Uganda’s vast minerals should be used to develop and support the host communities. Many of the communities where minerals are being exploited are living in abject poverty.

Onesmus Mugyenyi the deputy executive director at the Advocates Coalition for Development Environment (ACODE) said there is need to enhance the way the mineral resources are managed in Uganda.

“There is a paradox of poverty amidst plenty. The communities where resources in Uganda and world over are being exploited are in abject poverty,” Mugyenyi noted.

This was during an oil, gas and mineral capacity enhancement for the Parliamentary Committee on Natural Resources. It was organized by the Civil Society Coalition on Oil and Gas. The function took place at Speke Resort Munyonyo.

Mugyenyi said the paradox applies to fishing communities, communities living near forests, national parks, tourism. “As the value of the natural resources within host communities goes up, poverty goes up, they do not benefit,” Mugyenyi explained.

He petitioned that with the ongoing planned exploitation of oil and gas in Uganda, that trend of poverty amidst plenty should change.

He noted that the districts that host oil and gas resources will suffer impacts and should have a bigger share of revenue to take care of the impacts, to mitigate the impacts.

Peter Lokeris state minister for minerals said Uganda should harness the mineral resources for employment creation, value addition, industrialization and local content creation.

“MPs need to understand how the natural resource sector operates, the benefits and risks, to fulfill their oversight role,” Lokeris said.

He noted that the private sector continues to make investments in the oil, gas and mining sector and government will provide an investor friendly environment, so that both government and private sector benefit.

 “Where resources are plentiful, there is poverty. It is the laws that can correct this and tell what communities can get,” Lokeris remarked.

He mentioned that there is improved transparency in the mineral licensing regime as they can be applied for online. He said Government was embarking on creating a mineral certification system to prevent the illicit trade in minerals. He said Government is seeking beneficiation or value addition for minerals.

“We want to create a market for minerals so that buyers can go and buy from the miners. In Tanzania there are markets for minerals”.

“For example, at Geita Mine in Tanzania, gold is measured upon exploiting, the gold miners are given security and driven to Bukoba where they sell their gold and no one is cheated, they are working according to the law, we are aiming at this,” Lokeris said.

Lokeris said that mineral traceability does mean block mineral trade flow. “Traceability means getting to know the source,” he remarked.

Dickson Kateshumba (Sheema Municipality) said Uganda should encourage gold trade. He said whether gold comes from the region or not it is Africa gold.

Kateshumba said that gold leaves Africa without value addition but Uganda creating many gold refineries the trade in gold should be improved.

“There are people who do not wish Uganda good by not providing standards, the lack of standards creates infighting, the tax regime imposed recently almost crippled the gold sector”, Kateshumba said.

Emmanuel Otaala the chairperson committee of natural resources in Parliament said MPs need more information and knowledge about the extractive to enhance their work capabilities.

“There are certain things MPs may not know. Issues of oil, gas, minerals, and agreements are taken very secretively,” Otaala said.

Otaala indicated that Tanzania has passed the East African Crude Oil Pipeline Bill, and Uganda is lagging behind in doing the same.

“In the extractive industries there are concerns about the effect of exploitation on the environment. The United Arab Emirates discovered oil many years and planned Dubai; they invested their finite resources appropriately. Are the bills that are proposed able to handle the environment and the finite resources,” Otaala said. He noted that the extractive industries if well used can lead to social economic transformation.

Vincent Kedi assistant commissioner licensing and administration (mineral licensing) the new Mining and Mineral Bill 2021 is waiting first reading.

Kedi said that the Mining (Mineral Certification) Regulations 2021, the prevention of illegal exploitation and illicit trade in conflicts in the Great Lakes Region was being finalized by the First Parliamentary Counsel.

James Muhindo the coordinator at the Civil Society Coalition for Oil and Gas said that as Uganda seeks to create a mining corporation it should be autonomous and not part of the ministry of energy and mineral development. Muhindo called for the mining corporation to be distinct from the regulator, the ministry.

He asked that in the new mining law there should be provision for community participation and signing community development agreements.

“While exploiting minerals it is important to consult communities so that communities do not see trucks passing by and their needs are not met. Communities need to express their needs as the mining and oil companies make profits. The primary and host community definitions need to be clear,” Muhindo said.

He observed that the introduction of competitive licensing in mineral exploration and development where risks are still high may discourage investors and should be handled carefully. He appealed that environment, social and economic impact assessments should be maintained thoroughly.

He criticised Uganda for being laid back in critical minerals as the energy transition happens. He said critical minerals like graphite, rare earth, lithium, nickel, copper that Uganda has are used to make batteries for the emerging electric vehicles. “Uganda has to position itself to benefit from the electric vehicles market,” Muhindo said. He said beneficial ownership requirement disclosure will reduce corruption in the natural resource sector.