Govt to compensate locals in Busoga mineral areas

Government has reiterated its commitment to compensate residents living in the mineral areas of Busoga Sub-region.

The Ministry of Mineral Development carried out an extensive acquisition, processing and interpretation of air-borne geophysical data across 80 per cent of the country, resulting in the discovery of Rare Earth Elements (REEs) in Busoga Sub-region.

Some of the minerals found include gold, nickel, platinum, chromium, kimberlites (Diamond Host rocks), limestone, iron ore, bentonite, uranium and aluminous clays in Makuutu, Bugweri District.

Other rare minerals are said to be scattered in the sub-counties of Buwunga and Mpungwe in Bugiri and Mayuge districts.

Mr Wafula Oguttu, the former Member of Parliament for Bukhooli County Central in Bugiri District, earlier told Daily Monitor that there had been an influx of investors in the area, with lorries taking samples of the minerals after reportedly giving each household Shs75,000.

He said some locals have no idea of the presence of such minerals.

Mr Oguttu recalled an incident when he was still a legislator and gold deposits were allegedly given out under his watch.

“An Ethiopian businessman told me that he had been given a licence and I said, I wasn’t aware; since then, I have been mobilising peasants to be aware and use every opportunity to inform them,” he added.

However, Ms Sarah Achieng Opendi, the State Minister for Minerals, on Monday said people should not be scared of eviction without compensation.

“The laws of Uganda ensure that adequate and fair compensation will be paid judiciously to land owners when such a stage arrives. The licence for the REEs was given to Rwenzori Rare Metals Limited and exploration work is ongoing and so far promising.

“It is not true that the locals have not been sensitised; I was there in September and met local leaders in Bugiri and Bugweri, who were all happy with this project,” she said.

Ms Opendi added: “Government recognises that exploration and evaluation is the key to unlock Uganda’s mineral potential and reduce the risks by the investors; and these new targets need additional investigations in order to ascertain reserves.”

Will minerals unlock Busoga’s potential?

Ms Opendi said with a processing plant, many jobs would be created.

She added that the current Mining Act states that the money from mining activities is shared between the central government, districts, sub-counties and the land owners.

Ms Opendi said this is a key project that can lead to the industrialisation and position the country at an international stage.

Mr Suleiman Kato, the Mpungwe Sub-county chairperson, said gold and silver deposits are scattered in Mugi, Kasokwe and Mpumu villages, adding that there has been an influx of investors.

“Residents need to be helped to benefit from the minerals that are in the area. It [government] should come up with a clear policy on minerals and sensitisation so that residents can know what minerals are in their area and their worth,” he said.

While Mr Oguttu estimates the minerals to be worth more than $350b (about Shs12.5 trillion), Ms Opendi was noncommittal about the estimates.

She said government accords high priority to development of the mineral sector and has put in place a new Mining and Mineral Policy, 2018 to develop the industry.

Ms Opendi said streamlining the sub-sector will promote investment, value addition, competitive national participation, revenue generation and poverty eradication for socio-economic transformation.