An application for an exploration licence is made to the Minister and must be accompanied by a certified copy of the certificate of incorporation, memorandum and articles of association and a board resolution of the company; be accompanied by a plan of the area over which the licence is sought, identify the minerals in respect of which the licence is sought, give in respect of the person or, where there is more than one person, the name and nationality of each person, making the application; and in the case of a body corporate, its name and place of incorporation, the names and nationalities of the directors, managers and other officers of a similar rank; and where the body corporate has a share capital, the name of any person who is the beneficial owner of more than five per cent of the issued share capital.

The application must also contain information on the financial status and the technical competence and experience of the applicant; state the period, not exceeding four years, for which the licence is sought; be accompanied by a proposed programme of exploration operations for the proposed period of the licence and the estimated cost of the operations; contain evidence in support of the existence of the minerals which the licence will cover in the proposed exploration area; contain a statement giving particulars of the applicant’s proposals with regard to the employment and training of Ugandan citizens and a training plan and budget; and contain a statement on the procurement plan of goods and services available in Uganda and commitment to give priority to locally available goods and services.

The exploration licence is required to be processed expeditiously and therefore, the Mining Cadastre Department is required to process an application in any case not later than thirty days after receipt of the application and submit to the Minister recommendations for a decision.

The Minister may grant an exploration licence with an approved programme of exploration operations for an area not more than 250 square kilometres and may include a condition that the Minister may withdraw or cause to be relinquished portions of the licence area covering land that has been ear marked by Government for public infrastructure projects, at no cost to Government. Except in special circumstances a person is not to be directly or indirectly through beneficial ownership, hold more than five exploration licences at any given time. Beneficial ownership means the control, possession, custody or enjoyment by any person, directly or indirectly, of a reasonably significant economic interest in a given legal entity or receiving significant economic benefit from such a legal entity, even where formal ownership or title may be in the name of another person or entity. In addition to any other qualifying criteria, a person is automatically considered to be a beneficial owner where such person owns five percent or more of the legal entity in question.

An exploration licence will state the date of grant of the licence; the exploration area to which the licence relates; the mineral to which the licence relates; and the conditions on which the licence is granted. There may be included in an exploration licence, a provision with respect to the exercise by the Government, or the Uganda National Mining Company of an option to acquire on stipulated terms, or on terms to be agreed, an interest in any venture for the exploration which may be carried on in the exploration area.

The law imposes several restrictions on grant of exploration licence. An exploration licence cannot not be granted over an area of land which is the subject of a large scale mining licence, medium scale mining licence, retention licence, artisanal or small scale mining licence; or in a fragile or sensitive ecosystem or protected area without the consent in writing of the responsible Govemment ministry, department or agency. Additionally, where an area of land is subject to an exploration licence, no other exploration licence can be granted in respect of that area, except in respect of an exploration licence for geothermal resources.

An exploration licence cannot also not be granted unless the applicant has adequate financial resources, technical competence and experience to carry out effective exploration operations; the programme of proposed exploration operations is adequate for the period of the licence; the applicant’s proposal for exploration operations has provided for the employment and training of Ugandan citizens and purchase of goods and services available in Uganda;  the applicant is able and willing to comply with the terms and conditions of the exploration licence; the relevant consents required under any other written law have been obtained; the minerals to which the proposed exploration licence relate exist in the proposed exploration area; and the applicant is not in default.

An exploration licence can be valid for a period not exceeding four years and may be renewed three months before it expires for a single period not exceeding three years. Applications for renewal must also be considered expeditiously with in three months such that renewal takes effect immediately upon expiration.

An exploration licence confers on the holder of the licence the exclusive right to carry on exploration operations in the area of land and for the mineral to which the licence relates and may for such purposes either himself or herself, or by or through his or her employees or agents, enter the exploration area and erect camps and temporary buildings, including installations in any waters forming part of the exploration area.The erection of camps or buildings does not confer any right or title to or interest in the exploration area and must be done in in compliance with the National Environment Act, 2019 and other existing legislation.

The holder of an exploration licence has the obligation to commence exploration not later than four months from the date of issue of the licence; meet local content requirements of employment of Ugandan Citizens; pay the prescribed annual mineral rent for the whole area covered by the exploration licence prior to the grant of the licence, and thereafter, annually on or before the anniversary of the grant until the termination of the exploration licence; carry on exploration operations in accordance with the approved programme of exploration operations and the certificate of approval of environmental and social impact assessment; notify the Minister of the discovery of any mineral other than the mineral to which the licence relates within thirty days of the discovery; and unless otherwise stipulated, remove, within sixty days of the expiry of the exploration licence, any camps, temporary buildings or machinery erected or installed for the exploration activities or otherwise make good any damage to the surface of the land occasioned by such removal and other activities, to the satisfaction of the Minister and any relevant authority.

The holder of an exploration licence must also keep full and accurate records of its operations and submit to the minister quartely reports on the above which must show the boreholes drilled, formations penetrated, with detailed logs of the formations; minerals discovered; the result of any geochemical or geophysical analysis; the result of any analysis and identification of samples removed for such purposes; the geological interpretation of the records maintained ; the number and particulars of persons employed by nationality, gender and position held; and any other work done under the exploration licence. Non compliance with the above is a criminal offence punishable upon conviction with a fine not exceeding ten thousand currency points or imprisonment for a term not exceeding five years or both.