By Timothy GK Sambwa
Artisanal and small-scale mining (ASM) plays a vital role in Uganda’s economy, yet it remains largely informal and faces numerous challenges. According to the International Institute for Environment and Development, ASM involves mining by individuals, groups, families, or cooperatives with minimal or no mechanisation.
The Mining and Minerals Act of 2022 defines it as operations not exceeding ten metres in depth. Despite its significance, over 90% of mining operations in Uganda lack the necessary licenses and permits, operating instead with a “social licence” derived from community acceptance.
Statistically, ASM is a crucial source of rural employment, with an estimated 10 million people in Sub-Saharan Africa engaged in this sector. In Uganda, about 30% of gold exports originate from ASM. However, the sector faces substantial hurdles, including inadequate tools and protective gear, limited access to finance, poor regulatory enforcement, and environmental degradation.
The formalisation of ASM is essential to alleviate these challenges and unlock the sector’s potential. Formalisation entails integrating informal mining activities into the legal and regulatory framework, ensuring compliance with safety, environmental, and labour standards.
This process would not only enhance safety and sustainability but also increase government revenue through improved tax and royalty collection, allowing for reinvestment in infrastructure and social services.
Furthermore, formalisation can empower artisanal miners with the knowledge and tools to adopt sustainable practices, addressing issues like deforestation and water contamination.
It can also spur social and economic development in mining communities, improving access to education, healthcare, and infrastructure while promoting gender equality and reducing child labour. Such strides would enhance Uganda's reputation in the realm of human rights.
To advance the formalisation of ASM, several steps must be taken. First, the Ugandan government needs to update and enforce mining laws tailored to ASM. While the Mining and Minerals Act of 2022 has made progress, bureaucratic hurdles must be simplified to encourage miners to formalise their operations.
Access to geological data is another critical component. Without it, ASM miners rely on guesswork, leading to low yields and wasted investments. Mapping potential reserves and providing accessible data will enable miners to make informed decisions and potentially use this information as collateral for bank loans.
Creating formal channels for the sale of minerals and introducing certification schemes, such as Fairtrade Gold, will also help ASM miners access international markets at competitive prices. This initiative would incentivise formalisation and reduce dependence on informal middlemen.
Moreover, access to affordable, locally produced mining equipment is essential. Initiatives like hire purchase schemes can provide miners with the necessary tools without overwhelming financial burdens.
Enabling dialogue among ASM stakeholders is crucial for ensuring that reforms align with on-the-ground realities. The Minister of State for Minerals, Hon. Phiona Nyamutoro, has already initiated consultations and sensitisation workshops, which should continue to involve all relevant parties.
In conclusion, formalising artisanal and small-scale mining in Uganda is a vital step towards sustainable development. By adopting a human rights-based approach that acknowledges the rights and responsibilities of all actors, we can address the root causes of the sector's informality.
With the right policies, investments, and collaboration among stakeholders, Uganda can transform its mineral wealth into a catalyst for long-term prosperity for its people.
Timothy GK Sambwa is mining and mineral resources lawyer
sktimothy@yahoo.com