| Overview : Uganda is rich in natural resources and has a favorable geological environment that hosts over 27 different minerals including gold, tin, iron ore, sand, limestone, marble, stone aggregate, phosphate, dimension stone, clay, oil and natural gas among others. Mining offers a significant opportunity for the country; particularly as a source of revenue, employment, economic lifeline for industries and a way of contributing to social and economic development. Nationally the mining industry is key to attaining ‘Vision 2040’ and the National Development Plan II (2015/16 –2019/20). Growth and development of the mining sector is guided by the Mining and Minerals Policy 2001, Mining Act 2003 and Mining regulations of 2004. The Government of Uganda, with the support of development partners including UNDP is reviewing the policy and legal institutional framework of the mining sector. The ACP-EU Development Minerals Programme implemented by UNDP supported consultations for the revision of the Mining and Minerals Policy in 2016 and a revised Mining and Minerals Policy 2016 is awaiting cabinet approval. Similarly, the programme is in discussion to support the revision of the Mining Act 2003. Uganda’s strong economic growth, infrastructure boom and rapid urbanisation over the last two decades are driving the demand for construction materials (such as gravel and sand), dimension stones (such as marble and granite), industrial minerals (such as bentonite and talc) and semi-precious stones (such as garnet and amethyst). These minerals are referred to as Development Minerals, which are minerals and materials that are mined, processed, manufactured and consumed domestically in industries such as construction, manufacturing, and agriculture. Development Minerals are economically important close to the location where the commodity is mined and have the potential to support development through employment at the local level for millions of people. Often referred to as Low Value Minerals and Materials (LVMM) due to their low price as a function of their weight and their relatively low value to international commodity markets, Development Minerals provide crucial inputs for domestic economic development. The recently concluded Baseline Assessment and Value Chain Analysis of Development Minerals in Uganda indicates that the rapid urbanisation in Uganda, with an estimated urban population of 20 million by 2020 presents unique and new opportunities, and challenges, for the construction industry. In addition, over 700,000 new entrants into a job market with limited capacity to absorb them has also informed the Government of Uganda’s prioritization of job creation and infrastructure improvements. At 6% growth per annum, the construction sector continues to be strong and, with it, a market for a broad range of construction materials including sand, clay, limestone, marble, kaolin and stone aggregate. The Development Minerals sector directly employs approximately 390,000 Ugandans, with women making up more than 44% of the work force. However, the sector is not without its challenges. The mining of Development Minerals can pose environmental, social and occupational risks that require careful mitigation and management. Although the high participation of women in the workforce (particularly for commodities such as stone aggregate and salt) highlights the importance of increasing women’s access to paid employment, there is a clear need for targeted measures to rectify inequalities in the sector. The sector is also severely under-documented and largely informal, presenting major challenges for regulators and those positioned to deliver more appropriately-tailored services. It is estimated that 98% of ASM production and 56% of MSM production of Development Minerals takes place outside of the current mining sector legal framework. The main conflict related issues in the sector are conflicts between miners, between miners and traders (often related to non- or under-payment) and between miners and other land users. Despite the significant ASM workforce of the Development Mineral sector, the Baseline Assessment research team did not identify evidence of violent conflicts, but did take record of the cases in the Kalungu-Lwera sand mining conflicts.[1] Without adequate management, conflict can have negative social and environmental impacts. Mining-related conflicts can also reduce the sector’s ‘social license to operate’ - thus justifying anti-ASM public sentiment. UNDP in collaboration with the Ministry of Energy and Mineral Development is implementing the ACP-EU Development Minerals Programme in Uganda. The three-year capacity building programme aims to build the profile, and improve the management of Development Minerals (industrial minerals; construction materials; dimension stones; and semi-precious stones) as well as contribute to addressing gender inequalities. The programme is an initiative of the African, Caribbean and Pacific (ACP) Group of States, financed by the European Union and the United Nations Development Programme (UNDP) and implemented by UNDP. [1] Parliament of the Republic of Uganda (2016). Report of the Committee on Natural Resources on Sand Mining in Uganda. |
