Kampala, Uganda – November 19, 2024: In a landmark ruling, the High Court of Uganda has directed the Uganda National Roads Authority (UNRA) to pay USD 2,542,600 (UGX 9.3bn) in special damages to Joyce Lucia Burungi for the violation of her exploration rights.
The case arose from the construction of the Hoima-Kaiso-Tonya Road, which interfered with Burungi’s exploration license area and resulted in the excavation of 25,426 tonnes of bentonite.
Background
Joyce Lucia Burungi, the holder of Exploration License No. EL 0760 granted in 2011 and renewed in 2014, filed the case against UNRA and the Attorney General after her attempts to seek compensation were unsuccessful.
She claimed that UNRA’s road construction activities encroached on her licensed area, damaging the bentonite reserves.
The court found that Burungi’s exploration rights, protected under the Mining Act and the Constitution, had been violated.
Justice Esta Nambayo noted that Burungi had “exclusive rights over the mineral within the license area,” as provided under Section 31 of the Mining Act.
Findings
Justice Nambayo ruled that UNRA’s actions violated Burungi’s exploration license and that her rights had been ignored despite acknowledgment by government agencies.
Referring to legal opinions from the Solicitor General and the Deputy Attorney General, the judge cited Exhibit P.2, which stated:
“The action by UNRA of constructing a road i.e., Hoima-Kaiso-Tonya Road through the exploration license area interfered with the exploration operations and occasioned excavation of substantial bentonite reserves.”
The court also highlighted that Article 26 of the Constitution guarantees protection from the deprivation of property, requiring compensation for any compulsory acquisition.
Justice Nambayo reiterated: “The Plaintiff’s exclusive right that was conferred on her as an exploration license holder cannot be interfered with by the Government…without compensation to the license holder.”
The court awarded special damages worth USD 2,542,600 for the 25,426 tonnes of bentonite excavated by UNRA.
The court referenced the valuation report, which stated: “The bentonite reserve excavated during road construction is calculated to be 25,426 tonnes, and at a given price of USD 100 per ton of bentonite, the value of material removed is USD 2,542,600.”
Court also awarded general damages of Shs 5,000,000 for the inconvenience caused by UNRA’s actions and full costs of the suit. This ruling underscores the legal obligation of government agencies to respect exploration licenses and compensate affected parties. It also reinforces the principle that public infrastructure projects must adhere to constitutional protections for property rights.
