Ex-minister Maria Kiwanuka joins national mining company board

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The inaugural board of the newly established Uganda National Mining Company (NMC) has been officially launched at a ceremony held at the Petroleum House in Entebbe.

James Mukasa Ssebugenyi, an advocate chairs the board, with James Byagaba serving as vice-chairperson. Other members are former finance minister Maria Kiwanuka, John Fisher, commissioner for the mines department Agnes Alaba, Francis Twinamatsiko, Dr Kevin Aanyu, Dr Alex Binego, Zentaro Kwatampora, Wilfred Kokas Aupal and John Fisher Kanyemibwa.

Sebugenyi holds a bachelor of laws degree from Makerere University and specialises in dispute resolution, including both litigation and arbitration. He has handled cases across various legal fields, such as commercial contracts, real estate and product liability. Additionally, he has expertise in specialised areas including constitutional law, property fraud, telecommunications, energy, expropriated properties, utilities, employee benefits and aviation negligence.

Board. (Courtesy)

James has served as a speaker and faculty member at numerous seminars and conferences focused on litigation practice. His professional memberships include the Uganda Law Society, the East African Law Society, and the International Bar Association.

Enhancing sector accountability

Energy ministry permanent secretary, Irene Bateebe, welcomed the new board on Monday, November 4, 2024, highlighting its critical role in enhancing the sector's accountability and regulatory framework. 

“This board will ensure that our mineral wealth plays a more substantial role in driving Uganda’s economic growth,” Bateebe said.

She underscored the Government's commitment to value addition by announcing a new policy that bans the export of raw minerals, aiming to encourage local processing. Previously, all mining activities in Uganda were conducted by private firms that obtained exploration and mining licenses.

Under the new Minerals and Mining Act of 2022, the Government now has the authority to take a 15% free carry stake in all mining operations within the country. Uganda is rich in deposits of gold, cobalt, copper, iron ore and rare earth minerals, both metallic and non-metallic.

The NMC is expected to play a pivotal role in enhancing national participation in the mining sector and fostering partnerships with the private sector to boost revenues while aligning mineral exploitation with the broader national development agenda. It aims to provide the Government with a stronger commercial presence in the mining industry, similar to the structure of the Uganda National Oil Company (UNOC), which manages state interests in petroleum.

The new board has been tasked with strengthening the mineral market, improving regulatory oversight and ensuring transparency throughout the sector. Bateebe expressed confidence in the board's collective expertise and emphasized the need to expand Uganda’s mineral exports and enhance the country’s influence in global mineral markets.

Creating jobs

Minerals state minister, Phiona Nyamutoro, emphasized the importance of retaining more value within Uganda's borders to create jobs and increase local economic benefits. 

“The Government is determined to add value to our minerals, and this board’s work is crucial to achieving that goal,” Nyamutoro said. 

She highlighted the advantages of modern mining practices for both economic growth and environmental sustainability.

Challenges persist

However, challenges persist in Uganda’s mining sector, particularly due to underfunding. The Mineral Development Programme received sh57.33b for the 2023/24 financial year, but only sh13.8b (24.2%) had been disbursed by December 2023. Despite this, the programme achieved several milestones, including the review of 174 mineral licence applications and generating sh10.34b in non-tax revenue through licensing fees and royalties.

Artisanal mining remains widespread, with many miners lacking access to advanced techniques and safety measures. The NMC board plans to tackle these issues by introducing better equipment, training and technologies to enhance both production and worker safety.

These efforts are part of a broader strategy to expand Uganda's share of the value derived from its mineral wealth, following in the footsteps of other African nations such as Tanzania. The NMC will manage the state's commercial interests in the mining sector through strategic partnerships with emerging private developers.

The Government has been encouraging investors in the sector to process minerals and add value domestically rather than exporting them in raw form. In April, Uganda launched its first tin refining company, Woodcross Resources, which refines tin ore to 99.9% purity.

Additionally, Chinese-backed Sunbird Resources has been licensed to mine limestone for cement production in the Karamoja region, while Australia’s Ionic Rare Earths has been authorized to mine and process rare earths.