HOW TO OBTAIN A MINING LICENSE

MINERAL LICENSING

PROCEDURES AND REQUIREMENTS

 

CATEGORIES OF MINERAL RIGHTS IN UGANDA

Licence

Purpose

Period

Remarks

Prospecting Licence (PL)

To prospect for minerals around the country

1 year

Non-exclusive & not renewable

Exploration Licence (EL)

To explore for minerals in an area not more than 250km2

≤4 years

Renewable once for three (3) years and half the area relinquished on renewal

Retention Licence (RL)

Given to the holder of an EL who has identified a mineral deposit but the deposit cannot be immediately developed due to factors beyond reasonable control of the Licence holder, which are of temporary nature.

≤3 years

Renewable once for two (2) years

Large Scale Mining Licence (LML)

For large mining operations in an area not more than 50km2 requiring a capital investment threshold exceeding nineteen million, four hundred and ten thousand (19,410,000) currency points (1cp = UGX 20,000)

≤21 years

Renewable for 15 years at a time

Medium Scale Mining Licence (MML)

For mining operations in an area not more than 50km2 requiring a capital investment threshold from fifty eight thousand, two hundred and thirty (58,230) currency points to nineteen million, four hundred and ten thousand(19,410,000) currency points (1cp = UGX 20,000)

≤10 years

Renewable for 7 years at a time

Small Scale Mining Licence (SML)

For mining operations in an area not more than 10km2  requiring a capital investment threshold exceeding nineteen thousand four hundred and ten (19,410) currency points to nine hundred seventy thousand and five hundred (970,500) currency points (1cp = UGX 20,000)

≤5 years

Renewable for 3 years at a time

(Exclusively for Ugandans)

Artisanal Mining Licence (AML)

For mining operations not exceeding nineteen thousand four hundred and ten (19,410) currency points (1cp = UGX 20,000)

≤3 years

Renewable for 2 years at a time (Exclusively for Ugandans)

Licence for extraction of Geothermal Resources for Direct Use (EGRL)

For a person who intends to extract geothermal resources for direct use.

≤10 years

Renewable for 7 years at a time

 

LICENCES FOR BENEFICIATION

Licence

Purpose

Period

Remarks

Mineral Processing Licence (MPL)

For procedures, such as dry and wet crushing, leaching, grinding and separation of minerals or other products containing minerals, to raise the concentration of the substance mined

≤ 5Years

Renewable for 3 years at a time

Mineral Smelting Licence (MSL)

Given to a person who intends for extract metal from its ore by a process involving heating and melting

≤15 years

Renewable for 10 years at a time

Mineral Refining Licence (MRL)

To purify a mineral or other mineral products derived from a mineral ore to produce a metal or compound

≤15 years

Renewable for 10 years at a time

 

PROCEDURES

  1. Registration

Before acquiring any Mineral Licence, one has to register with the Mining Cadastre and registry system (MCRS) which is an E-government portal that provides an electronic platform for all stakeholders in the mining sector in Uganda to engage directly with the Ministry of Energy and Mineral Development.

To register on the MCRS, the following are the requirements;

For an Individual

  • Filled in Registration form (downloaded from the online portal)
  • Personal Identity (passport or National ID)
  • Tax Identification number

For a Company

  • Filled in Registration form (downloaded from the online portal)
  • Personal Identity (passport (foreigner) or National ID)
  • Tax Identification number
  • Certified copies of Certificate of Incorporation
  • Certified copies of memorandum and articles of association
  • Registered board resolution authorising applicant to use the Mining cadastre portal on behalf of the company

 

HOW TO OBTAIN A MINING LICENSE

Firstly, to start any business in mining other than buying and selling, or Value addition one has to obtain a Prospecting License.

