Government has allocated Shs49 billion towards mineral development in the 2021/2022 financial year, underlying its commitment to revive the sector.
For long, the sector has been left to the informal sector and not had any economic impact.
But last Thursday, Amos Lugoloobi, the designate State minister for Finance, while reading the budget, said exploitation of Uganda’s minerals, oil and gas endowments, is a major source of growth in the medium term.
“Mr. Speaker, exploitation of Uganda’s minerals, oil and gas endowments, is a major source of growth in the medium term. Mineral beneficiation adds economic value to naturally endowed minerals. The commercialization of our oil and gas endowments will generate investments of between US$ 15 –20 billion over the next five years. The requirement to have these investments with substantial local content will enable the creation of jobs and allow local companies to benefit from supplying goods and services to the petroleum sector,” he said.
Recently, the Governments of Uganda and Tanzania signed agreements that will facilitate the undertaking of the Final Investment Decision by the oil companies. These agreements will accelerate the production of the first oil.
Mr Lugoloobi said the priority interventions in the mining industry next financial year will be to establish the mineral reserves that are economically feasible for extraction in 80% of the country, and complete the airborne geophysical surveys of the remaining 20% in the Karamoja sub-region.
The other is to finalise the mining law and enhance Public Private Partnership (PPP) arrangements to develop minerals, starting with iron ore in Western Uganda, restoration of the Katwe Salt Factory and provision of an attractive taxation regime that protect and support local steel production.
The government also plans to explore all the geothermal resources to quantify the geothermal potential of the country and promote the development of Kibiro, Katwe, Buranga and Panyimur geothermal prospects.