Stakeholders Advocate for Formalization and Regulation of Artisanal Miners in Uganda

Stakeholders in the mineral sector are advocating for the formalization and regulation of artisanal miners in the country to enhance mineral revenue. Humphrey Asiimwe, the Chief Executive Officer at the Uganda Chamber of Mines and Petroleum, emphasized the need for formalizing artisanal miners during a stakeholders' consultative meeting on responsible mineral resourcing at the State House Investors Protection Unit (SHIPU) in Kampala.

He stated that formalization would enable the Uganda Revenue Authority (URA) and the Ministry of Finance to tax every taxable point in the mining value chain, rather than waiting for gold to leave the country. Asiimwe also highlighted the importance of developing the host communities where gold is sourced, calling for policies that enhance the welfare of these communities and support artisanal miners.

Joseph Muvawala from the Ministry of Planning, Finance, and Economic Development pointed out that for the country to grow rapidly, it should invest significantly in the mineral sector. He expressed concern about the government's neglect of mineral sector development, stating that there is insufficient training for individuals involved in mining and a lack of inspectors on the ground to assess the quantity of gold and other minerals available in the country.

“We have no way bridges to even know the quantity of these minerals people are taking away. Artisanal miners have not been organized; we have redundancy held by some of us, the big people. It’s the most important sector but the most challenged,” Muvawala remarked. He called for the stakeholders' meeting to be the beginning of addressing the critical constraints in the mineral sector.

Colonel Edith Nakalema, heading the State House Investors Protection Unit, noted that her unit has interacted with several investors who have been defrauded of their resources, often citing police involvement in these matters. She also mentioned that the mineral protection unit of the police has expressed concerns about a poor working relationship with the Ministry of Energy and Mineral Development.

“We need to work together as a government, given that the president has tasked us to ensure that the government works fast and effectively to promote investment,” Nakalema remarked. Julius Ceasar Tusingwire, the commandant of the police mineral protection unit, stated that police need to raise awareness among miners and the general public to prevent potential investors from being duped. 

He reported that from January to date, the unit has received 50 cases, including fraud, theft, and smuggling. Although fraud cases are fewer, they often involve significant sums of money, exceeding one million dollars. He added that police have investigated these cases and convicted over ten perpetrators, calling for necessary support to avoid delays in investigations.

Agnes Alaba, the Commissioner for the Mines Department at the Ministry of Energy and Mineral Development, stressed the need for regulation in the sector, as mining can take place in any part of the country due to its rich mineral potential. She noted that there is much work to be done to assess Uganda’s minerals, as the ministry has only completed 30 percent of detailed exploration using airborne methods. 

Alaba explained that this method provides only indications of mineral signatures, advocating for thorough exploration to determine the quantity of minerals available in Uganda to attract potential investors. According to Alaba, there is a great need for a functional mineral laboratory to assess mineral quality. She also mentioned that coordination between the mineral protection unit of the police sometimes falters due to a lack of resources to analyze mineral samples brought in by police.

Furthermore, she highlighted the issue of understaffing in her ministry, stating that there are only eight inspectors covering the entire country, with just one position in each region.