Uganda Govt Enhances Mining Sector Security and Traceability

The Ugandan government is set to significantly tighten oversight of its mining sector through a series of new regulations designed to improve security, formalize trade, and combat illicit activities. A key initiative involves the fingerprinting of all mineral buyers, a move intended to enhance security and traceability within the gold and mineral trade.

In conjunction with fingerprinting, a digital traceability system will be introduced. This system will capture real-time data from mine sites, tracking minerals from extraction through to buying centers. The goal is to shield the sector from fraud and criminal networks that have exploited existing monitoring weaknesses.

According to Agnes Alaba, Commissioner of Mines, these reforms are the result of extensive consultations with stakeholders, including miners, local governments, and security agencies. The integrated system will identify, verify, and digitally track every participant in the mineral value chain.

New regulations will also mandate background checks for all investors and buyers. Punitive penalties are planned for those dealing in minerals without proper licenses. Furthermore, mineral buying centers will be required to operate for a maximum of 12 hours a day, with trading hours concluding by 5 pm, to address security concerns associated with night transactions.

Value addition before export will become mandatory, with specific purity standards set for gold and tin, and gemstones required to be processed into jewelry-ready products. This emphasizes the government’s focus on increasing the value derived from the country’s mineral resources.

These reforms are expected to formalize the sector, increase revenue collection, and dismantle illegal mineral trading operations. Uganda boasts substantial mineral reserves, including significant deposits of gold, iron ore, and copper.

Industry stakeholders, such as Bernard Mungu Feni, Director of EuroGold Refinery, view the establishment of organized mineral markets favorably, anticipating easier navigation for foreign investors and a more robust trading environment. The Minerals Protection Unit of the Uganda Police Force is developing a comprehensive security plan for these new markets, which will include surveillance and personnel deployment.

Source: https://www.monitor.co.ug/uganda/news/national/govt-to-tighten-nuts-on-mining-sector-5462864