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State Mining Company Closer to Operations as Recruitment Commences

The state-owned company established in 2022 by the Mining and Minerals Act is mandated to manage the country's commercial interests in the mining industry, under supervision of the Ministry of Energy and Mineral Development.
25 Jan 2025 09:40
The Uganda National Mining Company (UNMC) has commenced the process to recruit the top management as it gears up for operations later this year. 

The state-owned company established in 2022 by the Mining and Minerals Act is mandated to manage the country's commercial interests in the mining industry, under the supervision of the Ministry of Energy and Mineral Development. 

Following the inauguration of the UNMC Board of Directors in November last year, the Board is now looking to institute an Executive Management Team that will play the key role of ensuring that the company achieves its vision of a “sustainable and profitable world-class mining and minerals company, creating value for its shareholders,” says the Board. 

The company is owned by the government, with the Minister of Finance, Planning and Economic Development as well as the Minister of Energy and Mineral Development as shareholders. 

The company was formed with the mandate to handle the commercial holding and participating interests of the state in the mineral and mining industry to ensure that the country obtains optimal value from its mineral resources. 

The top management in conjunction with the Board will work to increase Uganda's influence in the global mineral market and expand mineral exports; strengthen the mineral market, improve regulatory oversight, and ensure transparency; and attract international partnerships and support local businesses.  

The UNMC holds a 15 percent free carried interest in large-scale and medium-scale mining licenses on behalf of the government, under a similar arrangement to the Uganda National Oil Company which represents the government in the petroleum industry. 

Irene Batebe, Permanent Secretary of the Ministry of Energy and Mineral Development, says the main mandate of the UNMC is to support value addition and mineral processing, in line with the government policy that bans the export of unprocessed raw materials. 

Under the Mineral Act, at least 70 of all revenue from new mines will belong to the government, out of which 15 percent will go to the local government and the town council will get 10 percent of the revenue. 

The owner of the land is entitled to up to 5 percent. 

The Uganda National Chamber of Mines and Petroleum, a platform for private sector players in the industry, welcomed the operationalization of the mining company, especially regarding value-addition efforts. 

“By advancing local value addition and promoting responsible mining practices, the NMC is poised to harness Uganda’s rich mineral resources, which will not only secure substantial economic returns but also support job creation and foster skill development within the mining workforce,” says UCMP. 

Major minerals identified in Uganda include gold, copper, high-grade tin, tungsten/wolfram, salt, beryllium, cobalt, kaolin, iron ore, glass sand, vermiculite, phosphates (for fertilizers), uranium, and rare earth elements.

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