Mining in Uganda

Mining in Uganda is governed by the following pieces of legislation:

• Constitution of Uganda;
• Mining Law;
• Mining Regulations;
• NEA Act;
• Environment Law.

Uganda: Obtaining a Mining License

Individuals or companies seeking to conduct mining activities in Uganda can::

• apply for an exploration license in Uganda - enables its holder to explore for minerals; non-transferable;
• apply for a subsoil use license in Uganda - gives its holder the right to search for minerals in Uganda; non-renewable & valid for one year from the date of issue; can be extended.
• apply for a subsoil use permit in Uganda - granted for up to 36 months; maximum license area is five hundred square kilometers; can be extended twice for 4 years, half of the plot must be returned upon extension;
• apply for a mining lease license in Uganda - gives its holder the right to extract minerals in Uganda; requires payment of a fee; an applicant must have sufficient financial & technical resources to fulfill their lease obligations; an application must be accompanied by a feasibility report; granted for up to twenty years.

Uganda: Obtaining an Oil & Gas License

Those looking to engage in oil & gas production in Uganda can:

• apply for an oil exploration license in Uganda - granted for the exploration of hydrocarbons in a specified area; may be filed after a corresponding announcement is published in the press; valid for 24 months & can’t be extended more than two times;
• apply for an oil production license in Uganda - gives the right to produce oil in Uganda; granted for up to twenty (20) years; can be extended.

Granting mining licenses to non-Ugandan citizens or companies that aren't registered in Uganda is prohibited. Mineral exploration licenses are only issued to Ugandan citizens or legal entities holding at least fifty one percent of the beneficial ownership of Ugandan citizens.

Uganda: Export of Minerals

Exporting minerals requires obtaining permission for exporting minerals from Uganda. Exporting minerals without permission is a crime & punishable by a fine or imprisonment. There is a presidential directive that restricts the export of unprocessed copper & iron ore without any beneficiation.

Taxation

Mining companies are reimbursed one hundred percent of their exploration costs. The costs must be incurred in prospecting or gaining access to mineral deposits in Uganda. Income tax rate for mining companies is calculated based on a special formula & ranges from twenty five to forty five percent.