Buying, Selling and Dealing in Minerals in Uganda
Mineral Dealers Licence
The law expressly forbids dealing in minerals without a mineral dealers licence and clearly states under section 140 of The Mining and Minerals Act 2022 that a person shall not buy or sell, either as principal or agent, any minerals or tailings unless he or she is a licenced mineral dealer. Additionally, a licenced mineral dealer may only buy minerals in the course of his or her business from a person who acquired his or her minerals lawfully and in accordance with the Act and other applicable written law. However, this requirement does not extend to a holder of a mineral right and therefore a holder of a mineral right may sell any minerals acquired by him or her without obtaining a mineral dealer’s licence.
An application for a mineral dealer’s licence is made to the minister detailing the type of minerals to be traded; storage facilities for the minerals; office location; the proposed plan or arrangements for the marketing, buying and selling of the minerals; and financial and technical resources available to the applicant. Every mineral dealer’s licence is for a duration of only one year and expires on 31st December in the year in which the licence is granted. A holder of a mineral dealers licence is required to pay all royalties due on any minerals bought, received or exported and also to provide security for the due payment of all such royalties.
Additionally, a holder of a mineral dealer’s licence is required to keep a register showing all purchases and sales of minerals made by the holder and the nature and weight of the minerals; the price paid or received for the minerals and the date of each purchase or sale; the name and address of the vendor and his or her right to be in possession of the minerals; details of the place of origin of the minerals; the name and address of the purchaser or consignee to whom the minerals are sold or consigned; and must record every transaction in the register within twenty-four hours of being made; and as well as submit to the Minister quarterly, a copy of the records above. Contravention of the above is a criminal offence punishable upon conviction with a fine not exceeding five thousand currency points or imprisonment not exceeding three years, or both.
Goldsmith’s licence
A goldsmith is also required to obtain a licence for that purpose and a person is prohibited from manufacturing any article from any precious mineral or from any substance containing any precious mineral without a goldsmith’s licence. The licence also lasts one year and expires every 31st of December.
Retail shopkeepers are permitted to sell articles partly manufactured from precious minerals without a goldsmith’s licence as long as they are permitted by the minister and that such sales do not constitute their sole or a principal portion of their business.
Export permits
A person exporting any mineral from Uganda must possess an export permit issued by the minister (section 150 of the Act). Possession of an export permit does not exempt the holder from complying with other requirements applicable to the export of minerals including proof of payment of prescribed fees and royalties where applicable, certificate of origin where applicable, certificate of analysis authenticated by the country of origin and where the mineral is not from Uganda, an export permit or any other related documents issued by the relevant government department from the country of origin. Contravention of the above amounts to a criminal offence punishable with a fine not exceeding ten thousand currency points or imprisonment for a term not exceeding five years or both.
Import permit
A person importing minerals into Uganda is also required to have an import permit for that purpose (section 151 of the Act) issued by the minister. A declaration must also be made to the customs officer regarding the type and quantity of minerals imported, after which the customs officer certifies the import permit. Before any such minerals are re exported out of Uganda, the relevant import permit must be surrendered to a customs officer for the ministers approval. Contravention of the above amounts to a criminal offence punishable with a fine not exceeding ten thousand currency points or imprisonment for a term not exceeding five years or both.
Permit for research and scientific investigations
The minister may in the public interest and for research purposes, authorise any person to undertake non-commercial investigations into the geological resources of Uganda and such person must submit a report of the information gathered or research findings on any mineral discovered.
Blasting certificate
The Minister may grant to any person a certificate to blast rocks as a method of extraction of minerals on conditions determined under the Act, the National Environment Act, 2019 and conditions specified in the certificate.
