GEOGRAPHY PAPER 3 UGANDA: MINING IN UGANDA

MINING IN UGANDA

Mining refers to all the processes through which both metallic and non-metallic materials are extracted from the earth’s crust. A mineral is any naturally formed element or composition.

Metallic ores in Uganda include copper, lead, silver, tin, cobalt, wolfram, iron ore, etc.

Non-metallic ores include phosphates, limestone, mica, salt, sand, asbestos, clay, gypsum, oil, potash and zinc.

The major minerals in Uganda include limestone, asbestos and phosphates at Hima and Tororo, copper and cobalt in Kasese, iron ore, tin and wolfram in Kabale and Kigezi areas, salt in Katwe, sand and clay along L. Victoria shores, petroleum, natural gas and Kaolin in Albertine region, vermiculite and gold in noth east and eastern Uganda, mica and gold in Mubende, etc.

The mining industry of Uganda, documented as early as the 1920s, witnessed a boom in the 1950s with a record 30 percent of the country’s exports. 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.

Uganda’s extractive industry activities have been identified by the Natural Resource Governance Institute as focused on “extraction of cobalt, gold, copper, iron ore, tungsten, steel, tin and other industrial products such as cement, diamonds, salt and vermiculite”. Limestone is sold in local markets whereas gold, tin, and tungsten are major exports.

MAP OF UGANDA LOCATING MAJOR MINERAL DEPOSITS

Background to the Mineral Sector

Uganda lies within the African Plate which is a continental crust. Precambrian rocks ranging from Achaean, Lower Proterozoic to Middle Proterozoic (4500 – 600 Million Years) dominate the geology.

Close to the eastern border with Kenya, lies a number of Cretaceous to Miocene (145.5 – 5.3 Million Years) intrusive alkaline carbonatite complexes.

The Rift Valley contains Cenozoic (65 – 0.01 Million Years) to Recent sediments up to 4000 metres thick. These rocks are endowed with a wide variety of minerals as evidenced by past mining records and the numerous mineral occurrences in many parts of the country.

The mining industry in Uganda reached peak levels in the 1950s and 1960s when the sector accounted for up to 30% of Uganda’s export earnings.

However, political and economic instability experienced in the country in the 1970s and the recent global economic slowdown led the sector to decline drastically.

Currently, the energy sector’s contribution to total GDP, at current prices, was the lowest in (Financial Year) FY2009/2010 with a share of only 0.3 percent. It should be noted therefore that the decline is not a result of resource depletion but rather due to the bad governance at one time but recently due to poor world prices of cobalt and copper, among others.

The period after 1986 has been marked by a favorable business climate in Uganda and many mining companies have taken up licenses in the mining sector. 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%. In terms of licenses taken, in 1999 there were 66 licenses issued in the exploration and mining license categories combined; by the beginning of 2010, there was a total of 517 licenses issued.

These licenses cover the entire country but are generally concentrated in the more prospective areas in southwest and southeast Uganda. The fact that parts of north and central Uganda are to some extent under forest cover and at the same time have thick soils as a result of tropical weathering, limited geological data render them not conducive for mineral investment.

METHODS USED IN MINING

There are mainly three methods used to extract minerals in Uganda and these include;

1. Open cast method which is used to extract minerals buried near the surface like limestone at Tororo and Hima, sand and clay at Kajjansi and Butende and stone quarrying in Ntugamo.
2. Tunnel or adit method, this is used to mine minerals buried deep in the earth crust. It involves the construction of tunnels to reach the mineral bearing rocks like copper and cobalt mining in Kilembe-Kasese.
3. Alluvial mining method, this is used for mining minerals like gold as it is in Buhwenju-Bushenyi and Karamoja region.

Investment Opportunities in the Mineral Sector

The principal minerals that have been mined in the past, or are being mined at present or are known to occur are discussed below, and the mineral occurrence map shows their locations. In broad terms, they can be divided into metallic and non-metallic minerals which investors can prospect and mine.

Metallic Minerals

Beryllium

Beryllium is the main mineral from which the metal beryllium is extracted. It is associated with pegmatites, mainly in Ntungamo, Bushenyi, Kanungu and Rukungiri districts, but also at Mbale Estate and Lunya in Mubende and Mukono districts respectively.

At one time in the early 1960s, Uganda’s beryl production accounted for 10% of world production. Production came mainly from Mutaka in Bushenyi district, Kazumu in Ntungamo districts and Bulema and Ishasha in Kanungu district. The deposits at Ishasha have the largest known potential.

Uses: Beryllium metal is used in making lightweight metal alloys for aircraft and in nuclear reactors. The coloured (green) variety as emerald is a precious stone, but yet to be discovered in Uganda.

Bismuth (bismutite)

Bismuth occurs in association with native gold and wolframite at Rwanzu in Kisoro district; Kitahurira in Kabale district; Kitwa and Muramba in Kanungu district.

