Measure It to Manage It

MEASURE IT TO MANAGE IT

THE SECOND ANNUAL MINING AND MINERAL SECTOR DEVELOPMENT SCORECARD FY 2017/2018

National Planning Authority (NPA) in Collaboration With Africa Centre For Energy & Mineral Policy (ACEMP)

The 2nd Annual Mining & Mineral Subsector Scorecard 1 2 THE SECOND ANNUAL MINING AND MINERAL SECTOR DEVELOPMENT SCORECARD FY 2017/2018

The 2nd Annual Mining & Mineral Subsector Scorecard 3 TABLE OF CONTENTS

Table of Contents 4 List of Figures 5 List of Acronyms 6 Executive Summary 7 1. Background of the Mining and Mineral Subsector in Uganda 9 Fig 1: Performance of the minerals and mining subsector along key indicators 14 1.1 Justification of the Annual Minerals and Mining Scorecard 10 Fig 2: Geological map of Moroto, Karamoja region. 16 1.2 Recent Key Policy Developments in the Mining and Minerals Sub-Sector 10 Fig 3: Geological map of Hoima 16 1.3 Lost Opportunities (Sand, Clay, Rock/Stones and Murram Mining) 11 Fig 4: Geological map of Mbale 17 2. Methodology 12 Fig 5: Performance of the subsector under key results areas in indicator 2 18 2.1 Scorecard Design 12 Fig 6: Performance of the subsector under key result areas in indicator 3 22 2.2 Weighting and Scoring 12 Fig 7: Performance of the subsector under key results areas in indicator 4 24 2.3 Data Collection, Entry and Analysis 13 Fig 8: Uganda’s Minig Cadastre Portal 28 3 Results 14 Fig 9: Gold Minig in Buhweju 28 3.1 Subsector General Scores 14 Fig 10: Performance of the subsector under key result areas in indicator 5 29 3.2 Key Performance Indicator Scores 14 Fig 11: Members of rupa community development trust on a study tour 30 3.2.1 Mineral Resources/Reserves 14 Fig 12: Performance of the subsector under key results areas in indicator 6 31 3.2.2 Access to Mineral Resources 18 Fig 13: Mercury contaminated water flowing into farmland at a gold mining site in Amudat 32 3.2.3 Institutional Establishment and Development 22 Fig 14: Effects of illegal sand mining on land in lwera swamp, Masaka road 33 3.2.4 Mineral Production, Revenue Generation, Collection and Management 24 Fig 15: An abandoned cyanide plant in Amudat district 34 3.2.5 Local Content Development and Participation 29 Fig 16: A miner in chepkararat (Amudat district) mining without any protective gear 36 3.2.6 Health, Safety and Environment Conservation and Management 31 Fig 17: A miner in Amudat using mercury to seperate gold from gold dust 36 3.2.7 Infrastructural Development 38 Fig 18: A gold kacha in Busia used to eliminate mercury from the gold mining process 37 3.2.8 Gender, Equity, Social Inclusion and Participation 41 Fig 19: Performance of the subsector under key result areas in indicator 7 38 3.2.9 Minerals Value Addition and Marketing 44 Fig20: Map of Uganda showing the NDP II proposed minerals & requisite infrastructure 40 3.2.10 Regional and International Initiatives 46 Fig 21: Performance of the subsector under key result areas in indicator 8 41 4.0 Conclusions & Key Recommendations 48 Fig 22: A child miner in Rupa mining area, Karamoja region. 42 5.0 Appendices 50 Fig 23: Performance of the subsector under key result areas in indicator 9 44 Appendix 1: FGD Sites 50 Fig 24: Performance of the subsector under key result areas in indicator 10 46 Appendix 2: List of Key Informants at the District Level 50 Appendix 3: Key informants guide 51 Appendix 4: Focus Group Discussion Guide 52 TABE OF CONTENTS

ACEMP Africa Centre for Energy & Mineral Policy ACP African, Caribbean and Pacific ASGM Artisanal and Small scale Gold Mining The Government of Uganda's 'Vision 2040' shrinking exploration funding from investors and a failure to ASM Artisanal Small scale Mining launched in April 2013, aims to transform Uganda access capital financing from local and regional commercial BOU Bank of Uganda from a predominantly peasant society to a banks among others. CAO Chief Administrative Officer competitive modern country with a median income CDO Community Development Officer of US$ 9,500 by 2040. The Vision acknowledges that This collaboration between NPA and ACEMP therefore seeks to CSO Civil Society Organisation socioeconomic transformation can be achieved by monitor the annual planning, budgeting and overall governance DGSM Directorate of Geological Survey and Mines prioritising development in key sectors of the of the mining and minerals sub-sector and its contribution to DOP Director of Petroleum economy. As such, the mining and minerals Uganda’s development aspirations as underscored in the EIA Environmental Impact Assessment subsector has been identified as one of those National Development Plans and Vision 2040. Inter alia purpose EITI Extractive Industries Transparency Initiative priority sectors to drive Uganda’s socioeconomic of the Annual Minerals subsector scorecard is to assess the ESIA Environment and Social Impact Assessment transformation1. performance of the subsector at each stage of the value chain ESMPs Environmental and Social Management Plans and identify key interventional areas aimed at enhancing the FGDs Focus Group Discussions The minerals sector has a great potential of contribution of the sector towards achieving the objectives of the GBV Gender Based Violence contributing to economic growth and poverty Vision. GDP Gross Domestic Product alleviation through mineral exports, local HSE Health Safety and Environment consumption, manufacturing employment The second edition of this scorecard assessed the ICGLR International Conference on the Great Lakes Regions generation and diversification of the economy. operationalization and functioning of the systems and KII Key Informant Interview Exploitation of minerals and materials will provide frameworks for the subsequent achievement of sustainable LG Local Government vital resources needed to fund the backlog of development in the country. Using both secondary and primary MEMD Ministry of Energy and Mineral Development infrastructure investments and addressing our core data, engagement of stakeholders in the sector, the scorecard MFPED Ministry of Finance, Planning and Economic Development macro-economic aspirations. This subsector is assessment analysed the performance of the sub-sector. Key MTEF Medium Term Expenditure Framework projected to be a major driver in employment findings suggest that the overall average performance of the NDP National Development Plan creation and GDP growth over the medium term sector is at 43.7%, which is a slight improvement from the 40.4% NEMA National Environment Management Authority through value addition. Uganda’s northwest registered in the inaugural scorecard launched in 2016. NPA National Planning Authority Karamoja region hosts over 50 different economic Nevertheless, performance of the mining and minerals NTR Non – Tax Revenue and commercially exploitable minerals, but the sub-sector remains below average though there are slight OAG Office of the Auditor General mineral sector’s contribution to Gross Domestic improvements in some areas. Specifically, the subsector scores OHS Occupational Health and Safety Product (GDP) sunk from 6% in the 1970s to less were below average along some key performance indicators PAPs Project Affected Persons than 0.5% in 2010; and has since stagnated at an which include; minerals production, revenue generation, RAP Resettlement Action Plan average of 0.5% for the last seven years. collection and management (19.7%); Institutional Establishment SIAs Social Impact Assessments and Development (31.8%); Gender Equity and Social Inclusion SMEs Small and Medium Enterprises The weak performance of the mining and minerals and Participation (37.5%); minerals value addition and marketing SMMRP Sustainable Management of Mineral Resources Project sector has been attributed to inadequate legal, (45.8%); and Health, Safety and Environment conservation and TI Transparency Initiative institutional and policy framework, human resource management (46.4%), while above average performance was UBOS Uganda Bureau of Statistics constraints, unregulated artisanal and small-scale registered in the following areas: access to mineral resources UNCST Uganda National Council for Science and Technology mining activities, inability to access international (52.3%); local content development and participation (55.4%), URA Uganda Revenue Authority markets due to restrictive mineral traceability infrastructural development (52.8%); and regional and UWA Uganda Wildlife Authority requirements and OECD and ICGLR standards, international initiatives (51.4%). WGI Worldwide Governance Index

The scorecard identifies gaps in all areas that need mineral policy and regulatory framework; improved Uganda has a favorable geological environment that hosts over 27 commercially exploitable mineral resources. Thus, to be addressed so as to improve the sub-sector’s transparency and disclosure of all the required information, the mineral development sector in Uganda has a strong opportunity to sustainably contribute to economic growth of performance and the subsequent achievement of training and skilling of the ASMs, promotion and awareness the country through providing employment, and supporting industrialization through backward, lateral and forward the sector objectives. Critically, the responsible creation of the environment issues within the mining areas, linkages. Ministry of Energy and Mineral Development needs among others. to address the following: ensure that that ICGLR The Vision 2040 and the NDP II identified the mining sub-sector as fundamental and a driver in the achievement of mineral certification mechanism is fully In the 2015/16 and 2016/17 certificate of Compliance issued “A Transformed Ugandan Society from a Peasant to a Modern and Prosperous domesticated in order to plug capital flight and to the Ministry of Energy and Mineral Development (MEMD) Country within 30 years.” It is projected that the sub-sector will generate revenues that will be used to spur leakages in the exploitation of Tin, Tantalum and the areas of non-compliance identified included: weak growth in other sectors, create employment, infrastructure and human resource development in the process enriching Tungsten and Gold (3TGs) to enable miners and monitoring and regulation in the mining sector; undeveloped the country’s Gross Domestic Product (GDP). exporters access international markets and Rare Earth Elements (REE) resources; Implementation of the reducing rampant mineral smuggling; full strategy for restoration of derelict and abandoned mines; Framework (54.2%); Reporting Practices (24.2%); Safeguards operationalization of the minerals and mining policy weaknesses in updating and maintaining the Mining Cadastre The National Planning Authority (2017); strengthening infrastructural development in and Registry System; and non-prioritization of key and Quality Control (57.5%); and the Enabling Environment (NPA), whose key functions among (38.4%); and indicator scores comprising of Access to Mineral the sector especially in the Karamoja region so as interventions in the mineral sector such as, the failure to others include: to ease access to the diverse mineral potential in establish the mineral potential of Karamoja; lack of an Resources; Revenue Generation and Collection; Revenue the region; full regulation and formalisation of ASMs operational mining certification institution respectively among Management; Local Content; Health, Safety and Environment Monitoring and evaluating of Public Projects and activities across the country; improving revenue others. As a result of these and other sector challenges the Management; Infrastructural Development; Citizens Engagement Programmes and Liaising with the private sector and collection from the sector by introducing online overall sector-weighted score was 53.4% in 2015/16 fiscal and Participation; and, Value Addition and Sectoral Linkages. It civil society in the evaluation of Government self-assessments and compliance by mining year while sector performance declined 41.9% in the 2016/17 recommended government to invest in key aspects of the value performance collaboratively works with the Africa companies; introduction of weigh bridges on all fiscal year. The overall average sector performance in the last chain in order to maximise the contribution of the Mineral Centre for Energy and Policy (ACEMP), to annually mining regional routes to monitor mineral two years was 48.5% and falls within the margins of the Subsector to national development. These include: the review of produce and disseminate the Mining and Mineral production and declarations by companies; overall weighted score of 43.7% registered in this year’s the legal framework on HSE, ESIAs, local content and National sub-sector development scorecard, to inform decision enforcement of regulations and termination of all Mining and Minerals Sector scorecard. The consistence of participation, transparency in benefits sharing/financial making at policy level on key issues affecting the non-performing exploration and mining licenses; these scores therefore underlines Government’s failure and resources from mining activities; value addition, and improved sub-sector and to guide sector planning and amend the constitution and the regulatory stagnation in addressing underlying sector challenges and access to information and mineral resources and citizen budgeting processes. framework to bring sand mining, rocks (stones), that unless these issues are addressed NDP-II and Vision engagement and participation, and address the skills murrum and clay under the ambit of the mining and 2040 objectives may not be achieved as has been projected. requirements in the Mining subsector to enhance local content The first edition of the scorecard, which was participation given that this was one of the poorest indicator of launched in 2016, examined the existence of the performance. requisite institutional and legal frameworks, the reporting frameworks, the enabling environment This second edition presents an opportunity for the country to and safeguards and control systems. It revealed assess the progress made since the last scorecard, monitor and fundamental issues that impact the performance of evaluate the performance towards the achievement of the sector the sub-sector, which required urgent attention by goals. It also draws urgent attention to issues that need the relevant stakeholders. Results in the first immediate action by the government, the relevant stakeholders scorecard indicated the aggregate Annual Minerals and partners. It assesses the operationalization and functioning 2 Subsector Score (40.4%) is still very weak and of the systems and frameworks for the subsequent achievement below average across most of the component of sustainable development in the country. scores such as institutional, Policy & Legal

the priority areas for investment in the country’s quest for a 1.1 Justification middle-income status and much as this mineral development of the Annual scorecard is tailor made to monitor the holistic sustainable Minerals development of the mineral sector, it is envisaged that the same shall be a key tool used to guide the National Planning Authority purposes. Article 244(6) further stipulates that Parliament may and Mining in ensuring that strategic planning and budgeting within the regulate the exploitation of any substance excluded from the Ministry of Energy and Mineral Development facilitates the Scorecard definition of mineral under this article (implying article 244(5)) achievement of the objectives of the government as outlined in when exploited for commercial purposes. the NDP-II. According to the Public Finance Management Act, 1.3 Lost Opportunities 2015 under S.13 (6) all ministerial annual budgets The certificate of Compliance issued by the National Planning are required to be consistent with the National (Sand, Clay, Rock / Findings Authority for the Annual Budget FY2015/16 rated the overall Development Plan, the Charter of Fiscal While the intention of the framers of this constitutional provision performance of the Ministry of Energy and Mineral Development Stones and Murram Responsibility and the Budget Framework Paper. appear to have been to protect and ring-fence “domestic” at 53.4%. Notably the National Planning Authority also observed Mining) Under S.13 (7), the annual budget should be exploitation of these minerals or substances from regulation with that though the Ministry had put in place a Strategic accompanied by a Certificate of Compliance issued the exclusion of “Commercial” exploitation of the same, the Development Plan, the same had not been aligned with NDP-II. It Section 2 of the Mining Act 2003 defines a by the National Planning Authority. intention seems to have been ousted with exclusion of the same further noted that the ministry had underperformed in the “Mineral” as any substance, whether in solid, liquid from the definition of minerals and in so doing, ousted the monitoring and regulation of the mining sector, promotion of rare or gaseous form occurring naturally in or on the The Scorecard provides the National Planning regulatory functions of DGSM over the same. earth elements, failed in the implementation of the strategy for earth, formed by or subject to a geological process, Authority with the evidence of performance of the the restoration of derelict and abandoned mines as well as in but does not include petroleum…”. Mining and Minerals subsector, which informs part Commercial mining of sand, murram, clay, rocks (stones) has for updating and maintaining the mining cadaster and the registry of the NPA’s decision in the awarding of the the last 13 years been unregulated. This was because of the system among others. Therefore in principle, sand, clay, rocks/stones and Certificate of Compliance to Energy and Mineral exclusion of these materials from the definition of minerals and/or murram are minerals geologically and scientifically Development Sector. The Public Finance and due to Government’s failure to interpret parliamentary intentions by definition and by the nature of their geological Management Act 2015, Section 13 (7), requires 1.2. Recent Key Policy or provision for a special regulatory regime for the same. As court formation. NPA to issue a Certificate of Compliance for the cases pile up against government and UNRA, the economy Developments in the Mining Annual Budget of the previous financial year. It is continues to lose billions of shillings in taxes from unregulated and Minerals Sub-Sector S. 2 of the Mining Act, 2003 also defines, aimed at harmonizing and entrenching strategic sand mining, which has a heavy footprint on lakes, rivers and “Building Mineral” to mean rock, clay, gravel, planning and budgeting towards the stated National threatens food supply from the fishing industry. laterite, murram, sand, sandstone and slate, which is Development Plan (NDP) goals and annual budget a) Cabinet endorsed the White Paper on for the new mined by a person from land owned or lawfully strategies and objectives. Therefore, this Billions have also been lost to road constructors billing Mining and Minerals Policy, 2018 on the 7th of May occupied by him other than for his or her own requirement guarantees that planning and government billions for access to these materials only to pay a 2018 soon to be followed by the review of Mining Act, domestic use in Uganda for building, or mined by a budgeting frameworks are aligned to achieve the fraction of the same to unsuspecting landowners. In some cases, 2003 person for his or her own use for road making, and overall national strategic goals as agreed in the projects have been delayed as mining speculators with the aid of includes such other minerals as the Minister may Uganda Vision 2040 and NDPII. lawyers increase the cost of road and infrastructural b) A draft geothermal policy was also prepared and from time to time declare by notice published in the developments by demanding for hefty compensations for rocks consultations with key stakeholders is ongoing and in Gazette to be building materials. As part of the assessment process, a and stones. advanced stages. comprehensive assessment framework was Article 244 (4) of the 1995 Constitutional developed in consultation with other relevant Resolving this crisis necessitates the c) The bill for Regional Certification of Mineral mainly (Amendment) Act, 2005 defines a “mineral” to mean stakeholders and used by NPA to guide and following actions: conflict minerals in line with the International any substance, other than petroleum, whether in standardize assessment, in terms of the a) Amending the constitution to include the excluded Conference on the Great Lakes Region (ICGLR) solid, liquid or gaseous form occurring naturally in or consistency and compliance between the Annual substances in the definition of minerals; or, Protocol Against the Illegal Exploitation of Natural on the earth, formed by or subject to a geological Budget with the NDP, the Charter of Fiscal b) Taking out a constitutional interpretation suit for purposes of Resources was passed by parliament in May 2017 process. Responsibility and the National Budget Framework ensuring that commercial exploitation of these substances Paper. The assessment covered all sectors. is regulated by the DGSM; and/or d) Lost Opportunities (Sand, Clay, Rock/Stones and Genesis of the legal crisis created c) Ensuring that parliament puts in place a special regulatory Murram Mining) NDP-II identifies the Mining Sub-Sector as one of Article 244(5) for the purposes of this article, regime for these substances as stipulated in Article 244(6) “mineral” does not include clay, murram, sand or any whichever is easily attainable of these options. stone commonly used for building or similar

