New minerals law in offing

 

 

A regional protocol has been drafted and now every country is undertaking its private legislation to conform to the regional undertaking.

 

“One must have a certification of origin for where the mineral has come from. The energy ministry and the Uganda chamber of mines will put a stamp on Uganda’s minerals to clearly state the origin of the mineral,” said Elly Karuhanga, the chairman of the Uganda Chamber of Mines and Petroleum, at the group’s annual general meeting over the weekend.

 

Conflict minerals are minerals mined in conditions of armed conflict and human rights abuses and the profits from the sale of the minerals used to finance continued fighting.

 

He added that a secretariat supported by the Canadian government has been moving around making initial input into the legislation. 

 

Rwanda has, according to reports, passed the legislation, but apparently, there were mistakes in the Rwandan legislation and Uganda is reviewing the process to avoid the mistakes. 

 

Discussions are currently ongoing between the industry and the Attorney General’s office to inform Uganda’s legislation. 

Karuhanga said to transport the minerals, the transporter will have to be certified as a minerals transporter, as well as the exporter and buyer.

 

“This will ensure that there are no conflict minerals because the people in the industry will be known,” said Karuhanga. 

Conflict minerals are passed through a variety of intermediaries before being purchased by multinational companies.

 

The minerals mostly comprise gold and diamonds, essential in the manufacture  of a variety of devices, including consumer electronics such as mobile phones and laptops.

 

Richard Kaijuka, the vice-chairman of the chamber, asked that the legislation be well thought out so that it is not another bureaucratic hurdle.

 

“Make it business friendly so it does not constitute a barrier,” said Kaijuka.

 

On the local content issue that should see indigenous nation get a good deal from the lucrative natural resource, lawyer Dennis Kusasira encouraged companies in the sector to institute local content departments without being pushed by the law. 

 

He said the definition of who constitutes a local company should be well defined “before the action starts.” 

The legislation is also in context of the Dodd Frank legislation that should protect consumers.