Uses: Bismuth is used in making special alloy steel.

Chromium (chromite)

Chromite prospects are found in chlorite schists at Nakiloro located 16 km NE of Moroto town. The chromite here is associated with platinum, a precious metal. There has been no chromite production.

Uses: Chromium is used in making special alloy steels and for chrome coating. Chromite as an industrial mineral is used in metallurgical processing and in furnaces as a refractory.

Copper-Cobalt

Copper has been found at several localities in Uganda but the only significant deposit discovered to-date has been at Kilembe, where copper-cobalt sulphide mineralization occurs.

The other areas where copper mineralization has been noted are Bobong in Karamoja region and Kampono and Kitaka in Mbarara district.

Copper is also reported in Buhweju, Bushenyi district. Although copper was first reported at Kilembe in 1908, the deposit was not brought into production until 1956 on completion of the railway line to Kasese.

Between 1957 and 1979 a total of 16.29 million tons ore averaging 1.95% Cu and 0.18% Co were mined and treated to yield 217,000 tons of blister copper which was exported, plus 1.1 million tons of cobaltiferous pyrite (iron sulphide) which was stockpiled.

The Kasese Cobalt Company has installed a 1,000-ton per year cobalt plant and is processing the stockpile of pyrite concentrates.

The Kilembe mine ceased its production in 1982 and has since been on care and maintenance. Proven reserves of copper at closure were 4.17 million tons with a copper content of 1.77%, with opportunities to discover additional resources in the vicinity of the mine.

In addition to copper still in the ground, there is 5.5 million tons of cobalt in tailings (dumped material from previous mining) at an average grade 0.114% Co.

Uses: Copper is mainly used in making electrical conductors. Cobalt is used in making special alloys for the aerospace industry, electronics and high-tech industry. Cobalt salts are used in the chemical industry and in tinting glass to give a blue colour.

Gold

Gold is widely distributed in Uganda but has been worked in only a few areas: Kahengyere and Muti in Buhweju and Mashonga in Kyamuhunga in Bushenyi district; Kitaka in Mbarara district; Chiruruma, Chilima, Bugarama, Mugyera in Kabale district; Murindi, Mpororo, Rubuguri and Karamba in Kisoro district; Bikongozo valley in Rukungiri district; Kashenyi, Kanungu, and Muramba in Kanungu district; Tira and Amonikakine in Busia district; Kamalenge and Kisita in Mubende district; Rupa and Kamalera in Moroto district and Kafu River in Hoima district.

With the exception of Kisita, Kamalenge,Tira and Amonikakine where gold is being recovered from reefs (hard rock), most of the gold is recovered from alluvial material.

Most gold production has been by small producers who include licensed miners and artisans. Production statistics from artisanal miners is only indicative given the fact that most operators are not licensed and even the licensed ones tend to under-declare hence most of the gold is transacted through dubious channels.

Uses: The commonest use of gold is in gold bullion, followed by jewelry and electronics especially in the computer industry.

Iron Ore

Iron ore occurs principally as two types of minerals: hematite and magnetite. Hematite of high quality (90-98% Fe2O3) occurs at Butare in Kabale district; Kashenyi, Kyanyamuzinda and Kamena in Kisoro district with total resources in excess of 50 million tons, which contains negligible sulphur, phosphorus and titanium.

Hematite iron ore with a resource of 2 million tons occurs at Mugabuzi in Mbarara district; and also occurs at Nyaituma in Hoima district.

Hematite of about 2 million tones has been reported at Namugongo peninsula in Mayuge district. Magnetite is associated with the carbonatite complexes and it occurs in Bukusu at Nakhupa, Nangalwe and Surumbusa and Namekhara in Manafwa district; Sukulu in Tororo district; Napak in Napak district and Toror in Kotido district, all in Karamoja.

At Sukulu, magnetite occurs in residual soils with apatite (phosphate). A resource of 45 million tons averaging 62% Fe, 2.6% P2O5 and 0.9% TiO2 has been estimated. Within Bukusu, 23 million tons has been estimated at Nakhupa, Nangalwe and Surumbusa sites, while Namekhara contains an estimated resource of 18 million tons with 13% TiO2.

There has been very limited production of iron ore in Uganda to-date mainly for use as an additive in the steel scrap smelting in Jinja and for special cement by Hima Cement.

Uses: The principal use of iron ore is in making of steel.

Lead

Galena, a mineral containing lead (with minor zinc and gold), occurs in quartz veins at Kampono, Kanyambogo and Kitaka in Kitomi Forest, Ibanda district. It also occurs associated with tin (cassiterite) at Kikagati. These deposits are all very small. Galena was mined only at Kitaka and production totaled only 750 tons over a 13- year period to 1960 when mining stopped.

Uses:In making motor vehicle batteries and heavy metal shield for nuclear radiation protection.

