link http://cinsellikteperformans.com/templates/yoo_sync/warp/systems/joomla/layouts/com_contact/contact/default_form.php geneva;”>The ministry will further investigate the issuance of illegal licenses that tended to end in the hands of speculators who lack financial and monetary abilities to deliver.
The move follows government’s recent suspension of issuance of new licenses to mining companies and putting on notice those with non-performing ones following revelations that a number of them were handed out irregularly.
Under the existing Mining Act 2003, licenses were being handed over on the basis of first-come-first-serve.
According to State Minister for Energy, Hon Peter Lokeris, this was doing a disservice to the industry.
While addressing press at Serena hotel on Wednesday Lokeris noted that the basis of first come first served implied that even if a company had no capacity or confidence but showed up first, it would still obtain a licence.
“We now realize this is not good and most of the licenses given out under this arrangement are more or less a waste of time,” he said
Lokeris added that “In the amendment of this law we intend to base the entire licensing process on competitive bidding where all infrastructural and financial capabilities are reviewed and verified before a company is shown green light.”
The Minister on the other hand highlighted the improving environment in the mineral-rich Karamoja area in terms of security and called upon companies to throng the area and start up mining businesses therein.
He revealed that earlier on while government was still effecting the disarmament program in the region, the ministry restrained from flying helicopters there to scan mineral locations for fear of being shot down by ‘mad armed locals’
The helicopters usually fly at a very low altitude and we could not take any chances or our men could be shot down by the wrestlers,” he said
“The situation, however, has now normalized and more genuine companies have already applied and obtained licenses such as Tororo cement which is getting most of its lime from the region.”
The minster was attending the first ever Uganda Mining, Energy, Oil and Gas Conference and Exhibition at Serena Hotel in which various local, regional an international companies specializing in the mining sector exhibited their products and expertise in the industry.
One of the exhibitors from south Africa, Rooke Frank of the Oman Cables industry called upon Ugandans to engage collectively in developing the new oil industry and make full use of all the emerging business partners coming in.
“Our activities should not be seen only from a sales perspective alone but also from a business partnership perspective. Ugandans should come and visit our factories see the level of expertise we have and also bring questions and let us find lasting solutions to them collectively.”