Halima Abdallah K.
2 November 2008
Nairobi — Fresh from getting a mining and prospecting license, Russia's Ugaruss Trading House Ltd is promising its initial operation by the end of November.
"We plan to start exporting tantalite, tin ore and other minerals from Uganda. We got the license and we are ready to start the job," executive director Antonenko Alexander said.
A commissioner in the Department of Geological Mines and Surveys, Watubwa Bwobi told The East-African they had issued two licenses to Ugaruss to start mining in the parts of Mbarara and areas near the Uganda-Tanzania border.
He added that the country had so far issued over 300 licences to prospectors and more would be dished out as new discoveries were made.
"We are still carrying out surveys in different parts of the country," Mr Watubwa said.
Tantalite, a naturally occurring but rare chemical element, is used in the production of electronics while its alloys are used in the making of surgical instruments, jet engines, nuclear reactors and missile parts.
Ugaruss officials said there is potential for these minerals in Uganda although they declined to reveal quantities and locations of the deposits claiming it would alert competitors.
The contribution of the mining sector to the national economy is still minimal. A 2006 report by the Ministry of Energy and Mineral Development shows that gold, vermiculite, diamonds, cobalt, wolfram tantalum, tin and beryl all combined were worth Ush176 million ($100,000) in exports. Imports of gold, gypsum, limestone, fluorspar and diamond totalled Ush160 million ($91,400).
Through the $18.5 million World Bank funded Mineral Sector Development Programme, the government hopes to raise the contribution of the sector to the economic and social development of the country, with oil taking the lead.
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