Section 9 of The Mining and Minerals Act 2022 pronounces Government ownership of all minerals in Uganda. The section provides that in accordance with article 244 of the Constitution (supra), the entire property in, and control of, all minerals in, on, or under, any land or waters in Uganda are and shall be vested in the Government, notwithstanding any right of ownership of or by any person in relation to any land in, on, or under which such minerals are found. The Government of Uganda holds mineral rights on behalf of and for the benefit of the people of Uganda.
The law thus prohibits engagement in any mining operations without a authorisation in accordance with the Act.
The Act therefore categorically states that a person shall not conduct prospecting, exploration, mining, processing, refining or other beneficiation operation under Uganda’s jurisdiction without an authorisation, licence, lease, permit or approval in accordance with the Act, the National Environment Act, 2019 or any other written law. The Minister is also given powers to prohibit mining operations in the interest of security, public safety, environmental protection or national economic development.
Contravention of the above law is a criminal offence that attracts a fine not exceeding fifty thousand currency points or imprisonment not exceeding five years or both in the case of an individual or a fine not exceeding fifty thousand currency points in the case of a body corporate. Court also has powers in addition to the above penalties to order that the mineral substances that were extracted illegally and any items and instruments used in the commission of the offence above be seized and forfeited to Government. Punishment also goes for aiders of illegal operations above and a person who aids illegal prospectors or operators also commits an offence and is liable on conviction to a fine not exceeding twenty five thousand currency points or imprisonment not exceeding two years or both.
The Act provides for legal procedures/ processes of acquiring mineral rights by acquisition of a licence for that purpose. Therefore a person may acquire the right to prospect, explore for, retain, mine, process, refine, smelt, fabricate or dispose of any mineral in Uganda by acquiring a licence under the Act. Mineral right means a right to prospect, explore or mine for minerals under a prospecting licence, an exploration licence, a retention licence, a large scale mining licence, a medium scale mining licence, small scale mining licence or an artisanal mining licence.
The right to explore for, retain, mine and trade in minerals may be acquired and held under and in accordance with a mineral right granted under the Act, notwithstanding any right of ownership or otherwise which any person may possess over the land on which the mineral right is granted, subject to the constitution and other written laws. The Act makes it clear that except for a prospecting licence, an exploration licence and a retention licence, a mineral right can only be granted subject to proof of acquisition of surface rights over the land that is subject to the mineral right. Surface rights means the exclusive rights to use land, or the surface of the land or a right of entry on to the land required by a holder of a mineral right or licence for the purpose of carrying out mineral operations. Surface rights owners may include the registered owner of the land, customary owner, lawful occupant or bonafide occupant.
The law restricts acquisition of mineral rights to individuals who are Ugandan Citizens and business entities like a company, partnership, trustee, cooperative society, association or business registered in Uganda except for an artisanal mining licence and a small scale mining licence (Section 13 of the Act).