After prospecting, one can apply for;

  1. an Exploration License; or
  2. a Mining Licence for proven deposits;

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INCOMPLETE APPLICATIONS SHALL NOT BE RECEIVED

 

REQUIREMENTS FOR APPLICATION FOR A PROSPECTING LICENCE

Application

  • Application Form
  • ID showing nationality
  • Tax Clearance Certificate
  • Company profile and history of prospecting in Uganda and elsewhere (if Company)
  • Proof of technical competence
  • Proof of financial resources
  • Certified copy of certificate of incorporation of the company (if Company)
  • Certified copy of the memorandum and articles of association (if Company)

 

Statutory fees

  • 200,000/= Application fees
  • 800,000/= Licence fees

 

 

REQUIREMENTS FOR APPLICATION FOR AN EXPLORATION LICENCE

Application

  • Filled Exploration License Application Form
  • Proof of mineral occurrence
  • Work program and budget for the exploration operations
  • Proof of financial resources
  • Tax Clearance Certificate issued by the URA to MEMD
  • Proof of the technical capacity of the applicant in form of certified copies of academic documents and curriculum vitae indicating relevant qualifications and experience of at least 3 years of the leading technical personnel to execute the work program including geologists, geophysicists and geochemists, as applicable
  • Proposals for the employment and training of Ugandan citizens (include training plan and budget)
  • Statement on the procurement plan of goods and services available in Uganda
  • Certified copy of certificate of incorporation of the company (if Company)
  • Certified copy of the memorandum and articles of association (if Company)
  • Board resolution of the company

Statutory fees

  • 2,000,000/= Application fees
  • 1,000,000/= registration fees
  • 75,000/= per km2 or part of a km2 mineral rent annually
  • 5,000,000/= for application for renewal of an EL
  • 100,000/= per km2 or part of a km2 mineral rent annually
  • 650,000/= for gazetting grant of EL

 

 

REQUIREMENTS FOR APPLICATION FOR A RETENTION LICENCE

Application

  • Pre-feasibility study and assessment by an accredited consultant
  • Filled Retention Licence Application Form
  • Exploration Licence returns
  • Detailed report on Mineral Resources
  • Proof of financial resources
  • Certified copies of the previous audited financial year balance sheet
  • Particulars of the applicant’s proposal for employment and training of Ugandans
  • Statutory Declaration (reason for requesting grant of Retention Licence)
  • Work program and budget for the retention operations
  • Tax Clearance Certificate
  • Proof of technical competence (includes CVs)
  • Board resolution of the company authorising the application for a Retention Licence

 

Statutory fees

  • 7,000,000/= Application fees
  • 1,000,000/= registration fees
  • 200,000/= per km2 or part of a km2 mineral rent annually
  • 10,000,000/= for application for renewal of RL
  • 250,000/= per km2 or part of a km2 mineral rent annually
  • 650,000/= for gazetting grant of RL

 

 

REQUIREMENTS FOR APPLICATION FOR A LARGE SCALE MINING LICENCE

Application

  • Large scale Mining application form
  • Tax clearance certificate issued by URA to MEMD
  • Company profile and history of mining operations in Uganda and elsewhere and the details of any mineral rights held in Uganda, by the applicant or by any person controlling, controlled by or under joint or common control with the applicant;
  • Detailed report on mineral resources
  • be accompanied by a statement giving particulars of expected infrastructure requirements
  • Certificate of approval of environmental and social impact assessment (ESIA)
  • Feasibility study and assessment by an appropriate expert or accredited consultant
  • Identification of interested and affected parties and details of minutes of any consultative meetings
  • Statement on the procurement plan of goods and services available in Uganda
  • Statement giving particulars of the applicant's proposals with respect to the employment and training of citizens of Uganda, technology transfer and progressive reduction of expatriate workers in the industry;
  • Details of the applicant's proposals for insurance including health cover for its employees and workers' compensation;
  • Proposals for value addition;
  • Proposed marketing arrangements for the sale of the mineral(s) to be produced;
  • Detailed statement of the assets and liabilities signed by the applicant, or, in the case of an applicant which is a body corporate;

- certified copies of the balance sheet and profit and loss account of the previous financial year of the applicant, incorporating the results of the last financial year, and which have been audited by the company’s auditors, including every document required by law to be annexed or attached to the certified copies;

- a copy of the certified audited report of the applicant detailing the financial resources available to the applicant to undertake the activities under the large scale mining licence;

-a certified bank statement from the applicant’s bank or financier reflecting available financial resources to execute the mining activities.

