Small Scale Mining Licence
The threshold for a small scale mining licence is any amount exceeding nineteen thousand four hundred and ten (19,410) currency points to nine hundred seventy thousand and five hundred (970,500) currency points. This is approximately any amount exceeding 19410*20000= UGX388,200,000 to 970500*20000= UGX 19,410,000,000.
Persons eligible for such licence include an individual who is a citizen of Uganda, a cooperative society or association, a partnership or company registered under the laws of Uganda and exclusively comprising of Ugandans.
Applications for the licence are also made to the minister in a prescribed manner and must state the full name of the applicant and, in the case of a partnership or other association of persons, the full names and nationalities of all such persons; and in the case of a body corporate, the registered name of the body corporate and particulars of the shareholders; 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, by a certified copy of 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 prospecting and 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 by the registered owner, customary owner, lawful occupant or bonaflde occupant of the land for mining pulposes; a certificate of approval of environmental and social impact assessment.
The application must also state the period applied for; and 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 arangements for the sale of the mineral production; 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 cannot 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 area to be covered by the small scale mining licence has not been specified in the Act but shall be prescribed by the minister in subsequent regulations. A small scale mining licence is given for a validity period not exceeding five years, renewable on application made to the Minister for such further periods not exceeding three years at a time and is subject to cancellation where the holder of the small scale mining licence has entered into an arrangement with a person who is not a citizen of Uganda, the effect of which is to transfer to that person the benefit of such licence; or where within a period of six months from the date the licence was granted or renewed no mining operations have commenced under the licence; or the small scale mining licence is not being worked in accordance with the mine development plan and the conditions of grant of the licence.
The holder of a small scale mining licence has the right to enter his or her mining licence area, subject to the conditions of the licence; has the exclusive right to prospect for 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 small scale mining licence is required to carry on exploration and mining operations in the licence area in good faith; furnish the Minister with such information relating to the operations under the licence as the Minister may reasonably require;
The holder of a small scale mining licence is also required to 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 best mining practices; before beginning or ceasing any exploration or mining operations, notify in writing, the appropriate local authority and an authorised officer 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; where not personally supervising the exploration or mining operations under the licence, employ a mines manager approved by the Minister for the purpose of supervising its exploration or mining operations; sell the minerals obtained in the small scale mining licence area in a manner prescribed by regulations; keep accurate records of winnings from the small scale mining licence area and such records shall be produced for inspection upon demand by authorised officers; and submit reports as shall subsequently be prescribed by regulations.
