Miners demand home-built refineries

UCMP argues that the aforesaid proposition is better than imposing a ban on the export of raw minerals, the miners added.

“By way of example, almost no gold mines worldwide mine gold ore and process it to refined gold. Instead, a midstream gold refinery will accept gold from many mines and sources, diversifying its supply risk and allowing it to be operated at a scale that is economic,” the miners said. 

The UCMP made this proposal in a paper presented to the government for review. 

As a ten-year ban on raw material export remains in force, this proposal seeks to navigate the ban believed to be adversely impacting the mining industry.

The ban does not make any business sense anymore, says Anton Potgieter of African Panther Resources Uganda, adding that it adds other complications to the industry which stand in the way of fruitful business dealings. 

“Given the risky nature of the exploration exercise, it is key that uncertainty is ruled out as much as possible. Policies such as a ban on export of minerals can only scare external investors because no one wants to invest in a venture where development is not assured,” the statement by UCMP noted.

UCMP added that there has been a sharp dip in mining activity as a result of the ban as companies exploring for tin and wolfram in southwestern Uganda have had to heavily reduce their workforces.

The ban on exporting raw material has also led to increased smuggling of minerals, the proposal said.

All in all, the miners request that the government, apart from allowing the construction of indigenous refineries or supporting those that are refining minerals, to lift the ban so that they can export their minerals and thereby build capacity to refine their raw materials.