Uganda: President's Mineral Export Ban Threatens Thousands of Livelihoods, Tin Processing Plant

4 September 2023

A ban imposed by President Yoweri Museveni on the export of unrefined minerals threatens to end a once-thriving tin processing plant, putting the livelihoods of thousands at risk.

The plant, previously employing over 5000 locals, including small-scale artisanal miners, now lies idle in the bush and may require over 3 billion shillings to restore to working condition.

In February 2015, President Museveni instituted a moratorium on the export of iron ore and other minerals, ostensibly as a temporary measure.

However, the ban's long-term consequences have taken a heavy toll on artisanal miners, local communities, and mineral processors alike.

One stark example of the ban's impact is Katanga Hill, located in Kikagate Sub County in Isingiro district, renowned for its tin deposits. Prior to the ban, this area buzzed with mining activities, but the once-vibrant landscape has since transformed.

Umar Musana, Artisanal Operations Manager at African Panther Resources, lamented the ban's impact, saying,

"The ban didn't only affect the locals who had prioritized tin mining for survival but also this 7 billion tin processing plant formerly owned by African Panther Resources. All the machines are lying idle in the bush."

The consequences of the plant's closure extend beyond economic hardship. The plant had also served as a source of water for the community, pumping water from River Kagera.

Now, locals, including young children, are forced to trek long distances to fetch water directly from the perilous river, endangering their lives.

African Panther Resources had previously entered into a Memorandum of Understanding with Wood Cross Capital to repair and revive the machines.

The tin smelting plant, situated in Ruti, a suburb of Mbarara city, was expected to add value to tin production, estimated to yield over 3 tons of tin annually.

It offered hope that once operational, artisanal miners could return to work and secure their livelihoods.

Mehdi Ali, Managing Partner at Wood Cross Capital, expressed optimism, stating,

"All the smelted tin shall be exported and is expected to generate an export revenue of over 8 billion shillings annually."

As the ban continues to impact the tin industry, local communities, and processors, there is growing urgency to find a solution and restore the once-thriving sector to its former glory.

AllAfrica publishes around 600 reports a day from more than 100 news organizations and over 500 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.