  • Proof of the technical capacity of the applicant in form of certified copies of academic documents and curriculum vitae indicating relevant qualifications and experience of at least 3 years of the leading technical personnel to undertake the planned mining activities including a geologist, mining engineer, geotechnical engineer and metallurgist, where applicable.
  • Plan for co-existence with customary landowners or communities owning the land in the area subject to a mineral right ;
  • Business plan (forecast of capital investment, operating costs and revenues, the anticipated type and source of financing etc)
  • Mine plan (break even, capacity, recovery, mineral products, rehabilitation, restitution of land rights at expiry or termination)
  • Written proof that the applicant has obtained the surface rights from the registered owner, customary owner, lawful occupant or bonafide occupant of the area that the applicant intends to mine
  • Certified copy of certificate of incorporation of the company (if Company)
  • Certified copy of the memorandum and articles of association (if Company)
  • Board resolution of the company

 

Statutory fees

  • 20,000,000/= New application/Renewal application fees
  • 1,000,000/= registration fees
  • 150,000/= per hectare or part of a hectare mineral rent annually
  • 650,000/= for gazetting grant of LML

 

 

REQUIREMENTS FOR APPLICATION FOR A MEDIUM SCALE MINING LICENCE

Application

  • Medium Scale Mining application form
  • Mine plan (break even, capacity, recovery, mineral products, rehabilitation, restitution of land rights at expiry or termination)
  • Proof of financial competence including;

- certified copies of the balance sheet and profit and loss account of the previous financial year of the applicant, incorporating the results of the last financial year, and which have been audited by the company’s auditors, including every document required by law to be annexed or attached to the certified copies;

- a copy of the certified audited report of the applicant  detailing the financial resources available to the applicant to undertake the activities under the medium scale mining licence;

-a certified bank statement from the applicant’s bank or financier reflecting available financial resources to execute the mining activities.

  • Proof of the technical capacity of the applicant in form of certified copies of academic documents and curriculum vitae indicating relevant qualifications and experience of at least 3 years of the leading technical personnel to undertake the planned mining activities including a geologist, mining engineer, geotechnical engineer and metallurgist, where applicable
  • Written proof that the applicant has obtained the surface rights from the registered owner, customary owner, lawful occupant or bonafide occupant of the area that the applicant intends to mine
  • Certificate of approval of environmental and social impact assessment (ESIA)
  • Proposals for value addition
  • Proposed marketing arrangements for the sale of minerals produced
  • Tax clearance certificate issued by URA to MEMD
  • Detailed report on mineral resources to prove that the proposed minerals to be mined exist in the proposed mining area
  • Certified copy of certificate of incorporation of the company (if Company)
  • Certified copy of the memorandum and articles of association (if Company)
  • Board resolution of the company

 

Statutory fees

  • 15,000,000/= New application/Renewal application fees
  • 1,000,000/= registration fees
  • 120,000/= per hectare or part of a hectare mineral rent annually
  • 650,000/= for gazetting grant of MML

 

 

REQUIREMENTS FOR APPLICATION FOR A SMALL SCALE MINING LICENCE

Application

  • Small Scale Mining License Application Form
  • Tax Clearance Certificate
  • Proof of mineral occurrence
  • Proof of technical competence
  • Proof of financial resources
  • A statement of particulars of the nature of the mining operations and the capital expenditure
  • Provisional agreement with the land owner
  • Certificate of approval of environmental and social impact assessment (ESIA)
  • Proposed programme for value addition (optional)
  • Proposed marketing arrangements for the sale of the mineral production
  • Certified copy of certificate of incorporation of the company (if Company)
  • Certified copy of the memorandum and articles of association (if Company)
  • Board resolution of the company

 

