AFRICA, Uganda: Hima insists on limestone licence

Uganda: Hima Insists On Limestone Licence

Hima Cement Limited insists it still owns the rights over the core limestone reserves in Kasese even after the High Court ruled that its current licence is invalid. The high court transferred the rights to the limestone deposits in Hima, Kasese district from Hima Cement limited to the East African Gold Sniffing Company in a March 26 ruling. The court ruled that Hima's 21-year-old licence expired at the end of 2011. There were also questions about Hima's business licence.

Hima appealed against the ruling. In a statement, Hima pointed out: "[Government] has collected taxes from the said entity and the entity has filed various statutory returns, none of which has ever been rejected by the said registry or any other relevant Government department and for this reason it is, therefore, totally surprising that anyone would assert that Hima Cement Limited doesn't exist."

The company has been in a dispute with East African Gold Sniffing Company for over a year after Hima is said to have failed to file a request for renewal for its licence. The Mining Act, Section 47(1), states: "The holder of a mining lease may apply to the Commissioner for the renewal of his or her lease in respect of all, or of part of the mining area not later than one year before the expiry of such lease."

East Africa Gold Sniffing thereafter applied for an exploration licence, which was granted on the basis that it was a newcomer to Uganda's mining sector. Both companies claim rightful ownership of the limestone deposits in Hima, Kasese, after Hima appealed against the High court ruling.