The High Court in Kampala has directed the Uganda National Roads Authority (UNRA) to pay USD 2,542,600 (approximately UGX 9.3 billion) in special damages to Joyce Lucia Burungi for unlawfully interfering with her mineral exploration rights.
The case stemmed from the construction of the Hoima-Kaiso-Tonya Road, during which UNRA excavated 25,426 tonnes of bentonite from Burungi’s licensed exploration area without compensation.
Case Background
Joyce Lucia Burungi, a mineral exploration entrepreneur, was granted Exploration License No. EL 0760 in 2011, which was subsequently renewed in 2014. The license granted her exclusive rights to explore for bentonite in the designated area.
However, roadworks by UNRA disrupted her operations, and despite repeated attempts to seek redress, Burungi’s claims for compensation went unheeded, prompting her to file a lawsuit against UNRA and the Attorney General.
Burungi argued that the road construction violated her rights as guaranteed by the Mining Act and the Constitution, resulting in significant financial loss and damage to her business.
Court Findings
Delivering the judgment, Justice Esta Nambayo upheld Burungi’s claim, stating that her exploration rights were clearly infringed upon. The court noted that under Section 31 of the Mining Act, Burungi held exclusive rights over the mineral resources within her licensed area, rights that could not be disregarded without appropriate compensation.
Justice Nambayo highlighted legal opinions from the Solicitor General and the Deputy Attorney General, which supported Burungi’s claims. A key document, referred to as Exhibit P.2, acknowledged that the Hoima-Kaiso-Tonya Road construction had disrupted her exploration activities and led to the excavation of bentonite reserves.
The court also cited Article 26 of the Constitution, which guarantees the protection of private property and mandates compensation for any compulsory acquisition by the government.
“The Plaintiff’s exclusive right conferred on her as an exploration license holder cannot be interfered with by the Government…without compensation to the license holder,” Justice Nambayo asserted.
Compensation Awarded
The court awarded Burungi USD 2,542,600 in special damages for the bentonite excavated by UNRA, referencing a valuation report that pegged the mineral’s value at USD 100 per tonne.
Additionally, she was awarded UGX 5 million in general damages for the inconvenience caused by UNRA’s actions, as well as full costs of the suit.
Implications of the Ruling
This ruling reinforces the legal obligations of government agencies to respect exploration licenses and uphold property rights, even when undertaking public infrastructure projects. It also serves as a reminder that such projects must adhere to constitutional protections, including fair and prompt compensation for affected parties.
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