By JUDITH NAMUTOWE –

GOVERNMENT is optimistic that the mining sector will recover and continue on its growth path despite the challenges of low commodity prices.

Mines and Minerals Development Minister Christopher Yaluma said despite the challenges and low commodity prices coupled with low

demand the mining industry was facing, Government was confident that the sector would recover and continue on its growth path.

Mr Yaluma said once this happens his ministry would be more than capable in providing stewardship in the sustainable development of the sector.

“Iam confident that the sector will recover and continue on its growth path despite the challenges of low commodity prices coupled with low demand the mining industry is facing,” he said.

Mr Yaluma said the Mines and Minerals Act of 2015 has introduced a 4-3-3 tenure system for exploration licences, which translates into a maximum of 10 years, giving exploration companies ample time to undertake meaningful exploration.

The minister said an exploration licence could now cover a maximum of 2,000 square kilometres.

Mr Yaluma said this was to increase the probability of finding meaningful deposits and justifying larger capital investment in exploration activities.

“The Act will also allow reserving areas for Government investment. The acquired mining rights shall be assigned to a Government investment company.

“This is to ensure that posterity fully benefits from the minerals wealth of our country,” he said.

Mr Yaluma was confident that the current Mines and Minerals Development Act number 11 0f 2016 would stand a test of time as it had been a culmination of dialogue between the Government and stakeholders in the mining industry in the quest to address the needs and challenges of the dynamic industry.