numeric, the assessment will test the trend of performance if the: Qualitative data was collected through focus group Milestone, target or standard was not attained; Milestone, target discussions with the communities in the sampled or standard inadequately attained; Milestone, target or standard districts, using a guiding tool. The groups were partially attained; Milestone, target or standard mostly attained; categorized according to females, males, and Milestone, target or standard attained. Once this is done, an youths. In all, 18 FGDs were conducted in the indicator was assigned a performance weight based on the sampled districts of Moroto, Namayingo, Busia, 2.1 Scorecard Design the level of performance. It was then weighted against the assessment criteria described for both numeric and non-numeric Kabale, and Ntungamo. Appendix 1 shows the list of prescribed weight; depending on the assumed influence it has indicators as indicated in the table 1 above. sampled villages engaged in the FGDs. Key on the subsector to achieve its objectives. For each of the KRA, informants (appendix 2) interviews were also the total sum of scores from each question is divided by the 2.3 Data Collection, Entry conducted with the various political and technical maximum total scores that can be scored by the KRA and local leaders within the sampled districts. Appendix divided by 100 to arrive at the percentage score of the KRA. The and Analysis 3 shows the key informants Interview guide and average scores for the KRA make up the indicator score. The The assessment involved the collection of both secondary and Appendix 4 shows the FGD guide. average scores for all the indicators make up the final score for primary data. Secondary data collection included the review of the subsector. The scoring and weighting of the questions and national documents, the policies, laws, regulations, guidelines Data collected was entered into an inbuilt excel indicators was benchmarked with international best practices of and reports. The primary data involved interviewing of key database which analyzed and produced the results scoring the performance of the extractive sectors as used in stakeholders, such as government institutions, the private sector, (scores) and the various graphs presented in the other resource-rich countries such as Norway, Chile, South project affected communities and the civil society. Data collection table. These were later used to write the report Africa, and Australia. tools were jointly developed by NPA and ACEMP with other sector alongside the qualitative data and information from stakeholders and used to collect primary data. the various reports and documents. The draft scorecard was validated by all participating The assessment was both quantitative and MEASUREMENT CRITERIA Quantitative data was collected with a data collection tool that government institutions and other key stakeholders qualitative in nature. It relied on three main was administered to the various MDA’s relevant to the mineral to produce the final scorecard of the sector; and categories of data: routine and non-routine, all subsector. The tool endeavored to assess the extent to which the subsequently a report produced and launched. collected and processed by the various MDA’s in various aspects of the subsector have been implemented. Uganda. Routine or administrative data is collected Responses collected with this tool were triangulated with routine as a part of the regular monitoring process by the or administrative data collected from the various government responsible MDAs; while non-routine data is documents and reports. Appendix 3 shows the list of MDA’s collected on a periodical basis, often annually, or as engaged. a part of the national statistical studies commissioned by government, and mostly carried out by the Uganda Bureau of Statistics (UBOS). The third source was the primary data collection, where the data collectors engaged various MDA’s and stakeholders such as communities and the local leaders in areas where mineral activities and developments are being undertaken.

2.2 Weighting and Scoring Each of these indicators has various key result The assessment of the observed values or qualities or areas (KRA) that were assessed; and each area quantities of performance were conducted to determine whether has various questions that feed into its score. Each the indicator performance is fully addressed, mostly addressed, question under these indicators was be given a partially addressed, inadequately addressed or not addressed specific score ranging from 0 – 100 depending on for the non-numeric indicators. Where the observed value is

and mineral resources assessment under Sustainable to 54.9 million tonnes; increase in Limestone and Management of Mineral Resources Project (SMMRP, marble reserves from 30 million tonnes to more 2003-2011) identified new potential mineral target areas for than 500 million tonnes; 7.8 million ounces of gold exploration and development. in Busia, Kamalenge, Mashonga, Kampano and 3.1. Subsector General Scores Alupe; 1.7 billion tonnes of graphite Orom, Kitgum, 3 billion tonnes of aluminous clay rich in Rare Earth Elements (REE) in Makuutu, Iganga; 230Mt of OVERALL SCORE OF THE SUBSECTOR: Phosphate and Iron for the Sukulu phosphates and 43.7% - Partially addressed steel project which is under development. Geological Surveys and mineral This indicates that the subsector has partially addressed most of the key issues raised in this scorecard. appraisals in 2016/17 Financial However, there are some outstanding issues that still need to be addressed. These are clarified in the Year next section.

Fig 1: Performance of the Minerals and Mining subsector along key indicators significant commercial viable reserves. Uranium Concentration up to 4500 ppm were discovered in Buhweju. For example, 1,253,331 tonnes of Bentonite at Kaiso Tonya, Iron ore deposits in Kabale and Kisoro areas are estimated to Hoima district and 30 million tonnes of iron ore in be over 300 million tonnes. Rutenga were established. Surveys were also conducted in Hoima, Bundibugyo, Kasese and Other minerals include; Beryl, Bismuth, Columbite Tantalite, Nebbi districts. Findings at Buranga and Kibiro Copper, Chromite, Diamond, Gold, Tin (cassiterite), Wolfram indicated subsurface temperatures suitable for (Tungsten), Asbestos, Clay, Rare Earth Elements, Aluminous electricity, agriculture and spas in hotels. Clays, Diatomite, feldspar, Granite Gneiss, Graphite, Gypsum, Kaolin, Kyanite, Limestone, Marble, Mica, Phosphates, Rock A large part of Uganda remains geologically Salt, Silica Sand, Building Sand, Talc, Cobalt, Lead, Zinc, unexplored and the mineral potential of the country Platinum Group Metals (PGM), Uranium, Vermiculite and is yet to be evaluated, while 20% of Karamoja was Nickel among others (NPA, 2010) not covered due to the insecurity in the region at the . time. However, some resource estimates have been 3.2.1. Mineral Resources/Reserves made on a number of minerals reserves subject to New geological, geochemical and airborne geophysical data confirmation by project developers. Uganda is endowed with favourable geological conditions associated with a rich and diverse mineral covering 80% of the country led to the discovery of a total of resource base and with substantial economic potential. Uganda is underlain by extensive Precambrian eighteen (18) new mineral targets; ten (10) new uranium (4,500 – 600 million years) rocks, which are host to a wide variety of mineral deposits, Younger priority anomalies; 300 million tonnes of proven iron ore Cenozoic (65 million years – Present) sediments and volcanics in the west and east of the country are deposits in the country (with inferred reserves of up to a billion also host to mineral deposits. Recent geophysical surveys, geological mapping, geochemical surveys tonnes); increase in Vermiculite reserves from 5 million tonnes

Fig 4: Geological Map of Mbale Fig 2: Geological Map of Moroto, Karamoja Region.

Nuclear Power Development Preliminary survey of potential sites for nuclear power development was conducted in Buyende, Mubende, Nakasongola, Kiruhura and Lamwo Districts.

Fig 3: Geological Map of Hoima IAEA expert mission on Site and External Events Design (SEED) was received to review the siting process for nuclear power plants in Uganda.

Policy, legal and institutional frameworks were reviewed and consultation on the draft Nuclear Energy Policy is in advanced stages. LIST OF FIGURES

The 2nd Annual Mining & Mineral Subsector Scorecard 5

Fig 4: Geological Map of Mbale Fig 2: Geological Map of Moroto, Karamoja Region.

Nuclear Power Development Preliminary survey of potential sites for nuclear power development was conducted in Buyende, Mubende, Nakasongola, Kiruhura and Lamwo Districts.

Fig 3: Geological Map of Hoima IAEA expert mission on Site and External Events Design (SEED) was received to review the siting process for nuclear power plants in Uganda.

Policy, legal and institutional frameworks were reviewed and consultation on the draft Nuclear Energy Policy is in advanced stages. Table of Contents 4 List of Figures 5 List of Acronyms 6 Executive Summary 7 1. Background of the Mining and Mineral Subsector in Uganda 9 Fig 1: Performance of the minerals and mining subsector along key indicators 14 1.1 Justification of the Annual Minerals and Mining Scorecard 10 Fig 2: Geological map of Moroto, Karamoja region. 16 1.2 Recent Key Policy Developments in the Mining and Minerals Sub-Sector 10 Fig 3: Geological map of Hoima 16 1.3 Lost Opportunities (Sand, Clay, Rock/Stones and Murram Mining) 11 Fig 4: Geological map of Mbale 17 2. Methodology 12 Fig 5: Performance of the subsector under key results areas in indicator 2 18 2.1 Scorecard Design 12 Fig 6: Performance of the subsector under key result areas in indicator 3 22 2.2 Weighting and Scoring 12 Fig 7: Performance of the subsector under key results areas in indicator 4 24 2.3 Data Collection, Entry and Analysis 13 Fig 8: Uganda’s Minig Cadastre Portal 28 3 Results 14 Fig 9: Gold Minig in Buhweju 28 3.1 Subsector General Scores 14 Fig 10: Performance of the subsector under key result areas in indicator 5 29 3.2 Key Performance Indicator Scores 14 Fig 11: Members of rupa community development trust on a study tour 30 3.2.1 Mineral Resources/Reserves 14 Fig 12: Performance of the subsector under key results areas in indicator 6 31 3.2.2 Access to Mineral Resources 18 Fig 13: Mercury contaminated water flowing into farmland at a gold mining site in Amudat 32 3.2.3 Institutional Establishment and Development 22 Fig 14: Effects of illegal sand mining on land in lwera swamp, Masaka road 33 3.2.4 Mineral Production, Revenue Generation, Collection and Management 24 Fig 15: An abandoned cyanide plant in Amudat district 34 3.2.5 Local Content Development and Participation 29 Fig 16: A miner in chepkararat (Amudat district) mining without any protective gear 36 3.2.6 Health, Safety and Environment Conservation and Management 31 Fig 17: A miner in Amudat using mercury to seperate gold from gold dust 36 3.2.7 Infrastructural Development 38 Fig 18: A gold kacha in Busia used to eliminate mercury from the gold mining process 37 3.2.8 Gender, Equity, Social Inclusion and Participation 41 Fig 19: Performance of the subsector under key result areas in indicator 7 38 3.2.9 Minerals Value Addition and Marketing 44 Fig20: Map of Uganda showing the NDP II proposed minerals & requisite infrastructure 40 3.2.10 Regional and International Initiatives 46 Fig 21: Performance of the subsector under key result areas in indicator 8 41 4.0 Conclusions & Key Recommendations 48 Fig 22: A child miner in Rupa mining area, Karamoja region. 42 5.0 Appendices 50 Fig 23: Performance of the subsector under key result areas in indicator 9 44 Appendix 1: FGD Sites 50 Fig 24: Performance of the subsector under key result areas in indicator 10 46 Appendix 2: List of Key Informants at the District Level 50 Appendix 3: Key informants guide 51 Appendix 4: Focus Group Discussion Guide 52

LIST OF ACRONYMS

Fig 4: Geological Map of Mbale Fig 2: Geological Map of Moroto, Karamoja Region.

Nuclear Power Development Preliminary survey of potential sites for nuclear power development was conducted in Buyende, Mubende, Nakasongola, Kiruhura and Lamwo Districts.

Fig 3: Geological Map of Hoima IAEA expert mission on Site and External Events Design (SEED) was received to review the siting process for nuclear power plants in Uganda.

LIST OF ACRONYMS

ACEMP Africa Centre for Energy & Mineral Policy EXECUTIVE SUMMARY ACP African, Caribbean and Pacific ASGM Artisanal and Small scale Gold Mining The Government of Uganda's 'Vision 2040' shrinking exploration funding from investors and a failure to ASM Artisanal Small scale Mining launched in April 2013, aims to transform Uganda access capital financing from local and regional commercial BOU Bank of Uganda from a predominantly peasant society to a banks among others. CAO Chief Administrative Officer competitive modern country with a median income CDO Community Development Officer of US$ 9,500 by 2040. The Vision acknowledges that This collaboration between NPA and ACEMP therefore seeks to CSO Civil Society Organisation socioeconomic transformation can be achieved by monitor the annual planning, budgeting and overall governance DGSM Directorate of Geological Survey and Mines prioritising development in key sectors of the of the mining and minerals sub-sector and its contribution to DOP Director of Petroleum economy. As such, the mining and minerals Uganda’s development aspirations as underscored in the EIA Environmental Impact Assessment subsector has been identified as one of those National Development Plans and Vision 2040. Inter alia purpose EITI Extractive Industries Transparency Initiative priority sectors to drive Uganda’s socioeconomic of the Annual Minerals subsector scorecard is to assess the ESIA Environment and Social Impact Assessment transformation1. performance of the subsector at each stage of the value chain ESMPs Environmental and Social Management Plans and identify key interventional areas aimed at enhancing the FGDs Focus Group Discussions The minerals sector has a great potential of contribution of the sector towards achieving the objectives of the GBV Gender Based Violence contributing to economic growth and poverty Vision. GDP Gross Domestic Product alleviation through mineral exports, local HSE Health Safety and Environment consumption, manufacturing employment The second edition of this scorecard assessed the ICGLR International Conference on the Great Lakes Regions generation and diversification of the economy. operationalization and functioning of the systems and KII Key Informant Interview Exploitation of minerals and materials will provide frameworks for the subsequent achievement of sustainable LG Local Government vital resources needed to fund the backlog of development in the country. Using both secondary and primary MEMD Ministry of Energy and Mineral Development infrastructure investments and addressing our core data, engagement of stakeholders in the sector, the scorecard MFPED Ministry of Finance, Planning and Economic Development macro-economic aspirations. This subsector is assessment analysed the performance of the sub-sector. Key MTEF Medium Term Expenditure Framework projected to be a major driver in employment findings suggest that the overall average performance of the NDP National Development Plan creation and GDP growth over the medium term sector is at 43.7%, which is a slight improvement from the 40.4% NEMA National Environment Management Authority through value addition. Uganda’s northwest registered in the inaugural scorecard launched in 2016. NPA National Planning Authority Karamoja region hosts over 50 different economic Nevertheless, performance of the mining and minerals NTR Non – Tax Revenue and commercially exploitable minerals, but the sub-sector remains below average though there are slight OAG Office of the Auditor General mineral sector’s contribution to Gross Domestic improvements in some areas. Specifically, the subsector scores OHS Occupational Health and Safety Product (GDP) sunk from 6% in the 1970s to less were below average along some key performance indicators PAPs Project Affected Persons than 0.5% in 2010; and has since stagnated at an which include; minerals production, revenue generation, RAP Resettlement Action Plan average of 0.5% for the last seven years. collection and management (19.7%); Institutional Establishment SIAs Social Impact Assessments and Development (31.8%); Gender Equity and Social Inclusion SMEs Small and Medium Enterprises The weak performance of the mining and minerals and Participation (37.5%); minerals value addition and marketing SMMRP Sustainable Management of Mineral Resources Project sector has been attributed to inadequate legal, (45.8%); and Health, Safety and Environment conservation and TI Transparency Initiative institutional and policy framework, human resource management (46.4%), while above average performance was UBOS Uganda Bureau of Statistics constraints, unregulated artisanal and small-scale registered in the following areas: access to mineral resources UNCST Uganda National Council for Science and Technology mining activities, inability to access international (52.3%); local content development and participation (55.4%), URA Uganda Revenue Authority markets due to restrictive mineral traceability infrastructural development (52.8%); and regional and UWA Uganda Wildlife Authority requirements and OECD and ICGLR standards, international initiatives (51.4%). WGI Worldwide Governance Index 1 NDPII (2015) and Uganda Vision 2040 (April 2013). LIST OF ACRONYMS EXECUTIVE SUMMARY

The 2nd Annual Mining & Mineral Subsector Scorecard 7

Fig 4: Geological Map of Mbale Fig 2: Geological Map of Moroto, Karamoja Region.

Nuclear Power Development Preliminary survey of potential sites for nuclear power development was conducted in Buyende, Mubende, Nakasongola, Kiruhura and Lamwo Districts.

Fig 3: Geological Map of Hoima IAEA expert mission on Site and External Events Design (SEED) was received to review the siting process for nuclear power plants in Uganda.

