In Uganda’s mineral-rich districts, small-scale and artisanal miners (ASMs) are confronting a pressing dilemma on how to transition from informal operations to legal, regulated ones.
Despite their pivotal role in Uganda’s economy, these miners face significant challenges in formalising their activities, hindering their growth, safety, and long-term stability.
Artisanal miners contribute immensely to Uganda’s mining sector, providing over 80% of the country’s development minerals and over 90% of the gold production.
Yet, despite their economic contribution, many miners are trapped in the shadows of informality, unable to fully benefit from legal protections and support.
Emmanuel Kibirige, the national coordinator of the Uganda Association of Artisanal and Small-Scale Miners (UGAASM), emphasised that while the government recognises ASMs as a legitimate source of income, the process of transitioning to a formal status is marred by bureaucratic complexities.
“For many miners, staying informal seems more beneficial than complying with the regulations,” Kibirige explained, adding that the formalisation process is daunting, filled with paperwork and costs that miners are often unable to meet.
While there have been legal advancements, such as the Mining and Minerals Law of 2022, which aims to incorporate ASMs into Uganda’s regulatory framework, the changes have not yet led to widespread improvements for miners.
The law includes provisions for health, safety, gender equality, and environmental protection, but it remains unclear how these will directly impact miners on the ground.
The Cost of Formalisation
The law allows miners to apply for licenses, but the associated costs and paperwork remain significant barriers.
For instance, the Artisan License requires an application fee of one million shillings, as well as annual rent fees of another million. While these costs might seem manageable for a business, the reality is far more complicated.
Miners are required to submit a range of documents including land ownership papers, environmental impact assessments (EIA), and proof of tax compliance. Kibirige points out that these documents are expensive and difficult to obtain.
“Miners must pay for expensive assessments, and the process is slow, forms are shuffled between departments, and many artisans simply don’t have the time or resources to keep up,” he said.
One of the few hopeful aspects of the law is the creation of artisanal exclusive zones, which could streamline some of these processes by handling EIAs themselves.
However, these zones have not yet been fully implemented, leaving many miners still stuck in legal limbo.
Overly Restrictive and Outdated Regulations
Further complicating matters, the licenses themselves come with restrictive conditions. For example, the Artisanal License limits miners to a depth of just 10 meters underground.
This restriction significantly limits the scale at which miners can operate and, in many cases, makes it impossible for them to access richer deposits.
Under the previous legal system, miners could operate with a location license and start mining immediately.
Now, however, miners must navigate a labyrinth of bureaucratic procedures, including gathering documentation, completing impact assessments, and waiting for approval.
Though Kibirige acknowledges that the law is a step forward, he believes it has significant gaps that need to be addressed.
“The process has become more formal, but the reality is that miners are still waiting for the system to catch up with them,” he said.
Resistance To Change
Our reporter visited Kasanda, one of the regions where gold mining remains largely informal, with many miners continuing to operate under old location licenses.
Amina Kiiza, the Central Inspector of Mines, explained that the government is working to educate miners about the importance of formalisation. However, the miners are skeptical.
“The problem is that all these requirements are only accessible in Kampala, not here in the mines,” one miner remarked, expressing frustration at the distance and complexity of the formalisation process.
In response to these challenges, miners in Kasanda, through their associations, are attempting to apply for licenses as a group.
The Mubende United Miners Association (MUMA), for example, is working to secure a small-scale mining license for its members.
By obtaining agreements with local landowners and preparing for environmental impact assessments, MUMA hopes to formalise its operations.
However, the situation remains dire in many other mines. Many miners are still being exploited by local authorities, including mineral police and ministry officials, who demand bribes or actively hinder the miners’ efforts to legalise their operations.
Old Laws, New Challenges
Joshua Rukundo, a senior project officer at Solidaridad East and Central Africa, reflected on the previous mining regime, which failed to acknowledge the existence of artisanal miners.
“The old law didn’t even recognise artisanal or small-scale mining as an industry. Even when miners held licenses, they were often operating illegally because the cost of compliance was prohibitive,” he explained.
The new Mining Act offers a glimmer of hope but is still plagued by inefficiencies. Rukundo emphasised the need for decentralised procedures, reduced red tape, and more resources to support the Directorate of Geological Survey and Mines (DGSM), which is responsible for licensing and inspecting mines. “Currently, the entire central region has just one mine inspector,” he said.
For miners to thrive, he argues, both the government and miners themselves must make substantial efforts to adapt to the new system.
A Vital Industry in Need of Support
Artisanal and small-scale mining is a vital part of Uganda’s economy, employing an estimated 400,000 to 600,000 people, many of whom depend on gold mining for their livelihoods.
The ASM sector also indirectly supports around 2 million people. Despite the economic importance of the sector, miners are caught in a web of legal uncertainty and financial barriers that hinder their progress.
As Uganda works to formalise the sector, it remains clear that the journey toward a regulated mining industry is long and fraught with challenges.
However, with continued advocacy and legal reforms, there is hope that the country’s artisanal miners can finally realise their full potential.
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