A Comparative Analysis of Medium-Scale and Large-Scale Mining Licenses Under

Uganda’s Mining and Minerals Act (2022) and Malawi’s Mines and Minerals Act (2023)

INTRODUCTION

In Uganda, mining sector is a key driver of economic growth, with its vast mineral deposits
which offers opportunities for both local and international investors. To regulate mineral
exploration and exploitation, the Ugandan Government enacted the Mining and Minerals Act
2022 which introduces a structured framework for licensing and mineral resource
governance.

Uganda’s Mining and Minerals Act, 2022 establishes a legal framework for mineral resource
management by vesting mineral ownership in the State on behalf of the people. The Act
regulates all mining activities, requiring individuals and companies to obtain appropriate
licenses, leases, or permits before engaging in mineral exploration or extraction. Similarly,
Malawi’s Mines and Minerals Act, 2023 provides a structured approach to licensing and
regulating mineral operations within its jurisdiction. This discussion seeks to explore the
medium-scale and large-scale mining licenses issued under Uganda’s Mining and Minerals
Act, 2022, comparing and contrasting them with those under Malawi’s Mines and Minerals
Act, 2023 to highlight key similarities and differences in their regulatory frameworks.

1. Medium-Scale Mining Licenses

1.1 Medium-Scale Mining License in Uganda

Uganda’s medium-scale mining license is intended for mining operations that exceed small-
scale mining thresholds but do not qualify as large-scale operations. This license is regulated
under Sections 71-82 of the Mining and Minerals Act, 2022.

Eligibility and Requirements:

 The application for a medium scale license under subsection (1) shall be made to the
Minister in a manner prescribed by regulations , accompanied with a prescribed fee.
  The application shall state the full name of the applicant and, in the case of a
partnership, the full name and nationality of each person; and in the case of a body
corporate, the registered name of the body corporate and particulars of its
shareholders, if any.
 Identify and state the target mineral and area in respect of which license is applied
for.

 Issued only to a joint venture or partnership registered in accordance with the

Partnership Act, 2010 comprising of Ugandan citizens and foreigners as such,
individuals and associations are not eligible. This is according to section 72(b)

 Applicants must demonstrate financial and technical capacity to undertake mining

operations whereby the application is accompanied by a statement of particulars of the
nature of the mining operations proposed to be carried out, the capital and experience
available to the applicant to conduct mining operations of the mineral efficiently and
effectively.
 The applicant must conduct an Environmental and Social Impact Assessment (ESIA)
before approval.This means the application shall be be accompanied by a statement
giving particulars of the programme of proposed mining operations, including a
statement of the likely effects of the proposed mining operations on the environment
and on the local population and proposals for mitigation and compensation measures;
 The applicant shall show a written proof that he obtained surface rights from the
registered owner,customary owner of Bonafide occupant of the area as according to
section 74(4).

 According to section 77(1&2), the maximum license area is 50 square kilometers

which must be located entirely within the area for the exploration license or retention
license belonging to the same holder.
 The license is granted for a maximum of 10 years, renewable for 7-year periods.
 Holders must employ a mines manager, maintain records, and report monthly to the
Mining Cadastre Department as according to section 80(g).

Rights and Obligations:

Rights
  Exclusive right to enter the mining license area subject to the act and license
conditions
 Right to remove and dispose of the mineral in respect of which the license was issued.

Obligations

 Mandatory community engagement and local employment.

 Adherence to health, safety, and environmental protection regulations such as
rehabilitation,reclamation and restoration of mined out areas.
 Adherence to any directives relating to exploration and extraction operations given by
the minister

Persons who cannot be granted the license

According to section 73(2),a medium license shall not be granted to a corporate which is
not registered and incorporated under the Companies Act,2022 or any other written law

 which is in liquidation other than that that forms part of a scheme for the
reconstruction or amalgamation of such body corporate.
 which has any shareholder who is an un-discharged bankrupt, having been adjudged
or otherwise declared bankrupt under any written law, or enters into any arrangement
or scheme of composition with creditors; or has been convicted of an offence
involving fraud or dishonesty.

