The Iteso Cultural Union (ICU) is demanding a share of mining royalties from Busia District, accusing local leaders of ignoring their community. Busia, a multi-ethnic district in eastern Uganda, is rich in minerals such as gold in Tiira Town Council and Mawero in Buteba Sub-county, tin in Lunyo Sub-county, plus large deposits of sand and stone for construction.
Mr Chas Omella Itogot, an ICU minister, said the Iteso migrated to Busia around 1750, intermarried over generations, and now speak Samia/Lugwe. However, he said they are being left out of mining benefits.
‘All discussions on minerals are centred on the Samia/Bagwe and their cultural head (Obwenengo bwa Bugwe), while wishing Iteso away,’ Mr Itogot said during a stakeholder engagement workshop on mining and rural electrification in Busia District on Wednesday last week.
He added: ‘About 20 percent of the people in Busia District are Iteso, gold was discovered in an Iteso area, and the people who were displaced were Iteso. So, when talking about mining royalties, talk about Obwenengo bwa Bugwe and the ICU because there are Iteso in Busia District.’
The engagement was convened to clarify government positions on mining royalties, regulation of artisanal mining, and rural electrification and power reliability, among other issues in Busia District.
Mr Stephen Wasike Mugeni, the LC5 chairman, described Mr Itogot’s concerns as ‘genuine’, saying the intention was not to exclude anybody.
‘The area was gazetted and there is somebody in charge. If it is about royalties aimed at equal distribution between the ICU and Obwenengo bwa Bugwe, I have no problem with that.’
Mr Mugeni called for the payment of royalties on gold and an adjustment in its distribution to Busia District (15 percent), Obwenengo bwa Bugwe (five percent), the sub-county or town council (five percent) and land owners (five percent).
He also sought the amendment of Regulation 45(a) of Schedule 2 (Fees and Other Payments) to the Mining (Licensing) Regulations 2023 to delete the words ‘except gold’.
‘Schedule 3 to the Mining and Minerals Act, Capt 159 should be amended to include a five percent share for the gazetted cultural institutions where they do exist like the Obwenengo bwa Bugwe in Busia District,’ Mr Mugeni said.
Mr Mugeni further proposed the creation of Busia Mining Company Limited, with capital worth $200 million (Shs680 billion), to generate more than $600 million (Shs2 trillion) in annual revenue over the next 40 years.
‘We demand a grant of 4.5 percent shareholding from the 15 percent shareholding of Wagagai shares held by the Uganda National Mining Company in line with Section 178(1) and Section 20(1) of the Mining and Minerals Act Cap 159.’ He also called ‘unfair, unconstitutional, and discriminatory’ sections of the Mining and Minerals Act, Cap 159.
Ms Agnes Alaba, the commissioner for mines in the Ministry of Energy and Mineral Development (MEMD), said currently, royalties on gold are zero-rated and not on board, adding that the government’s strategy is to stimulate investment. ‘There are already investors on board, but investment isn’t flowing,’ she said.
In a speech read for her by Ms Alaba, Ms Irene Bateebe, the Permanent Secretary in the MEMD, said they want to identify practical and sustainable solutions to the challenges facing the mining and energy sectors in the district.