Kiboga — DEEP in the undulating sleepy hills of Wattuba village in Kiboga District, residents have woken up to the prospects of gold mine in their midst.

The government through the Geological Surveys and Mines Department has started exploration of gold deposits in Kiboga Districts, causing excitement among resident.

"We used to see some glittering stones; some of them looked like white chalk while others were just good looking stones," says Mr Mboizi Muzaaya, the sub county chief of Wattuba in Kiboga district said.

"There was also shining clay and something oily oozing from the ground. So I thought, can't we get some mafuta from here".

And now what began like a dream in the isolated district synonymous with land wrangles and evictions is slowly becoming reality.

Esta Industries Ltd, an exploration company, has been given an exploration licence to prospect for gold and base metals such nickel, copper and platinum group.

The company will conduct aerial surveys and pick test-samples in the three sub counties of Kibiga, Wattuba, and Ntwetwe. Esta is also engaged in mining activities in the Copper Belt region of the Democratic Republic of Congo (DRC).

Kiboga Assistant Chief Administrative Officer Samuel Mpiima confirmed that the exploration activities have started in the district.

Exploration

The Permanent Secretary Ministry of Energy Mr Kabagambe Kalisa said the exploration process in Kiboga is part of the government's nationwide exploration programme on sustainable mineral resources, which started last year (2006).

"We are surveying the entire country using airborne means so that we shall be able to detect where the mineral deposits are," Mr Kabagambe said.

He said programme intends among other things, to bring out mineral targets in the country, help small scale miners know the extent of mineral deposits and build capacity in the country. The mining act of 2003, brought in dealers in gold and other valuable minerals.

Esta Director Pravin Ghelani said the company will inject $2.5 million (Shs4.3 billion) for three years. Ghelani said the company has also paid ground rent of Shs4 million (Shs6.9 billion). The exploration, however, has been received with mixed feelings from the residents mainly because resident are not sure about what will happen to their land in an area known for land wrangles and evictions.

"It will be too bad if they come to excavate and don't give us a share," said Mr Herbert Kadogo, chairman LC 3 Wattuba.

"According to what the explorers say, there are indicators that we are likely to have potential deposits of gold, quartzet, uranium and good clay for porcelain," Mr Mpiima said. "In case we are successful, we shall go a head to the advanced stages of mining."

Once established, the royalties are to be shared between the government and the explorer, according to the Mining Act 2004.

According to Mr Mpiima said the government will take 80 per cent as consolidated fund, while 17 per cent and 3 per cent will go to the district and land owners who will be compensated respectively.

Interest in Uganda's mineral potential has increased substantially since the country made efforts to improve its mining and investment code.

Statistics show that revenues from mining increased by 48 per cent between 1995 and 1997.

In May 2004, the government announced plans to inject $42 million (Shs72.6 billion) in the restructuring and development of the mineral sector to double its mineral exports.