The scorecard identifies gaps in all areas that need mineral policy and regulatory framework; improved Uganda has a favorable geological environment that hosts over 27 commercially exploitable mineral resources. Thus, to be addressed so as to improve the sub-sector’s transparency and disclosure of all the required information, the mineral development sector in Uganda has a strong opportunity to sustainably contribute to economic growth of performance and the subsequent achievement of training and skilling of the ASMs, promotion and awareness the country through providing employment, and supporting industrialization through backward, lateral and forward the sector objectives. Critically, the responsible creation of the environment issues within the mining areas, linkages. Ministry of Energy and Mineral Development needs among others. to address the following: ensure that that ICGLR The Vision 2040 and the NDP II identified the mining sub-sector as fundamental and a driver in the achievement of mineral certification mechanism is fully In the 2015/16 and 2016/17 certificate of Compliance issued “A Transformed Ugandan Society from a Peasant to a Modern and Prosperous domesticated in order to plug capital flight and to the Ministry of Energy and Mineral Development (MEMD) Country within 30 years.” It is projected that the sub-sector will generate revenues that will be used to spur leakages in the exploitation of Tin, Tantalum and the areas of non-compliance identified included: weak growth in other sectors, create employment, infrastructure and human resource development in the process enriching Tungsten and Gold (3TGs) to enable miners and monitoring and regulation in the mining sector; undeveloped the country’s Gross Domestic Product (GDP). exporters access international markets and Rare Earth Elements (REE) resources; Implementation of the reducing rampant mineral smuggling; full strategy for restoration of derelict and abandoned mines; Framework (54.2%); Reporting Practices (24.2%); Safeguards operationalization of the minerals and mining policy weaknesses in updating and maintaining the Mining Cadastre The National Planning Authority (2017); strengthening infrastructural development in and Registry System; and non-prioritization of key and Quality Control (57.5%); and the Enabling Environment (NPA), whose key functions among (38.4%); and indicator scores comprising of Access to Mineral the sector especially in the Karamoja region so as interventions in the mineral sector such as, the failure to others include: to ease access to the diverse mineral potential in establish the mineral potential of Karamoja; lack of an Resources; Revenue Generation and Collection; Revenue the region; full regulation and formalisation of ASMs operational mining certification institution respectively among Management; Local Content; Health, Safety and Environment Monitoring and evaluating of Public Projects and activities across the country; improving revenue others. As a result of these and other sector challenges the Management; Infrastructural Development; Citizens Engagement Programmes and Liaising with the private sector and collection from the sector by introducing online overall sector-weighted score was 53.4% in 2015/16 fiscal and Participation; and, Value Addition and Sectoral Linkages. It civil society in the evaluation of Government self-assessments and compliance by mining year while sector performance declined 41.9% in the 2016/17 recommended government to invest in key aspects of the value performance collaboratively works with the Africa companies; introduction of weigh bridges on all fiscal year. The overall average sector performance in the last chain in order to maximise the contribution of the Mineral Centre for Energy and Policy (ACEMP), to annually mining regional routes to monitor mineral two years was 48.5% and falls within the margins of the Subsector to national development. These include: the review of produce and disseminate the Mining and Mineral production and declarations by companies; overall weighted score of 43.7% registered in this year’s the legal framework on HSE, ESIAs, local content and National sub-sector development scorecard, to inform decision enforcement of regulations and termination of all Mining and Minerals Sector scorecard. The consistence of participation, transparency in benefits sharing/financial making at policy level on key issues affecting the non-performing exploration and mining licenses; these scores therefore underlines Government’s failure and resources from mining activities; value addition, and improved sub-sector and to guide sector planning and amend the constitution and the regulatory stagnation in addressing underlying sector challenges and access to information and mineral resources and citizen budgeting processes. framework to bring sand mining, rocks (stones), that unless these issues are addressed NDP-II and Vision engagement and participation, and address the skills murrum and clay under the ambit of the mining and 2040 objectives may not be achieved as has been projected. requirements in the Mining subsector to enhance local content The first edition of the scorecard, which was participation given that this was one of the poorest indicator of launched in 2016, examined the existence of the performance. requisite institutional and legal frameworks, the reporting frameworks, the enabling environment This second edition presents an opportunity for the country to and safeguards and control systems. It revealed assess the progress made since the last scorecard, monitor and fundamental issues that impact the performance of evaluate the performance towards the achievement of the sector the sub-sector, which required urgent attention by goals. It also draws urgent attention to issues that need Dr. Joseph Muvawala Bwesigye Don Binyina the relevant stakeholders. Results in the first immediate action by the government, the relevant stakeholders Executive Director Executive Director scorecard indicated the aggregate Annual Minerals and partners. It assesses the operationalization and functioning 2 National Planning Authority Africa Centre for Energy and Mineral Policy Subsector Score (40.4%) is still very weak and of the systems and frameworks for the subsequent achievement (NPA) (ACEMP) below average across most of the component of sustainable development in the country. scores such as institutional, Policy & Legal EXECUTIVE SUMMARY

Fig 4: Geological Map of Mbale Fig 2: Geological Map of Moroto, Karamoja Region.

Nuclear Power Development Preliminary survey of potential sites for nuclear power development was conducted in Buyende, Mubende, Nakasongola, Kiruhura and Lamwo Districts.

Fig 3: Geological Map of Hoima IAEA expert mission on Site and External Events Design (SEED) was received to review the siting process for nuclear power plants in Uganda.

BACKGROUND OF THE MINING 01 AND MINERAL SUBSECTOR IN UGANDA

The scorecard identifies gaps in all areas that need mineral policy and regulatory framework; improved Uganda has a favorable geological environment that hosts over 27 commercially exploitable mineral resources. Thus, to be addressed so as to improve the sub-sector’s transparency and disclosure of all the required information, the mineral development sector in Uganda has a strong opportunity to sustainably contribute to economic growth of performance and the subsequent achievement of training and skilling of the ASMs, promotion and awareness the country through providing employment, and supporting industrialization through backward, lateral and forward the sector objectives. Critically, the responsible creation of the environment issues within the mining areas, linkages. Ministry of Energy and Mineral Development needs among others. to address the following: ensure that that ICGLR The Vision 2040 and the NDP II identified the mining sub-sector as fundamental and a driver in the achievement of mineral certification mechanism is fully In the 2015/16 and 2016/17 certificate of Compliance issued “A Transformed Ugandan Society from a Peasant to a Modern and Prosperous domesticated in order to plug capital flight and to the Ministry of Energy and Mineral Development (MEMD) Country within 30 years.” It is projected that the sub-sector will generate revenues that will be used to spur leakages in the exploitation of Tin, Tantalum and the areas of non-compliance identified included: weak growth in other sectors, create employment, infrastructure and human resource development in the process enriching Tungsten and Gold (3TGs) to enable miners and monitoring and regulation in the mining sector; undeveloped the country’s Gross Domestic Product (GDP). exporters access international markets and Rare Earth Elements (REE) resources; Implementation of the reducing rampant mineral smuggling; full strategy for restoration of derelict and abandoned mines; Framework (54.2%); Reporting Practices (24.2%); Safeguards operationalization of the minerals and mining policy weaknesses in updating and maintaining the Mining Cadastre The National Planning Authority (2017); strengthening infrastructural development in and Registry System; and non-prioritization of key and Quality Control (57.5%); and the Enabling Environment (NPA), whose key functions among (38.4%); and indicator scores comprising of Access to Mineral the sector especially in the Karamoja region so as interventions in the mineral sector such as, the failure to others include: to ease access to the diverse mineral potential in establish the mineral potential of Karamoja; lack of an Resources; Revenue Generation and Collection; Revenue the region; full regulation and formalisation of ASMs operational mining certification institution respectively among Management; Local Content; Health, Safety and Environment Monitoring and evaluating of Public Projects and activities across the country; improving revenue others. As a result of these and other sector challenges the Management; Infrastructural Development; Citizens Engagement Programmes and Liaising with the private sector and collection from the sector by introducing online overall sector-weighted score was 53.4% in 2015/16 fiscal and Participation; and, Value Addition and Sectoral Linkages. It civil society in the evaluation of Government self-assessments and compliance by mining year while sector performance declined 41.9% in the 2016/17 recommended government to invest in key aspects of the value performance collaboratively works with the Africa companies; introduction of weigh bridges on all fiscal year. The overall average sector performance in the last chain in order to maximise the contribution of the Mineral Centre for Energy and Policy (ACEMP), to annually mining regional routes to monitor mineral two years was 48.5% and falls within the margins of the Subsector to national development. These include: the review of produce and disseminate the Mining and Mineral production and declarations by companies; overall weighted score of 43.7% registered in this year’s the legal framework on HSE, ESIAs, local content and National sub-sector development scorecard, to inform decision enforcement of regulations and termination of all Mining and Minerals Sector scorecard. The consistence of participation, transparency in benefits sharing/financial making at policy level on key issues affecting the non-performing exploration and mining licenses; these scores therefore underlines Government’s failure and resources from mining activities; value addition, and improved sub-sector and to guide sector planning and amend the constitution and the regulatory stagnation in addressing underlying sector challenges and access to information and mineral resources and citizen budgeting processes. framework to bring sand mining, rocks (stones), that unless these issues are addressed NDP-II and Vision engagement and participation, and address the skills murrum and clay under the ambit of the mining and 2040 objectives may not be achieved as has been projected. requirements in the Mining subsector to enhance local content The first edition of the scorecard, which was participation given that this was one of the poorest indicator of launched in 2016, examined the existence of the performance. requisite institutional and legal frameworks, the reporting frameworks, the enabling environment This second edition presents an opportunity for the country to and safeguards and control systems. It revealed assess the progress made since the last scorecard, monitor and fundamental issues that impact the performance of evaluate the performance towards the achievement of the sector the sub-sector, which required urgent attention by goals. It also draws urgent attention to issues that need Dr. Joseph Muvawala Bwesigye Don Binyina the relevant stakeholders. Results in the first immediate action by the government, the relevant stakeholders Executive Director Executive Director scorecard indicated the aggregate Annual Minerals and partners. It assesses the operationalization and functioning 2 National Planning Authority Africa Centre for Energy and Mineral Policy Subsector Score (40.4%) is still very weak and of the systems and frameworks for the subsequent achievement (NPA) (ACEMP) below average across most of the component of sustainable development in the country. scores such as institutional, Policy & Legal

2 Annual Mineral Scorecard 2015/16 EXECUTIVE SUMMARY BACKGROUND

The 2nd Annual Mining & Mineral Subsector Scorecard 9

Fig 4: Geological Map of Mbale Fig 2: Geological Map of Moroto, Karamoja Region.

Nuclear Power Development Preliminary survey of potential sites for nuclear power development was conducted in Buyende, Mubende, Nakasongola, Kiruhura and Lamwo Districts.

Fig 3: Geological Map of Hoima IAEA expert mission on Site and External Events Design (SEED) was received to review the siting process for nuclear power plants in Uganda.

Fig 4: Geological Map of Mbale Fig 2: Geological Map of Moroto, Karamoja Region.

Nuclear Power Development Preliminary survey of potential sites for nuclear power development was conducted in Buyende, Mubende, Nakasongola, Kiruhura and Lamwo Districts.

Fig 3: Geological Map of Hoima IAEA expert mission on Site and External Events Design (SEED) was received to review the siting process for nuclear power plants in Uganda.

The 2nd Annual Mining & Mineral Subsector Scorecard 11

Fig 4: Geological Map of Mbale Fig 2: Geological Map of Moroto, Karamoja Region.

Nuclear Power Development Preliminary survey of potential sites for nuclear power development was conducted in Buyende, Mubende, Nakasongola, Kiruhura and Lamwo Districts.

Fig 3: Geological Map of Hoima IAEA expert mission on Site and External Events Design (SEED) was received to review the siting process for nuclear power plants in Uganda.

02 METHODOLOGY numeric, the assessment will test the trend of performance if the: Qualitative data was collected through focus group Milestone, target or standard was not attained; Milestone, target discussions with the communities in the sampled or standard inadequately attained; Milestone, target or standard districts, using a guiding tool. The groups were partially attained; Milestone, target or standard mostly attained; categorized according to females, males, and Milestone, target or standard attained. Once this is done, an youths. In all, 18 FGDs were conducted in the indicator was assigned a performance weight based on the sampled districts of Moroto, Namayingo, Busia, 2.1 Scorecard Design the level of performance. It was then weighted against the assessment criteria described for both numeric and non-numeric Kabale, and Ntungamo. Appendix 1 shows the list of prescribed weight; depending on the assumed influence it has indicators as indicated in the table 1 above. sampled villages engaged in the FGDs. Key on the subsector to achieve its objectives. For each of the KRA, informants (appendix 2) interviews were also the total sum of scores from each question is divided by the 2.3 Data Collection, Entry conducted with the various political and technical maximum total scores that can be scored by the KRA and local leaders within the sampled districts. Appendix divided by 100 to arrive at the percentage score of the KRA. The and Analysis 3 shows the key informants Interview guide and average scores for the KRA make up the indicator score. The The assessment involved the collection of both secondary and Appendix 4 shows the FGD guide. average scores for all the indicators make up the final score for primary data. Secondary data collection included the review of the subsector. The scoring and weighting of the questions and national documents, the policies, laws, regulations, guidelines Data collected was entered into an inbuilt excel indicators was benchmarked with international best practices of and reports. The primary data involved interviewing of key database which analyzed and produced the results scoring the performance of the extractive sectors as used in stakeholders, such as government institutions, the private sector, (scores) and the various graphs presented in the other resource-rich countries such as Norway, Chile, South project affected communities and the civil society. Data collection table. These were later used to write the report Africa, and Australia. tools were jointly developed by NPA and ACEMP with other sector alongside the qualitative data and information from stakeholders and used to collect primary data. the various reports and documents. The draft scorecard was validated by all participating The assessment was both quantitative and MEASUREMENT CRITERIA Quantitative data was collected with a data collection tool that government institutions and other key stakeholders qualitative in nature. It relied on three main was administered to the various MDA’s relevant to the mineral to produce the final scorecard of the sector; and categories of data: routine and non-routine, all subsector. The tool endeavored to assess the extent to which the Point on the scale Weight. Range (%) Colour Code subsequently a report produced and launched. collected and processed by the various MDA’s in various aspects of the subsector have been implemented. Not Addressed/ Uganda. Routine or administrative data is collected Milestone, Responses collected with this tool were triangulated with routine target or standard as a part of the regular monitoring process by the Not attained 0 0 or administrative data collected from the various government responsible MDAs; while non-routine data is Inadequately addressed/ documents and reports. Appendix 3 shows the list of MDA’s collected on a periodical basis, often annually, or as Milestone, engaged. target or standard a part of the national statistical studies inadequately attained 1 25

commissioned by government, and mostly carried Partially addressed/ Milestone, out by the Uganda Bureau of Statistics (UBOS). target or standard The third source was the primary data collection, partially attained 2 26 - 50 where the data collectors engaged various MDA’s Mostly addressed/ Milestone, and stakeholders such as communities and the target or standard local leaders in areas where mineral activities and mostly attained 3 51 - 75 developments are being undertaken. Fully addressed/ Milestone, target or standard attained 4 76 - 100 2.2 Weighting and Scoring Each of these indicators has various key result The assessment of the observed values or qualities or areas (KRA) that were assessed; and each area quantities of performance were conducted to determine whether has various questions that feed into its score. Each the indicator performance is fully addressed, mostly addressed, question under these indicators was be given a partially addressed, inadequately addressed or not addressed specific score ranging from 0 – 100 depending on for the non-numeric indicators. Where the observed value is METHODOLOGY

Fig 4: Geological Map of Mbale Fig 2: Geological Map of Moroto, Karamoja Region.

Nuclear Power Development Preliminary survey of potential sites for nuclear power development was conducted in Buyende, Mubende, Nakasongola, Kiruhura and Lamwo Districts.

Fig 3: Geological Map of Hoima IAEA expert mission on Site and External Events Design (SEED) was received to review the siting process for nuclear power plants in Uganda.

METHODOLOGY 02 METHODOLOGY numeric, the assessment will test the trend of performance if the: Qualitative data was collected through focus group Milestone, target or standard was not attained; Milestone, target discussions with the communities in the sampled or standard inadequately attained; Milestone, target or standard districts, using a guiding tool. The groups were partially attained; Milestone, target or standard mostly attained; categorized according to females, males, and Milestone, target or standard attained. Once this is done, an youths. In all, 18 FGDs were conducted in the indicator was assigned a performance weight based on the sampled districts of Moroto, Namayingo, Busia, 2.1 Scorecard Design the level of performance. It was then weighted against the assessment criteria described for both numeric and non-numeric Kabale, and Ntungamo. Appendix 1 shows the list of prescribed weight; depending on the assumed influence it has indicators as indicated in the table 1 above. sampled villages engaged in the FGDs. Key on the subsector to achieve its objectives. For each of the KRA, informants (appendix 2) interviews were also the total sum of scores from each question is divided by the 2.3 Data Collection, Entry conducted with the various political and technical maximum total scores that can be scored by the KRA and local leaders within the sampled districts. Appendix divided by 100 to arrive at the percentage score of the KRA. The and Analysis 3 shows the key informants Interview guide and average scores for the KRA make up the indicator score. The The assessment involved the collection of both secondary and Appendix 4 shows the FGD guide. average scores for all the indicators make up the final score for primary data. Secondary data collection included the review of the subsector. The scoring and weighting of the questions and national documents, the policies, laws, regulations, guidelines Data collected was entered into an inbuilt excel indicators was benchmarked with international best practices of and reports. The primary data involved interviewing of key database which analyzed and produced the results scoring the performance of the extractive sectors as used in stakeholders, such as government institutions, the private sector, (scores) and the various graphs presented in the other resource-rich countries such as Norway, Chile, South project affected communities and the civil society. Data collection table. These were later used to write the report Africa, and Australia. tools were jointly developed by NPA and ACEMP with other sector alongside the qualitative data and information from stakeholders and used to collect primary data. the various reports and documents. The draft scorecard was validated by all participating The assessment was both quantitative and MEASUREMENT CRITERIA Quantitative data was collected with a data collection tool that government institutions and other key stakeholders qualitative in nature. It relied on three main was administered to the various MDA’s relevant to the mineral to produce the final scorecard of the sector; and categories of data: routine and non-routine, all subsector. The tool endeavored to assess the extent to which the Point on the scale Weight. Range (%) Colour Code subsequently a report produced and launched. collected and processed by the various MDA’s in various aspects of the subsector have been implemented. Not Addressed/ Uganda. Routine or administrative data is collected Milestone, Responses collected with this tool were triangulated with routine target or standard as a part of the regular monitoring process by the Not attained 0 0 or administrative data collected from the various government responsible MDAs; while non-routine data is Inadequately addressed/ documents and reports. Appendix 3 shows the list of MDA’s collected on a periodical basis, often annually, or as Milestone, engaged. target or standard a part of the national statistical studies inadequately attained 1 25 commissioned by government, and mostly carried Partially addressed/ Milestone, out by the Uganda Bureau of Statistics (UBOS). target or standard The third source was the primary data collection, partially attained 2 26 - 50 where the data collectors engaged various MDA’s Mostly addressed/ Milestone, and stakeholders such as communities and the target or standard local leaders in areas where mineral activities and mostly attained 3 51 - 75 developments are being undertaken. Fully addressed/ Milestone, target or standard attained 4 76 - 100 2.2 Weighting and Scoring Each of these indicators has various key result The assessment of the observed values or qualities or areas (KRA) that were assessed; and each area quantities of performance were conducted to determine whether has various questions that feed into its score. Each the indicator performance is fully addressed, mostly addressed, question under these indicators was be given a partially addressed, inadequately addressed or not addressed specific score ranging from 0 – 100 depending on for the non-numeric indicators. Where the observed value is METHODOLOGY METHODOLOGY

The 2nd Annual Mining & Mineral Subsector Scorecard 13

Fig 4: Geological Map of Mbale Fig 2: Geological Map of Moroto, Karamoja Region.