Lithium

Amblygonite the ore that contains lithium mineral is found to be associated with pegmatites at Ruhuma in Kabale district; Mwerasandu, Lwamwire and Nyabushenyi in Ntungamo district; Lunya in Mukono district; Nampeyo and Mbale Estate in Mubende district.

Lithium has been exploited only from the Nyabushenyi (Ntungamo) and Mbale Estate (Mubende) pegmatites.

Most of the pegmatites are small and of irregular bodies, which mitigates against large-scale exploitation but is well suited to small-scale production by local entrepreneurs.

Uses: Amblygonite the ore of lithium is used mainly as a non-metallic mineral, especially in chemicals.

Niobium-Tantalum (columbite-tantalite)

The metals niobium (or columbium as it is sometimes called) and tantalum are derived from the minerals columbite and tantalite respectively.

The two minerals usually occur together in association, in varying proportions. Columbite-tantalite occurs in pegmatites at Kakanena, Nyanga, Rwakirenzi, Nyabushenyi, Rwenkanga and Dwata in Ntungamo district; Jemubi and Kabira in Bushenyi district; Bulema in Kanungu district; Kihimbi in Kisoro district and Lunya in Mukono district.

The pegmatites are generally of small size with irregular metal distribution.

Pyrochlore which is the most important niobium mineral occurs in carbonatites at Sukulu in Tororo district; Bukusu Complex in Manafwa district; Napak in Moroto district and Toror in Kotido district.

The Sukulu phospahate deposit is potentially the most important source with a resource of over 230 million tons of which 130 million tons average 0.2% Nb2O5.

Uses: in making carbon steels, super alloys, high strength low-alloy steels, stainless and heat-resistant steels. The major end-use of tantalum is in production of electronic components and batteries for cellular phones, and in alloys.

Tin (cassiterite)

Several tin deposits occur throughout southwest Uganda in quartz-mica veins in contact with granitic bodies intruded into shales and sandstone host rocks of Karagwe-Ankolean System confirmed to be a tin-field province that extends southwest into Rwanda and Congo and northern Tanzania. The individual veins are thin (rarely more than a metre in width) irregular and of small tonnage potential.

Tin occurs in single veins at Mwerasandu, Kaina, Nyinamaherere in Ntungamo district; Kikagati and Ndaniyankoko in Isingiro district and Burama Ridge on the Kabale/Ntungamo border.

Stockworks and sheeted vein swarms occur at Rwaminyinya in Kisoro district and Kitezo in Mbarara district and these may have large tonnage potential.

Uganda’s tin concentrate production 1927 to 2001 totaled about 13,000 tons. The bulk of this production came from hard rock deposits, with minor eluvial production and no alluvial production. The largest deposit was Mwerasandu in Ntungamo district and substantial production also came from Kikagati in Isingiro district. Other producers were Rwaminyinya, Burama Ridge, Ndaniyankoko, Kaina and Nyinamaherere.

Uses: Is used mainly for coating iron/steel to minimize rusting and also making cans for the food industry.

Titanium (ilmenite/rutile)

Titanium minerals occur in the magnetite-rich carbonatites at Bukusu Complex in Mbale district and Sukulu in Tororo district. The Sukulu resource contains significant titanium (approximately 13% TiO2), while those at Surumbusa in the Bukusu Complex contain higher values (22% TiO2) locked up within the magnetite.

Uses: The main use of titanium is currently as a non-metallic mineral, especially as titanium oxide pigment in paint, paper, rubber, etc. rather than as a metal. The metal is used in the manufacture of corrosive resistant steel.

Tungsten (wolframite/scheelite)

Numerous tungsten deposits occur in quartz vein type closely associated with granitoid intrusions. Tungsten occurs in quartz veins closely associated with granitoid intrusions at Nyamuliro (also called Bjordal Mine), Rushunga and Ruhija in Kabale district; Kirwa, Mutolere, Rwamanyinya, Mpororo and Bahati in Kisoro district; Kyasampawo in Mubende district, Buyaga in Lyantonde district and Nakaseta in Mityana district.

The main deposits that have been mined are Nyamuliro (also called Bjordal Mine), Kirwa, Ruhija, Mutolere, Rwamanyinya and Bahati in Kabale and Kisoro districts. Others are Kyasampawo and Mbale Estate in Mubende district and Buyaga in Rakai district.

Uganda’s wolframite concentrate production from 1935 to 2001 totaled over 5,000 tons and this came from the various low-grade deposits. Kirwa Mine one of the large producer from late 1940’s to 1979 has a resource estimated at 1.25 million tons averaging 0.19% WO3. Bjordal Mine is currently being re-developed by M/S Krone Uganda Ltd. and production is up to 15 tons/month.

Uses: Tungsten is mainly used in making armour plate in military equipment, manufacture of filaments for electric bulbs and in making tungsten-carbide for drilling bits.

