If Uganda enforces this no export of non-refined feedstock what might this mean for Ionic RE intentions for its RE product? How much refining/processing might Uganda require of Ionic to enable the export? What will ionics costs be and where is this financing coming from as it seems doubtful based on the article that Uganda has the money to invest in mine support.
Uganda: What Awaits Uganda’s Mining Sector in 2024
Uganda is finally putting in place measures to tap into…
Uganda is finally putting in place measures to tap into the global demand for critical minerals, which are needed for the smooth transition from fossil fuels to clean energy technologies.
For more than three decades, private sector investments in Uganda’s mining sector have been low. The reasons have varied from the unavailability of strong data about the potential of the country’s geological system; the absence of a mining major company to attract more investments in the country; to poor infrastructure to support the mining sector.
There has been positive change. The biggest part of Uganda’s geological system has been mapped. While Uganda is yet to attract a major mining company, recent discoveries have raised the profile of the country. And the infrastructure – both the transport network and electricity generation – have improved significantly around the mining areas.
The global wave of demand for critical minerals such as cobalt, lithium, etc, which are needed in the manufacturing of electric batteries, is something that has the potential of transforming Uganda’s mining outlook.
As such, Uganda’s mining prospects are looking positive based on the global demand for critical minerals. Although there are some risks that investors will have to contend with.
STATE MINING COMPANY
Uganda will test some sections of its new mining law in 2024, especially with the creation of the national mining company. The set-up of this company, especially whoever heads it, is expected to be one of the big talking points in the sector.
The national mining company – modelled around the Uganda National Oil Company – will hold the country’s financial interests in the mining sector. The law allows the state mining company to take up to 15 per cent shareholding in a mining project. This provision has jolted prospective investors, and many will look at it as a risk to any mining venture they intend to enter.
However, Uganda’s state mining company is not expected to enter into any joint venture this year as most of the mining projects are at the risky exploration stage. Such a joint venture could come into play in the medium to long term as some exploration in the country matures to the development stage.
In the short term, however, the one critical question that government will grapple with is how to finance the state mining company. Already, the government is dealing with high debt levels amidst insufficient tax revenues.
VALUE ADDITION
The global energy transition, which calls for the exploration of critical minerals, has reinforced government’s resolve to promote value addition within its mining sector. A ban on the exportation of raw minerals has slowed down investments in some parts of the mining sector, with investors arguing that the high costs of production – such as expensive electricity and the absence of a local lucrative market for finished products – make it hard for them to invest heavily in refining minerals.
https://skillings.net/uganda-what-awaits-ugandas-mining-sector-in-2024/
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