Nuclear Power Development Preliminary survey of potential sites for nuclear power development was conducted in Buyende, Mubende, Nakasongola, Kiruhura and Lamwo Districts.

Fig 3: Geological Map of Hoima IAEA expert mission on Site and External Events Design (SEED) was received to review the siting process for nuclear power plants in Uganda.

RESULTS 03 RESULTS

Fig 4: Geological Map of Mbale Fig 2: Geological Map of Moroto, Karamoja Region.

Nuclear Power Development Preliminary survey of potential sites for nuclear power development was conducted in Buyende, Mubende, Nakasongola, Kiruhura and Lamwo Districts.

Fig 3: Geological Map of Hoima IAEA expert mission on Site and External Events Design (SEED) was received to review the siting process for nuclear power plants in Uganda.

RESULTS 03 RESULTS

and mineral resources assessment under Sustainable to 54.9 million tonnes; increase in Limestone and Management of Mineral Resources Project (SMMRP, marble reserves from 30 million tonnes to more 2003-2011) identified new potential mineral target areas for than 500 million tonnes; 7.8 million ounces of gold exploration and development. in Busia, Kamalenge, Mashonga, Kampano and 3.1. Subsector General Scores Alupe; 1.7 billion tonnes of graphite Orom, Kitgum, 3 billion tonnes of aluminous clay rich in Rare Earth Geological Survey Calendar Elements (REE) in Makuutu, Iganga; 230Mt of OVERALL SCORE OF THE SUBSECTOR: Phosphate and Iron for the Sukulu phosphates and 43.7% - Partially addressed steel project which is under development. Geological Surveys and mineral This indicates that the subsector has partially addressed most of the key issues raised in this scorecard. appraisals in 2016/17 Financial However, there are some outstanding issues that still need to be addressed. These are clarified in the Year next section.

The 2nd Annual Mining & Mineral Subsector Scorecard 15

Fig 4: Geological Map of Mbale Fig 2: Geological Map of Moroto, Karamoja Region.

Nuclear Power Development Preliminary survey of potential sites for nuclear power development was conducted in Buyende, Mubende, Nakasongola, Kiruhura and Lamwo Districts.

Fig 3: Geological Map of Hoima IAEA expert mission on Site and External Events Design (SEED) was received to review the siting process for nuclear power plants in Uganda.

Fig 4: Geological Map of Mbale Fig 2: Geological Map of Moroto, Karamoja Region.

Nuclear Power Development Preliminary survey of potential sites for nuclear power development was conducted in Buyende, Mubende, Nakasongola, Kiruhura and Lamwo Districts.

Fig 3: Geological Map of Hoima IAEA expert mission on Site and External Events Design (SEED) was received to review the siting process for nuclear power plants in Uganda.

Policy, legal and institutional frameworks were reviewed and consultation on the draft Nuclear Energy Policy is in advanced stages. RESULTS

16 Table of Contents 4 List of Figures 5 List of Acronyms 6 Executive Summary 7 1. Background of the Mining and Mineral Subsector in Uganda 9 Fig 1: Performance of the minerals and mining subsector along key indicators 14 1.1 Justification of the Annual Minerals and Mining Scorecard 10 Fig 2: Geological map of Moroto, Karamoja region. 16 1.2 Recent Key Policy Developments in the Mining and Minerals Sub-Sector 10 Fig 3: Geological map of Hoima 16 1.3 Lost Opportunities (Sand, Clay, Rock/Stones and Murram Mining) 11 Fig 4: Geological map of Mbale 17 2. Methodology 12 Fig 5: Performance of the subsector under key results areas in indicator 2 18 2.1 Scorecard Design 12 Fig 6: Performance of the subsector under key result areas in indicator 3 22 2.2 Weighting and Scoring 12 Fig 7: Performance of the subsector under key results areas in indicator 4 24 2.3 Data Collection, Entry and Analysis 13 Fig 8: Uganda’s Minig Cadastre Portal 28 3 Results 14 Fig 9: Gold Minig in Buhweju 28 3.1 Subsector General Scores 14 Fig 10: Performance of the subsector under key result areas in indicator 5 29 3.2 Key Performance Indicator Scores 14 Fig 11: Members of rupa community development trust on a study tour 30 3.2.1 Mineral Resources/Reserves 14 Fig 12: Performance of the subsector under key results areas in indicator 6 31 3.2.2 Access to Mineral Resources 18 Fig 13: Mercury contaminated water flowing into farmland at a gold mining site in Amudat 32 3.2.3 Institutional Establishment and Development 22 Fig 14: Effects of illegal sand mining on land in lwera swamp, Masaka road 33 3.2.4 Mineral Production, Revenue Generation, Collection and Management 24 Fig 15: An abandoned cyanide plant in Amudat district 34 3.2.5 Local Content Development and Participation 29 Fig 16: A miner in chepkararat (Amudat district) mining without any protective gear 36 3.2.6 Health, Safety and Environment Conservation and Management 31 Fig 17: A miner in Amudat using mercury to seperate gold from gold dust 36 3.2.7 Infrastructural Development 38 Fig 18: A gold kacha in Busia used to eliminate mercury from the gold mining process 37 3.2.8 Gender, Equity, Social Inclusion and Participation 41 Fig 19: Performance of the subsector under key result areas in indicator 7 38 3.2.9 Minerals Value Addition and Marketing 44 Fig20: Map of Uganda showing the NDP II proposed minerals & requisite infrastructure 40 3.2.10 Regional and International Initiatives 46 Fig 21: Performance of the subsector under key result areas in indicator 8 41 4.0 Conclusions & Key Recommendations 48 Fig 22: A child miner in Rupa mining area, Karamoja region. 42 5.0 Appendices 50 Fig 23: Performance of the subsector under key result areas in indicator 9 44 Appendix 1: FGD Sites 50 Fig 24: Performance of the subsector under key result areas in indicator 10 46 Appendix 2: List of Key Informants at the District Level 50 Appendix 3: Key informants guide 51 Appendix 4: Focus Group Discussion Guide 52

The scorecard identifies gaps in all areas that need mineral policy and regulatory framework; improved Uganda has a favorable geological environment that hosts over 27 commercially exploitable mineral resources. Thus, to be addressed so as to improve the sub-sector’s transparency and disclosure of all the required information, the mineral development sector in Uganda has a strong opportunity to sustainably contribute to economic growth of performance and the subsequent achievement of training and skilling of the ASMs, promotion and awareness the country through providing employment, and supporting industrialization through backward, lateral and forward the sector objectives. Critically, the responsible creation of the environment issues within the mining areas, linkages. Ministry of Energy and Mineral Development needs among others. to address the following: ensure that that ICGLR The Vision 2040 and the NDP II identified the mining sub-sector as fundamental and a driver in the achievement of mineral certification mechanism is fully In the 2015/16 and 2016/17 certificate of Compliance issued “A Transformed Ugandan Society from a Peasant to a Modern and Prosperous domesticated in order to plug capital flight and to the Ministry of Energy and Mineral Development (MEMD) Country within 30 years.” It is projected that the sub-sector will generate revenues that will be used to spur leakages in the exploitation of Tin, Tantalum and the areas of non-compliance identified included: weak growth in other sectors, create employment, infrastructure and human resource development in the process enriching Tungsten and Gold (3TGs) to enable miners and monitoring and regulation in the mining sector; undeveloped the country’s Gross Domestic Product (GDP). exporters access international markets and Rare Earth Elements (REE) resources; Implementation of the reducing rampant mineral smuggling; full strategy for restoration of derelict and abandoned mines; operationalization of the minerals and mining policy weaknesses in updating and maintaining the Mining Cadastre Framework (54.2%); Reporting Practices (24.2%); Safeguards operationalization of the minerals and mining policy weaknesses in updating and maintaining the Mining Cadastre The National Planning Authority (2017); strengthening infrastructural development in and Registry System; and non-prioritization of key and Quality Control (57.5%); and the Enabling Environment (2017); strengthening infrastructural development in and Registry System; and non-prioritization of key (NPA), whose key functions among the sector especially in the Karamoja region so as interventions in the mineral sector such as, the failure to (38.4%); and indicator scores comprising of Access to Mineral the sector especially in the Karamoja region so as interventions in the mineral sector such as, the failure to others include: to ease access to the diverse mineral potential in establish the mineral potential of Karamoja; lack of an Resources; Revenue Generation and Collection; Revenue the region; full regulation and formalisation of ASMs operational mining certification institution respectively among Management; Local Content; Health, Safety and Environment Monitoring and evaluating of Public Projects and activities across the country; improving revenue others. As a result of these and other sector challenges the Management; Infrastructural Development; Citizens Engagement Programmes and Liaising with the private sector and collection from the sector by introducing online overall sector-weighted score was 53.4% in 2015/16 fiscal and Participation; and, Value Addition and Sectoral Linkages. It civil society in the evaluation of Government self-assessments and compliance by mining year while sector performance declined 41.9% in the 2016/17 recommended government to invest in key aspects of the value performance collaboratively works with the Africa companies; introduction of weigh bridges on all fiscal year. The overall average sector performance in the last chain in order to maximise the contribution of the Mineral Centre for Energy and Policy (ACEMP), to annually mining regional routes to monitor mineral two years was 48.5% and falls within the margins of the Subsector to national development. These include: the review of produce and disseminate the Mining and Mineral production and declarations by companies; overall weighted score of 43.7% registered in this year’s the legal framework on HSE, ESIAs, local content and National sub-sector development scorecard, to inform decision enforcement of regulations and termination of all Mining and Minerals Sector scorecard. The consistence of participation, transparency in benefits sharing/financial making at policy level on key issues affecting the non-performing exploration and mining licenses; these scores therefore underlines Government’s failure and resources from mining activities; value addition, and improved sub-sector and to guide sector planning and amend the constitution and the regulatory stagnation in addressing underlying sector challenges and access to information and mineral resources and citizen budgeting processes. framework to bring sand mining, rocks (stones), that unless these issues are addressed NDP-II and Vision engagement and participation, and address the skills murrum and clay under the ambit of the mining and 2040 objectives may not be achieved as has been projected. requirements in the Mining subsector to enhance local content The first edition of the scorecard, which was participation given that this was one of the poorest indicator of launched in 2016, examined the existence of the performance. requisite institutional and legal frameworks, the reporting frameworks, the enabling environment This second edition presents an opportunity for the country to and safeguards and control systems. It revealed assess the progress made since the last scorecard, monitor and fundamental issues that impact the performance of evaluate the performance towards the achievement of the sector the sub-sector, which required urgent attention by goals. It also draws urgent attention to issues that need the relevant stakeholders. Results in the first immediate action by the government, the relevant stakeholders scorecard indicated the aggregate Annual Minerals and partners. It assesses the operationalization and functioning 2 Subsector Score (40.4%) is still very weak and of the systems and frameworks for the subsequent achievement below average across most of the component of sustainable development in the country. scores such as institutional, Policy & Legal

the priority areas for investment in the country’s quest for a 1.1 Justification middle-income status and much as this mineral development of the Annual scorecard is tailor made to monitor the holistic sustainable Minerals development of the mineral sector, it is envisaged that the same shall be a key tool used to guide the National Planning Authority purposes. Article 244(6) further stipulates that Parliament may and Mining in ensuring that strategic planning and budgeting within the regulate the exploitation of any substance excluded from the Ministry of Energy and Mineral Development facilitates the Scorecard definition of mineral under this article (implying article 244(5)) achievement of the objectives of the government as outlined in when exploited for commercial purposes. the NDP-II. According to the Public Finance Management Act, 1.3 Lost Opportunities 2015 under S.13 (6) all ministerial annual budgets The certificate of Compliance issued by the National Planning are required to be consistent with the National (Sand, Clay, Rock / Findings Authority for the Annual Budget FY2015/16 rated the overall While the intention of the framers of this constitutional provision Development Plan, the Charter of Fiscal Stones and Murram While the intention of the framers of this constitutional provision performance of the Ministry of Energy and Mineral Development appear to have been to protect and ring-fence “domestic” Responsibility and the Budget Framework Paper. appear to have been to protect and ring-fence “domestic” at 53.4%. Notably the National Planning Authority also observed Mining) exploitation of these minerals or substances from regulation with Under S.13 (7), the annual budget should be exploitation of these minerals or substances from regulation with that though the Ministry had put in place a Strategic the exclusion of exploitation of the same, the accompanied by a Certificate of Compliance issued the exclusion of “Commercial” exploitation of the same, the Development Plan, the same had not been aligned with NDP-II. It Section 2 of the Mining Act 2003 defines a intention seems to have been ousted with exclusion of the same by the National Planning Authority. intention seems to have been ousted with exclusion of the same as any substance, whether in solid, liquid further noted that the ministry had underperformed in the “Mineral” as any substance, whether in solid, liquid from the definition of minerals and in so doing, ousted the monitoring and regulation of the mining sector, promotion of rare or gaseous form occurring naturally in or on the regulatory functions of DGSM over the same. The Scorecard provides the National Planning regulatory functions of DGSM over the same. earth elements, failed in the implementation of the strategy for earth, formed by or subject to a geological process, Authority with the evidence of performance of the the restoration of derelict and abandoned mines as well as in but does not include petroleum…”. Commercial mining of sand, murram, clay, rocks (stones) has for Mining and Minerals subsector, which informs part Commercial mining of sand, murram, clay, rocks (stones) has for updating and maintaining the mining cadaster and the registry the last 13 years been unregulated. This was because of the of the NPA’s decision in the awarding of the the last 13 years been unregulated. This was because of the system among others. Therefore in principle, sand, clay, rocks/stones and exclusion of these materials from the definition of minerals and/or Certificate of Compliance to Energy and Mineral exclusion of these materials from the definition of minerals and/or murram are minerals geologically and scientifically due to Government’s failure to interpret parliamentary intentions Development Sector. The Public Finance and due to Government’s failure to interpret parliamentary intentions by definition and by the nature of their geological or provision for a special regulatory regime for the same. As court Management Act 2015, Section 13 (7), requires 1.2. Recent Key Policy or provision for a special regulatory regime for the same. As court formation. cases pile up against government and UNRA, the economy NPA to issue a Certificate of Compliance for the Developments in the Mining cases pile up against government and UNRA, the economy continues to lose billions of shillings in taxes from unregulated Annual Budget of the previous financial year. It is continues to lose billions of shillings in taxes from unregulated and Minerals Sub-Sector S. 2 of the Mining Act, 2003 also defines, sand mining, which has a heavy footprint on lakes, rivers and aimed at harmonizing and entrenching strategic sand mining, which has a heavy footprint on lakes, rivers and “Building Mineral” to mean rock, clay, gravel, threatens food supply from the fishing industry. planning and budgeting towards the stated National threatens food supply from the fishing industry. laterite, murram, sand, sandstone and slate, which is Development Plan (NDP) goals and annual budget a) Cabinet endorsed the White Paper on for the new mined by a person from land owned or lawfully Billions have also been lost to road constructors billing strategies and objectives. Therefore, this Billions have also been lost to road constructors billing Mining and Minerals Policy, 2018 on the 7th of May occupied by him other than for his or her own government billions for access to these materials only to pay a requirement guarantees that planning and government billions for access to these materials only to pay a 2018 soon to be followed by the review of Mining Act, domestic use in Uganda for building, or mined by a fraction of the same to unsuspecting landowners. In some cases, budgeting frameworks are aligned to achieve the fraction of the same to unsuspecting landowners. In some cases, 2003 person for his or her own use for road making, and projects have been delayed as mining speculators with the aid of overall national strategic goals as agreed in the projects have been delayed as mining speculators with the aid of includes such other minerals as the Minister may lawyers increase the cost of road and infrastructural Uganda Vision 2040 and NDPII. lawyers increase the cost of road and infrastructural from time to time declare by notice published in the b) A draft geothermal policy was also prepared and from time to time declare by notice published in the developments by demanding for hefty compensations for rocks consultations with key stakeholders is ongoing and in Gazette to be building materials. and stones. As part of the assessment process, a and stones. advanced stages. comprehensive assessment framework was Article 244 (4) of the 1995 Constitutional developed in consultation with other relevant Resolving this crisis necessitates the c) The bill for Regional Certification of Mineral mainly (Amendment) Act, 2005 defines a “mineral” to mean stakeholders and used by NPA to guide and following actions: conflict minerals in line with the International any substance, other than petroleum, whether in standardize assessment, in terms of the a) Amending the constitution to include the excluded Conference on the Great Lakes Region (ICGLR) solid, liquid or gaseous form occurring naturally in or consistency and compliance between the Annual substances in the definition of minerals; or, Protocol Against the Illegal Exploitation of Natural on the earth, formed by or subject to a geological Budget with the NDP, the Charter of Fiscal b) Taking out a constitutional interpretation suit for purposes of Resources was passed by parliament in May 2017 process. Responsibility and the National Budget Framework ensuring that commercial exploitation of these substances Paper. The assessment covered all sectors. is regulated by the DGSM; and/or d) Lost Opportunities (Sand, Clay, Rock/Stones and Genesis of the legal crisis created c) Ensuring that parliament puts in place a special regulatory Murram Mining) NDP-II identifies the Mining Sub-Sector as one of Article 244(5) for the purposes of this article, regime for these substances as stipulated in Article 244(6) “mineral” does not include clay, murram, sand or any whichever is easily attainable of these options. stone commonly used for building or similar

