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Jan Mangal Uganda ltd loses gold mining license in Karamoja

FILE PHOTO: Gold mining

Kampala, Uganda | THE INDEPENDENT | The Directorate of Geological Survey and Mines has cancelled the gold mining license for Jan Mangal Uganda Ltd, in Moroto district. This is the second mining lease to be cancelled in Moroto district in less than three years.

Jan Mangal, a subsidiary of an Indian jewellery company, ceased operations, one year after acquiring a mining lease for Gold in Karamoja region. It was earlier reported that Jan Mangal had ventured into the excavation of minerals without an exploration license and did not have any contract with the local government or local community.

In 2017, Edwards Katto Kagimba, the Director Geological Survey and Mines in the Ministry of Energy and Mineral Development had indicated that his office had issued a notice with intensions to cancel the license for failure to conduct operations, but the process delayed.

Gerald Eneku, the Inspector of Mines in North Eastern Uganda says the license was cancelled after all attempts to have the company back to the site failed. He explains that Jan Mangul hijacked some of the required procedures into the acquisition of the mining lease, something he notes disadvantaged its production in Moroto.

Eneku also revealed that DAO Marble Africa Limited has resumed operations in Rupa Sub County after its minority shareholders came to its aid. DAO Marble Limited is reported to have been entangled in financial challenges that forced its financer, DFCU Bank to seize its property at the site in March 2017.

The company was initially operating in Rata village, on the border of Rupa and Katikekile sub-counties in Moroto district where since 2013.

Currently, only Tororo Cement Limited has remained visible in Moroto for some time while other companies with mining leases keep disappearing. According to Eneku, another mining company, Sunbelt Mining Group Limited was granted a mining lease recently to mine Marble while Argo-mechanized company is also processing a mining lease for the same commodity.

The mining industry in Karamoja is still struggling with speculators that, according to Edward Eko, the Assistant CAO Moroto says need to be streamlined.

Isaac Kabongo, the Executive Director for Ecological Christian Organization, ECO, which focuses on sustainable management of mineral resources says Karamoja has a lot of potential in the mineral industry except for the organization of the community and its leadership.

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