Surface rights means the exclusive right to use land, or the surface of the land, or a right of entry onto land required by the holder of a mineral right or licence for the purpose of carrying out mineral operations. A holder of a mineral right must acquire written consent of the owner of a surface right in order to carry out mining activities on the land.

Owners of surface rights include the registered owner, customary owner, lawful or bonafide occupant, or the duly authorised agent of such persons. A holder of a mineral right may acquire a lease or other right like tenancy, licence etc for the period of the licence from the owner and may agree with other persons having an interest on the land. Where the mining activities are significant to government, the land may be acquired compulsorily through a process of compulsory land acquisition in accordance with the law.

Where a holder of a mineral right and the registered owner, customary owner, lawful occupant or bonafide occupant fail to agree on the issue of value of the land, the parties may utilise the service of the Chief Government Valuer to assess and recommend an award of compensation to the registered owner, customary owner, lawful occupant or bonafide occupant of the land or refer the matter to be determined through arbitration within thirty days from the date the matter is submitted for arbitration. Matters concerning non payment of compensation or value of the land are required to be referred to arbitration.

In assessing any rent payable, an arbitrator must determine the rent in relation to values, at the time of arbitration, current in the area in which the mining licence is situated, for land of a similar nature, but without taking into account any enhanced value due to the presence of minerals. A land owner may opt for compensation or a share in the royalties under The Mining and Minerals Act 2022.

Surface rights and surface rights owners

The table below shows the surface rights owners and requirements.

A holder of a mineral right must not at any time, in the exercise of the rights  interfere with or perform any act which may interfere with the exercise of any right of passageway in the area covered by such mineral right or perform any act which may damage or tend to damage any passageway, without first obtaining the consent in writing of the holder of the right of passageway; except that in the case of customary public rights of passageway, or where the holder of the right of passageway cannot be found by the person requiring his or her consent, the consent of the Chief Administrative Officer of the district concerned shall be deemed sufficient consent.

However, the holder of a mineral right may  divert any public path within the area of his or her licence, where the diversion is made entirely within the area held by him or her and is aligned and maintained to the satisfaction of the Chief Administrative Officer of the district concerned; and on conclusion of the exploration or mining operations, the affected public path is restored to the condition in which it was before the interference.

Rights in water and wet land are vested in government by applicable laws and a holder of a mineral right utilising any of such resources must do so in accordance with regulations regarding the above resources.

Mineral beneficiation is the process by which valuable constituents of an ore are concentrated by means of a physical separation process and includes processing, smelting, refining, cutting, blasting or polishing of minerals.

A person shall not process, smelt, refine, cut, blast, polish or trade in minerals or possess commercial quantities of minerals without a licence for that purpose.  “Commercial quantities of minerals” means quantities of minerals that are sold or are destined for sale by an individual or entity to a third party for use in processing, smelting, refining, cutting, blasting, polishing or trading.

Thus, quantities of minerals intended for personal or domestic use are excluded from the definition of commercial quantities of minerals.

Therefore, a person intending to take part in mineral beneficiation is required to acquire a licence from the minister for that purpose and may acquire a licence for integrated projects to process, smelt, refine, cut, blast, polish and trade minerals or a licence for a combination of two or more of these projects or may also acquire an independent licence for processing, smelting, refining, cutting, blasting, polishing of minerals or trade in minerals.

Persons who are eligible to apply for a mineral beneficiation licence include an individual who is at least eighteen years of age; and who is a citizen of Uganda and whose principal residence is in Uganda; or an entity registered or incorporated under the Companies Act,2012 or any other written law.

However, a holder of a large scale mining licence, medium scale mining licence, small scale mining licence or an artisanal mining licence is not required to obtain a separate licence for beneficiation. Mineral beneficiation licences include Mineral processing licence, mineral smelting licence and mineral refining licence.