Silver

Silver occurs in association with galena at Kitaka in Mbarara district and in parts of Mubende granite in Mubende district.

Uses: Silver is used for monetary purposes, plated silverware, photographic and chemical industries and in electrical conductors.

Zinc

Zinc occurs with galena at Kitaka in Mbarara district.

Uses: Zinc is used in galvanizing, die castings, alloyed with copper to form brass, precipitating gold and in medicines and chemicals.

Non-Metallic Minerals

Talc

Talc occurs at Itega-Manengo in Bushenyi district; Lolung-Moruamakale in Moroto district and Kisinga in Kasese district.

Uses: Talc is used as an extender in paints, ceramics, radio tubes, refractories, toilet powders, lotions and face creams.

Mica

Mica occurs at Morulem in Abim district; Lunya in Mukono district; Omwodulum in Lira district and Paimol, Parobong, Kacharalum, Agili, Akwanga, Achumo, Kukor, Labwordwong, Namokora, Naam and Okora in Pader district.

Uses: Mica is used in electrical insulation, electrical heater elements and filler in rubber and plastics.

Graphite

Graphite occurs at Zeu in Nebbi district and Matidi and Acholibur in Kitgum district.

Uses: Graphite is used in pencils, brake linings, steel making, batteries, lubricants and refractories.

Kyanite

Kyanite occurs at Ihunga and Kamirambuzi hills in Rukungiri district and near Murchison falls in Masindi district.

Uses: Kyanite is used in spark plugs.

Aggregate, Crushed and Dimension Stone

Stone suitable for crushing is available in most parts of the country. Granite, gneiss, quartzite and sandstone are widely distributed throughout the areas of Precambrian Basement. Dolerite and amphibolite also occur in central and eastern Uganda though they tend to be badly weathered. Volcanic tuffs and agglomerates occur extensively in the southwest and east of the country. Marble occurs extensively in Karamoja region.

Many granite prospects have been exploited for aggregates and still many new opportunities for investment exist like in dimension stone. Exploitation of granite into suitable products needs good infrastructure facilities and good market.

It is therefore in this essence that granite occurrences within 100 km from the centre of Kampala where infrastructure and marketing is simplified are highlighted for investment purposes.

Uses: Stone is used in various forms in construction – as aggregate, hardcore, as building blocks and wall cladding and the beautiful coloured rocks mostly granite, gnesiss, marble and gabbro are used in the dimension stone industry as decorative tiles and blocks.

Clays

Clay deposits suitable for the manufacture of bricks, tiles, pottery, etc. are widely distributed throughout Uganda. No detailed systematic investigation has been carried out throughout the country except around a few areas such as Kajjansi in Wakiso district; Bugungu near Jinja in Mukono district; Buteraniro in Mbarara district; Butende; Kasukengo in Masaka district; Malawa in Tororo district and Butema in Hoima district.

They are of variable quality, in terms of iron and quartz content and therefore show a highly variable reaction to firing. Careful and detailed investigation could show potential for better quality clays, including refractory material and china clay.

Samples collected from these prospects were analysed in the laboratories of the Geological Survey of Finland (GTK) for both physical and chemical properties.

They were found to be of variable quality, in terms of iron and quartz content and therefore show a highly variable reaction to firing.

Uses: Clay is a major raw material for various bricks and tiles in the building industry and pottery. High aluminous clays with low iron content are used in making refractory bricks for lining furnaces, in making porcelain and in fine ceramics such as china ware (plates, cups), sanitary ware (toilet pans, basins, etc.) and pipes.

Diatomite

Diatomite deposits are located at Panyango, Alui and Atar near Packwach in Nebbi district and also farther north on the Amboso River within the Rift Valley sediments. The diatomite occurs in horizons within clay beds and no detailed evaluation has been carried out.

The Packwach diatomite is very white and contains a large proportion of (> 60%) of diatoms in a kaolin matrix. It has a good potential for the commercial production of both high-grade diatomite and kaolin by hydro-cycloning or oil classification.

Uses: The main uses of diatomite are: as a filtering medium for beer and the food industry, as well as a carrier in insecticides.

Feldspar

Feldspar is commonly associated with pegmatites found in the Precambrian Basement. It occurs at Bulema in Kanungu district; Bugangari in Rukungiri district; Mutaka in Bushenyi district; Nyabakweri in Ntungamo district and Lunya in Mukono district.

About 10 tonnes of feldspar are reported to have been mined at Lunya during the 1940’s and exported to Kenya for porcelain manufacture. Currently, none of the mentioned prospects is producing feldspar although small quantities have been excavated from the Mutaka pegmatite from time to time.

Southwestern Uganda has many pegmatites and there is a probability that those which have not been heavily kaolinized contain recoverable quantities of feldspar.

