New Mining and Minerals Act 2022 assigns the State an ownership interest in large and medium scale mines
14 Oct 2022
On 14 October 2022, Uganda adopted the Mining and Minerals Act, 2022, which replaces the Mining Act, 2003. The new Act contains some key amendments including the following:
• Creation of new classes of mineral rights that may be acquired, including large-scale mining licence; medium scale mining licence; small scale mining licence; and artisanal mining licence. The new Act broadens the scope of applicants for mineral rights to include a body corporate registered under the laws of Uganda, a partnership, a cooperative society, a trustee, or an association or business registered under any other written law.
• Establishment of the Uganda National Mining Company (UNMC) which is wholly owned by the State to manage Uganda’s commercial holding and participating interests in mineral agreements. Under the new Act the grant of a large scale or medium scale mining licence may give the State an ownership interest, at no cost, of up to a maximum of 15 per cent, in that enterprise. This interest is to be held by UNMC and is not to be diluted by eventual increases in capital of the holder of a large scale or medium scale mining licence.
• The new Act provides for the regulation and management of geothermal resources for direct use. It defines direct use to include application in greenhouses, homiculture, aquaculture, heating buildings, drying crops, pasteurising milk, natural spas and any other industrial or commercial processes or applications.
• Unlike the Mining Act, 2003 which limits exploitation of building minerals to domestic use, the new Act provides for the right to exploit building substances for commercial purposes.
-
Type:
-
Entry and establishment (Ownership and control)
-
Industry:
-
Primary (Mining and quarrying)
-
Sources:
