Cabinet has approved the Mining and Mineral Bill 2020, Sarah Opendi,the minister of state for Energy and Mineral Development said on Wednesday.
She said the new bill will effectively replace the Mining and Mineral Policy of 2018.
She said the law was necessary because the government needed to reform and strengthen the legal, regulatory and institutional frameworks to cater for emerging issues arising in the minerals sub sector which include; mineral traceability, certification, value addition, mineral revenue management and the formalization of Artisanal and Small Scale Miners.
Opendi said currently, the sub sector's contribution to the national economy stands at a dismal 1.4% despite its huge potential.
"A new legal and regulatory framework will therefore unlock the potential of the mineral sub sector to spur economic development and transformation of Uganda,"she said.
She explained that the new mining Bill will address the inconsistencies therein, fill in the gaps identified in the Mining Act, 2003 and also the need 'for Uganda to be compliant with the new and emerging trends in the global mining industry.
In line with Vision 2040, Opendi said the new bill will seek to develop the mining sector that can catalyse agriculture as well as broad based growth and development of the down-stream linkages into value addition and manufacturing.
"The up-stream linkages will spur mining capital goods, consumables and services industries while the side-stream linkages will mainly enhance infrastructure such as power, logistics, communications, water, skills and technology development,"she said.