• Mineral processing licence

An application for a mineral processing licence is made to the Minister containing information pertaining to among others the legal status of the applicant including, where a corporate body, the memorandum and articles of association, certificate of incorporation, registered address, and relevant board resolution; the type of mineral to be processed; proof of financial capacity and technical competence of the applicant; proof of availability of appropriate technology; a plan for the processing facility; a certificate of approval of environmental and social impact assessment issued under the National Environment Act, 2019; a statement of the applicant’s knowledge and experience in minerals processing;  an environment management plan; a waste management plan in accordance with the National Environment Act, 2019; a compensation, relocation and resettlement plan, where there will be land acquisition for setting up a processing or smelting plant and displacement of persons; a statement of the applicant’s knowledge and experience in mineral processing; proof of surface rights; tax clearance from the Uganda Revenue Authority; and  proof of payment of prescribed fee.

The applicant should also be able to prove that he is in possession of or commands sufficient working capital to conduct his or her business satisfactorily.

• Mineral smelting licence

An application for a mineral smelting licence is also made to the Minister containing the legal status of the applicant including, where the applicant is a corporate body, the memorandum and articles of association, certificate of incorporation, registered address, and relevant board resolution; a plan and layout of the mineral smelting facility; proof of appropriate technology; proof of financial capacity and technical competence of the applicant; an environment management plan; a certificate of approval of environmental and social assessment issued under the National Environment Act, 2019; a waste management plan in accordance with the National Environment Act, 2019; a compensation, relocation and resettlement plan, where there shall be land acquisition for setting up a smelting plant and displacement of persons;  a statement of the applicant’s knowledge and experience in mineral smelting; proof of compliance with the requirements of the National Environment Act, 2019; proof of surface rights; tax clearance from the Uganda Revenue Authority; and proof of payment of prescribed fees. A mineral smelting licence  is issued for a period not exceeding fifteen years and the holder of the licence may apply for renewal for a further period of ten years at a time.

A holder of a mineral smelting licence has the right to carry on mineral smelting operations in the specified area; acquire, dispose or possess the minerals specified in the licence and carry on business as a mineral dealer licence holder; export minerals specified in the licence; and erect the necessary equipment, plant and infrastructure for  the purposes of operations and the transporting, dressing or treating of the minerals in his or her possession.

A holder of a mineral smelting licence is required to meet the local content requirements and must thus employ and train citizens of Uganda and implement succession plans for expatriate employees; give priority to the procurement of goods and services available in Uganda; and submit to the Minister for approval a plan for the procurement of goods and services available in Uganda.

• Mineral refining licence

An application for a mineral refining licence is made to the Minister accompanied by proof of the legal status of the applicant including, in the case of a corporate body, the memorandum and articles of association, certificate of incorporation, registered address, and relevant company resolution; a plan and plant layout for the mineral refining facility; proof of appropriate mineral refining technology; proof of financial capacity of the applicant; organisational structure and staffing levels that includes the employment of an expert in mineral refining; an environment management plan in accordance with the National Environment Act, 2019 which shall include a waste management plan;  a certificate of approval of environmental and social impact assessment issued under the National Environment Act, 2019; a compensation, relocation and resettlement plan, where there will be land acquisition for setting up a mineral refinery plant and displacement of persons; a statement of the applicant’s technical competence, knowledge and experience in minerals refining; proof of tenancy or ownership of the mineral refining facility; tax clearance from the Uganda Revenue Authority;  and proof of payment of prescribed fees.

An applicant for a mineral refining licence must  demonstrate technical capacity to operate a mineral refinery facility including having at least five years experience in the operation of a mineral refining plant or an agreement with technology provider to install, test and commission a refining plant and train technicians to operate the mineral refining plant. A mineral refining licence  is issued for a period not exceeding fifteen years, renewable for a further period of ten years at a time on application by the holder of the licence.

A holder of a mineral refining licence must not use a mineral refining facility for which a licence has been granted, for refining of any other mineral other than the mineral authorised by the licence, except with the approval of the Minister. Contravention of the above is an offence and on conviction punishable by a fine not exceeding one hundred thousand currency points or imprisonment not exceeding ten years, or both. Additionally, a person who modifies technology with an intention of accruing benefits to him or her or intentionally stockpiles other accessory minerals without notifying the Minister in writing, commits an offence and is liable, on conviction, to a fine not exceeding one hundred thousand currency points or imprisonment not exceeding ten years, or both.