Uses: Feldspar is used in ceramics as a flux and glaze, as well as in the glass industry in the melting process.

Glass/silica Sand

Glass is made by fusing silica with soda and lime to produce a transparent, colourless soda-lime silicate. Glass sands that form the main primary source of the silica need to be free of impurities such as iron oxides, alumina and heavy minerals.

Narrow beaches along the shores of Lake Victoria and some islands contain deposits of glass sand at several locations like Diimu and Bukakata in Masaka district; Lwera in Masaka district, Nalumuli Bay and Nyimu Bay and Kome Island in Mukono district.

The highest quality (99.95% SiO2) glass sands have been mined from Kome Islands in the past and exported to Kenya. At Diimu and Bukakata beaches, over 2 million tons of good quality sands (99.93% SiO2 and 0.05% Fe2O3) have been delineated. The East African Glass Works Ltd. mined and used glass sands from Bukakata for making glass in the 1960’s.

Uses: Silica sand is the main ingredient in making glass.

Gypsum: Gypsum (selenite) occurs as float and in clay beds with Rift Valley sediments near Kibuku in Bundibugyo distict. Resources have been estimated at 2 million tons of gypsum. There has been only limited artisan production to-date and all was sold to Hima Cement, but was stopped due to poor production methods. Gypsum also occurs at Lake Mburo in Kiruhura district and at Kanyatete in Lake George basin sediments, Kasese district.

Uses: Gypsum is mainly used in the cement industry as an additive (4% content) to retard the setting process while building; it is also used as Plaster of Paris in medical applications, and also in making molds.

Kaolin

Kaolin is associated with Tertiary lateritisation in a number of localities at Namasera, Migadde, Gombe and Buwambo in Wakiso district; Mutaka in Bushenyi district; Kisai (Koki) in Rakai district, Kilembe in Kasese district, Kibalya in Bushenyi district, Binoni, Mparangasi and Ngabinoni in Hoima district.

Mutaka kaolin is by far the best quality and can be up-graded to a product averaging 87% kaolinite with 54% of the particles less than 2 microns in size and having brightness (80% unfired; 87% fired).

Uses: It has potential use in paints, paper, pesticides and ceramics.

Limestone and Marble

Secondary limestones derived from lime leached from calcareous tufa and from carbonate springs occur around an ancient shoreline of Lake George. They vary in type from calcrete, tufa (lake derived limestone) and sinter . at Muhokya in Kasese district and Dura in Kamwenge district, to true limestone at Hima in Kasese district.

At Muhokya the tufa deposit is of a high quality but is small in size and discountinous; it is being mined for production of lime. At Dura, thick bands of almost pure aragonite occur in calcareous sinters in a narrow valley. The deposit has been partially eroded away and there is approximately 2 million tons.

The Hima limestones are far more extensive and a resource of 20 million tons of variable quality has been delineated. The deposit has a maximum thickness of 7.5 m and covers an area of approximately 500 hectares. Out of 20 million tons, 6 million is suitable for Portland cement manufacture.

Calcium carbonate occurs in carbonatite ring complexes at Sukulu and Tororo in Tororo district; Napak in Moroto district and Toror in Kotido district. They are variable in composition and may be high in phosphorous, due to associated apatite, and magnetite. Magnesium is variable and rises to >8% at Napak. Marbles, usually high in magnesia occur extensively in Moroto and Moyo districts. The marble has a range of shades from pure white, gray to a pink marble.

The major limestone deposits at Hima and Tororo have provided the major raw material for Uganda’s Portland cement industry. The old plant at Tororo set up in 1953 has been rehabilitated and expanded by Tororo Cement Industries Ltd to produce 1,000 tons of cement per day.

The company has adopted the international standard ISO 9002. The limestone at Tororo has high phosphorous content and hence cement is is manufactured after intensive selective mining. Production of cement is also based on clinker being imported from Japan and India.

The company is mining marble in Moroto district, with encouraging results at Katikekile,. Hima’s current production is 900 tons per day.

Uses: Limestone is used for making cement and lime both of which are important inputs in the construction industry. Lime is also used as soil conditioner in agriculture (to reduce soil acidity). The main use of marble is as a raw material for marble tiles, but if low in magnesia is also used in making Portland cement, and the white varieties are used to make calcium carbonate powder used in paint and detergents.

Phosphates

Apatite is the main commercial ore of phosphate known in Uganda. The most important occurrences are associated with carbonatites, the two largest being at Sukulu and Bukusu.

Weathering of the carbonatites has resulted in the residual concentration of apatite, magnetite, vermiculite, pyrochlore, barite, and zircon and rare earth elements.

The total resource in three valleys at Sukulu is estimated at over 230 million tons, with still further large resources under the laterite mantle. The apatite content is variable, averaging 13.1% P2O5 and can be beneficiated to yield a product containing 40-42% P2O5.

