More than a decade after the discovery of rare earth mineral deposits in eastern Uganda raised hopes of economic transformation, mining operations in the Busoga sub-region have yet to begin, leaving local leaders and residents frustrated over missed opportunities and prolonged uncertainty.
The government announced the discovery of rare earth minerals in 2013, identifying major deposits in Bugweri, Mayuge and Bugiri districts. The find attracted investor interest and raised expectations of jobs, infrastructure development and increased local revenues.
However, despite the government signing an agreement with Rwenzori Rare Metals (RRM) to develop the project, commercial production has not commenced.
Bugweri District Natural Resources Officer Fred Wamukunyu said mining activities are now running nearly a year behind schedule.
“Mining and production of rare earth minerals in the areas where they were discovered were scheduled to begin in July last year. However, the information available to me suggests that operations may now start in October this year,” Wamukunyu said.
He attributed the delays to the slow issuance of a mining licence, amendments to Uganda’s mining laws and unresolved compensation issues affecting residents expected to be displaced by the project.
The amended Mining Act provides for local communities to receive 15 percent of proceeds from minerals extracted in their areas.
Wamukunyu said the minerals are used in the manufacture of products such as smartphones, laptops, wind turbines and automotive components, making them increasingly important in the global transition to digital technologies and clean energy.
He noted that the deposits are located in Buwaya Sub-county in Mayuge District, Buwunga Sub-county in Bugiri District and Makuutu Sub-county in Bugweri District, where a mineral testing laboratory is also being established.
But local leaders say global market conditions have also slowed the project’s momentum.
Hussein Kamali, the LCIII chairperson of Buwaya Sub-county, said company officials had cited weakening international demand for rare earth minerals during recent discussions.
“During my last meeting with officials of Rwenzori Rare Metals, they told me that the market for the mineral abroad had weakened. They said it would not make economic sense to rush into production without a ready market, considering the high costs involved in mining and processing,” Kamali said.
He warned that prolonged delays risk undermining community support for the project.
Kamali said a two-year Land Access Agreement signed between residents and RRM expired in September last year, potentially complicating future operations.
“If the project continues to delay, some residents may withdraw their support,” he said.
According to Kamali, uncertainty over compensation and relocation plans has left many affected residents unsure whether to continue developing their land or prepare for displacement.
Several commitments contained in agreements between the company and local communities also remain unfulfilled, he added.
An RRM board member, speaking on condition of anonymity because they were not authorised to speak publicly, acknowledged that weaker international demand had affected the sector but said it was not the sole cause of the delays.
“While demand for the mineral has reduced on the international market, it has not caused the delays in production,” the official said.
Bugiri District chairperson Davidson Mulumba Kasaija said election-related disruptions had also slowed progress toward implementation of the project.
“We expected many benefits to come with the start of mining, which would have improved the lives of residents. The delay is denying them those opportunities,” Mulumba said.
He said local authorities had anticipated employment opportunities, improved social services and infrastructure development linked to the mining project.
Former Ibulanku Sub-county chairperson Ibrahim Ndoga said communities in Bugweri had expected roads and other public infrastructure to be upgraded to support mining operations.
“We were expecting roads to be constructed in the Makuutu area, since heavy machinery used in mining would not be able to use the current roads, which are in a poor state,” Ndoga said.
He added that the district is also missing out on expected royalty revenues that could have supported local development programmes.
For now, communities that once anticipated a rapid transformation driven by one of the world’s most sought-after mineral resources continue to wait as licensing, compensation and market challenges delay the start of production.