Statutory fees

  • 10,000,000/= New application/Renewal application fees
  • 1,000,000/= registration fees
  • 100,000/= per hectare or part of a hectare mineral rent annually
  • 650,000/= for gazetting grant of SML

 

 

REQUIREMENTS FOR APPLICATION FOR AN ARTISANAL MINING LICENCE

Application

  • Artisanal Mining Application Form
  • Tax Clearance Certificate
  • Proof of mineral occurrence
  • Proof of technical competence
  • Proof of financial resources
  • A statement of particulars of the nature of the mining operations and the capital expenditure
  • Provisional agreement with the land owner
  • Certificate of approval of environmental and social impact assessment (ESIA)
  • Proposed production schedule and marketing arrangements for the sale of the mineral produced
  • Certified copy of certificate of incorporation of the company (if Company)
  • Certified copy of the memorandum and articles of association (if Company)
  • Board resolution of the company

Statutory fees

  • 1,000,000/= Application fees
  • 1,000,000/= registration fees
  • 1,500,000/= mineral rent annually
  • 2,000,000/= for application for renewal of AML
  • 650,000/= for gazetting grant of AML

 

 

REQUIREMENTS FOR APPLICATION FOR A LICENCE FOR EXTRACTION OF GEOTHERMAL RESOURCES FOR DIRECT USE

Application

  • Proof of financial resources
  • Proof of technical resources
  • A statement giving details of the geothermal reservoir and well capacity in the area of land over which the license is sought including details of-
  • (i) proven, estimated or inferred geothermal resources; and
  • (ii) surface and subsurface conditions in accordance with recognized international geothermal standards;
  • A statement of particulars of expected infrastructure requirements;
  • An environment and social impact assessment ESIA in accordance with the National Environment act, 2019;
  • A technical report on geothermal fluid extraction and direct use techniques proposed to be used by the applicant;
  • Feasibility study and assessment carried out by appropriate experts or accredited consultants on –
  • (i) the extent and prospect for recovery as well as the commercial and economic significance of the geothermal resources concerned;
  • (ii) a detailed timetable for the work to be carried out;
  • identification of interested and affected parties including-
  • (i) registered owner;
  • (ii) customary owner;
  • (iii) lawful occupant or bona fide occupant of the proposed geothermal area;
  • (iv) proof of consultation with interested and affected parties and the results of the consultation;
  • A statement giving particulars of the proposed programme of geothermal operations, including a statement of –
  • (i) the estimated date by which the applicant intends to work for profit
  • (ii) the estimated production capacity and scale of operations
  • (iii) the estimated heat in Mwth (Megawatts thermal)
  • (iv) the type of the direct use
  • (v) the effects of the geothermal operations on the environment and on the local population and proposals for mitigation, compensation and resettlement
  • (vi) any particular health or other risks involved in geothermal operations and proposals for their control or elimination
  • (vii) restitution of land rights at the expiry or termination of a license for extraction of geothermal resources for direct use or after closure of the geothermal site
  • A report on the goods and services required for the geothermal operations which can be obtained within Uganda and the applicant’s proposals with respect to the procurement of those goods and services;
  • A statement giving particulars of applicant’s proposals with respect to the employment and training of citizens of Uganda and technology transfer;
  • Applicant’s proposals for insurance including life and health cover for its employees and workers’ compensation;
  • A proposed marketing arrangements for the applicable direct use of the geothermal resource;
  • plan for co-existence with customary land owners or communities owning the land in the area subject to the license for extraction of geothermal resources for direct use;
  • be accompanied by a business plan giving a detailed forecast of capital investment, operating costs and revenues; and the anticipated type and source of financing including the year for the positive cash flow, financial plan and capital structure;
  • Tax Clearance certificate
  • Application form for Licence for extraction of geothermal resources for direct use
  • Certified copy of certificate of incorporation of the company (if Company)
  • Certified copy of the memorandum and articles of association (if Company)
  • Board resolution of the company

Statutory fees

  • 10,000,000/= New application/Renewal application fees
  • 1,000,000/= registration fees
  • 650,000/= for gazetting grant of EGRL