numeric, the assessment will test the trend of performance if the: Qualitative data was collected through focus group Milestone, target or standard was not attained; Milestone, target discussions with the communities in the sampled or standard inadequately attained; Milestone, target or standard districts, using a guiding tool. The groups were partially attained; Milestone, target or standard mostly attained; categorized according to females, males, and Milestone, target or standard attained. Once this is done, an youths. In all, 18 FGDs were conducted in the indicator was assigned a performance weight based on the sampled districts of Moroto, Namayingo, Busia, 2.1 Scorecard Design the level of performance. It was then weighted against the assessment criteria described for both numeric and non-numeric Kabale, and Ntungamo. Appendix 1 shows the list of prescribed weight; depending on the assumed influence it has indicators as indicated in the table 1 above. sampled villages engaged in the FGDs. Key on the subsector to achieve its objectives. For each of the KRA, informants (appendix 2) interviews were also the total sum of scores from each question is divided by the 2.3 Data Collection, Entry conducted with the various political and technical maximum total scores that can be scored by the KRA and local leaders within the sampled districts. Appendix divided by 100 to arrive at the percentage score of the KRA. The and Analysis 3 shows the key informants Interview guide and The assessment involved the collection of both secondary and average scores for the KRA make up the indicator score. The The assessment involved the collection of both secondary and Appendix 4 shows the FGD guide. average scores for all the indicators make up the final score for primary data. Secondary data collection included the review of national documents, the policies, laws, regulations, guidelines the subsector. The scoring and weighting of the questions and national documents, the policies, laws, regulations, guidelines Data collected was entered into an inbuilt excel and reports. The primary data involved interviewing of key indicators was benchmarked with international best practices of and reports. The primary data involved interviewing of key database which analyzed and produced the results stakeholders, such as government institutions, the private sector, scoring the performance of the extractive sectors as used in stakeholders, such as government institutions, the private sector, (scores) and the various graphs presented in the project affected communities and the civil society. Data collection other resource-rich countries such as Norway, Chile, South project affected communities and the civil society. Data collection table. These were later used to write the report tools were jointly developed by NPA and ACEMP with other sector Africa, and Australia. tools were jointly developed by NPA and ACEMP with other sector alongside the qualitative data and information from stakeholders and used to collect primary data. stakeholders and used to collect primary data. the various reports and documents. The draft scorecard was validated by all participating The assessment was both quantitative and Quantitative data was collected with a data collection tool that MEASUREMENT CRITERIA Quantitative data was collected with a data collection tool that government institutions and other key stakeholders qualitative in nature. It relied on three main was administered to the various MDA’s relevant to the mineral was administered to the various MDA’s relevant to the mineral to produce the final scorecard of the sector; and categories of data: routine and non-routine, all subsector. The tool endeavored to assess the extent to which the subsector. The tool endeavored to assess the extent to which the subsequently a report produced and launched. collected and processed by the various MDA’s in various aspects of the subsector have been implemented. Uganda. Routine or administrative data is collected Responses collected with this tool were triangulated with routine as a part of the regular monitoring process by the or administrative data collected from the various government responsible MDAs; while non-routine data is documents and reports. Appendix 3 shows the list of MDA’s collected on a periodical basis, often annually, or as engaged. a part of the national statistical studies commissioned by government, and mostly carried out by the Uganda Bureau of Statistics (UBOS). The third source was the primary data collection, where the data collectors engaged various MDA’s and stakeholders such as communities and the local leaders in areas where mineral activities and developments are being undertaken.

More mineral targets of gold, Iron ore, bentonite and Uranium were identified. Three uranium priority 3.2. Key Performance Indicator Scores potential targets with anomalies; 48.2ppm in Kiboga The figure below shows the performance of the subsector along the key indicators that were assessed district, 904ppm of uranium in Buhweju district and under this scorecard. Detailed explanation of the performance of each indicator is provided as well. The airborne geophysical survey, geological mapping and 450.6 ppm in Kyambogo Ssembabule district were geochemical sampling estimates over 27 types of minerals in mapped. Radioactive anomalies with equivalent Uranium Concentration up to 4500 ppm were Fig 1: Performance of the Minerals and Mining subsector along key indicators significant commercial viable reserves. Uranium Concentration up to 4500 ppm were discovered in Buhweju. For example, 1,253,331 tonnes of Bentonite at Kaiso Tonya, Iron ore deposits in Kabale and Kisoro areas are estimated to Hoima district and 30 million tonnes of iron ore in be over 300 million tonnes. Rutenga were established. Surveys were also conducted in Hoima, Bundibugyo, Kasese and Other minerals include; Beryl, Bismuth, Columbite Tantalite, Nebbi districts. Findings at Buranga and Kibiro Copper, Chromite, Diamond, Gold, Tin (cassiterite), Wolfram indicated subsurface temperatures suitable for (Tungsten), Asbestos, Clay, Rare Earth Elements, Aluminous electricity, agriculture and spas in hotels. Clays, Diatomite, feldspar, Granite Gneiss, Graphite, Gypsum, Kaolin, Kyanite, Limestone, Marble, Mica, Phosphates, Rock A large part of Uganda remains geologically Salt, Silica Sand, Building Sand, Talc, Cobalt, Lead, Zinc, unexplored and the mineral potential of the country Platinum Group Metals (PGM), Uranium, Vermiculite and is yet to be evaluated, while 20% of Karamoja was Nickel among others (NPA, 2010) not covered due to the insecurity in the region at the . time. However, some resource estimates have been 3.2.1. Mineral Resources/Reserves made on a number of minerals reserves subject to New geological, geochemical and airborne geophysical data confirmation by project developers. Uganda is endowed with favourable geological conditions associated with a rich and diverse mineral covering 80% of the country led to the discovery of a total of resource base and with substantial economic potential. Uganda is underlain by extensive Precambrian eighteen (18) new mineral targets; ten (10) new uranium (4,500 – 600 million years) rocks, which are host to a wide variety of mineral deposits, Younger priority anomalies; 300 million tonnes of proven iron ore Cenozoic (65 million years – Present) sediments and volcanics in the west and east of the country are deposits in the country (with inferred reserves of up to a billion also host to mineral deposits. Recent geophysical surveys, geological mapping, geochemical surveys tonnes); increase in Vermiculite reserves from 5 million tonnes

Fig 4: Geological Map of Mbale Fig 2: Geological Map of Moroto, Karamoja Region.

Nuclear Power Development Preliminary survey of potential sites for nuclear power development was conducted in Buyende, Mubende, Nakasongola, Kiruhura and Lamwo Districts.

Fig 3: Geological Map of Hoima Fig 3: Geological Map of Hoima IAEA expert mission on Site and External Events Design (SEED) was received to review the siting process for nuclear power plants in Uganda.

Policy, legal and institutional frameworks were reviewed and consultation on the draft Nuclear Energy Policy is in advanced stages. RESULTS RESULTS

The 2nd Annual Mining & Mineral Subsector Scorecard 17 RESULTS

(i) Conducting Due diligence (62.5 %) DGSM is credited for conducting due diligence on all mining companies applying for mining licenses in the mining industry. It was however noted that, the department is limited by resources to carryout conclusive diligence and provide reports for every company. The Mining Act, 2003, provides for the criteria followed by the DGSM to conduct the due diligence on these companies. In most cases, it has been found that people without the required (iii) Preparing and The government should provide enough funds for due diligence in the mining industry. This will help to capacity have taken up the mineral rights. They sometimes can’t Implementation of RAPs avoid quack investors that apply for mining rights. utilise them and have left the exploitation of such minerals (58.3 %) redundant. (ii) Granting of Mineral Rights (36.1 %) Section 82 of the Mineral Act 2003 requires the compensation for disturbance rights of the lawful Section 4 of the Mining Act 2003 provides for the Acquisition of the Mining Rights in Uganda. The There is need to revisit this process, such that mineral rights acquisition is competed for and firms/people with the required owner or occupier of the land. This is done on any government follows the rule of “first-come first-served” to grant mineral licenses, while royalties qualifications to exploration granted the rights. The government disturbance or damages done on crops, trees, and taxes are set by legislation. This eliminates the advantages of competitive bidding. should conduct open bidding rounds with a sealed bid process building and works damaged during the course of and a decision made against an established criteria, such that such operations. To ease doing this mineral, rights the best bidder is granted the mining rights. holders prepare RAPs in consultation with stakeholders and host communities and are The government established a prescribed procedure and required to fairly and adequately compensate the requirements for mineral rights applications. It was however communities. noted that the government does not have an established procedure for acquisition of land for mining operations. The RESULTS

During this assessment, it was noted that Mining Section 6 of the Mineral Act, 2003, provides the framework in (v) Ensuring Land rights of There is need to review the Act to incorporate an article, which Companies prepare RAPs but rarely do they follow which the mineral rights can be transferred form one holder to the Land owners (58.3 %) them during the projects implementation. Land another. To transfer the mineral rights, it requires compels the subsector to cancel or terminate the license in case the holder fails to make full beneficial use of the license as per the In order to ensure that the land rights of the occupiers found themselves in situations where authorization for a transfer of shares, which is important approved work plan. landowners are upheld, Section 83 of the Mining Act they are not compensated. Based on this, the because it is the Ministry’s right to approve or disapprove of 2003 provides for the compensation of the government set up the Mineral Police to accompany any individual applying to hold a mineral right, as is the case This will also help to reduce cases of speculators holding licenses landowners, and first schedule indicates that lawful teams that go to the field for monitoring and with new applicants. This eliminates the transfer of rights to for the full period of the license without undertaking activity. It will landowners are entitled to 3% of the royalties. On a Inspection. Mining operations may also lead to unqualified persons or companies. also provide recourse to the subsector to intervene before the good note, the practice allows the landowners to significant environmental damage and degradation. expiry of the license. appeal to the minister, or the high court until when The mineral holder rights should also be held liable However, the new companies that have acquired the mineral justice in achieved in this matter. for any contributions to social and environmental rights should, on top of meeting other requirements as stated in section 5 of the Mineral Act, submit details of their technical The Directorate of Geological Surveys and Mines (DGSM) However, it has also been noted that most mineral harm. The rights holder should pay appropriate and financial standing, work plans and beneficial ownership continued to monitor some notable flagship projects such as the rights holders have local agents helping them buy off compensation not only for displacements, but any as is the case for new applications to DGSM. Osukuru Phosphates Project in Eastern Uganda, which is land in advance and they eventually own this land. disturbance or negative environmental impact expected to commence full production by the end of 2018. This means that the 3% royalty for the landowner caused by mining operations if and when they arise. Some companies were found to take advantage of this However, Tibet Hima management of Kilembe Mines had a goes back to the company. Thus, the government loophole to withhold this information from DGSM. setback that culminated in the termination of its contract due to has been advising bonafide landowners to lease There is need to review section 82(1) of the mining under performance. The Ugandan government therefore continues land as opposed to outright selling it off. This way, act such that compensating for environmental There is no oversight body that provides scrutiny in regards to to miss out on the current global FDI in the Cobalt/Copper industry damage is considered as the responsibility of the Ugandans will be able to benefit from mining. granting, renewing, revoking and approval of transfer of the mineral rights holder. spurred by the increased demand for electric motor vehicles as an mineral rights by DGSM. Decisions are taken internally alternative to fossil fuels. It is therefore important that a new It has also been noted that the Mining Act (2003) because the law does not provide for external persons; developer is sourced at the earliest opportune time. (iv) Ensuring compliance of does not provide clear mechanisms to regulate though the directorate has an internal committee that reviews access or acquisition of land by mineral license the Mineral Rights holders all the decisions taken. The Mining Act 2003 provides for the establishment of the mining holders to carry out prospecting, exploration and (46.4 %) register. While the subsector has established a physical register mining operations. The dispute and compensation To avoid cases of conflicts of interest, being that officials don’t housed at the DGSM, an online, publicly available version of this mechanisms for disturbance of land use to land In Uganda, all scientific investigations and studies declare their interests in the mining industry, its good practice information is still not yet established and should therefore be to be carried out must be approved by the Uganda that and external oversight body should be instituted to owners as provided for in the Mining Act (2003) are made available through the online Mining Cadastre. In order to National Council for Science and Technology scrutinise the process of granting, renewing, revoking and also insufficient. And the sector is yet to sensitise (UNCST). Therefore, the best practices approval of transfer of the mineral rights. bring the act up to date with international standards, an online the landowners on the issues of surface land rights recommend that all companies or persons database of mining contracts should be established. The current versus mineral rights holders. authorised to undertake exploration or prospecting The scorecard assessment noted that there are some register system is inadequate as it is not accessible for most operations without mineral rights in the course of mineral rights holders who don’t make full beneficial use of citizens. Contract transparency and associated access to It has however been noted that in most mining scientific investigations should receive approval the licenses as per approved work plans within two (2) years information efforts have been recognized as critical keys to areas, there have been severe environmental from the Uganda National Council for Science and from granting the license. This was mainly attributed to success in the extractive industries . While Uganda has not yet damages and land degradation, yet the rights Technology. This assessment however, found out speculators holding licenses for the full period of the license made extractive industry contracts public, government has holders seem not to be responsible. The mining act that this is not undertaken and thus studies are without undertaking any activity. The subsector does not take committed to publishing contracts as well as signing onto the EITI should be reviewed to clearly make the rights holder conducted without the approval of UNCST. any action against these companies and as a result the Global Standard. accountable to environmental and land degradation. government has lost a substantial amount of royalties. This is To provide true access to important documents regarding mineral Therefore, as the government is looking forward to because section 90(1) of the minerals act does not mention The mineral holder should be held liable for any sector activity, contracts and all accompanying documents should increasing investment in Research and failure to use a mineral right or comply with work plans as a contributions to social and environmental harm. The be made available online. rights holder should pay appropriate compensation Development through the mineral value chain, it ground for cancellation of rights. should strongly regulate the environment in which not only for certain disturbances, but any research is done, thereby promoting quality disturbance or negative environmental impact investments in the mining sector. caused by mining operations if and when they arise6.

3.2.3. Institutional Establishment and operations in the country, and as a result, miners in Mubende, (iii) Professionalization of the Development Busia, Namayingo, Karamoja region, and Ntungamo and other Mining Industry (0.0%) notable mining regions have been encouraged to form Currently, there have been no efforts to Associations and secure their operations with acquisition of professionalise the mining industry in Uganda. As a Location licenses. The Ministry of Energy and Mineral result, there is no established database of Development is in advanced stages of procuring a consultant to INDICATOR SCORE: professionals in the mining industry. The society of undertake biometric registration of all ASMs in the country ASM Geoscientists was pushed for establishment but it is 31.8% – Partially Addressed and assist in the Management of their operations. still non-existent. The law regulating activities of geoscientists doesn’t exist because there is no In order to have proper arrangements of formalising ASM register of the people to be regulated, neither a activities, the sub sector should accurately map out all bonafide professional registration body for geoscientists in Fig 6: Performance of the subsector under Key Result Areas in Indicator 3 ASMs, register them, and make arrangements to develop their Uganda. However, under Objective four (4) of the skills in modern mining methods and practices. The current new Mining and Minerals Policy, 2018 Government arrangements to develop the skills of ASM are not yet has committed to enact a law that shall regulate operationalized due to the informal nature of Artisanal miners. It geoscientists and its associate professionals; as well was also established that the Ministry of Energy and Mineral as set up a professional registration body for Development (MEMD) is in advanced stages of procuring geoscientists in Uganda. consultancy services to carry out registration and assist in the management of Artisanal & Small-scale miners across the It should also be noted that aside from the country. Department of Geology at Makerere University, which is charged with the training of Geologists and (ii) Capacity of the Sector Busitema University in Eastern Uganda, which trains Institutions (50 %) mining engineers, there are limited opportunities for Ugandans seeking for a career in the Mining and Policy, 2001 and replaced it with a new Mining and Minerals It was noted that although the DGSM has the required capacity (i) Formalization of ASMs Minerals Sub-sector. Majority of the experts at Policy 2018, which was endorsed by Cabinet on the 7th of May (skilled staff) to efficiently carryout its mandate, the subsector (45 %) DGSM have are all graduates of Dar salaam 2018. This shall be followed by the review of the Mining Act requires to continue building the institutional capacity to develop The sector hasn’t yet developed the Mineral University in Tanzania. There are limited skills on the 2003, to address gaps in the overall governance of the Mining and strengthen local capacity for mineral development in the Development Master Plan. However, the market for the private sector and this has to a large Sub-Sector. Key among the 10 objectives of the new Mining country. Of recent, there has been a high employee turnover which framework for licensing, regulation and extent led some staff within the regulatory body of and Minerals Policy, 2018 addresses the issue of artisanal has led to brain drain for greener pastures. This is coupled with monitoring of mining activities is being the ministry to double as part-time consultants for miners. Government recognizes the participation and understaffing of the DGSM with many vacant positions available. developed. This will enhance the formalisation of the private sector leading to a conflict of interest and contribution of small scale and artisanal miners and therefore Only three (3) positions in the GRD are substantively filled leaving Artisanal Small Scale Miners in the country. corruption in the execution of their oversight the need to formalise their operations to allow legally supported twenty-four (24) vacant positions. There are collaborative arrangements between responsibilities over the mineral rights holders. operations in areas where large-scale mining is not warranted. In terms of financial resources, the subsector has been grappling DGSM, development partners and civil society Artisanal miners’ operations are often nomadic in nature; in the with inadequate funding for mineral exploration, monitoring and to promote best practices in the ASM subsector. It is therefore recommended that Tertiary Institutions case of gold that comprises the highest population of artisanal inspection of mining activities. The subsector also grapples with Notable CSOs involved in these arrangements and Universities in Uganda need to be encouraged miners, operations are mainly triggered by gold rushes. Under lack of equipment, maintenance of the information system and include: Africa Centre for Energy and Mineral to introduce mining activity related courses to fill the this arrangement, the government will ensure that ASM other infrastructures required. Policy (ACEMP), ActionAid Uganda, Ecological ever increasing job market for mining geo-scientists, activities are a preserve of only Ugandans. Christian Organisation, Saferworld and Global geologists, engineers, economists and other sector Rights Alert. related job opportunities. This scorecard acknowledges the fact that the sub-sector has already embarked on the process of registering all the ASMs The Government has amended the Mining

