THE CURRENT STATE OF THE MINERAL SECTOR IN KARAMOJA, REVIEW OF THE MINING LAWS IN UGANDA AND THE KARAMOJA

AIRBORNE GEOPHYSICAL SURVEY

A Briefing Session to the:

Irish Embassy 14 October 2014

Kampala

Charles KabiswaIsaac KabongoTeddy Twine

Geology and mineral occurrences in KaramojaGeology and mineral occurrences in Karamoja

Irish AID unlocking Karamoja Mineral Sector,

then DGF support

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51 foreign and Ugandan companies with 136 concessions, Exploring or Mining in K’ja

Current Concessions

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17,083.34sq.km (61.67%) of the 27,700 sq. km total land area of Karamoja region is licensed for mineral exploration and exploitation activities.

Artisanal and Small scale Mining

Informal ASM: 20,000 miners - Indirect and Induced Labour: 54,000

- Dependency (5): 360,000- Total: 432,000 women, men and children

Lake Victoria

East Africa’s treasure 9

Lake Victoria

East Africa’s treasure 10

Lake Victoria

East Africa’s treasure 11

2014/2015 Govt core investment priorities and core projects for Karamoja region

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Carry out airborne geophysical surveys of Karamoja region. Continue geological mapping, geochemical and geophysical

surveys and mineral resources assessment of Karamoja to completion

Select mineral targets for ground follow up . Interprete and harmonize geophysical data and maps with the

rest of Uganda Update mineral resources map of Karamoja To carry out inspections and monitoring of mining operations in

Karamoja Region Follow up the construction of the regional office and installation

of a mineral mini laboratory in Karamoja

Airborne Geophysical Survey in Karamoja

REVIEW OF THE MINING LAWS

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This year, Uganda's government under the Ministry of Energy and Mineral Development, has started a review of mining laws governing the industry that would establish a new fiscal regime and legal framework

To boost investment in the mining sector and to attract high worth capital to establish a modern and viable mining industry in Uganda.

The existing laws are the Mineral Policy, which was established in 2001, the Mining Act 2003 and the attendant regulations established in 2004.

Legal Reforms/Reviews

• Happen when Initial Desired goals and objectives of the legal regime have changed, and/or the existing laws/legal regime is preventing or failing to promote the achievement of the desired goals and objectives.

• Global Mining industry has undergone significant changes especially from Mid-1980’s to-date, and developing countries have embarked on wide ranging structural reforms designed to attract and respond to demands of foreign investors.

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• July 16-18 - workshop with selected stakeholders • September - multi-stakeholder conference (the Ministry

will put forward their proposal for policy and legal reforms at this time).

• October - theoretically validated proposal for reforms goes to Cabinet.

• December - bill goes to the President.

First expected timeframe-SO TIGHT

Gov’t Review Process

• Starts with Identification of Gaps in the current regulatory framework

• Any Mining Law serves for as good as ten (10) years

1. Mineral Policy, 2001

2. Mining Act, 2003

3. Mining Regulations, 2004

Review continued..

• Identification of stake holders (mapping) in the review process

1. Government of Uganda (Ministry of energy and Mineral development)

2. Mining companies/individuals

3. NEMA, URA, NFA, UWA & other agencies

4. Chamber of Mines and Petroleum

5. Ugandans/mining communities

6. CSOs/NGOs

Consultative process: Gov’t plans

• Consultative workshops• Mining site visits/consultations• Agency consultations• Conferences and workshops• Bench marking from international good

practices

Gov’t Workshop On Mining Policy, Law And Taxation Review, Speke Resort, Munyonyo

Basis For the Theme of The Workshop•Global Expectations(resource driven development)

•Popular expectations(fair and transparent management)

•Government Expectations (revenues, jobs and industrialization)

•Industry expectations (access to resources on durable terms: level playing field; social license to operate)

•El Value Chain (WB-5 links in the through which minerals in the ground are translated into positive development)

Continued

• Natural Resources charter (12 policy principles to guide review)

• Intergovernmental Forum on Mining Mining Policy Framework (6 pillars of sound mining policy)

• Africa Mining Vision (7 pillars – Africa economic transformation)

• The World Economic Forum's Responsible Mineral development Initiative (Principles to ensure 7 benefits that result from responsible mining)

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Need for Local Involvement

The civil society organizations, members of the media and the community especially

those most affected by mining operations like Karamoja require support to increase their capacity to effectively scrutinize and

deliberate on the proposed legislation

Stakeholders who shd come on board

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• Representation of civil society to input to the proposed mining laws

• The Ministry of Energy and Minerals• Mining interest Group-Karamoja• District Mineral Watch Platform• Media• Engaging parliamentarians• Local communities, particularly in mining areas

(Karamoja), to actively engage in the review processes• National CSO platform e.g. CISCO, PWP• Development Partners

Proposals for Next Steps with DGF Funding (1)

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• Convened a planning meeting with key stakeholders

• Hired a consultant (expert support) to analyze the proposed changes to the mining law and regulations. The analysis will focus on strengths, loopholes and potential sources of vulnerability in the mining law and regulations

• Plan to present the analysis to multi-stakeholders meeting for their input

• Then meet with the local communities and organisations in Karamoja for their input.

Proposals for Next Steps with DGF Funding (2)

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• We plan to organise and present in a session with the Parliamentary Standing Committee for Energy and Minerals. This will help committee members to understand the proposal and scrutinize the rationale behind each alteration in relation to other available options

• Meeting for the CSOs develop and agree on a joint statement of their position on the process and contents of the proposed mining laws and regulations, signed by participants, and submitted to the Minister for Energy and Minerals and publicly disseminated through the media

Key priorit ies for policy advocacy (1)

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• Clear evidence of free and informed consent from affected communities prior to the granting of exploration licenses, and again prior to the granting of mining leases.

Include robust procedures to consult with the indigenous peoples of through their own representative institutions and local governments

Formalizing Information Flows and Communication Channels. Improve public access to information and transparency by Making information available to both literate and non-literate community members.

Key priorit ies for policy advocacy(2)

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• set provisions for Formalization and improvements to Artisanal and Small-scale Miners to engage into the formal mineral trade

• include a requirement for a human rights impact assessment, detailing the potential impacts exploration and active mining may have on affected communities and their rights, what steps companies will take to continually inform and communicate with affected communities

• Laws should set strong provisions for the mining companies to protect the Environmental Integrity. Making a environment bond compulsory

Key priorit ies for policy advocacy(3)

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• Amend Laws to harmonise Access to Crucial Natural Resources: One of the most contentious issues in the minerals sector concerns perceptions of State ownership of minerals and powers of GOU to grant “mineral rights” for exploration and mining on land owned or occupied by others vs “Surface Rights”

• establish effective grievance mechanisms, in line with good international practice, so that individuals affected by mining projects can complain directly to companies in addition to the government

• Harmonised the Mining Laws with the Land Laws to provide for Security of Land Tenure especially for communal or collective land ownership

Key priorit ies for policy advocacy (4)

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• Need to amend the requirements of the payment of the Loyalties and also increased of the %age paid to the landowners.

• Compulsory corporate social responsibility • Local representation of the mining ministry eg Village

Environment committees for Environment.

The Good News

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We have an opportunity to address these issues or atleast most of them in the Mineral Regislation Review exercise

And information will more available in after the Airborne Geophysical survey

(This might as well create more conflict as more companies increase to come if the laws don’t address the key issues)

We need to be supportive and actively involved of this process.