Secrets of Karamoja minerals

Fake investors and effects of government delaying survey of mineral-rich region

Kampala, Uganda | RONALD MUSOKE | Big money is coming into Uganda from mining activity in various parts of the country and more could come in, especially if Karamoja which is considered “the basket of Uganda’s minerals” is surveyed. That was a main conclusion from the recent 6th Mineral Wealth Conference in Kampala.

Held between Oct.4 and 5, the annual fixture hosted many delegates looking to invest in Uganda’s mining sector. But there appears to be one major obstacle – a clear lack of information; especially about Karamoja.

As the investors interacted with Uganda’s key policy and decision makers, business leaders, bankers, academics, many of them showed interest in Karamoja which is considered to have vast quantities of minerals.

The delegates, from Kenya, Rwanda, South Africa, West Africa, the USA, Canada, China, the United Kingdom, Australia, Brazil, Belgium, and the African Minerals Development Centre (AMDC), listened intently as Edwards Katto, the Director of the Directorate of Geological Survey and Mines, described ongoing developments in Uganda’s mining sector.

He described how Uganda has copper, cobalt, tungsten, beryllium, columbite, tantalite, gold, lead and zinc ores, lithium, tin, iron ores, platinum group of metals, uranium, and rare earth elements.

Then he spoke of abundant industrial mineral and non-metallic resources; including marble, limestone, phosphates, vermiculite, kaolin, bentonite, diatomite, gypsum, glass sands, salts, feldspar, quartz, pozzolana, dimension stones and gemstones.

But then Katto punctured the excitement among the investors with one simple conclusion; that the minerals are in “unspecified quantities”.

The lack of clear information; especially about Karamoja, was a dark ring around discussions and many potential investors spoke openly about their frustration about it.

Some investors, like Alain Goetz, the Chief Executive Officer of Africa Gold Refinery Ltd, said he is already feeling the pain of investing without clear data on resource reserves. He said he is struggling to source gold to feed his firm in Entebbe.

“They keep telling us we are sitting on a gold mine but we need to know how much and where exactly these minerals are,” said Rao Srinivas Kulkarni, a senior Geologist of KNM Combines Ltd, a medium-sized mining company in Rwanda.

He told The Independent that for prospective miners, it is important to have historical maps and updated data reports showing where most of these minerals are.

If these are in place, he said, it becomes easier for him to apply for an exploration license or even a mining lease and know he is investing his money appropriately.

“If this information is available, we will definitely come here in Uganda,” he said.

Rao told The Independent on Oct.5 that his knowledge on mining in the Great Lakes region spans a period of about 15 years and he plans to venture into Uganda to explore and mine the 3Ts—tin, tungsten and tantalite and other precious minerals.

“We want to set up a company in Uganda dealing in the 3Ts, gold, cobalt, lithium or even iron and steel,” he said, “So far, we want to know how much of these minerals exist in the country.”

The Ugandan officials offered some data but it was not enough.

Edwards Katto said, for example, that Karamoja has over 300 million tonnes of limestone and described how it is transforming the cement industry in Uganda.

Until recently, he said, the previous confirmed limestone deposits were just 30 million tonnes in Hima, Tororo, and Dura.

He said more players have shown a willingness to invest in Uganda’s cement industry because of the new large Karamoja deposits.

The same could happen with other minerals that Karamoja is considered to have in vast quantities. Talk of gold, copper, platinum, and lead. It also has limestone, uranium, marble, graphite, gypsum, iron ore, wolfram, nickel, copper, cobalt, lithium and tin.