The Directorate of Geological Survey and Mines in the Energy and Mineral Developments Ministry has cancelled the mining license of Moroto Cement Industries Limited.
Moroto Cement Industries acquired a mining lease in 2015 following the completion of its exploration activities as provided for the Mining Act, 2003 but failed to start work.
Edwards Katto Kagimba, the Director Geological Survey and Mines, says they were compelled to withdraw the mining license because of the failure by the company to meet its obligations.
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An April 2016 report from the Directorate of Geological Survey and Mines shows that 135 mining companies are licensed to operate in Karamoja sub region. Of these, 120 were issued exploration licenses, ten location licenses and five mining leases.
However, of these only three companies including Tororo Cement Industries Limited which has two licenses and DAO Marble Africa Limited are operational.
Edwards Katto Kagimba, the Director Geological Survey and Mines, says he also published notice indicating his intention to cancel the license of Jan Mangul that was licensed for Gold mining.
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Jackson Angella, an Elder and Vice Chairperson Moroto Mineral Watch Platform, says there is need to clean up the mining companies in Karamoja. He notes that much as Moroto Cement Industries Limited has been in existence for the last eight years there nothing to show on the ground.
Dr. John Byabagambi, the Karamoja Affairs Minister, says several speculators dashed in to secure mining licenses during insurgency in Karamoja.
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The Management of Moroto Cement Industries Limited has not yet commented because there is no known contact of the directors. One of the directors has been identified as Michael Mawanda.