MPs on the budget committee have said the Government should use the new mining and minerals law to attract large-scale mining companies to increase investment in the sector.

They said this in their committee report on the National Budget Framework Paper for the financial year 2024/25 to 2028/29, which was received by the Clerk to Parliament on January 25, 2024.

The committee, chaired by Patrick Isiagi Opolot (Kachumbala County), said this will create more jobs and increase the revenue from the mining sector.

Currently, the contribution of minerals to the country’s economy stands at a dismal 1.4%.

MPs noted that the mining industry continues to be dominated by artisanal miners whose production levels are low, due to most of their operations being manually undertaken and the use of rudimentary techniques for mining.

“There is still limited progress towards mineral beneficiation and manufacturing. Apart from gold, there is limited value addition on minerals,” they said.

They also urged the Government to prioritise funding to the mineral development programme so that the country’s mineral potential can be fully harnessed.

“There is a need to adequately equip, train and facilitate the staff working under the programme,” they said.

About new law

On October 13, 2022, President Yoweri Museveni assented to the Mining and Minerals Bill, 2021 which was enacted by Parliament on February 17, 2022.

The Government wants to use this new law to streamline operations in the mining subsector where most of the small-scale miners operate without licenses.

It also wants to use the new law to provide for an accountable and transparent licensing regime and also provide for the participation of host communities in the entire decision-making chain of mining.