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National Mining Company Board inaugurated

Peter 5th Nov, 2024 Extractives Pedson Mumbere

Phionah Nyamutooro (M), the State Minister for Minerals, poses with the new board members, at its inauguration on November 5. Second right is PS Irene Batebe.

The Government has unveiled the Board of Directors for the National Mining Company (NMC) as part of the efforts to enhance its participation in the mining sector.

This initiative is a significant step towards managing Uganda's mineral resources more effectively and ensuring that the government has a stake in the country's mining operations.

The NMC board, chaired by James Mukasa Ssebugenyi and deputised by James Byagaba, includes members with extensive expertise in the sector, such as John Fisher, Agnes Alaba, and Dr. Kevin Aanyu.

The team has been tasked with driving Uganda’s mineral development, increasing national participation, and aligning mineral exploitation with broader economic goals. The establishment of the NMC aligns with a broader reform under a new mining law enacted last year, which aims to incentivize local participation in the mining industry. The NMC is tasked with handling the government's commercial interests in mining, which includes taking a 15% equity stakes in mining licenses.

This initiative aims to support Uganda's ambitious target of expanding its GDP from $50 billion in FY 2022/2023 to $500 billion by 2040, a vision reliant on the strategic growth of the mining sector.

As Uganda’s mining industry gears up for growth, comparisons with other Sub-Saharan countries like Tanzania, Ghana, and South Africa highlight both its potential and challenges.

With significant mineral deposits, including recent gold discoveries valued at approximately $13 trillion, the NMC's role could be crucial in harnessing these resources for national economic development.

Irene Batebe, the Permanent Secretary of the Ministry of Energy and Mineral Development, told the team at the inauguration ceremony that their role is to enhance accountability, transparency, and adherence to a recently introduced policy directive that promotes value addition and prohibits exports of raw materials.

Minister of State for Minerals Phiona Nyamutoro echoed this emphasis on value addition, highlighting the economic and environmental benefits of processing minerals locally. She noted that Uganda can maximize job creation and revenue by adopting modern mining practices and retaining more of the value chain within the country.

Uganda’s mineral potential remains underdeveloped compared to leading Sub-Saharan countries like South Africa, Ghana, and Tanzania, where mining contributes significantly to their economies.

Board chair James Mukasa Ssebugenyi expressed optimism that they would deliver according to expectations.

“As Uganda aims to emulate the mining successes of its Sub-Saharan counterparts, the NMC’s new board faces a daunting but promising journey. By aligning Uganda’s mining operations with international standards, prioritizing value addition, and securing better funding, the NMC hopes to transform Uganda’s mineral wealth into a robust pillar of economic growth,” he said.

With the Board in place, the management team would be set up to run the institution.

Officials said that when it is fully operational, the NMC would improve the regulatory framework for the mining sector, ensuring compliance with environmental and social standards.

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