Cabinet approves New Law on Sharing Mineral royalties
Cabinet has approved the Mining and Mineral Bill 2020 that spells out the sharing of mineral royalties.
Sarah Opendi, the minister of state for Energy and Mineral Development said on Wednesday the new bill will effectively replace the Mining and Mineral Policy of 2018.
She said the law was necessary because the government needed to reform and strengthen the legal, regulatory and institutional frameworks to cater for emerging issues arising in the minerals sub sector which include; mineral traceability, certification, value addition, mineral revenue management and the formalization of Artisanal and Small-Scale Miners.
According to the proposed royalty sharing model, the Government will take 70% and the district local government 15%.
In addition, sub-counties or town councils will take 10%, whereas landowners or the lawful occupiers of land to share the royalties.
Opendi explained that the new mining Bill will address the inconsistencies therein, fill in the gaps identified in the Mining Act, 2003 and also the need ‘for Uganda to be compliant with the new and emerging trends in the global mining industry.
In line with Vision 2040, Opendi said the new bill will seek to develop the mining sector that can catalyse agriculture as well as broad-based growth and development of the downstream linkages into value addition and manufacturing.