Presentation by Mr. Okedi, Government of Uganda.
Day 1 of the 6th ICGLR-OECD-UN GoE Forum on responsible mineral supply chains, 13 November 2013.
Visit: http://mneguidelines.oecd.org/icglr-oecd-un-forum-kigali-2013.htm
1. OECD-ICGLR-UN GOE FORUM ON RESPONSIBLE
MINERAL SUPPLY CHAINS
A PRESENTATION OF UGANDA’S INTERVENTIONS TO DATE ON THE
6TH ANNUAL MEETING 13-15 NOVEMBER 2013, KIGALI
Joseph P. Okedi
Ag. Principal Inspector of Mines/Member ICGLR Committee
Department of Geological Survey an Mines
MINISTRY OF ENERGY AND MINERAL DEVELOPMENT
UGANDA
2. Presentation Outline
Implementation of RCM and due diligence by
the private sector in Uganda
Monitoring of Gold Imports and Exports
Cross-border issues
Harmonization of standards, legal and fiscal
regimes
Roles that other gold trading hubs could play to
enable responsible sourcing.
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3. 1. Implementation of RCM and due
diligence by the private sector in Uganda
Background
Uganda currently has the following small to medium scale mine
sites for 3T and G. The sites include:
• For 3Ts – 15 mine sites (6 ML’s and 9 LL’s) mostly located in
the southwest region of the country
• For G - 17 mine sites either producing or under development
spread all over the country
Operations have since ceased from some sites as a result of lack of
market due to non compliance with the RCM requirements.
Following extensive meetings and discussions with mining
sector representatives and stakeholders, the policy and legal
framework of the sector is currently undergoing review for
amendment in alignment with regional standards, legal and fiscal
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regimes.
4. 1. Implementation of RCM and due
diligence by the private in Uganda
It is worth noting that Partnership Africa Canada (PAC), an
ICGLR counterpart has been instrumental in facilitating the fast
tracking of the implementation of RCM.
Current activities
• Harmonization of National Policies and Laws in lieu of
OECD-ICGLR guidelines
•
Formalisation of Artisanal and Small ScaleMining
•
Updating and validation of the National Database
•
Development of an ICGLR Regional Certificate of Origin for
Uganda.
•
Vetting proposals from service providers for mineral
traceability
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5. 1. Implementation of RCM and due
diligence by the private in Uganda
Due diligence
•
Mine sites namely, Mwerasandu Tin Mine, Nyamuliro
Wolfram Mine, Kikagati Tin Mine, and several small scale
mines have undergone initial inspection by ITRI and more
recently Geotraceability Limited.
•
No gold mine site has ever been inspected by any mineral
traceability service provider.
•
Todate traceability/chain of custody systems are not
operational in Uganda:
•
Certification of mineral exports through third-party audits or
otherwise to validate exports and certificates is done within
the framework of current Uganda legislation.
·
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6. 2. Monitoring of gold Imports and Exports
Gold and other mineral commodities are traded within the
provisions of the Mining Act, Mining Regulations and other
applicable laws of Uganda.
Traders are required to have a Mineral Dealers’ License or a
Mineral Right as individual or body corporate.
Imports
• Importation on condition of acquisition of import permit
which requires provision of proof of origin.
•
Proof of location and authenticity of business premises.
•
Evidence of compliance with legal and fiscal requirements of
country of origin.
•
Proof of quantity and grade.
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7. 2. Monitoring of gold Imports and Exports
Exports
• Exportation on condition of acquisition of export permit
under provisions of the law.
•
Provision of proof of origin.
•
Declaration of final destination.
•
Proof of location and authenticity of business premises.
•
Evidence of compliance with legal and fiscal requirements of
Uganda or country of origin.
•
Proof of quantity and grade.
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8. 3. Cross-border issues
•
Regional insecurity.
•
Cross-border smuggling.
•
Non-aligned policies, standards, laws and regulations.
•
Difficulty to authenticate the relevant documentation.
•
Informal gold production from artisanal mine sites.
•
Discrete mineral (gold) production and export databases.
•
Prevailing end market forces.
•
Lack of common testing and buying centers.
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9. 4. Harmonization of standards, legal and
fiscal regimes
•
Policy deliberations by a select committee (constituted mid2013) are ongoing to review current laws with the aim of fast
tracking the implementation
of the Regional Mineral
Certification Mechanisms and transparency initiatives
•
Implementation of the other tools
•
The fiscal review started in mid-2011 and to date a revised
fiscal framework is operational
•
Uganda is actively sourcing mineral traceability service
providers that have been vetted under the OECD-ICGLR
mineral traceability guidelines
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10. 5. Role that other gold trading hubs (e.g.
Dubai) could play to enable responsible
sourcing
•
Ensure traders show proof of aligned documentation
originating from the Great Lakes Region and consistent with
ICGLR-RCM guidelines.
•
Carry out periodic due diligence with member states on the
authenticity of the mineral traders, proof of origin of 3T and
G commodities.
•
Periodic reconciliation of volumes of trade from the different
states within the Great Lakes Region.
•
Require annual reports of compliance with the OECD-ICGLR
country specific guidelines from the traders.
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11. 6. Conclusion
•
Policy, and legislative reforms are envisioned to be complete
by financial year 2015/2016
•
The RCM implementation process is estimated to cost a
minimum of USD 700,000.
•
Concerted efforts from all major stakeholders will be required
to fast track the implementation of the RCM.
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