Leaders in Busoga are wary the sub region will not benefit from the Makuutu Rare Earths project in Makuutu Sub-County, Bugweri district, one of the flagship multibillion investments in Uganda as the country pivots the mining sector as a cornerstone for socio-economic transformation.
Rwenzori Rare Metals (RMM) that started developing the project in 2016 has so far infused at least USD 10 million (UGX 37.5 billion) which is expected to multiply tenfold once commercial production commences in 2025. Geological studies and drilling by the company estimates up to 532 million tonnes of rare earth-rich ore.
The company was awarded a large-scale mining license for 44 of the total 300 square kilometers of the project area in December 2023 at a momentous signing ceremony between government officials led by Minister of Energy and Mineral Development, Ruth Nankabirwa, and RMM top executives.
The Minister touted the project, that stretches from Igombe Sub-County in Bugweri district; Bulamogi, and Nakigo in Iganga district; Imanyiro and Buwaaya in Mayuge district, as “going to support the country and benefit the people of Busoga because they will receive royalties and would be able to change their lives.”
However, as the project nears commercial production, local leaders and indeed the affected communities do not share that optimism, expressing concerns that they might not benefit from the project after all.
Ms. Aisha Naigaga, the Iwemba Sub-County Chief in Bugiri District recounts a disturbing case in Busimba village where an elderly man was compensated a measly UGX 70,000 by company officials to do some exploration work in his land.
“He was told that the works would last just seven days but as the period approached three months, he raised an alarm to local officials.”
Ms. Naigaga recalls she personally took up the matter but all the company officials kept saying was they were still sampling. “The men deployed heavy machinery on his land causing damage to his house that developed cracks, all for UGX 70,000,” she said.
Mr. Fred Wandera, the Community Development Officer of Nakalama Sub-County, Bugiri District, believes not enough sensitisatioin was done among communities regarding the project, or perhaps the locals did not quite comprehend what they were being told.
First Deputy Prime Minister and Minister for East African Affairs, Hon. Rebecca Kadaga, one of Busoga’s prominent leaders, has been very vocal about the Makuutu Project, deeming the exploitation of the newly discovered mineral deposits as ‘designed to permanently impoverish Busoga sub region’ and labelling it as a ploy to grab mineral-rich land.
According to a national daily, she cited reports of unscrupulous people offering money to locals in the affected villages of the project area and tricking them into giving them their national identity cards, ultimately stealing their land in dubious land sale agreements.
This publication talked to Ms. Deborah Namirimu, the stakeholder engagement and communications specialist for Rwenzori Rare Metals to clarify on these concerns. In a wide-ranging interview on the company’s operations in the communities, she said that while at first there was an overflow of information and elites taking advantage of the locals, the sensitisation on their activities has since been refined.
“We hold talk shows on four radio stations in the project area, appealing to different sectors of people affected by the project. We also have a toll-free line where complainants can reach out with their concerns. This way we have been able to debunk all this misinformation people are fed with,” she said.
She elaborated that the company has a well-structured grievance mechanism right at the village level where the LC 1 Chairperson heads a nine-member committee in all the project-affected locations.
“We have community liaison officers, children of the soil, who facilitate the committee sittings and where the issues are well documented and resolved,” she elaborated.
Ms. Namirimu said they have come a long way in managing issues in the community and believes as the project progresses, the company is now well-grounded in the community. She allayed fears that while some misinformation might still sip through, they have put in place a system where the communities can seek redress. She also clarified that to date, RRM has only done land acquisition for 20 acres for their demo plant, and only compensate a standard rate of UGX 70,000 for each drill hole to collect samples.
