Miners under their umbrella association, the Uganda Chamber of Mines and Petroleum (UCMP) have asked the government to remove the ban that was instituted on the exportation of unprocessed minerals. 

They argue that this will help to avoid more economic losses for investors, government and other sector players within the mining sector. 

“We support and encourage our members to embrace minerals value addition as a strategic policy. However, the omnibus ban on all minerals has created a credibility crisis for Uganda. 

“We cannot be saying that we’re attracting investment in the mining sector and at the same time we impose a ban on mineral exports,” Richard Kaijuka, the Vice Chairman of UCMP said.

The Former Uganda Energy Minister there is need for a case by case approach to the beneficiation drive. 

“Currently many companies have obligations that they have failed to meet and some have closed shop while others have cut back on both operations and staff. Lifting the mineral exports ban will therefore go a long way in reinvigorating the young mining sector,” Kaijuka added.

Uganda has since been relatively successful in attracting some investors in the mineral sector from Australia, Russia, Canada, India and Europe. But, the chamber of mines believes it is very difficult to attract exploration money because of the overall global decline in commodity prices.

Kaijuka, said although value addition is an important part in the mining sector, there is need to technically study the situation and give more time and support if value addition is going to be realized.

Ikrom Muminov, the Operational Manager of 3T Mining Ltd said their company had so far invested over US$6m in its two mines – Wampewo Mine in Wakiso and Buyaga Mine in Lyantonde – but had to lay off at least 50 of its original 160 casual labourers due to financial constraints caused by the ban.

“The company is averaging losses of US$60,000 every month because of the reduction in revenues and penalties on pending contracts with its buyers who are still holding part its payments due to 3T Mining’s failure to deliver materials,” Muminov said.

He said they have 20 tonnes and 6 tonnes of well processed tungsten (wolfram) and coltan material respectively ready for export, with similar amounts being prepared for processing. 

For Kabale based Krone (U) Ltd, its ready-for-export tungsten product is at 80 tonnes – valued around US$720,000. 

“This ban must be lifted so that we can start work again and avoid more loses,” Muminov stressed.

Namekara Mining Company Limited has around 1400 tonnes of vermiculite worth $ 260,000, on standby waiting for export. The company said it has been squeezed to the limit now struggling to pay its employees, creditors and suppliers.