3.3.4. Mineral Production, Revenue 2003 to over 818 by the end of FY 2016/17. category of minerals to support socio-economic development and in some cases has led to stoppage Generation, Collection and Management Over all, the mineral sub-sector attracted USD 1.63 billion in of some road constructions due to litigation. capital investments by the private sector in key projects including: Regulation of these minerals and materials could see the Mining and Minerals sector contribute to a) The Guangzhou Dong Song phosphate plant between 3% - 5% to GDP.7 Indicator Score: at Sukulu in Tororo planned for commissioning by end 2018 and for 19.7% - Inadequately Addressed steel by 2019, with a total investment of USD 620 Million; • The current legal framework encourages extensive speculation and confers a lot of b) African Panther were reported to have commenced discretionary powers and unclear guidelines to mining and processing of tin in Isingiro; the Commissioner which has often resulted into Mineral Production unnecessary litigations; The minerals produced in 2016 were valued at UGX 175,928,000,000/=. The major minerals produced c) Increased limestone and cement production by four include limestone, valued at UGX 144,369,000,000/=, Pozollana valued at UGX 17,780,000,000/= and cement factories namely Tororo Cement, Hima Cement, Simba • ASM has remained largely unregulated and its Kaolin valued at UGX 4,590,000,000/=. Compared to 2015, value of minerals produced in 2016 Cement, National Cement, Kampala Cement, together with a contribution not accounted for, partly explaining increased by 2.8%. combined investment of USD 500 Million. the less than 1% contribution of the sector to GDP. From the current illegal mining in Fig 7: Performance of the subsector under Key Results Areas in Indicator 4 d) Consolidated African Mineral Resources has invested Mubende, Buhweju, Busia, Namayingo, about USD 5 Million to process 60 metric tonnes of high-grade Nakapiripirit, Amudat, Kaabong, Abim and graphite. Moroto Districts, its estimated that about 200 kgs of gold equivalent to USD 8m (current price of USD 40,000 per Kg), is being illegally mined The government collects royalties, fees and rents on top of the per month (Baseline Assessment of various taxes from the mining companies. However, the Development Minerals in Uganda, 2018) government has until now failed to track or collect revenues from compared to Non Tax Revenue (NTR) of USD the exploitation of substances that are not defined by Article 3.2m collected annually; 244(5) of the Constitution of the Republic of Uganda, such as the stones aggregates, sand, clay and murrum which in the mining • The need to promote in-country value addition policy of 2018 have been defined as minerals. This is because of strategic minerals such as iron ore, base there was no legal provision for regulating and collecting of metals, precious metals and battery minerals; However, it was noted that the value of minerals Revenue collections, Revenue payments by the mining revenues from these substances. produced and exported declined from UGX companies, and Royalty transfer to local governments. The • The need to restrict any investor from blasting 101Billion registered in the 2015/16 financial year to performance of the subsector under each of these areas is There is urgent need regulate commercial exploitation of sand, rocks that are connected to the ecological UGX 99 Billion in the 2016/17 financial year. This elaborated bellow; stone (Rocks), clay and murram, excluded from the definition of system and those with historical significance; was largely attributed to the falling commodity the word “mineral” in Article 244(5) of the Constitution. The prices on the international market as well as lack of (i) Revenue Collections (18.8%) exclusion led to confusion as to whether these minerals should be • The ambiguity surrounding the regulation, mineral certification for Tin, Tantalum, Tungsten and Foreign Direct Investment (FDI) in the mineral sector increased regulated or not, yet the Ugandan government continues to lose certification and traceability of regional conflict Gold (3TGs). from US$5 million in 2003 to an estimated US$ 800 million in billions of shillings from speculators in the infrastructure corridors, minerals such as Tin, Tungsten, Tantalite and FY 2016/17. Similarly, revenues from license fees and royalties road constructors that present exorbitant bills of quantities for the Gold. This indicator score is at 19.7%, showing that the increased from US$0.5 million in 2003 to US$ 4.14 million in purchase of these construction materials but proceed to acquire government has inadequately addressed the issues 2016/17, mineral rights (licenses) issued, increased the same from unsuspecting land owners at a fraction of their bills Even though Article 244(6) of the Constitution gives assessed under this indicator. These issues include dramatically over the same period from 100 mineral licenses in of quantities. This has led to limited revenue generation from this Parliament powers to regulate the exploitation of any

substance excluded from the definition of mineral the NTR assessed by DGSM and collected by URA, such that governments; this information is only of aggregated data, without “We last got royalties in 2016. And it under article 244(5) when exploited for commercial the right amounts are always collected as inconsistences in giving a detailed breakdown of these transfers. It doesn’t include was the first time anything like royalties reflected in purposes. Until the Mining Policy of 2018, the returns are reduced. For companies that are found submitting definitions of the main concepts and explanations and sources of our revenues. It came in two instalments of 14m and existing mining legal frameworks did not provide for inaccurate NTR returns, penalties commensurate to their false these royalties for the broader public consumption. It was also 8m. We included the royalties in our revenue the regulation of the above (substances) exploited declarations should be imposed. noted that recipient local governments too, do not publish enhancement plan in the budget. We do not provide for commercial purposes. This regulatory gap information on transfers of mining royalties received from the accountability to central government but treat it as a revenue source. We however do not know what we’re resulted into inadequate optimization of fiscal Even though the government has put in place mechanisms to central government. This inhibits transparency and accountability supposed to get as a district and how much is benefits, significant health, safety and collect royalties from gold exports, there have also been requirements for the extractive transparency initiatives. supposed to go to lower local governments.” environmental impacts to the exploiters and outstanding defaults on royalties collected from the gold exports surrounding communities. as required by sections 71 of the Mining Act 2003. For instance, There is need to enhance transparency and accountability by according to the reports from the Auditor General’s Report of encouraging both central and local governments to publish detailed information on all the royalty shares. (iv) Utilisation of Royalties There is need to amend the constitution and or 2016, during the financial year 2015/16, the management seek constitutional interpretation on the intentions assessed royalty and awarded export permits for only 93kgs of (0%) of the legislators whichever is faster to address the Another challenge discovered by this scorecard is the distribution gold worth UGX.11, 822,178,756. However, collaborative The assessment observed that in local legal conundrum created under Art.244 (5) & (6). of revenues from minerals among central government, local governments; royalties are spent on reports from the Customs and Excise Department of Uganda governments and local communities and landowners. This non-developmental activities, which aren’t aligned to The government was also faulted for not publishing Revenue Authority indicated that 5,316 kgs of gold had been remains a contentious issue, which continues to create tensions, the development objectives of the country. The local the actual amount of revenues collected exported with a total value of UGX.698, 096,530,839. suspicions, political mistrust and could if left unaddressed lead to governments which are beneficiaries of these disaggregated by source form the mining industry. Accordingly, Government should have collected UGX.6, conflicts between mineral rich host communities, mining royalties don’t submit work plans or budgets before The government instead provides information on 980,965,308 or UGX.34, 904,826,541 in royalties using the companies, local governments and the central government. the royalty funds are released by Treasury. They thus the block figure as NTR that is collected rather than applicable rates of 1% and 5% for the imported or locally mined have no clear plans on how to utilise these disaggregated sources of these revenues. gold respectively. There was no evidence of any action taken on What is common is the splitting of earnings between the mining resources, hence spending them on recurrent the offenders as required by the law. company and the central government thus leaving little benefits to budgets. the local communities. Communities interviewed across the (ii) Revenue Payments by Section 105 of the Mining requires leaseholders to pay annual country lacked knowledge on how to access their royalties and the Mining Companies (32.2 rent fees upon every annual anniversary. It has however been There is need to develop an expenditure framework there was also little evidence of disbursements of these royalties that will require royalties to be spent on the noted that, even though some companies do pay these fees, a %) to the actual beneficiaries. Majority of mining Districts lacked development of durable and wealth creating few of the companies are still non-compliant. Government has The assessment noted that DGSM does not audit knowledge about their entitlements to royalties while in some socio-economic infrastructure as identified in the continuously been cautioning these companies but with little National Development Plans and Vision 2040. The the NTR returns submitted by the mining districts in the Karamoja region it was discovered that some Local success. Strong penalties need to be taken against such framework should also require the beneficiary local companies, and therefore, it depends on the only Government officials and sub-county chairmen had been government to submit work plans and budgets these submissions to ascertain the amount of NTR companies for their continued non-compliance to revenue collecting royalties (fees) from companies and not remitting the before funds are remitted and carry out subsequent to be paid. This creates a gap that could be payments, with the option of litigation being the imminent one. same to their Districts. Yet, equitable distribution of mineral wealth accountability before further releases. exploited by the companies to submit inaccurate is one of the prerequisites for more sustainable societies, making reports. There is need to regularly audit these (iii) Reporting on Transfer of this only an important but also social issue for the desired submissions so as to ensure accuracy of the Royalties (27.8 %) transformation of the Ugandan society. This will help to ascertain whether the plans are information submitted. There is also need to Even though it was noted that MEMD publishes information on aligned to the NDP and Vision 2040, before the establish a coordination mechanism to reconcile transfers of mining royalties to the mineral host local From the engagements with the local governments, it was noted royalties are released. that some don’t receive and majority of the mining districts are not aware of what is due to them from the central government The formula for royalty sharing is not known to all the LGs. The Chief Finance Officer (CFO), Kabale district noted that;

3.2.5. Local Content Development and Fig 8: Uganda’s Minig Cadestral Portal Participation

Indicator Score: 55.4% - Mostly Addressed

Under this indicator, the subsector mostly addressed the key issues that were assessed. There are however some areas that require improvement to enable Ugandans fully participate and benefit from the industry.

Fig 10: Performance of the subsector under Key Result Areas in Indicator 5

Fig 9: Gold Minig in Buhweju

(i) Legal and policy framework for Development, this helps “foster the development of local content development (56.3%) an industrial and manufacturing capacity in host countries.”8 Section 113 of the Mineral Act 2003 provides for the utilisation and prioritisation of Ugandan products and Ugandans by the mineral The review in the act must introduce local content rights holders. This provision though should specifically state that requirements in order to maximize use of Ugandan mineral rights holders should only procure goods and services out goods and services as much as possible. of the country in the case that they cannot be locally sourced. Countries around the world are ensuring that citizens benefit from Even though there is an established mechanism for resource extraction by introducing local content requirements for Ugandans to participate independently or in foreign operators. collaboration with foreign investors in the mining industry (Partnerships and Joint Ventures) – Similar to Section 25 of the Upstream Act, the rights holder should location licenses are not allowed for foreigners, they be required to submit an annual report detailing its achievements have to make sure locals have 50% shares; in utilizing Ugandan goods and services with a list accompanied Ugandans hardly raise the requirements to invest in by justifications for cases in which the rights holder failed to the industry, and these foreigners end up using procure a local good and/or service and had to procure the good them (Ugandans) to disguise as shareholders in the or service abroad. According to the UN Conference on Trade and companies, to gain the right to acquire location licenses.

indicated that the sub-sector faces a challenge Small and Medium Enterprises, through buying from them. For The government should soften on the requirements finding qualified and skilled manpower in the instance, the Sukulu phosphate company procures all its logistics needed by the local SMEs to access the financial various aspects of the mineral value chain. It was from local companies. However, the company has not provided support from the $12m set aside for the the required capacity to the local SMEs to provide the goods of discovered that most of the skilled manpower are development of private enterprises in the mining concentrated within the Directorate of Geological the required quantity, quality and set standards. This thus denies industry. The mining companies should also be Surveys and Mines forcing mining companies to the local SMEs the opportunity to supply the company. encouraged to enter into Community Development rely on the same human resource as part-time Agreements (CDAs) with the host communities such consultants. This compromises the regulatory Even though the local SME companies are provided with timely that they supply the required goods, so as to benefit from the resources within their community. mandate of the Directorate charged with overseeing information on investment opportunities, jobs and contracts for the overall governance of the sector and largely provision of services available in the mining industry, they in most leads to non-compliance by the mineral rights cases lack the necessary financial services to support their owners. Therefore, investing in human capital contracts execution. Even though the government set aside 12 through higher education, technical trainings, million dollars to support local SMEs to invest in mineral The subsector should also conduct a skills gap assessment apprenticeship and transferable skills development development activities and provide the required services, the local study to ascertain the available and the required skills in the is important for the competitiveness of the sector. mining industry in the country. From the study, the subsector should develop a database of available and missing skills in the 3.2.6. Health, Safety and Environment The mineral Act 2003 requires that applicants for all country. This will make it easier for the licensees to find the Conservation and Management the various licenses in the mining sector provides required skills to employ, than sourcing from outside the for the employment and training of Ugandan country. The database/skills gap study will inform the subsector citizens. It is a contractual obligation for the mineral on the areas that require urgent attention and training. Indicator Score: license holders to provide preference to Ugandans in employment but also training them with various 46.9% - Partially Addressed skills required for the mining industry. (iii) Support to SMEs and Enterprise Development in the mining To increase on the skills level in the country, there industry (50 %) The subsector scored 53.6% under this indicator implying that some of the issues assessed have are various training institutions that support the been implemented. The areas assessed are the capacity of the institutions in the mining subsector to The Mining and Minerals sector in Uganda is driven by the development of the mineral industry. Makerere review the ESIA’s, regulating of the Mining Activities in the Reserved Areas, compliance of the mining artisanal and small scale players who are credited for University has a department that trains Geologists, companies to environment management requirements, the management of the environmental production of over 90% of the country’s produced mineral and though enrolment is still low. The highest number protection fund, conducting of environmental audits, environmental awareness creation, promoting materials, employing close to 400,000 Ugandans directly and enrolled was 21 students in the 1990’s. Busitema health and safety practices, and regulating the use of hazardous mining substances. Below is a impacting lives of over 2 million Ugandans. These employment University also produces mining engineers. These detailed explanation of how the sector has performed under these areas assessed in indicator 6; opportunities provided by the sub-sector can be substantial and graduates however still lack the required technical in some cases critical in addressing the rampant youth skills. There are no skilling institutions in which they Fig 12: Performance of the Subsector under Key Results Areas in Indicator 6 unemployment in Uganda. The study discovered that no can acquire hands-on experience in mining skills. deliberate attempts were being undertaken by the few medium scale mining projects to build SME’s. This means that local The subsector should explore the possibilities of communities are less likely to benefit from new jobs and establishing mineral beneficiation centres to act as training institutions for Artisanal Miners and improve business opportunities linked to these new mining projects. The the skills level, so as to support value addition. scorecard observes that capacity building through education, training and skills development could help overcome the skills shortage forecast challenges and would in the long-run contribute towards more sustainable communities, beyond the life of these mining projects.

RESULTS

Mineral Licensing Status government introduces the investors to the district and it’s between the district and the investor to 3.2.2. Access to Mineral Resources A total of 371 Mineral Licenses were granted in 2016. These determine how to acquire the land. To determine the include; 155 Prospecting Licenses (PL), 126 Exploration mode of acquisition, the investors are guided by the Licenses (EL), 98 Mineral Dealers Licenses (MDL), 5 Mining RAPs, which are sometimes not prepared in INDICATOR SCORE: Leases (ML) and 19 Location Licenses (LL). Notably there were consultation with all the stakeholders. This has Retention Licenses (RL) issues in 2016. At the beginning of 52.3% - Mostly Addressed created chaos and misunderstandings between the 2016, 638 Licenses existed in the Mineral sub-sector. Within the investors and landowners, and eventually some course of the year, 371 were revoked and by the end of Under this indicator, the sector scored 52.3% and has addressed most of the key issues that were projects have failed to take off due to land wrangles. December 2016, the Sub-Sector had a total of 710 operating considered. Below are the key assessment areas that were considered and their percentage Licenses. contribution; The government should therefore put in place the procedures and regulations for the acquisition of The computerised mining Cadastre and registry system land by the mineral rights holders and see to it that Fig 5: Performance of the subsector under Key Results Areas in indicator 2 encouraged and improved online transactions and led to a the public/ communities are sensitized on the reduction of bureaucracy in the Licensing Process. regulations. This will help reduce losses on the side of the investors and land wrangles in the mining Mineral Licensing area. Conducting Due Deligence Ensuring Land Rights of RAPs Type of Status as at Status as at Granting Mineral Rights Preparing & Implementiation of RAPs License 01/01/2016 Granted Renewed Expired Revoked 31/12/2016 Ensuring Compliance of Mineral Rights Holders PL 149 155 0 152 0 155 EL 402 126 33 211 0 402 RL 3 0 0 0 0 3 LL 44 19 9 18 0 44 (i) Conducting Due diligence (62.5 %) ML 40 5 2 0 1 40 DGSM is credited for conducting due diligence on all mining companies applying for mining licenses in the mining industry. It was however noted that, the department is limited by resources to carryout MDL 0 98 N/A N/A N/A 98 conclusive diligence and provide reports for every company. The Mining Act, 2003, provides for the TOTAL 638 371 64 408 1 710 criteria followed by the DGSM to conduct the due diligence on these companies. In most cases, it has been found that people without the required (iii) Preparing and The government should provide enough funds for due diligence in the mining industry. This will help to capacity have taken up the mineral rights. They sometimes can’t Implementation of RAPs avoid quack investors that apply for mining rights. utilise them and have left the exploitation of such minerals utilise them and have left the exploitation of such minerals (58.3 %) redundant. Section 82 of the Mineral Act 2003 requires the (ii) Granting of Mineral Rights (36.1 %) Section 82 of the Mineral Act 2003 requires the There is need to revisit this process, such that mineral rights compensation for disturbance rights of the lawful Section 4 of the Mining Act 2003 provides for the Acquisition of the Mining Rights in Uganda. The There is need to revisit this process, such that mineral rights acquisition is competed for and firms/people with the required owner or occupier of the land. This is done on any government follows the rule of “first-come first-served” to grant mineral licenses, while royalties qualifications to exploration granted the rights. The government disturbance or damages done on crops, trees, and taxes are set by legislation. This eliminates the advantages of competitive bidding. should conduct open bidding rounds with a sealed bid process building and works damaged during the course of and a decision made against an established criteria, such that and a decision made against an established criteria, such that such operations. To ease doing this mineral, rights the best bidder is granted the mining rights. holders prepare RAPs in consultation with stakeholders and host communities and are The government established a prescribed procedure and required to fairly and adequately compensate the requirements for mineral rights applications. It was however communities. noted that the government does not have an established procedure for acquisition of land for mining operations. The RESULTS RESULTS

