World Bank boosts mineral sector
Nov 30, 2008
THE World Bank has approved a $5m (about sh9.9b) credit to finance to the Sustainable Management of Mineral Resources Project.
By David Muwanga
THE World Bank has approved a $5m (about sh9.9b) credit to finance to the Sustainable Management of Mineral Resources Project.
The additional credit will strengthen the Government’s capacity to develop a sound minerals sector based on private investments and improvements in selected artisanal and small scale mining areas.
“These extra International Development Assistance (IDA) resources come at a time for Uganda, when the world is experiencing a minerals boom which has seen a rapid increase in prices for metals,†the bank explained in a statement.
“Uganda will utilise the funds to position itself to take advantage of the increasing exploration investments,†said Christopher Sheldon, the World Bank task team leader for the project.
The statement added that the number of mineral licenses and amount of non-tax mineral revenue collected by Uganda had increased by 200%t since the project’s inception in 2003.
“Revenues from mining peaked $1.66m in 2007 from $550,000 in 2003,†the statement disclosed.
In the same period, the Government issued 229 mineral exploration and development licenses generating $22m in revenue up from 190 licenses generating $5m in 2003.
The number of licenses given to artisanal and small scale miners has also risen to 221 in 2007 from 100 in 2003.
The bank said Uganda’s leading mineral export is gold although active mining activities extend to many other minerals including copper, tin and wolfram.
The project was initially funded by an IDA credit of $25m with $5.35m co-financing from the African Development Bank and $6m from the Nordic Development Fund.
“Initially scheduled to close on June 30, 2009, the additional funds from IDA have resulted in extending the project to June 30, 2011,†said the statement.
“This project will enable the development of the mineral resources in an efficient, socially sustainable, and environmentally sound manner, as well as contribute substantially to the country’s earnings, employment, reduction of poverty, and improvement of quality of life in rural areas,†said Kundhavi Kadiresan, the World Bank country manager for Uganda.
THE World Bank has approved a $5m (about sh9.9b) credit to finance to the Sustainable Management of Mineral Resources Project.
The additional credit will strengthen the Government’s capacity to develop a sound minerals sector based on private investments and improvements in selected artisanal and small scale mining areas.
“These extra International Development Assistance (IDA) resources come at a time for Uganda, when the world is experiencing a minerals boom which has seen a rapid increase in prices for metals,†the bank explained in a statement.
“Uganda will utilise the funds to position itself to take advantage of the increasing exploration investments,†said Christopher Sheldon, the World Bank task team leader for the project.
The statement added that the number of mineral licenses and amount of non-tax mineral revenue collected by Uganda had increased by 200%t since the project’s inception in 2003.
“Revenues from mining peaked $1.66m in 2007 from $550,000 in 2003,†the statement disclosed.
In the same period, the Government issued 229 mineral exploration and development licenses generating $22m in revenue up from 190 licenses generating $5m in 2003.
The number of licenses given to artisanal and small scale miners has also risen to 221 in 2007 from 100 in 2003.
The bank said Uganda’s leading mineral export is gold although active mining activities extend to many other minerals including copper, tin and wolfram.
The project was initially funded by an IDA credit of $25m with $5.35m co-financing from the African Development Bank and $6m from the Nordic Development Fund.
“Initially scheduled to close on June 30, 2009, the additional funds from IDA have resulted in extending the project to June 30, 2011,†said the statement.
“This project will enable the development of the mineral resources in an efficient, socially sustainable, and environmentally sound manner, as well as contribute substantially to the country’s earnings, employment, reduction of poverty, and improvement of quality of life in rural areas,†said Kundhavi Kadiresan, the World Bank country manager for Uganda.