On Tuesday (1 October), Uganda’s Minister for Energy and Mineral Development, Ruth Nankabirwa, announced that the country has formed a state-owned mining company to manage equity interests in mining operations.  

In 2022, a new mining law was passed that means the Ugandan Government can take a compulsory 15% free carry stake in all mining operations in the country.  

The launch of the state-owned mining company is a part of Uganda’s efforts to expand its mineral wealth, similar to neighbouring country Tanzania. 

Nankabirwa explained the company will manage Uganda’s commercial interests in the mining industry through strategic partnerships from new private sector developers. She was speaking at a mining conference in the country’s capital, Kampala, where the launch of the state-owned company was announced.  

Ugandan President Yoweri Museveni and his government have been encouraging sector investors to process minerals domestically to add value and minimise the need to export raw materials.  

According to data from the Bank of Uganda, the country’s gold exports increased by ten times in 2023 compared with 2022. Uganda exported $2.3bn of gold last year.  

In April, the country launched its first tin refining plant, owned by Uganda-based mining and mineral trading company Woodcross Resources. The refinery is incredibly efficient, refining tin ore to 99.9% purity.  

Uganda, according to the country’s top geologists, has large deposits of gold, cobalt, copper, iron ore and rare earths.