High Licensing Costs Slow Growth of Uganda’s Small-Scale Mining Sector

What the report says

Uganda’s artisanal and small-scale mining sector is facing pressure from high licensing costs, a centralised permit process and limited access to finance, according to reporting by Nile Post on the PlanetGOLD Uganda Project’s Fourth Annual Stakeholders Meeting. Industry representatives said these barriers are encouraging some miners to remain informal, which weakens efforts to improve safety, formalise operations and reduce mercury use in gold processing.

The meeting brought together IMPACT Uganda, the National Environment Management Authority, the Ministry of Energy and Mineral Development and other stakeholders working on responsible small-scale gold mining. Emilian Manishimwe of IMPACT Uganda said the cost and complexity of licensing make it difficult for miners, especially those in remote areas, to formalise their businesses and qualify for credit. He also said some mining sites have not yet been gazetted, adding to the challenge of finding legally recognised places to operate.

Speakers linked the lack of formalisation to continued mercury use, which they said poses health and environmental risks for miners and nearby communities. Manishimwe also raised concern about mercury entering Uganda through porous borders and being supplied by some gold traders. The report says PlanetGOLD Uganda plans to continue sensitising miners and connecting them with financial institutions.

Altanbagana Bayarsaikhan of UNEP said government efforts to cut mercury use should be matched by simpler licensing rules, better support for organised miner groups and more affordable mercury-free equipment. He also urged banks and microfinance institutions to design products for artisanal miners. NEMA board member Dr John Ekure called on miners to avoid hazardous practices and use safer alternatives already available.