30 - EARLY MORNING COFFEE 9:00 AM 012 2 E C EN FER CON 9:00 – PRAYER AND NATIONAL ANTHEM REV. AARON PRESIDENTS OFFICE- SENIOR 9:05 AM MWESIGYE STATE HOUSE- PRESIDENTIAL INVESTMENT UNIT ADVISOR 9:05 – WELCOME REMARKS HON. ELLY UGANDA CHAMBER OF CHAIRMAN 9:15 AM KARUHANGA MINES & PETROLEUM LTH LTH EA W AL MINER SESSION 1: REGULATORY FRAMEWORK FOR INVESTING IN UGANDA’S MINING SECTOR CHAIRED BY PERMANENT SECRETARY MINISTRY OF ENERGY & MINERAL DEVELOPMENT 9:15 – TBA MR. BAGUMA DEPARMENT OF ASSISTANT MINISTRY OF ENERGY & MINERAL DEVELOPMENT MINERAL & ENERGY OF MINISTRY 9:30 AM ZACHARY GEOLOGICAL SURVEY COMMISSIONER THE REPUBLIC OF UGANDA OF REPUBLIC THE & MINES 9:30 – TRANSFORMING UGANDA’S MR. DENIS ABMAK ASSOCIATES PARTNER 9:45 AM MINERAL POTENTIAL INTO KUSASIRA MINERAL WEALTH: ISSUES AND OPTIONS FOR REFORM 9:45 – “SUSTAINABLE MINING - DANIEL HIMA CEMENT GENERAL MANAGER 10:00 AM MAXIMISING MINING BENEFITS PETTERSSON VIS A VIS ENVIRONMENTAL AND SOCIAL IMPACTS” 10:00 – REGULATORY CERTAINTY: MR. OTSILE ENS AFRICA DIRECTOR 10:15 AM CREATING AN INVESTOR MATLOU FRIENDLY NATURAL RESOURCES DESTINATION 10:15 – BALANCING REGULATION & MR. TOM DENTONS/KAMPALA PARTNER/PARTNER 10:30 AM ATTRACTING INVESTORS ELDRIDGE/MR. ASSOCIATED PROGRAMME DAVID MPANGA ADVOCATES 10:30 - PANEL DISCUSSION 11:00 AM 11:00 – HEALTH BREAK 11:30 AM SESSIONMINERAL 2: CHAIRED BY HON.