A holder of a mineral refining licence has the right to carry on mineral refining operations in accordance with  the conditions of the licence; acquire, dispose of or possess the minerals specified in the licence; and erect the necessary equipment, plant and infrastructure for the purposes of mineral refining operations and the transporting, dressing or treating of the minerals in his or her possession. A holder of a mineral refining licence however has the obligation to employ and train citizens of Uganda and implement succession plans for expatriate employees; and to give priority to the procurement of goods and services available in Uganda among others.

In respect to mineral beneficiation licences generally, a holder of such licence must not transfer, lease, enter into any agreement for amalgamation of licence or create a mortgage on his or her licence or works or any other interest in the licence without written approval of the minister. This applies to direct transfer and any other indirect transfer including assignment of shareholding, and other ownership of shares which may provide decisive control of the person possessing a participating interest in a licence. A holder of any of these licences must carry out operations in a proper and safe manner in accordance with the conditions of the licence and best industry practices, and also ensure that the facility is being used for the purpose for which the licence has been granted and must therefore not engage in processing, smelting or refining any other mineral other than the mineral for which the licence is granted. Non compliance may lead to the minister issuing notice to the licence holder to cease operations and may suspend or cancel the licence. A holder of the above licences may also surrender such licence upon giving three months notice to the minister of their intention to cease operations.

A mineral right means a right to prospect, explore or mine for minerals under a prospecting licence, an exploration licence, a retention licence, a large scale mining licence, a medium scale mining licence, small scale mining licence or an artisanal mining licence.

A mineral right is granted by the Minister responsible for Mineral Development. It must be in the form of a licence and must specify the name, address and nationality of the holder of the mineral right; the date of the grant of the mineral right and the period for which it is granted; a description of the area over which it is granted; the mineral or minerals in respect of which it is granted; and the conditions on which the mineral right is granted.

The Mining and Minerals Act 2022 recognises the following types of mineral rights; prospecting licence; exploration licence; retention licence; large scale mining licence; medium scale mining licence; small scale mining licence; and artisanal mining licence.

Administration, Management And Development

• The Directorate of Geological Surveys and Mines

The mineral sub sector is placed under the administration and management of the Directorate of Geological Surveys and Mines, under overall guidance of the Minister responsible for Mineral Development who has powers to grant mineral rights, licences, permits and authorisations under the Act. The minister has powers to withdraw or cause a mineral rights holder to relinquish portions of licence areas covering land that has been earmarked for infrastructural development.

The Directorate of Geological Surveys and mines has several departments responsible for management of minerals and mining activities, these include; Department of Geological Surveys, Department of Mines, Department of Geothermal Resources and Mining Cadastre Department.

The Department of Geological Surveys’ function is to establish and promote the mineral potential of Uganda through reconnaissance, exploration, geological mapping, geochemical surveys, geophysical surveys and any other method; collect, manage and provide access to geological data and information from mineral exploration and development operations; promote mineral beneficiation and value addition; establish and maintain an accredited mineral laboratory for analysing mineral samples, rocks, mineral concentrates, tailings or minerals among others.

The Department of Mines’ function is to be responsible for the regulation of mineral rights; to inspect, monitor and audit mining operations;  to implement the certification of designated minerals; assess and verify mineral royalty and other payments; mainstream and organise artisanal mining in Uganda;  facilitate the development of skills and capacity among Ugandans and promote technological development in the mineral subsector; encourage private sector participation in the exploration and exploitation of mineral resources; recommend to the Minister the suspension or revocation of mineral rights as a result of inspections and monitoring; develop and observe internationally accepted standards of health, safety, environmental protection and the protection of human rights in the mineral subsector, in consultation with the Uganda National Bureau of Standards and other relevant Government agencies among others.

The Department of Geothermal Resources is established to conduct surface and subsurface exploration of geothermal prospects; undertake pre-feasibility and feasibility studies in order to provide an economic basis for licensing of geothermal resources;  participate in the preparation of agreements including implementation agreements, and direct use contracts to support licences and enable private sector participation in the development of energy from geothermal resources; regulate and monitor the performance and technical compliance of licences for geothermal operations; recommend to the Minister the suspension or revocation of licences for geothermal operations as a result of non compliance. Geothermal resource means a reservoir of heat occurring naturally within the subsurface of the earth carried to the earth’s surface by water or steam.