The deposit was mined by the Tororo Industrial Chemicals and Fertilizers Ltd. (TICAF). with a 25,000 tons/year single super-phosphate fertilizer plant at Tororo from 1964 to 1978.

Busumbu Ridge though a smaller deposit contains the richest concentration of phosphates in Bukusu. The bulk of the deposit consists of soft apatite-bearing soil, varying from 3 – 25% P2O5.

A resource of 8.5 million tons averaging 13% P2O5 has been established. Busumbu Mining Company commenced mining the deposit in 1944, with the concentrate exported to Kenya for conversion to a low priced fertilizer soda phosphate with high citric solubility.

It was not suitable to convert the resource to super-phosphate owing to its high alumina and iron contents and production ceased in 1963 when TICAF established their operation to manufacture commercial fertilizers from the soils of Sukulu.

Nilefos Limited, a local company, has acquired an Retention Licence for the Sukulu deposit. The company is seeking for joint venture partners to develop the mines and manufacture phosphate fertilizers and other by-products.

Uses: The major use of apatite is in making of fertilizers. Other uses include making of detergents and chemicals.

Salt

Salt includes salt for human and animal consumption as well as various salts for industrial uses. Salt has been extracted on a small-scale from hot springs at Kibiro in Hoima district and on a larger scale from the floor of crater lakes at Katwe (22 millions of mixed salt) and Kasenyi in Kasese district for many centuries.

The salt is a mixture of sodium and potassium chlorides with lesser amounts of sulphate and carbonates. The current method of production is based on solar evaporation in ponds and the product is crude due to mixing of the salts during fractionation and crystallization as well as with mud at the lake bottom.

Trona (sodium carbonate) occurs in the three areas, but on a larger scale at Katwe and Kasenyi. It is associated with mixed salts (sodium and potassium chlorides) and gypsum (calcium sulphate).

At Katwe there is a resource of approximately 10 million tons of trona with mixed salts.

Uses: Sodium chloride is for making of common salt for human consumption, and industrial chemicals; potassium chloride is used making of potassium-based fertilizers; trona is used in glass manufacturing.

Vermiculite

Vermiculite is known to occur at Sukulu in Tororo district and Bukusu carbonatite Complex in Mbale district. The main occurrence at Bukusu is on a 10 km long semi-circular ridge (Namekhara, Nakhupa, Surumbusa, Kabatola and Sikusi), where vermiculite flakes occur in residual concentrations (from the leaching of phlogopite in carbonatite) below a surface cover of 3-5 m magnetite rubble.

Apart from Namekhara, it is only Kabatola that contains appreciable quantities of vermiculite for exfoliation.

Recent exploration at Namekhara has delineated a resource of approximately 4 million tons of high quality vermiculite, which is probably one of the best known at present in the world. Gulf Resources (U) Ltd is currently mining and processing vermiculite with a planned output of 40,000 tons/year.

Previous mining and processing activities were carried out by NPK Resources Ltd, Carmin resources Ltd. of Canada and Rio Tinto of South Africa.

Uses: Vermiculite is used as an insulator, in making fireproof boards, as a replacement of asbestos in brake linings, packaging materials, and lightweight concrete in construction. The poorer grades of vermiculite are used in horticulture (flowers), tea nurseries and golf courses, due to its ability to retain water over long period.

Platinum Group Minerals

Potential exists for platinum group metals (platinum, palladium and rhodium) in layered intrusives in the Archaean greenstone belts and areas with ultrabasic rocks. The high platinum assays of the Nakiloro chromite are indicative of this potential.

Values as high as 3.0 – 7.5 grams per ton have been obtained on samples. The geology of the area is similar to the layered intrusives in South Africa, which have large deposits of platinum-group-metals (PGM).

Nickel (Co, Cu)

Potential exists for both primary volcanogenic massive Ni-Cu sulphide and secondary nickeliferous laterite deposits in/over ultramafics within Precambrian greenstone belts, and Lower-Middle Proterozoic sediments, but this has not been fully investigated.

An airborne geophysical survey carried out in 1980 over southern Uganda, and later followed by another similar survey of lower altitude and ground surveys identified magnetic bodies that are favourable for hosting nickel and cobalt in Kafunjo, Ntungamo district and Rugaga in Mbarara district, close to the border with Tanzania.

Similar bodies in the same geological environment in Kabanga, Tanzania have been found to contain nickel mineralization.

Diamond

Potential for diamond exists in a number of areas in Uganda. Discovery of the diamonds in gravels occurred during prospecting for gold in Buhweju and a few small diamonds were found at Kibale in 1938 and Butale in 1956.

Consequently, exploration for diamonds in the country was carried out in the period 1965-1974.

Although no economic deposits were discovered, small diamonds and indicator minerals were discovered in many areas like southern Karamoja region, and Katakwi district.

