A breakdown of Uganda's mining law, from prospecting to extraction

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Lawyer Loyola Rwabose Karobwa has outlined how Uganda’s mining sector operates, explaining the legal processes that guide activities from prospecting to full-scale mineral extraction.

Speaking during the Judicial Service Conversations hosted by Elison Karuhanga, Karobwa said mining, as defined in law, covers a wide range of activities across the mineral value chain.

“Mining operations include the entire value chain, from looking for, prospecting, exploring, mining, processing, smelting, transporting — everything that one can do with a mineral is provided for and governed,” she said. 

From prospecting to mining

Karobwa, a senior legal officer at the Ministry of Energy and Mineral Development, explained that mineral development follows a structured licensing sequence.

The team part of the Judicial Service Conversations including Loyola Rwabose Karobwa (middle front row) and Elison Karuhanga (second from right), pose for a photo after conversations. (Courtesy photo)

The process begins with a prospecting licence, which is issued for one year and allows preliminary assessment of the presence of minerals. 

If results are promising, a developer then applies for an exploration licence, which allows detailed studies to determine whether the mineral deposit is viable.

Exploration licences are granted for a maximum of four years and can be renewed once for an additional three years. 

She noted that mining is a long-term activity and that the exploration period allows for extensive studies using geophysical, geological and geochemical methods.

“It is only the holder of an exploration licence who has the first right to apply for a mining licence,” she said. 

Requirements before extraction

Karobwa said companies must meet several requirements before transitioning to full-scale extraction.

These include conducting geoscientific and feasibility studies to confirm that a mineral deposit exists in commercially viable quantities. 

She added that a company must also obtain surface rights to access land where minerals are located, noting that while minerals are vested in government, land ownership may belong to individuals. 

Proof of acquisition of these rights is required when applying for a mining licence.

She emphasised that extraction can only take place under a mining licence and warned that carrying out mining activities under an exploration licence is illegal. 

Regulation and compliance

Karobwa said the law contains provisions to ensure that licence holders actively use their exploration areas.

For example, there is a limit to the number of exploration licences one entity can hold, and failure to utilise them may affect eligibility for additional licences. 

She added that exploration licences are granted for specific areas and durations, and developers are expected to carry out work within that period.

Gold and mineral regulation

On gold, Karobwa said it is regulated like other minerals under the Mining and Minerals Act and related laws.

She noted that gold falls under a category of “designated minerals” which are subject to additional regulatory controls due to their association with conflict and security concerns. 

Elison Karuhanga speaking during the Judicial Service Conversations. (Courtesy photo)

She added that government is working on regulations to establish designated mineral markets and buying centres, where trade will be conducted under the supervision of relevant authorities, including revenue and security agencies. 

Sustainability and environmental protection

Karobwa said environmental protection is a key component of mining regulation.

“The entire regulation is towards ensuring that minerals are extracted in a way that is optimal and they are not wasted, but also that the environment is protected,” she said. 

She explained that laws require land restoration and rehabilitation after mining, including refilling pits and preparing land for future use.

While acknowledging that mining affects the environment, she said proper regulation and compliance can ensure that land is restored and protected for future generations. 

Role of institutions and expertise

Karobwa said the law also establishes institutions to manage the sector, including the Uganda National Mining Company, and strengthens existing bodies involved in environmental protection and revenue collection. 

She emphasised that institutions depend on the people running them, noting the importance of knowledge and multidisciplinary expertise.

A technical field

In legal practice, Karobwa said mining law requires a strong understanding of both legal and technical principles.

“Mining law is not a law that can be practised on guesswork,” she said. 

She added that practitioners must understand the concepts and processes involved in the sector in order to engage effectively.