The Granting process of the medium-scale license according to section 75.

(1) When a medium-scale mining licence application under section 74 is received, the
Mining Cadastre Department reviews it and recommends to the Minister whether to
approve or deny it.
(2) After receiving the Mining Cadastre Department's recommendations under paragraph
(1), the Minister may grant or deny the according to the meeting of the terms and
conditions. Incase of denial, a prior notice is given to the applicant informing them on
the grounds which needs to be checked.

1.2 Medium-Scale Mining License in Malawi

Under Malawi’s Mines and Minerals Act, 2023, a Medium-Scale Mining License (MSML)
shares many features with Uganda’s but has key distinctions:

Eligibility and Requirements:

 Open to both individuals and companies, unlike Uganda’s restriction to corporations.

 Requires environmental impact assessments (EIAs) and compliance with community
development obligations.
 The maximum area for a medium-scale mining license varies but is generally smaller
than Uganda’s 50 km² limit.
 The license duration is 5 years, with the possibility of renewal.

Comparison:

Feature Uganda (2022) Malawi (2023)

Eligibility Companies/partnerships only Individuals & companies
License Area Max. 50 km² Varies (usually smaller)
Duration 10 years, renewable for 7 years 5 years, renewable
Environmental
ESIA required EIA required
Requirement
Must obtain landowner
Surface Rights Must obtain landowner consent
consent

2. Large-Scale Mining Licenses

2.1 Large-Scale Mining License in Uganda

Uganda’s large-scale mining license is the highest category, issued for major industrial
mining operations with significant capital investment. It is governed under Sections 59-70 of
the Mining and Minerals Act, 2022.

Application process for large scale mining license.

A. Legal and Administrative Documentation

 A valid exploration or retention license.
 Proof of tax and fee payments.
 Company details, including incorporation documents, board resolution, and
shareholder information (5% or more ownership).
 Company profile and mining history in Uganda or other jurisdictions.

B. Mining Project Details

 Duration of license requested, based on a feasibility study.

 List of minerals to be mined.
 Geographical map of the mining area.
 Mining supervisor’s name and qualifications.
 Mineral deposit details, including reserves and mining conditions following
international standards.

C. Infrastructure and Environmental Compliance

 Infrastructure requirements for the project.

 A mandatory Environmental and Social Impact Assessment (ESIA).
 A feasibility study assessing mineral recovery prospects and economic viability.
 Records of consultations with affected communities and landowners.

D. Local Economic and Social Contributions

 Plan for procuring goods and services from Uganda.

 Commitment to local employment, training, and technology transfer.
 Proposals for insurance, health coverage, and worker compensation.
 Plan for value addition and mineral processing.

E. Financial and Operational Capacity

 Marketing strategy for selling minerals.

 Evidence of financial and technical resources to sustain operations.
 Co-existence plan with landowners and affected communities.
 A business plan detailing capital investment, costs, revenues, and financing structure.
 F. Mining Operations Plan

 Expected break-even period and production capacity.

 Plan for progressive land rehabilitation and mine closure.
 Restitution of land rights after mine closure.

Content of the license

 Date of issuance and the validity period.

 Type of mineral covered by the license.
 Geographical description, including maps and plans of the licensed area.
 Conditions and restrictions under which the license is granted.
 Commitment to hiring and training Ugandan citizens.
 Plan for procuring goods and services from within Uganda.
 Restrictions or conditions regarding land rights of registered owners, customary
owners, lawful occupants, or Bonafide occupants.
 Requirements for value addition, processing, and the sale or disposal of minerals.

Eligibility and Requirements:

 Only registered companies can apply.

 Requires a detailed mining development plan and proof of technical and financial
capability.
 Conducting an Environmental and Social Impact Assessment (ESIA) is mandatory.
 The maximum license area depends on the mineral deposit size.
 The license is granted for a maximum of 25 years, renewable for 15-year periods.

