Uganda’s mining industry is under the oversight of Ministry Of Energy And Mineral Development. The industry hit its peak in the 1960’s when the sector accounted for up to 30% of Uganda’s export earnings. However, political and economic instability experienced in the 1970’s and the recent global economic slowdown led to drastic decline in the sector. The decline was not a result of resource depletion.
It received a further boost when mining revenues increased by 48 percent between 1995 and 1997. However, the World Bank reported that the sector’s contribution to gross domestic product (GDP) dropped from 6 percent during the 1970s to below 0.5 percent in 2010.
Owing to 2 decades of a favorable business climate, many mining companies have taken up licenses in the mining sector and over the last ten years the sector has been growing positively with growth rates peaking 19.4% in FY 2006/07. In FY 2009/2010, the sector grew by 12.8%, however today according to the Uganda Bureau of Statistics (UBOS), GDP From Mining in Uganda decreased to 786.92 UGX Billion in the fourth quarter of 2020 from 992.58 UGX Billion in the third quarter of 2020
Mineral resources have been identified and are already being informally mined in the different parts of the country areas; there are several mineral potential formations, especially gold in the Karamoja region , copper in Kasese, extensive marble formations in Eastern part of the country (Moroto), phosphates in Tororo and huge deposits of iron ore in central Uganda. New iron smelting factories are being set up and government’s negotiation for iron ore mining is underway and commercializing the mineral is key government priority for this year.
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