How To Obtain A Mining License In Uganda

To engage in mining activities beyond buying and selling minerals, one must acquire the appropriate mineral rights under the Mining and Minerals Act, 2022.

These include:

• Artisanal Mining License: For small-scale, manual mining activities.
• Small-Scale Mining License: For mining operations with moderate investment.
• Medium-Scale Mining License: For mining operations with significant investment but below large-scale thresholds.
• Large-Scale Mining License: For major commercial mining operations.
• Exploration License: For systematic mineral exploration.
• Retention License: For holding a deposit with economic potential.
• Mining Lease: For fully developed mining projects.
• Mineral Dealer’s License: For buying, selling, and dealing in minerals.

PROSPECTING LICENSE

A Prospecting License is required before applying for an Exploration License. It is granted for one year and is non-renewable.

Requirements:

• Individual applicants (Ugandan citizens only):
  • Valid identification (Passport, Voter’s Card, Driving Permit, etc.)
  • Executed Form I
  • Payment of UGX 200,000 statutory fees
• Company/Association:
  • Certified copy of incorporation/registration,
  • Certified copy of Articles and Memorandum of Association,
  • Authority letter,
  • Executed Form I
  • Payment of UGX 800,000 statutory fees

EXPLORATION LICENSE

Granted for up to four (4) years, renewable once for up to three (3) years.

Requirements:

• Valid Prospecting License
• Submission of Prospecting License returns
• Map of the desired area (1:50,000 scale)
• Work program for exploration
• Project brief
• Executed Form II
• Proof of financial capability

Fees:

• UGX 2,000,000 application fee
• UGX 75,000 per km² as annual mineral rent
• UGX 345,000 for gazetting the grant

RETENTION LICENSE

Granted for up to three (3) years, renewable once for up to two (2) years.

Requirements:

• Valid Exploration License
• Board resolution of the company authorizing the application for a retention license
• Feasibility study conducted by an accredited consultant
• Other necessary information requested by the Minister

Fees:

• UGX 7,000,000 application fee
• UGX 200,000 per km² as annual mineral rent
• UGX 345,000 for gazetting the grant

MINING LICENSES

Mining Licenses are categorized based on investment scale and operations.

Artisanal Mining Licence (AML)

Purpose: Issued to Ugandan nationals for small-scale, low-tech, manual mining operations.
Validity: Up to 3 years, renewable for 2 years. Exclusively for Ugandan citizens.

Key Requirements:

• Proof of Ugandan citizenship
• Completed AML Application Form
• Proof of mineral occurrence
• Proof of technical competence
• Statement of mining operations and capital expenditure
• Provisional agreement with the landowner
• Environmental compliance measures

Statutory Fees (UGX):

• Application Fee: UGX 1,000,000
• Registration Fee: UGX 1,000,000
• Annual Mineral Rent: UGX 1,500,000
• Renewal Application Fee: UGX 2,000,000
• Gazette Grant Fee: UGX 345,000

Application Process:

• Register on the Mining Cadastre & Registry System (MCRS).
• Download and complete the AML application form.
• Submit the form online with required documents.
• Pay the application fee (UGX 1,000,000).
• MEMD reviews the application.
• If approved, pay the licence and mineral rent fees.
• Receive the AML, valid for 3 years.

Small-Scale Mining License (SML)

Purpose: For Ugandan nationals or companies for mining in an area not exceeding 10 km².
Validity: Up to 5 years, renewable for 3 years at a time.

Key Requirements:

• Valid Prospecting, Exploration, or Retention License
• Work program for mining operations
• Proof of mineral occurrence
• Proof of technical competence
• Environmental protection plan
• Financial capability statement

Statutory Fees (UGX):

• New Application / Renewal Fee: UGX 10,000,000
• Registration Fee: UGX 1,000,000
• Annual Mineral Rent: UGX 100,000 per hectare
• Gazette Grant Fee: UGX 345,000

Application Process:

• Register on the Mining Cadastre & Registry System (MCRS).
• Complete the SML application form.
• Submit with all required documents.
• Pay the application fee.
• MEMD reviews the application.
• If approved, pay the licence and mineral rent fees.
• Receive the SML, valid for 5 years.

Medium-Scale Mining Licence (MML)

Purpose: For medium-scale mining operations on an area not exceeding 50 km².
Validity: Up to 10 years, renewable for 7 years at a time.

Key Requirements:

• Joint venture with Ugandan citizens
• Valid Prospecting, Exploration, or Retention License
• Mine plan and feasibility study
• Environmental and social impact assessment
• Business plan and financial capability

Statutory Fees (UGX):

• New Application / Renewal Fee: UGX 15,000,000
• Registration Fee: UGX 1,000,000
• Annual Mineral Rent: UGX 120,000 per hectare
• Gazette Grant Fee: UGX 345,000

Large-Scale Mining Licence (LML)

Purpose: For large-scale mining operations not exceeding 50 km².
Validity: Up to 21 years, renewable for 15 years at a time.

Key Requirements:

• Valid Prospecting, Exploration, or Retention License
• Community Development Agreement
• Detailed feasibility study and mine plan
• Environmental and Social Impact Assessment
• Proof of financial capability and technical competence

Statutory Fees (UGX):

• New Application / Renewal Fee: UGX 20,000,000
• Registration Fee: UGX 1,000,000
• Annual Mineral Rent: UGX 150,000 per hectare
• Gazette Grant Fee: UGX 345,000

Mineral Processing Licence (MPL)

Purpose: For processing raw minerals to increase concentration before sale or export.
Validity: Up to 5 years, renewable for 3 years.

Key Requirements:

• Plan and layout of processing facility
• Proof of technology and technical competence
• Environmental and waste management plans
• Tax clearance from Uganda Revenue Authority (URA)

Statutory Fees (UGX):

• Application Fee: UGX 500,000
• Registration Fee: UGX 1,000,000
• Licence Fee: UGX 5,000,000
• Annual Mineral Rent: UGX 1,000,000
• Gazette Grant Fee: UGX 345,000

For more information, Check out the Mining and Minerals Act 2022 here