In an effort to improve their operations and align with updated regulations, artisanal and small-scale miners in Uganda have undergone training on licensing procedures and tax compliance.
The two-day workshop, held in Mbarara City, was organised by Solidaridad East and Central Uganda in collaboration with the Uganda Artisanal and Small-scale Miners Association (UGAASM).
The training brought together miners from across the country to discuss the new licensing regulations introduced by the government.
These regulations outline a variety of mineral rights categories, including prospecting licenses, retention licenses, large-scale mining licenses, medium-scale licenses, small-scale licenses, artisanal mining licenses, and geothermal extraction licenses.
Key Insights on Licensing and Taxation
Philip Akankwasa, a geologist from the Ministry of Mineral Development, highlighted the essential requirements for obtaining mining licenses. These include submitting statutory fees, providing tax clearance certificates, demonstrating financial resources, and showing proof of technical capabilities.
While the updated regulations aim to streamline the mining sector, many miners noted the challenges involved in meeting the requirements. For instance, the Environmental and Social Impact Assessment (ESIA), a key component of the licensing process, remains a significant financial and logistical hurdle for many.
“The greatest challenge now is acquiring NEMA certificates. The charges are too high, and it takes a long time—over eight months in some cases,” said Josephine Aguttu, a miner from Tiira Small-scale Mining Association in Busia.
Collaboration and Support
The training emphasised the importance of collaboration between miners and government agencies, such as the Uganda Revenue Authority (URA). Deusdedit Bainomugisha, Chairperson of the Miners Association in Buhweju, praised the session for equipping participants with vital knowledge, including how to work more effectively with the URA to develop the mining sector.
URA economist Lawrence Muwonge advised miners to regularly file tax returns and acquire Tax Identification Numbers (TINs) to streamline tax compliance. He also stressed the importance of paying royalties to avoid fines and penalties.
Calls for Continued Training
Miners and organisers alike underscored the need for more training to bridge the knowledge gap in the sector. Emmanuel Kibirige, UGAASM’s national coordinator, said the sessions play a critical role in improving communication between miners and the government.
“More training is essential to educate miners on how to benefit from the sector and comply with important regulations.
These sessions also provide a platform for the government to receive feedback from miners,” Kibirige noted.
Looking Ahead
The training concluded with calls to decentralise similar workshops to reach miners in remote areas.
Epolito Kenyatta, chairperson of Ruhama Artisanal Miners, urged organiers to extend these initiatives to other regions to ensure all miners benefit from the knowledge.
As Uganda’s mineral sector evolves under the 2022 Act, such engagements are crucial for boosting compliance, enhancing sector efficiency, and enabling miners to thrive within the new regulatory framework.
Artisanal and small-scale miners in Uganda are now better informed about mineral regulations and taxation following a two-day training session in Mbarara City.
The event aimed to empower miners to navigate the updated Mining and Minerals Act of 2022 and its related licensing procedures.
The training brought together miners from across the country to discuss the new licensing regulations introduced by the government.
These regulations outline a variety of mineral rights categories, including prospecting licenses, retention licenses, large-scale mining licenses, medium-scale licenses, small-scale licenses, artisanal mining licenses, and geothermal extraction licenses.
Key Insights on Licensing and Taxation
Philip Akankwasa, a geologist from the Ministry of Mineral Development, highlighted the essential requirements for obtaining mining licenses.
These include submitting statutory fees, providing tax clearance certificates, demonstrating financial resources, and showing proof of technical capabilities.
While the updated regulations aim to streamline the mining sector, many miners noted the challenges involved in meeting the requirements.
For instance, the Environmental and Social Impact Assessment (ESIA), a key component of the licensing process, remains a significant financial and logistical hurdle for many.
“The greatest challenge now is acquiring NEMA certificates. The charges are too high, and it takes a long time, over eight months in some cases,” said Josephine Aguttu, a miner from Tiira Small-scale Mining Association in Busia.
Collaboration, Support
The training emphasised the importance of collaboration between miners and government agencies, such as the Uganda Revenue Authority (URA).
Deusdedit Bainomugisha, Chairperson of the Miners Association in Buhweju, praised the session for equipping participants with vital knowledge, including how to work more effectively with the URA to develop the mining sector.
URA economist Lawrence Muwonge advised miners to regularly file tax returns and acquire Tax Identification Numbers (TINs) to streamline tax compliance.
He also stressed the importance of paying royalties to avoid fines and penalties.
Calls for Continued Training
Miners and organisers alike underscored the need for more training to bridge the knowledge gap in the sector.
Emmanuel Kibirige, UGAASM’s national coordinator, said the sessions play a critical role in improving communication between miners and the government.
“More training is essential to educate miners on how to benefit from the sector and comply with important regulations,” Kibirige noted, adding that these sessions also provide a platform for the government to receive feedback from miners.
The training concluded with calls to decentralise similar workshops to reach miners in remote areas.
Epolito Kenyatta, chairperson of Ruhama Artisanal Miners, urged organisers to extend these initiatives to other regions to ensure all miners benefit from the knowledge.
As Uganda’s mineral sector evolves under the 2022 Act, such engagements are crucial for fostering compliance, enhancing sector efficiency, and enabling miners to thrive within the new regulatory framework.
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