Cresta Mining Co. Ltd carried out exploration for diamonds in the basic volcanics of Kabale and Kisoro districts. Indicator minerals were identified and a follow-up work is recommended. Similarly, the basic volcanics in Bushenyi district are expected to have diamonds.

Rare Earth Elements

Good potential exists for small, irregular deposits of limited tonnage in pegmatites, but this has not been quantified. Potential exists for major deposits – the Sukulu carbonatite contains some rare earth elements, but this has not been fully investigated.

Other Mineral Opportunities

Uranium

IBI Corporation’s prospective uranium land portfolio is comprised of approximately 2,882 square kilometres, primarily in Uganda. Geophysical interpretation of data from the recent Uganda Aerial Minerals Survey of the country identified uranium mineralization on the Company’s uranium lands, with more than 30 uranium anomalies being identified within the area of the Company’s approximately 2,047 Km2 Mubende area exploration licenses.

With rising values of uranium, it is expected that anticipated demand for uranium for nuclear power generation will exceed projected supply for decades. Investors with technical and financial capability can work with IBI.

Kilembe Mines Ltd

Kilembe Mines Limited (KML) is still under care and maintenance. Government strategy to resume mining has since been divestiture of majority shareholding to private partner who will manage the Company. KML acquired two exploration licenses, surrounding the mining lease to explore and add unto the proven reserves in readying for the resumption of mining.

The divestiture of the Company is following set procedures in the divestiture of entities owned by Government of Uganda. As of current, the Transaction Advisor (J.T. Boyyd and PASS Ltd) are at the last stage of enterprise preparation so that implementation of the KML divestiture can begin so that potential companies can bid to acquire majority stake in the company.

A VIDEO SHOWING KILEMBE MINES

Factors which influenced the development of mining in Uganda

• Availability of large capital base to invest in the mining sector provided by the Ugandan government and foreign investors.
• Presence of a high level of skilled labour force in form of technicians, engineers and mineral explorers within Uganda and others imported from abroad.
• Presence of large semi-skilled labour supply especially from the densely populated areas. These provide support in sand, clay, stone quarrying, limestone and copper mining in different areas of mining in Uganda.
• Ready market for mineral products within Uganda like market of minerals such as sand, clay products, limestone (cement) and foreign market for gold, cobalt, vermiculite, copper, etc.
• Some minerals in Uganda such as limestone, sand, clay appear in large quantities and of high grade which becomes economical for their exploitation. This explains why there is prospering limestone mining in Tororo and Hima.
• Improved transport network of roads, water, air and mainly railway line which has helped to transport bulky copper and cobalt of Kilembe-Kasese, cement, etc.
• Some minerals in Uganda appear near the surface like limestone at Hima, stones in Kabale, clay and sand in Lweza-Wakiso, which has encouraged their exploitation since it becomes cheaper to mine them.
• The presence of a peaceful political climate since 2007 when the ADF and LRA were finally defeated. This has attracted foreign investor in the mining sector.

Factors hindering effective exploitation of mineral resource in Uganda

• Low levels of technology know-how which has led to limited research and exploration of mineral resource thus inadequate knowledge of mineral resources.
• Limited capital to invest in the mining industry since it requires a lot of capital for mineral extraction and paying of labourers.
• Shortage of skilled labour force required in the mining industry such as engineers, miners and other semi- skilled labour to support the industry is limited.
• Most of the mineral resources in Uganda appear in small quantities and are of low quality and this make them un-economical for mining.
• Most minerals like copper at Kilembe-Kasese are buried deep underground and it becomes expensive to extract them since it requires the use of tunnel or adit mining.
• The minerals in Uganda are located in remote and inaccessible areas, of seasonal roads like tin and iron ore in Kisoro, which makes their exploitation un-economical.
• Price fluctuations of mineral products on world market because most minerals are of low grade and this discourage their mining like copper in Kasese.
• Political instabilities of ADF and LRA which disturbed Uganda for a long time scared foreign investors in the mining industry. This also led to break down of infrastructure and drained government treasury thus low development of the mining industry.
• Minerals like gold in Mubende occur in small quantity such that it is un-economical to mine.
• Smuggling of minerals across boarders like gold which is usually smuggled to Kenya leading to loss of revenue.
• Un-healthy mining conditions due to fumes and poor ventilation with in mines like limestone at Hima. This affects workers in the mines leading to loss on lives.
• Hostile tribes like the Karamajong people who have limited exploitation of gold in the region.
• Corruption and embezzlement of funds by the government officials like as it was in Kilembe where copper pyrites were embezzled.
• Profit repartriation by foreign mining companies such as larfage of Hima cement and Kirembe mines thus low development.