The 2nd Annual Mining & Mineral Subsector Scorecard 19

During this assessment, it was noted that Mining Section 6 of the Mineral Act, 2003, provides the framework in (v) Ensuring Land rights of Companies prepare RAPs but rarely do they follow which the mineral rights can be transferred form one holder to There is need to review the Act to incorporate an article, which Companies prepare RAPs but rarely do they follow which the mineral rights can be transferred form one holder to the Land owners (58.3 %) them during the projects implementation. Land another. To transfer the mineral rights, it requires compels the subsector to cancel or terminate the license in case the holder fails to make full beneficial use of the license as per the In order to ensure that the land rights of the occupiers found themselves in situations where authorization for a transfer of shares, which is important approved work plan. landowners are upheld, Section 83 of the Mining Act they are not compensated. Based on this, the because it is the Ministry’s right to approve or disapprove of 2003 provides for the compensation of the government set up the Mineral Police to accompany any individual applying to hold a mineral right, as is the case This will also help to reduce cases of speculators holding licenses landowners, and first schedule indicates that lawful teams that go to the field for monitoring and with new applicants. This eliminates the transfer of rights to for the full period of the license without undertaking activity. It will landowners are entitled to 3% of the royalties. On a Inspection. Mining operations may also lead to unqualified persons or companies. also provide recourse to the subsector to intervene before the good note, the practice allows the landowners to significant environmental damage and degradation. expiry of the license. appeal to the minister, or the high court until when The mineral holder rights should also be held liable However, the new companies that have acquired the mineral rights should, on top of meeting other requirements as stated justice in achieved in this matter. for any contributions to social and environmental The Directorate of Geological Surveys and Mines (DGSM) in section 5 of the Mineral Act, submit details of their technical The Directorate of Geological Surveys and Mines (DGSM) However, it has also been noted that most mineral harm. The rights holder should pay appropriate and financial standing, work plans and beneficial ownership continued to monitor some notable flagship projects such as the rights holders have local agents helping them buy off compensation not only for displacements, but any as is the case for new applications to DGSM. Osukuru Phosphates Project in Eastern Uganda, which is land in advance and they eventually own this land. disturbance or negative environmental impact expected to commence full production by the end of 2018. This means that the 3% royalty for the landowner caused by mining operations if and when they arise. Some companies were found to take advantage of this Some companies were found to take advantage of this However, Tibet Hima management of Kilembe Mines had a goes back to the company. Thus, the government loophole to withhold this information from DGSM. loophole to withhold this information from DGSM. setback that culminated in the termination of its contract due to has been advising bonafide landowners to lease There is need to review section 82(1) of the mining under performance. The Ugandan government therefore continues land as opposed to outright selling it off. This way, act such that compensating for environmental There is no oversight body that provides scrutiny in regards to to miss out on the current global FDI in the Cobalt/Copper industry damage is considered as the responsibility of the Ugandans will be able to benefit from mining. granting, renewing, revoking and approval of transfer of the spurred by the increased demand for electric motor vehicles as an mineral rights holder. spurred by the increased demand for electric motor vehicles as an mineral rights by DGSM. Decisions are taken internally mineral rights by DGSM. Decisions are taken internally alternative to fossil fuels. It is therefore important that a new It has also been noted that the Mining Act (2003) because the law does not provide for external persons; because the law does not provide for external persons; developer is sourced at the earliest opportune time. does not provide clear mechanisms to regulate (iv) Ensuring compliance of though the directorate has an internal committee that reviews though the directorate has an internal committee that reviews access or acquisition of land by mineral license all the decisions taken. the Mineral Rights holders all the decisions taken. The Mining Act 2003 provides for the establishment of the mining holders to carry out prospecting, exploration and (46.4 %) register. While the subsector has established a physical register mining operations. The dispute and compensation To avoid cases of conflicts of interest, being that officials don’t In Uganda, all scientific investigations and studies housed at the DGSM, an online, publicly available version of this mechanisms for disturbance of land use to land In Uganda, all scientific investigations and studies declare their interests in the mining industry, its good practice information is still not yet established and should therefore be owners as provided for in the Mining Act (2003) are to be carried out must be approved by the Uganda that and external oversight body should be instituted to owners as provided for in the Mining Act (2003) are made available through the online Mining Cadastre. In order to National Council for Science and Technology scrutinise the process of granting, renewing, revoking and also insufficient. And the sector is yet to sensitise bring the act up to date with international standards, an online (UNCST). Therefore, the best practices approval of transfer of the mineral rights. bring the act up to date with international standards, an online the landowners on the issues of surface land rights database of mining contracts should be established. The current recommend that all companies or persons database of mining contracts should be established. The current versus mineral rights holders. register system is inadequate as it is not accessible for most authorised to undertake exploration or prospecting The scorecard assessment noted that there are some register system is inadequate as it is not accessible for most citizens. Contract transparency and associated access to operations without mineral rights in the course of mineral rights holders who don’t make full beneficial use of citizens. Contract transparency and associated access to It has however been noted that in most mining information efforts have been recognized as critical keys to scientific investigations should receive approval the licenses as per approved work plans within two (2) years information efforts have been recognized as critical keys to areas, there have been severe environmental success in the extractive industries . While Uganda has not yet from the Uganda National Council for Science and from granting the license. This was mainly attributed to success in the extractive industries . While Uganda has not yet damages and land degradation, yet the rights made extractive industry contracts public, government has Technology. This assessment however, found out speculators holding licenses for the full period of the license made extractive industry contracts public, government has holders seem not to be responsible. The mining act committed to publishing contracts as well as signing onto the EITI that this is not undertaken and thus studies are without undertaking any activity. The subsector does not take committed to publishing contracts as well as signing onto the EITI should be reviewed to clearly make the rights holder Global Standard. conducted without the approval of UNCST. any action against these companies and as a result the Global Standard. accountable to environmental and land degradation. government has lost a substantial amount of royalties. This is To provide true access to important documents regarding mineral Therefore, as the government is looking forward to because section 90(1) of the minerals act does not mention The mineral holder should be held liable for any sector activity, contracts and all accompanying documents should contributions to social and environmental harm. The increasing investment in Research and failure to use a mineral right or comply with work plans as a contributions to social and environmental harm. The Development through the mineral value chain, it be made available online. rights holder should pay appropriate compensation Development through the mineral value chain, it ground for cancellation of rights. should strongly regulate the environment in which not only for certain disturbances, but any research is done, thereby promoting quality disturbance or negative environmental impact investments in the mining sector. caused by mining operations if and when they arise6.

3.2.3. Institutional Establishment and operations in the country, and as a result, miners in Mubende, (iii) Professionalization of the Development Busia, Namayingo, Karamoja region, and Ntungamo and other Mining Industry (0.0%) notable mining regions have been encouraged to form Currently, there have been no efforts to Associations and secure their operations with acquisition of professionalise the mining industry in Uganda. As a Location licenses. The Ministry of Energy and Mineral result, there is no established database of Development is in advanced stages of procuring a consultant to INDICATOR SCORE: professionals in the mining industry. The society of undertake biometric registration of all ASMs in the country ASM Geoscientists was pushed for establishment but it is 31.8% – Partially Addressed and assist in the Management of their operations. still non-existent. The law regulating activities of geoscientists doesn’t exist because there is no In order to have proper arrangements of formalising ASM register of the people to be regulated, neither a activities, the sub sector should accurately map out all bonafide activities, the sub sector should accurately map out all bonafide professional registration body for geoscientists in Fig 6: Performance of the subsector under Key Result Areas in Indicator 3 professional registration body for geoscientists in Fig 6: Performance of the subsector under Key Result Areas in Indicator 3 ASMs, register them, and make arrangements to develop their Uganda. However, under Objective four (4) of the skills in modern mining methods and practices. The current skills in modern mining methods and practices. The current new Mining and Minerals Policy, 2018 Government new Mining and Minerals Policy, 2018 Government arrangements to develop the skills of ASM are not yet has committed to enact a law that shall regulate operationalized due to the informal nature of Artisanal miners. It geoscientists and its associate professionals; as well was also established that the Ministry of Energy and Mineral as set up a professional registration body for Development (MEMD) is in advanced stages of procuring geoscientists in Uganda. consultancy services to carry out registration and assist in the management of Artisanal & Small-scale miners across the It should also be noted that aside from the country. Department of Geology at Makerere University, which is charged with the training of Geologists and (ii) Capacity of the Sector Busitema University in Eastern Uganda, which trains Institutions (50 %) mining engineers, there are limited opportunities for Ugandans seeking for a career in the Mining and (i) Formalization of ASMs Policy, 2001 and replaced it with a new Mining and Minerals It was noted that although the DGSM has the required capacity (i) Formalization of ASMs Minerals Sub-sector. Majority of the experts at Policy 2018, which was endorsed by Cabinet on the 7th of May (skilled staff) to efficiently carryout its mandate, the subsector (45 %) DGSM have are all graduates of Dar salaam 2018. This shall be followed by the review of the Mining Act requires to continue building the institutional capacity to develop The sector hasn’t yet developed the Mineral University in Tanzania. There are limited skills on the 2003, to address gaps in the overall governance of the Mining and strengthen local capacity for mineral development in the Development Master Plan. However, the market for the private sector and this has to a large Sub-Sector. Key among the 10 objectives of the new Mining country. Of recent, there has been a high employee turnover which framework for licensing, regulation and extent led some staff within the regulatory body of and Minerals Policy, 2018 addresses the issue of artisanal has led to brain drain for greener pastures. This is coupled with monitoring of mining activities is being the ministry to double as part-time consultants for miners. Government recognizes the participation and understaffing of the DGSM with many vacant positions available. developed. This will enhance the formalisation of the private sector leading to a conflict of interest and contribution of small scale and artisanal miners and therefore Only three (3) positions in the GRD are substantively filled leaving Artisanal Small Scale Miners in the country. corruption in the execution of their oversight the need to formalise their operations to allow legally supported twenty-four (24) vacant positions. There are collaborative arrangements between responsibilities over the mineral rights holders. operations in areas where large-scale mining is not warranted. In terms of financial resources, the subsector has been grappling DGSM, development partners and civil society Artisanal miners’ operations are often nomadic in nature; in the with inadequate funding for mineral exploration, monitoring and to promote best practices in the ASM subsector. It is therefore recommended that Tertiary Institutions case of gold that comprises the highest population of artisanal inspection of mining activities. The subsector also grapples with Notable CSOs involved in these arrangements and Universities in Uganda need to be encouraged miners, operations are mainly triggered by gold rushes. Under lack of equipment, maintenance of the information system and include: Africa Centre for Energy and Mineral to introduce mining activity related courses to fill the this arrangement, the government will ensure that ASM other infrastructures required. Policy (ACEMP), ActionAid Uganda, Ecological ever increasing job market for mining geo-scientists, activities are a preserve of only Ugandans. Christian Organisation, Saferworld and Global geologists, engineers, economists and other sector Rights Alert. related job opportunities. This scorecard acknowledges the fact that the sub-sector has already embarked on the process of registering all the ASMs The Government has amended the Mining

3.3.4. Mineral Production, Revenue 2003 to over 818 by the end of FY 2016/17. category of minerals to support socio-economic development and in some cases has led to stoppage Generation, Collection and Management Over all, the mineral sub-sector attracted USD 1.63 billion in of some road constructions due to litigation. capital investments by the private sector in key projects including: Regulation of these minerals and materials could see the Mining and Minerals sector contribute to a) The Guangzhou Dong Song phosphate plant between 3% - 5% to GDP.7 Indicator Score: at Sukulu in Tororo planned for commissioning by end 2018 and for 19.7% - Inadequately Addressed steel by 2019, with a total investment of USD 620 Million; • The current legal framework encourages extensive speculation and confers a lot of b) African Panther were reported to have commenced discretionary powers and unclear guidelines to mining and processing of tin in Isingiro; the Commissioner which has often resulted into Mineral Production unnecessary litigations; The minerals produced in 2016 were valued at UGX 175,928,000,000/=. The major minerals produced c) Increased limestone and cement production by four include limestone, valued at UGX 144,369,000,000/=, Pozollana valued at UGX 17,780,000,000/= and cement factories namely Tororo Cement, Hima Cement, Simba • ASM has remained largely unregulated and its Kaolin valued at UGX 4,590,000,000/=. Compared to 2015, value of minerals produced in 2016 Cement, National Cement, Kampala Cement, together with a contribution not accounted for, partly explaining increased by 2.8%. combined investment of USD 500 Million. the less than 1% contribution of the sector to GDP. From the current illegal mining in Fig 7: Performance of the subsector under Key Results Areas in Indicator 4 d) Consolidated African Mineral Resources has invested Mubende, Buhweju, Busia, Namayingo, about USD 5 Million to process 60 metric tonnes of high-grade Nakapiripirit, Amudat, Kaabong, Abim and graphite. Moroto Districts, its estimated that about 200 kgs of gold equivalent to USD 8m (current price of USD 40,000 per Kg), is being illegally mined The government collects royalties, fees and rents on top of the per month (Baseline Assessment of various taxes from the mining companies. However, the Development Minerals in Uganda, 2018) government has until now failed to track or collect revenues from compared to Non Tax Revenue (NTR) of USD the exploitation of substances that are not defined by Article 3.2m collected annually; 244(5) of the Constitution of the Republic of Uganda, such as the stones aggregates, sand, clay and murrum which in the mining • The need to promote in-country value addition policy of 2018 have been defined as minerals. This is because of strategic minerals such as iron ore, base there was no legal provision for regulating and collecting of metals, precious metals and battery minerals; However, it was noted that the value of minerals Revenue collections, Revenue payments by the mining revenues from these substances. produced and exported declined from UGX companies, and Royalty transfer to local governments. The • The need to restrict any investor from blasting 101Billion registered in the 2015/16 financial year to performance of the subsector under each of these areas is There is urgent need regulate commercial exploitation of sand, rocks that are connected to the ecological UGX 99 Billion in the 2016/17 financial year. This elaborated bellow; stone (Rocks), clay and murram, excluded from the definition of system and those with historical significance; was largely attributed to the falling commodity the word “mineral” in Article 244(5) of the Constitution. The prices on the international market as well as lack of (i) Revenue Collections (18.8%) exclusion led to confusion as to whether these minerals should be • The ambiguity surrounding the regulation, mineral certification for Tin, Tantalum, Tungsten and mineral certification for Tin, Tantalum, Tungsten and Foreign Direct Investment (FDI) in the mineral sector increased regulated or not, yet the Ugandan government continues to lose certification and traceability of regional conflict Gold (3TGs). Gold (3TGs). from US$5 million in 2003 to an estimated US$ 800 million in billions of shillings from speculators in the infrastructure corridors, minerals such as Tin, Tungsten, Tantalite and FY 2016/17. Similarly, revenues from license fees and royalties road constructors that present exorbitant bills of quantities for the Gold. This indicator score is at 19.7%, showing that the This indicator score is at 19.7%, showing that the increased from US$0.5 million in 2003 to US$ 4.14 million in purchase of these construction materials but proceed to acquire government has inadequately addressed the issues government has inadequately addressed the issues 2016/17, mineral rights (licenses) issued, increased the same from unsuspecting land owners at a fraction of their bills Even though Article 244(6) of the Constitution gives assessed under this indicator. These issues include assessed under this indicator. These issues include dramatically over the same period from 100 mineral licenses in of quantities. This has led to limited revenue generation from this Parliament powers to regulate the exploitation of any