There is also a Mining Cadastre Department whose function is to administer mineral rights and maintain cadastral maps and registers. This department receives, evaluates and processes applications for mineral rights, licences and permits including applications for renewal, extension, reduction, transfer and abandonment; and makes recommendations to the Minister on the applications.

• The Uganda Mining Company

The Act establishes the National Mining Company which is to be incorporated, under the Companies Act 2012, a Uganda National Mining Company which shall be wholly owned by the State to manage Uganda’s commercial holding and participating interests of the State in mineral agreements. The functions of the Uganda National Mining Company are to manage the State’s strategic commercial interests in the mineral subsector; optimise value of its shareholders, to participate in accordance with the terms of mineral agreements, in joint ventures in which it holds an interest on behalf of the State; to participate in meetings of the operating committees in furtherance of its participation in the respective joint operating agreements; to study and propose new mining ventures locally and internationally; and to undertake the exploration and mining operations in the best interest of the State where private entities are unwilling to do so.

• Role of Local Governments

The role of the local government is to integrate publicly available mineral deposit information provided by the Directorate into their development plan  and participate in the implementation of mining policies,  laws and mineral related activities in collaboration with  the Directorate; create awareness of mining activities within their areas of jurisdiction; facilitate dialogue between the local communities or project affected persons and mineral rights holders; participate in the resolution of disputes arising from mineral related operations; and receive reports and plans of the companies operating in their jurisdiction every six months.  Local authorities also have authority to serve as facilitators, as far as is required, for negotiation and implementation of community development agreements under the Act.

• Use of Mineral Agreements 

The Act introduces a modified concept of Mineral Agreements in the repealed law. A mineral agreement is one entered into between the Minister and any person with respect to any matter relating to or connected with operations or activities under an exploration licence or large scale mining licence in respect of highly capitalised and complex projects (projects with significant intergrated components, unique equipment, multifaceted systems, intricate phasing, or that is marginal in context).

A mineral agreement shall include terms and conditions relating to: minimum exploration or mining operations to be carried out and the work plan determined for purposes of such operations; the minimum expenditure in respect of exploration or mining operations; financial obligations; production sharing arrangements where minerals have been ascertained and quantified;  the manner in which exploration or mining operations shall be carried out; the processing of any mineral or group of minerals found, obtained or mined by the holder of a mineral right in the course of exploration or mining operations; the basis on which the market value of any mineral or group of minerals in question may from time to time be determined; project financing and insurance arrangements; environmental management obligations; health and safety obligations; requirements for local content, including the use of local labour and goods; community benefit sharing and community development, including the obligation to conclude community development agreements with the affected communities; the establishment of culturally relevant local dispute resolution mechanisms; resolution of disputes through arbitration mechanisms; the right of the Minister to withdraw or cause to be relinquished portions of the licence area covering land that has been earmarked by Movement for a public infrastructure project, at no cost to Government and  the protection of the land rights or any customary rights of any of the registered owner, customary owner, lawful occupant or bonafide occupant of the land in the area subject to a mineral right.

The Minister is mandated to develop or cause to be developed a model mining agreement or other model agreements as may be entered into by Government which shall be submitted to Cabinet for approval. The Act states that the model agreement shall guide the negotiations of any future mining agreements. The Minister is mandated to lay before Parliament, a mineral agreement signed and adopted by Government within sixty days from the date of signing of the agreement.

The mandate of management of applications for mineral rights, other licences and permits including licensing, communication, reporting and assessment of payments is vested in the Mining Cadastre Department of the Directorate of Geological Surveys and Mines. The Mining Cadastre Department is mandated to issue any of the licences as recognised under The Mining and Minerals Act 2022. The applications are to be made in the manner as shall be prescribed by Regulations.

The Act recognises the following types of mineral rights, (a) Prospecting licence;

(b) Exploration licence; (c) Retention licence; (d) Large scale mining licence; (e) Medium scale mining licence; (f) Small scale mining licence; and (g) Artisanal mining licence

PROSPECTING LICENCE

An application for a prospecting licence should contain in respect of an individual, the name and nationality of each individual making the application;  the registered name and place of incorporation of the company (and a certified copy of the certificate of incorporation of the company; a certified copy of the memorandum and articles of association; the names and nationalities of the company directors; and the name of every shareholder who is a beneficial owner of five percent or more of the issued share capital); contain the company profile and history of prospecting in Uganda and elsewhere; be accompanied by a statement giving particulars of the technical and financial resources available to the applicant; give details of any mineral right held within Uganda by the applicant or by any person controlling, controlled by or under joint or common control with the applicant; and be accompanied by proof of payment of the prescribed fees.