Importance of the mining sector to Uganda’s development

• It has earned Uganda foreign exchange through exportation of minerals like copper by 2003/2004. The exchange earned has been used to for further development.
• The mining industry has provided employment opportunities to Ugandans. Today the industry is estimated to employ more than 15,000 people and by 1970s Kirembe copper mine were employing thousands of Bakiga and Bakonjo, thus earning income for better standards of living.
• Mining facilitates urbanization in Uganda, foristance Kasese, Kirembe and Katwe towns grew up as a result of copper and salt mining. Also Tororo and Hima towns from limestone mining and prospects of Masindi and Hoima to develop due to oil exploitation.
• The industry leads to development of important infrastructure of roads, railway, electricity, education and health facilities. Foristance Kirembe mines Secondary School in Kasese, Jinja-Kampala-Kasese railway line to transport copper, all these leads to further development of Uganda.
• Mining industry provides market to agricultural products of food to feed the workers in the mines; this explains why the mubuku irrigation scheme was set up in Kasese to produce constant food supply to workers in Kirembe mines.
• It has helped to diversify Uganda’s economy and has avoided over dependency on agricultural sector. This means there is increased foreign exchange, income and general development of the country.
• It has improved on Uganda’s international relationship with mineral importers such as China and USA. This has lead to political stabilities and encouraged international trade.
• The mining industry has fetched a lot of revenue to the government treasury through licenses given to mining companies and taxing miners. The revenue has been used to set up schools and health units.
• It has led to industrialization in Uganda with industries like Hima and Tororo cement industries which use limestone mineral.
• Mining has boosted the tourism sector through attracting foreign tourists for copper, iron ore, salt, etc thus earning Uganda foreign exchange.

Negative importance of mining in Uganda includes;

• Mineral extraction machines and process emit fumes which pollute the atmospheric air. This explains why Kasese, Hima and Tororo experience a dirty contaminated air.
• Mining disturbs the soil structure by digging it which destroy the land. Open cast pits normally encourage the occurrence of severe soil erosion as it is in Tororo.
• The soil erosion which has occurred due to mining activities has led to siltation of river valleys causing floods which has resulted into water borne diseases like bilharzias, typhoid and cholera.
• The open cast pits left behind and filled with water have become breeding grounds for dangerous pests like mosquitoes which cause malaria and this has been witnessed in Rukungiri gold mines.
• Clay and sand mining mainly in Kajjansi has reclaimed wetlands which has endangered animals which have their habitats in swampy areas.
• During the establishment of mines, large portions of forests have been cleared. It is estimated that Kirembe mines cleared a lot of forest cover on the foot of Mt. Rwenzoi.
• It has increased on population within the mining areas which has led to urbanization of such regions. However the population pressure in such areas has got negative effects like robbery and theft, slum growth and prostitution, increasing cost of living and yet there high rates of unemployment

Copper mining in Kilembe-Kasese

Copper mining in Uganda started by 1957 and reached its peak by 1965. However copper in Kirembe went on declining through years. Today the once Kirembe copper mines are turned into cobalt mines.

Factors that favoured cupper mining in Uganda

• Cupper existed in large quantities estimated at 12.7 million tones and of high grade i.e. 2.2% pure copper which made it economical to be mined.
• Availability of plenty of water supply for copper processing from rivers such as Mubuku, Nyamwamba, etc which originated from Mt. Rwenzori melting snow.
• Presence of cheap HEP supply generated from Owen falls dam in Jinja and this was supplemented on by Mubuku power station constructed on R. Mubuku which helped in mining activities.
• Availability of adequate capital provided by the Canadian Frobisher company and the UDC on behalf of the Ugandan government to invest in copper mining.
• The Canadian Frobisher company provided skilled personals as well as large supply of semi-skilled labour was recruited from Kigezi region to work in Kirembe mines.
• The presence of improved transport network based on Kasese-Kampala-Jinja railway and a tarmac road. It should be noted that the railway was extended to Kasese by 1966 to serve copper mines in Kirembe.
• Adequate supply of food supply to copper mines and this is because the area is an agriculturally rich referred to as the food basket for Uganda.
• Supportive government policy at the time of setting up of Kirembe copper mines. The government was looking forward to diversifying Uganda’s economy and avoids dependency on agricultural sector.

Problems facing Kirembe copper mines

• Limited capital and skilled labour force which forced Uganda to import capital and skilled labour and this later led to profit repatriation.
• There is a high rate of rotting and decaying of the physical infrastructure on the site at Kirembe due to complete copper mining. Also the flooding of R. Nyamwamba recently as led to destruction of important infrastructure.
• Price fluctuation for copper on the international market which discouraged further copper mining at Kirembe.
• There was a problem of increasing difficulties in the mining conditions which led to increased production cost and this was because recruiting cheap labour was no longer easy.
• There was copper ore exhaustion within the established areas of mining. This required more exploration for more copper reserves which was more costly.
• Copper ores constituted only 1.9% pure copper and the 98.1% was waste. This became un economical to continue with copper mining activities.