Underneath a brand new mining legislation accepted in 2022, the federal government can compulsorily take a 15% free carry stake in all mining operations within the nation.
The transfer is a part of broader efforts to develop Uganda’s share of the worth from its mineral wealth, following within the footsteps of different African international locations equivalent to Tanzania.
“This firm will handle the state’s business pursuits within the mining trade. It’ll achieve this by means of strategic partnerships with younger builders within the non-public sector,” Nankabirwa advised a mining convention in Kampala on Tuesday.
President Yoweri Museveni’s authorities has additionally been pushing buyers within the sector to course of minerals and add worth domestically as a substitute of exporting them in uncooked kind.
In April, Uganda launched its first tin refining firm by mining agency Woodcross assets, which refines tin ore to 99.9% purity.
Chinese language-backed Sunbird Assets has additionally been licensed to mine limestone for cement manufacturing in Karamoja area in Uganda’s northeast area, whereas Australia’s Ionic Uncommon Earths has been licensed to mine and course of uncommon earths.
Ugandan geologists say the nation has massive deposits of a variety of minerals together with gold, cobalt, copper, iron ore, uncommon earths, amongst others.
(By Elias Biryabarema; Modifying by George Obulutsa and Rashmi Aich)