Once granted, a prospecting licence is be valid for a period of one year and is not renewable. The licence gives the holder  his or her employees, servants or agents a non-exclusive right to carry on prospecting operations for any mineral and for that purpose may enter upon any area not otherwise subject to an exploration or mining licence,  erect camps and tempolary buildings, take and remove specimens and samples from the prospecting area. The holder is  under an obligation to among others conduct his operations in an environmentally friendly manner, submit quarterly geological and financial reports, report any mineral discovery to the minister, remove any tempolary structures at the expiration of the licence, repair and make good any damage caused to the surface of the land and compensate users of the land for any damage to the land and property.

A prospecting licence does not authorise the holder of the licence to prospect over an area of land that is, or forms part of an exploration area, a mining area, a retention area, an artisanal or small scale mining licence area. The holder must not engage in drilling or excavation or prospect a reserve, game reserve, national park, forest, wetland or an urban centre, special conservation areas, conservation area or protected area unless the holder of the prospecting licence has first given notice to and obtained permission from the relevant authorities and complies with any conditions imposed by the authorities.

Any minerals obtained during prospecting activities are property of Government and shall not be disposed off by the licencee except with the consent of the minister, except for reasonable quantities as may be prescribed for purposes of sampling, assay, analysis or other examination.

Note the Difference between prospecting and exploration

Prospecting is simply a search for mineral deposit and it means looking for ores minerals of value or importance. Prospecting is a sum total of systemic process under taken in a sequential manner to discover new ore deposit. Once a discovery has been made, the property containing a deposit, called the prospect is explored to determine some of the more important characteristics of the deposit. Among these are its size, shape, orientation in space, and location with respect to the surface, as well as the mineral quality and quality distribution and the quantities of these different qualities. Exploration therefore incorporates set of operations like take drilling, trenching keeping sampling assaying, core, ranger, estimate of determining the availability of the ore deposit.

Introduction

It is estimated that more than 60% of Uganda’s population depends on traditional medicine because it is accessible, affordable and culturally familiar. Herbal medicine has long been used to manage a range of common conditions, including malaria, digestive and respiratory problems, toothaches, skin diseases, childbirth complications among others.  Many communities in Uganda relied on traditional knowledge passed down through generations to diagnose illnesses and prepare remedies from natural ingredients. Although many of these treatments lacked scientific validation, they were trusted by many Ugandans and remain popular today. We saw this during the COVID-19 pandemic, where many people turned to herbal remedies as a means of treatment over conventional medicine.

In recent years, there has been a noticeable shift towards herbal products, with consumers increasingly opting for natural alternatives free from harmful chemicals and additives. This global trend has even seen major brands capitalizing on the rising demand for natural and herbal ingredients, For instance, even large brands like Colgate are introducing herbal versions of their products, such as Colgate Herbal, Colgate Charcoal, etc to cater to this growing preference.

However, in Uganda, herbal medicine has traditionally been rooted more in cultural practices than commercial ventures. Many herbalists pay minimal attention to modernizing or improving their processes particularly in terms of production standards and product presentation. Their herbal products are often sold unbranded or poorly packaged, lacking the professional presentation that could attract a wider market. This limits the commercial potential of herbal medicines, making it difficult for them to compete with more polished, commercially available products. Due to the lack of regulation, the sector has unfortunately been tainted by some phony practitioners who have exploited the field and given it a bad name. This has discouraged more professional involvement, further hindering the industry’s potential growth.