Rights of a License Holder (Section 68)

A holder of a Large-Scale Mining License has the exclusive right to conduct mining
operations within their designated area. These rights include:

 Mining and processing minerals on and under the licensed area.

 Constructing and operating facilities such as machinery, buildings, and storage for
mineral processing
 Selling or disposing of minerals in accordance with the law
  Managing waste disposal following the National Environment Act, 2019, and best
industry practices.

Obligations of a License Holder (Section 69)

The holder must:

 Develop and operate the mine as per the approved development plan
 Commence production by the agreed date in the development plan
 Mark and maintain boundaries of the mining area as per regulations
 Maintain a registered address in Uganda for official communications
 Compensate landowners for surface rights in the licensed area
 Pay surface area fees in three-year intervals as required before the license grant
 Comply with environmental and social impact assessment (ESIA) requirements
 Obtain a financial guarantee in line with the National Environment Act, 2019
 Engage with affected communities, including signing community agreements
 Carry out land rehabilitation and mine closure as per the decommissioning plan

Reporting and Record-Keeping (Section 69(2))

 Maintain monthly reports on mining operations, geological surveys, and sample

analyses
 Keep financial records and books of accounts, and allow government inspections (
 Submit audited annual financial reports within 90 days after the financial year ends

Large-Scale Mining License in Malawi

Malawi’s Large-Scale Mining License (LSML) follows a similar approach but has notable
differences:

Eligibility and Requirements:

 Open to both companies and partnerships (individuals are ineligible).

 Requires environmental impact assessments (EIAs) and community development
agreements.
 The maximum mining area varies depending on the mineral type.
 The license duration is up to 25 years, renewable for 15 years.

Comparison:
Feature Uganda (2022) Malawi (2023)
Eligibility Companies only Companies & partnerships
License Area Based on deposit size Based on deposit size
25 years, renewable for 15
Duration 25 years, renewable for 15 years
years
Environmental
ESIA required EIA required
Requirement
Government Uganda Mining Company Malawi Mining Investment
Participation may take equity Company may take equity

3. Key Similarities and Differences

Similarities

 Both Acts require licensing for mining activities, emphasizing environmental and
social impact assessments.
 License durations are similar, with large-scale licenses lasting up to 25 years and
medium-scale licenses between 5-10 years.
 Both countries require surface rights agreements, ensuring that mining companies
engage with landowners before operations.
 Government participation in mining is encouraged in both frameworks through state-
owned mining corporations.

Differences

 Eligibility: Uganda limits medium-scale mining licenses to companies and

partnerships, while Malawi allows individuals to apply.
 License Areas: Uganda specifies maximum license areas, whereas Malawi's approach
varies depending on the mineral deposit.
 Government Oversight: Uganda’s Mining Cadastre Department plays a central role in
license administration, whereas Malawi’s Mining Investment Company has broader
involvement in state partnerships.
 Renewal Terms: Medium-scale licenses in Uganda have longer renewal periods (7
years) than Malawi’s (5 years).
4. CONCLUSION

Uganda’s Mining and Minerals Act, 2022 and Malawi’s Mines and Minerals Act, 2023 both
provide structured frameworks for licensing medium and large-scale mining operations.
While their objectives align in ensuring sustainable mining, environmental protection, and
community engagement, they differ in terms of eligibility criteria, license areas, and
government involvement.

Uganda’s system is stricter in terms of eligibility for medium-scale mining, favoring

corporate applicants. Meanwhile, Malawi allows individuals to apply, making it more
accessible to local miners. Despite these differences, both Acts aim to promote responsible
mining while balancing economic growth and environmental sustainability.

By analyzing these frameworks, investors and stakeholders can better navigate the legal and
operational landscape of mining in Uganda and Malawi, ensuring compliance with national
policies and maximizing the benefits of mineral resource exploitation.

REFERENCES

Government of Uganda (2022). The Mining and Minerals Act, 2022.

Government of Malawi (2023). The Mines and Minerals Act, 2023