Medium Scale Mining Licence
The threshold for a Medium scale mining licence is fifty eight thousand, two hundred and thirty (58,230) currency points to ninteen million, four hundred and ten thousand (19,410,000) currency points. (This is approximately 58,230*20,000 =UGX1,164,600,000 to 19,410,000*20,000 =UGX 388,200,000,000).
Persons who are eligibile for medium scale mining licence include a joint venture or partnership registered in accordance with the Partnership Act, 2010 comprising of Ugandan citizens and foreigners; or a company registered and incorporated under the Companies Act 2012.
A medium scale mining licence cannot be granted to an individual, cooperative or association; a body corporate which is not registered and incorporated under the Companies Act, 2012, or which is in liquidation other than a liquidation which forms part of a scheme for the reconstruction or amalgamation of such body corporate; or one in respect of which an order has been made by a court of competent jurisdiction for its winding up or dissolution; or which has made a composition or arrangement with its creditors; or which has any shareholder who is an un-discharged bankrupt, having been adjudged or otherwise declared bankrupt under any written law, or enters into any arrangement or scheme or composition with creditors; or has been convicted of an offence involving fraud or dishonesty.
Applications for this licence are made to the Minister in a prescribed manner and must state the full name of the applicant and, in the case of a partnership, the full name and nationality of each person; and in the case of a body corporate, the registered name of the body corporate and particulars of its shareholders, if any; identify the mineral in respect of which the licence is sought; indicate the area in respect of which the licence is sought; be accompanied, in case of a body corporate, where applicable, by a certified certificate of incorporation, memorandum and articles of association and a board resolution; a statement of particulars of the nature of the mining operations proposed to be carried out, the capital and experience available to the applicant to conduct mining operations of the mineral efficiently and effectively; a plan of the area over which the licence is sought; documentary evidence that consent to use the land for mining purposes has been given to the applicant by the lawful occupants or owners of the land for mining purposes; state the period applied for; give or be accompanied by a statement giving particulars of the programme of proposed mining operations, including a statement of the likely effects of the proposed mining operations on the environment and on the local population and proposals for mitigation and compensation measures; any particular health or other risks involved in the proposed mining operations, particularly radioactive minerals, and proposals for their mitigation or elimination; proposed programme for value addition where applicable; the proposed marketing arrangements for the sale of minerals produced and written proof that he or she has obtained surface rights from the registered owner, customary owner, lawful occupant or bonafide occupant of the area the applicant intends to mine.
Where the applicant fulfils all the requirements the licence is granted and where its not granted the reasons must be stated in writing. A medium scale mining licence shall not be granted over an area of land in or which is, an exploration area, a retention area or a mining area unless the applicant is the holder of an exploration licence, a retention licence, an artisanal mining licence, a small scale mining licence or large scale mining licence, as the case may be, in respect of that area.
The surface area covered by a medium scale mining licence must be demarcated by the shape of the ore body not exceeding fifty square kilometers and must be located entirely within the area for the exploration licence or retention licence or licences which belong to the same holder, from which it derives and can only be granted for a period not exceeding ten years, renewable on application made to the Minister for such further periods not exceeding seven years at a time. This licence may be revoked if within a period of one year from the date the licence was granted or renewed, no mining operations have commenced under the licence; or where the medium scale mining licence is not being worked in accordance with the mine development plan and the conditions of the licence.
The holder of a medium scale mining licence has the right to enter his or her mining licence area; has an exclusive right to explore and mine in that area; and the right to remove and dispose of the mineral in respect of which the licence was issued. The holder of a medium scale mining licence however has the obligation to carry on exploration and mining operations in good faith; furnish the Minister with such information relating to the operations under the licence as the Minister may reasonably require; carry out promptly any directives relating to his or her exploration or mining operations which may be given to him or her by the Minister or an authorised officer for the purpose of ensuring safety or good mining practices; before ceasing any exploration or mining operations, to notify the Minister in writing of his or her intention to begin or cease any such exploration or mining operations; carry out environmental and social assessment, rehabilitation, reclamation and restoration of mined out areas in accordance with the mines closure plan and the National Environment Act, 2019; submit to the Minister monthly returns of his or her Operations; employ a mines manager approved by the Minister for the purpose of supervising its exploration or mining operations; sell the minerals obtained in the medium scale mining licence area in a manner prescribed by regulations; keep accurate records of winnings from the medium scale mining licence area and such records shall be produced for inspection, upon demand by authorised officers; and submit reports prescribed by regulations.