As Uganda begins to recognize and regulate traditional medicine with the passing of the Traditional and Complementary Medicines Act of 2019, traditional medicine practitioners and stakeholders have the opportunity to protect and commercialize their innovations. The Act encourages Traditional medicine practitioners to assert ownership of their products and practices through Intellectual Property (IP). The Act has also since established a Council known as the National Council of Traditional and Complementary Medicine Practitioners with representatives from different stakeholders including the Association of Traditional Medicine Practitioners. The Council is mandated to control and regulate the practice of traditional and complementary medicine, to register and license practitioners and to provide for related matters. As part of ongoing efforts to standardize and promote traditional medicine, the National Drug Authority (NDA), through its mandate and as a broader initiative to ensure the safety, regulation, and accessibility of traditional medicine to the public, recently registered over 300 herbal medicines. It is therefore important for herbalists to understand how IP laws can provide additional protection for their knowledge, practices, and products.

Intellectual Property and Traditional Medicine

Intellectual property rights are essential for protecting innovations in various sectors, and traditional medicine is no exception. Herbalists possess valuable knowledge of what is good for treating which condition. The information exists within communities or families, but does not really travel further. It often remains confined within them. A key reason for this is that many herbalists, particularly those interested in commercializing their practice, are reluctant to share their knowledge. They fear that researchers or others may exploit their insights without proper recognition or compensation. As a result, herbalists often choose to keep their knowledge private, stifling both individual growth and the development of the herbal medicine industry as a whole.

Introducing herbalists to the concept of intellectual property could help alleviate these fears. Through proper IP protections, such as patents, trademarks, geographical indications, or trade secrets, herbalists can confidently share their knowledge, collaborate with researchers, and benefit from commercial opportunities without the risk of exploitation. With increasing global interest in natural and indigenous remedies, it is more important than ever for Ugandan herbal practitioners to protect their medicinal knowledge and products from exploitation or unauthorized use. There are various IP tools available that can help herbalists achieve this:

• Branding Your Medicine

This can be done through registration of a trademark. A trademark is a symbol, logo, name, or design that distinguishes your products or services from others in the marketplace. For traditional medicine practitioners, creating a brand around your products is key to building trust and recognition. With a trademark, you can ensure that your name or product is not used by others without your permission. For instance, a herbal formula that is associated with your clinic or business can be trademarked under a unique name, which allows you to maintain exclusive rights to use that name. This not only protects your business from imitation but also adds value to your brand as consumers learn to trust and rely on your products. As your business grows, you can use your trademark to expand into new markets, for example, if you want to sell your herbal products in other regions or countries, having a registered trademark makes it easier to protect your brand globally.

• Protecting New Medicinal Formulations

This can be by way of a patent. If you have developed a new formulation or process for creating traditional medicine that meets the patent requirements of novelty, inventiveness, and industrial applicability, you may be eligible to patent it. A patent gives you the exclusive right to produce, use, and sell that formulation for a certain period, usually 20 years. For example, if you create a new extraction method for a medicinal plant that enhances its effectiveness, a patent could help you protect that method, preventing others from copying your process without authorization. This protection is particularly important for preventing pharmaceutical companies or foreign entities from exploiting your knowledge.

• Protecting Community Knowledge

This may be done through Geographical indications (GIs) offer a powerful way to protect traditional knowledge that is tied to a specific location. A GI is used to signify that a product has qualities, reputation, or characteristics specific to a certain area. For example, a particular herbal remedy that is traditionally produced in a specific region of Uganda can be protected by a GI, ensuring that only products from that region or association can use that designation. GIs are especially useful for protecting the collective knowledge of communities and can prevent the misappropriation of traditional remedies by outsiders. Additionally, they help promote regional economic development by giving value to indigenous practices.

• Keeping Formulations Confidential

Another tool available for protecting traditional medicine and keeping the herbalist’s formulas confidential is Trade Secret protection. If your practice or product involves a unique method or ingredient that is not disclosed publicly, you may choose to keep it as a trade secret. This ensures that the knowledge is shared only within trusted circles or under non-disclosure agreements (NDAs). However, it is important to have appropriate legal agreements in place, such as confidentiality agreements with employees or partners, to safeguard your trade secrets effectively.

How can we be of help?

While these IP protections can be valuable, each form of protection comes with its own eligibility requirements, application processes, and costs. We can help you:

• Assess whether your traditional medicinal knowledge, products, or processes qualify for protection under IP laws.
• Prepare and file applications for trademarks, patents, and other IP rights.
• Draft and negotiate confidentiality agreements to protect trade secrets.
• Enforce your rights in case of infringement or unauthorized use.