Finance Minister, Matia Kasaija
The Government has embarked on the process to repeal the current Mining Act 2003 and replace it with Mining and Minerals Act 2021, saying the new legislation will generate over Shs8.3Trn in revenue.
This is according to Matia Kasaija, the Minister of Finance, Planning and Economic Development. His revelation is contained in the certificate of financial implication that he issued on 9th November 2021 as a green light for the Ministry of Energy and Mineral Development to enact new law to regulate the mineral sector.
“This intervention is expected to raise up to USD2.33Bn equivalent to Shs8.329Trn in revenue over a period of ten years from increase in Non-Tax Revenue generated from mineral royalties that arise out of an improved legal, regulatory framework as well as the infrastructure developed,” Kasaija wrote.
He defended his decision arguing that the proposed legislation seeks to; repeal the Mining Act, 2003 and its regulations; provide for a transparent and accountable licensing regime; streamline the operations of the Sector; promote in-country value addition and optimize collection and management of mineral revenues.
Kasaija said that Government has earmarked Shs2.372Trn for investment in the Mineral sector over the next ten years, of which Shs26.166Bn has already been committed leaving a funding gap of Shs2.134Trn to be met through the Medium-Term Expenditure Framework of the Ministry of Energy and Mineral Development.
In repealing the Mining Act 2003, Government argued that the existing Act is inadequate in dealing with the new developments in the mineral subsector and that currently, the subsector’s contribution to the national economy stands at a dismal 1.4% despite its huge potential and new legal and regulatory framework will therefore unlock the potential of the mineral subsector to spur economic development and transformation of Uganda.
The Mining Bill therefore seeks to address the inconsistencies in the sub-sector, fill the gaps identified in the Mining Act. 2003 and also align Uganda’s legislative framework with the emerging trends in the global mining industry.