OECD-ICGLR-UN GOE FORUM ON RESPONSIBLE MINERAL SUPPLY CHAINS

A PRESENTATION OF UGANDA’S INTERVENTIONS TO DATE ON THE 6TH ANNUAL MEETING 13-15 NOVEMBER 2013, KIGALI

Joseph P. Okedi

Ag. Principal Inspector of Mines/Member ICGLR Committee

Department of Geological Survey an Mines

MINISTRY OF ENERGY AND MINERAL DEVELOPMENT

UGANDA

Implementation of RCM and due diligence by the private sector in Uganda

Monitoring of Gold Imports and Exports

Harmonization of standards, legal and fiscal regimes

Roles that other gold trading hubs could play to enable responsible sourcing.

Cross-border issues

Presentation Outline

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1. Implementation of RCM and due

diligence by the private sector in Uganda Background

Uganda currently has the following small to medium scale mine

sites for 3T and G. The sites include:

• For 3Ts – 15 mine sites (6 ML’s and 9 LL’s) mostly located in

the southwest region of the country

• For G - 17 mine sites either producing or under development

spread all over the country

Operations have since ceased from some sites as a result of lack of

market due to non compliance with the RCM requirements.

Following extensive meetings and discussions with mining

sector representatives and stakeholders, the policy and legal

framework of the sector is currently undergoing review for

amendment in alignment with regional standards, legal and fiscal

regimes.

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1. Implementation of RCM and due

diligence by the private in Uganda

It is worth noting that Partnership Africa Canada (PAC), an

ICGLR counterpart has been instrumental in facilitating the fast

tracking of the implementation of RCM.

Current activities

• Harmonization of National Policies and Laws in lieu of

OECD-ICGLR guidelines

• Formalisation of Artisanal and Small ScaleMining

• Updating and validation of the National Database

• Development of an ICGLR Regional Certificate of Origin for

Uganda.

• Vetting proposals from service providers for mineral

traceability

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1. Implementation of RCM and due

diligence by the private in Uganda

Due diligence

• Mine sites namely, Mwerasandu Tin Mine, Nyamuliro

Wolfram Mine, Kikagati Tin Mine, and several small scale

mines have undergone initial inspection by ITRI and more

recently Geotraceability Limited.

• No gold mine site has ever been inspected by any mineral

traceability service provider.

• Todate traceability/chain of custody systems are not

operational in Uganda:

• Certification of mineral exports through third-party audits or

otherwise to validate exports and certificates is done within

the framework of current Uganda legislation.

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2. Monitoring of gold Imports and Exports Gold and other mineral commodities are traded within the

provisions of the Mining Act, Mining Regulations and other

applicable laws of Uganda.

Traders are required to have a Mineral Dealers’ License or a

Mineral Right as individual or body corporate.

Imports

• Importation on condition of acquisition of import permit

which requires provision of proof of origin.

• Proof of location and authenticity of business premises.

• Evidence of compliance with legal and fiscal requirements of

country of origin.

• Proof of quantity and grade.

• Declaration of possession of commodity.

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2. Monitoring of gold Imports and Exports

Exports

• Exportation on condition of acquisition of export permit

under provisions of the law.

• Provision of proof of origin.

• Declaration of final destination.

• Proof of location and authenticity of business premises.

• Evidence of compliance with legal and fiscal requirements of

Uganda or country of origin.

• Proof of quantity and grade.

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3. Cross-border issues

• Regional insecurity.

• Cross-border smuggling.

• Non-aligned policies, standards, laws and regulations.

• Difficulty to authenticate the relevant documentation.

• Informal gold production from artisanal mine sites.

• Discrete mineral (gold) production and export databases.

• Prevailing end market forces.

• Lack of common testing and buying centers.

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4. Harmonization of standards, legal and

fiscal regimes

• Policy deliberations by a select committee (constituted mid-

2013) are ongoing to review current laws with the aim of fast

tracking the implementation of the Regional Mineral

Certification Mechanisms and transparency initiatives

• Implementation of the other tools

• The fiscal review started in mid-2011 and to date a revised

fiscal framework is operational

• Uganda is actively sourcing mineral traceability service

providers that have been vetted under the OECD-ICGLR

mineral traceability guidelines

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5. Role that other gold trading hubs (e.g.

Dubai) could play to enable responsible

sourcing

• Ensure traders show proof of aligned documentation

originating from the Great Lakes Region and consistent with

ICGLR-RCM guidelines.

• Carry out periodic due diligence with member states on the

authenticity of the mineral traders, proof of origin of 3T and

G commodities.

• Periodic reconciliation of volumes of trade from the different

states within the Great Lakes Region.

• Require annual reports of compliance with the OECD-ICGLR

country specific guidelines from the traders.

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6. Conclusion

• Policy, and legislative reforms are envisioned to be complete

by financial year 2015/2016

• The RCM implementation process is estimated to cost a

minimum of USD 700,000.

• Concerted efforts from all major stakeholders will be required

to fast track the implementation of the RCM.

THANKYOU

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