substance excluded from the definition of mineral the NTR assessed by DGSM and collected by URA, such that governments; this information is only of aggregated data, without “We last got royalties in 2016. And it under article 244(5) when exploited for commercial the right amounts are always collected as inconsistences in giving a detailed breakdown of these transfers. It doesn’t include under article 244(5) when exploited for commercial the right amounts are always collected as inconsistences in giving a detailed breakdown of these transfers. It doesn’t include was the first time anything like royalties reflected in purposes. Until the Mining Policy of 2018, the returns are reduced. For companies that are found submitting definitions of the main concepts and explanations and sources of our revenues. It came in two instalments of 14m and existing mining legal frameworks did not provide for inaccurate NTR returns, penalties commensurate to their false these royalties for the broader public consumption. It was also 8m. We included the royalties in our revenue the regulation of the above (substances) exploited declarations should be imposed. noted that recipient local governments too, do not publish enhancement plan in the budget. We do not provide for commercial purposes. This regulatory gap information on transfers of mining royalties received from the accountability to central government but treat it as a revenue source. We however do not know what we’re resulted into inadequate optimization of fiscal Even though the government has put in place mechanisms to central government. This inhibits transparency and accountability supposed to get as a district and how much is benefits, significant health, safety and collect royalties from gold exports, there have also been requirements for the extractive transparency initiatives. supposed to go to lower local governments.” environmental impacts to the exploiters and outstanding defaults on royalties collected from the gold exports surrounding communities. as required by sections 71 of the Mining Act 2003. For instance, There is need to enhance transparency and accountability by according to the reports from the Auditor General’s Report of encouraging both central and local governments to publish detailed information on all the royalty shares. (iv) Utilisation of Royalties There is need to amend the constitution and or 2016, during the financial year 2015/16, the management seek constitutional interpretation on the intentions seek constitutional interpretation on the intentions assessed royalty and awarded export permits for only 93kgs of (0%) of the legislators whichever is faster to address the Another challenge discovered by this scorecard is the distribution gold worth UGX.11, 822,178,756. However, collaborative The assessment observed that in local legal conundrum created under Art.244 (5) & (6). of revenues from minerals among central government, local reports from the Customs and Excise Department of Uganda governments; royalties are spent on governments and local communities and landowners. This governments and local communities and landowners. This non-developmental activities, which aren’t aligned to The government was also faulted for not publishing Revenue Authority indicated that 5,316 kgs of gold had been The government was also faulted for not publishing remains a contentious issue, which continues to create tensions, exported with a total value of UGX.698, 096,530,839. the development objectives of the country. The local the actual amount of revenues collected suspicions, political mistrust and could if left unaddressed lead to suspicions, political mistrust and could if left unaddressed lead to governments which are beneficiaries of these disaggregated by source form the mining industry. Accordingly, Government should have collected UGX.6, disaggregated by source form the mining industry. conflicts between mineral rich host communities, mining 980,965,308 or UGX.34, 904,826,541 in royalties using the royalties don’t submit work plans or budgets before The government instead provides information on companies, local governments and the central government. applicable rates of 1% and 5% for the imported or locally mined companies, local governments and the central government. the royalty funds are released by Treasury. They thus the block figure as NTR that is collected rather than applicable rates of 1% and 5% for the imported or locally mined have no clear plans on how to utilise these disaggregated sources of these revenues. gold respectively. There was no evidence of any action taken on disaggregated sources of these revenues. What is common is the splitting of earnings between the mining the offenders as required by the law. resources, hence spending them on recurrent company and the central government thus leaving little benefits to company and the central government thus leaving little benefits to budgets. (ii) Revenue Payments by the local communities. Communities interviewed across the (ii) Revenue Payments by Section 105 of the Mining requires leaseholders to pay annual country lacked knowledge on how to access their royalties and the Mining Companies (32.2 rent fees upon every annual anniversary. It has however been There is need to develop an expenditure framework there was also little evidence of disbursements of these royalties that will require royalties to be spent on the noted that, even though some companies do pay these fees, a %) to the actual beneficiaries. Majority of mining Districts lacked development of durable and wealth creating The assessment noted that DGSM does not audit few of the companies are still non-compliant. Government has The assessment noted that DGSM does not audit knowledge about their entitlements to royalties while in some socio-economic infrastructure as identified in the the NTR returns submitted by the mining continuously been cautioning these companies but with little National Development Plans and Vision 2040. The the NTR returns submitted by the mining districts in the Karamoja region it was discovered that some Local companies, and therefore, it depends on the only success. Strong penalties need to be taken against such framework should also require the beneficiary local companies, and therefore, it depends on the only Government officials and sub-county chairmen had been companies for their continued non-compliance to revenue government to submit work plans and budgets these submissions to ascertain the amount of NTR collecting royalties (fees) from companies and not remitting the payments, with the option of litigation being the imminent one. collecting royalties (fees) from companies and not remitting the before funds are remitted and carry out subsequent to be paid. This creates a gap that could be payments, with the option of litigation being the imminent one. same to their Districts. Yet, equitable distribution of mineral wealth accountability before further releases. exploited by the companies to submit inaccurate exploited by the companies to submit inaccurate is one of the prerequisites for more sustainable societies, making reports. There is need to regularly audit these reports. There is need to regularly audit these (iii) Reporting on Transfer of this only an important but also social issue for the desired submissions so as to ensure accuracy of the submissions so as to ensure accuracy of the Royalties (27.8 %) transformation of the Ugandan society. This will help to ascertain whether the plans are information submitted. There is also need to information submitted. There is also need to Even though it was noted that MEMD publishes information on aligned to the NDP and Vision 2040, before the establish a coordination mechanism to reconcile establish a coordination mechanism to reconcile transfers of mining royalties to the mineral host local From the engagements with the local governments, it was noted royalties are released. that some don’t receive and majority of the mining districts are not aware of what is due to them from the central government The formula for royalty sharing is not known to all the LGs. The Chief Finance Officer (CFO), Kabale district noted that;

3.2.5. Local Content Development and Fig 8: Uganda’s Minig Cadestral Portal Participation

Indicator Score: 55.4% - Mostly Addressed

Fig 10: Performance of the subsector under Key Result Areas in Indicator 5

Fig 9: Gold Minig in Buhweju

(i) Legal and policy framework for Development, this helps “foster the development of an industrial and manufacturing capacity in host local content development (56.3%) an industrial and manufacturing capacity in host countries.”8 Section 113 of the Mineral Act 2003 provides for the utilisation and prioritisation of Ugandan products and Ugandans by the mineral The review in the act must introduce local content rights holders. This provision though should specifically state that requirements in order to maximize use of Ugandan mineral rights holders should only procure goods and services out goods and services as much as possible. of the country in the case that they cannot be locally sourced. Countries around the world are ensuring that citizens benefit from Even though there is an established mechanism for resource extraction by introducing local content requirements for Ugandans to participate independently or in foreign operators. collaboration with foreign investors in the mining industry (Partnerships and Joint Ventures) – Similar to Section 25 of the Upstream Act, the rights holder should location licenses are not allowed for foreigners, they be required to submit an annual report detailing its achievements have to make sure locals have 50% shares; in utilizing Ugandan goods and services with a list accompanied Ugandans hardly raise the requirements to invest in by justifications for cases in which the rights holder failed to the industry, and these foreigners end up using procure a local good and/or service and had to procure the good them (Ugandans) to disguise as shareholders in the or service abroad. According to the UN Conference on Trade and companies, to gain the right to acquire location licenses.

The assessment acknowledges the fact that mining companies SMEs lack the required collateral to access these Fig 11: Members of Rupa Community Development Trust on a study tour (ii) Skilling and Training of procure goods and services available in Uganda and sold by resources. They are therefore limited by financial Ugandans (60 %) Ugandan companies, entities and individuals. To a limited extent resources to even provide the required goods and Ugandans (60 %) Interviews with some small-scale mining companies though, the mining companies do support the development of services to the mining companies. indicated that the sub-sector faces a challenge Small and Medium Enterprises, through buying from them. For The government should soften on the requirements finding qualified and skilled manpower in the instance, the Sukulu phosphate company procures all its logistics needed by the local SMEs to access the financial various aspects of the mineral value chain. It was from local companies. However, the company has not provided support from the $12m set aside for the the required capacity to the local SMEs to provide the goods of discovered that most of the skilled manpower are development of private enterprises in the mining the required quantity, quality and set standards. This thus denies concentrated within the Directorate of Geological the required quantity, quality and set standards. This thus denies industry. The mining companies should also be Surveys and Mines forcing mining companies to the local SMEs the opportunity to supply the company. encouraged to enter into Community Development rely on the same human resource as part-time Agreements (CDAs) with the host communities such that they supply the required goods, so as to benefit consultants. This compromises the regulatory Even though the local SME companies are provided with timely that they supply the required goods, so as to benefit from the resources within their community. mandate of the Directorate charged with overseeing information on investment opportunities, jobs and contracts for the overall governance of the sector and largely provision of services available in the mining industry, they in most leads to non-compliance by the mineral rights cases lack the necessary financial services to support their owners. Therefore, investing in human capital contracts execution. Even though the government set aside 12 through higher education, technical trainings, million dollars to support local SMEs to invest in mineral The subsector should also conduct a skills gap assessment apprenticeship and transferable skills development development activities and provide the required services, the local study to ascertain the available and the required skills in the is important for the competitiveness of the sector. mining industry in the country. From the study, the subsector 3.2.6. Health, Safety and Environment should develop a database of available and missing skills in the 3.2.6. Health, Safety and Environment The mineral Act 2003 requires that applicants for all country. This will make it easier for the licensees to find the Conservation and Management the various licenses in the mining sector provides required skills to employ, than sourcing from outside the for the employment and training of Ugandan country. The database/skills gap study will inform the subsector citizens. It is a contractual obligation for the mineral on the areas that require urgent attention and training. Indicator Score: license holders to provide preference to Ugandans in employment but also training them with various 46.9% - Partially Addressed skills required for the mining industry. (iii) Support to SMEs and Enterprise Development in the mining The subsector scored 53.6% under this indicator implying that some of the issues assessed have To increase on the skills level in the country, there industry (50 %) The subsector scored 53.6% under this indicator implying that some of the issues assessed have are various training institutions that support the been implemented. The areas assessed are the capacity of the institutions in the mining subsector to The Mining and Minerals sector in Uganda is driven by the development of the mineral industry. Makerere review the ESIA’s, regulating of the Mining Activities in the Reserved Areas, compliance of the mining artisanal and small scale players who are credited for University has a department that trains Geologists, companies to environment management requirements, the management of the environmental production of over 90% of the country’s produced mineral and though enrolment is still low. The highest number protection fund, conducting of environmental audits, environmental awareness creation, promoting materials, employing close to 400,000 Ugandans directly and enrolled was 21 students in the 1990’s. Busitema health and safety practices, and regulating the use of hazardous mining substances. Below is a impacting lives of over 2 million Ugandans. These employment University also produces mining engineers. These detailed explanation of how the sector has performed under these areas assessed in indicator 6; opportunities provided by the sub-sector can be substantial and graduates however still lack the required technical in some cases critical in addressing the rampant youth skills. There are no skilling institutions in which they Fig 12: Performance of the Subsector under Key Results Areas in Indicator 6 unemployment in Uganda. The study discovered that no can acquire hands-on experience in mining skills. deliberate attempts were being undertaken by the few medium scale mining projects to build SME’s. This means that local The subsector should explore the possibilities of communities are less likely to benefit from new jobs and establishing mineral beneficiation centres to act as training institutions for Artisanal Miners and improve business opportunities linked to these new mining projects. The the skills level, so as to support value addition. scorecard observes that capacity building through education, training and skills development could help overcome the skills shortage forecast challenges and would in the long-run contribute towards more sustainable communities, beyond the life of these mining projects.

RESULTS

3.2.5. Local Content Development and Fig 8: Uganda’s Minig Cadestral Portal Participation

Indicator Score: 55.4% - Mostly Addressed

Fig 10: Performance of the subsector under Key Result Areas in Indicator 5

Fig 9: Gold Minig in Buhweju

RESULTS

During this assessment, it was noted that Mining Section 6 of the Mineral Act, 2003, provides the framework in (v) Ensuring Land rights of There is need to review the Act to incorporate an article, which Companies prepare RAPs but rarely do they follow which the mineral rights can be transferred form one holder to the Land owners (58.3 %) them during the projects implementation. Land another. To transfer the mineral rights, it requires compels the subsector to cancel or terminate the license in case the holder fails to make full beneficial use of the license as per the In order to ensure that the land rights of the occupiers found themselves in situations where authorization for a transfer of shares, which is important approved work plan. landowners are upheld, Section 83 of the Mining Act they are not compensated. Based on this, the because it is the Ministry’s right to approve or disapprove of 2003 provides for the compensation of the government set up the Mineral Police to accompany any individual applying to hold a mineral right, as is the case This will also help to reduce cases of speculators holding licenses landowners, and first schedule indicates that lawful teams that go to the field for monitoring and with new applicants. This eliminates the transfer of rights to for the full period of the license without undertaking activity. It will landowners are entitled to 3% of the royalties. On a Inspection. Mining operations may also lead to unqualified persons or companies. also provide recourse to the subsector to intervene before the good note, the practice allows the landowners to Executive Summary significant environmental damage and degradation. expiry of the license. appeal to the minister, or the high court until when The mineral holder rights should also be held liable However, the new companies that have acquired the mineral justice in achieved in this matter. for any contributions to social and environmental rights should, on top of meeting other requirements as stated in section 5 of the Mineral Act, submit details of their technical The Directorate of Geological Surveys and Mines (DGSM) However, it has also been noted that most mineral harm. The rights holder should pay appropriate and financial standing, work plans and beneficial ownership continued to monitor some notable flagship projects such as the rights holders have local agents helping them buy off compensation not only for displacements, but any as is the case for new applications to DGSM. Osukuru Phosphates Project in Eastern Uganda, which is land in advance and they eventually own this land. disturbance or negative environmental impact expected to commence full production by the end of 2018. This means that the 3% royalty for the landowner caused by mining operations if and when they arise. Some companies were found to take advantage of this However, Tibet Hima management of Kilembe Mines had a goes back to the company. Thus, the government loophole to withhold this information from DGSM. setback that culminated in the termination of its contract due to has been advising bonafide landowners to lease There is need to review section 82(1) of the mining under performance. The Ugandan government therefore continues land as opposed to outright selling it off. This way, act such that compensating for environmental There is no oversight body that provides scrutiny in regards to to miss out on the current global FDI in the Cobalt/Copper industry damage is considered as the responsibility of the Ugandans will be able to benefit from mining. granting, renewing, revoking and approval of transfer of the mineral rights holder. spurred by the increased demand for electric motor vehicles as an mineral rights by DGSM. Decisions are taken internally alternative to fossil fuels. It is therefore important that a new It has also been noted that the Mining Act (2003) because the law does not provide for external persons; developer is sourced at the earliest opportune time. (iv) Ensuring compliance of does not provide clear mechanisms to regulate though the directorate has an internal committee that reviews access or acquisition of land by mineral license the Mineral Rights holders all the decisions taken. The Mining Act 2003 provides for the establishment of the mining holders to carry out prospecting, exploration and (46.4 %) register. While the subsector has established a physical register mining operations. The dispute and compensation To avoid cases of conflicts of interest, being that officials don’t housed at the DGSM, an online, publicly available version of this mechanisms for disturbance of land use to land In Uganda, all scientific investigations and studies declare their interests in the mining industry, its good practice information is still not yet established and should therefore be to be carried out must be approved by the Uganda that and external oversight body should be instituted to owners as provided for in the Mining Act (2003) are made available through the online Mining Cadastre. In order to National Council for Science and Technology scrutinise the process of granting, renewing, revoking and also insufficient. And the sector is yet to sensitise (UNCST). Therefore, the best practices approval of transfer of the mineral rights. bring the act up to date with international standards, an online the landowners on the issues of surface land rights recommend that all companies or persons database of mining contracts should be established. The current versus mineral rights holders. authorised to undertake exploration or prospecting The scorecard assessment noted that there are some register system is inadequate as it is not accessible for most operations without mineral rights in the course of mineral rights holders who don’t make full beneficial use of citizens. Contract transparency and associated access to It has however been noted that in most mining scientific investigations should receive approval the licenses as per approved work plans within two (2) years information efforts have been recognized as critical keys to areas, there have been severe environmental from the Uganda National Council for Science and from granting the license. This was mainly attributed to success in the extractive industries . While Uganda has not yet damages and land degradation, yet the rights Technology. This assessment however, found out speculators holding licenses for the full period of the license made extractive industry contracts public, government has holders seem not to be responsible. The mining act that this is not undertaken and thus studies are without undertaking any activity. The subsector does not take committed to publishing contracts as well as signing onto the EITI should be reviewed to clearly make the rights holder conducted without the approval of UNCST. any action against these companies and as a result the Global Standard. accountable to environmental and land degradation. government has lost a substantial amount of royalties. This is To provide true access to important documents regarding mineral Therefore, as the government is looking forward to because section 90(1) of the minerals act does not mention The mineral holder should be held liable for any sector activity, contracts and all accompanying documents should increasing investment in Research and failure to use a mineral right or comply with work plans as a contributions to social and environmental harm. The be made available online. rights holder should pay appropriate compensation Development through the mineral value chain, it ground for cancellation of rights. should strongly regulate the environment in which not only for certain disturbances, but any research is done, thereby promoting quality disturbance or negative environmental impact investments in the mining sector. caused by mining operations if and when they arise6. RESULTS

RESULTS 6For guidance, see Section 87 of the Zambia Minerals Act which outlines a mineral rights holder’s liability for harm or damage caused by operations including harm or damage caused to the environment, biological diversity, human and animal health and socio economic conditions.

The 2nd Annual Mining & Mineral Subsector Scorecard 21

3.2.5. Local Content Development and Fig 8: Uganda’s Minig Cadestral Portal Participation

Indicator Score: 55.4% - Mostly Addressed

Fig 10: Performance of the subsector under Key Result Areas in Indicator 5

Fig 9: Gold Minig in Buhweju

The assessment acknowledges the fact that mining companies SMEs lack the required collateral to access these Fig 11: Members of Rupa Community Development Trust on a study tour (ii) Skilling and Training of procure goods and services available in Uganda and sold by resources. They are therefore limited by financial Ugandan companies, entities and individuals. To a limited extent resources to even provide the required goods and Ugandans (60 %) Interviews with some small-scale mining companies though, the mining companies do support the development of services to the mining companies. indicated that the sub-sector faces a challenge Small and Medium Enterprises, through buying from them. For The government should soften on the requirements finding qualified and skilled manpower in the instance, the Sukulu phosphate company procures all its logistics needed by the local SMEs to access the financial various aspects of the mineral value chain. It was from local companies. However, the company has not provided support from the $12m set aside for the the required capacity to the local SMEs to provide the goods of discovered that most of the skilled manpower are development of private enterprises in the mining concentrated within the Directorate of Geological the required quantity, quality and set standards. This thus denies industry. The mining companies should also be Surveys and Mines forcing mining companies to the local SMEs the opportunity to supply the company. encouraged to enter into Community Development rely on the same human resource as part-time Agreements (CDAs) with the host communities such consultants. This compromises the regulatory Even though the local SME companies are provided with timely that they supply the required goods, so as to benefit from the resources within their community. mandate of the Directorate charged with overseeing information on investment opportunities, jobs and contracts for the overall governance of the sector and largely provision of services available in the mining industry, they in most leads to non-compliance by the mineral rights cases lack the necessary financial services to support their owners. Therefore, investing in human capital contracts execution. Even though the government set aside 12 through higher education, technical trainings, million dollars to support local SMEs to invest in mineral The subsector should also conduct a skills gap assessment apprenticeship and transferable skills development development activities and provide the required services, the local study to ascertain the available and the required skills in the is important for the competitiveness of the sector. mining industry in the country. From the study, the subsector should develop a database of available and missing skills in the 3.2.6. Health, Safety and Environment The mineral Act 2003 requires that applicants for all country. This will make it easier for the licensees to find the Conservation and Management the various licenses in the mining sector provides required skills to employ, than sourcing from outside the for the employment and training of Ugandan country. The database/skills gap study will inform the subsector citizens. It is a contractual obligation for the mineral on the areas that require urgent attention and training. Indicator Score: license holders to provide preference to Ugandans in employment but also training them with various 46.9% - Partially Addressed skills required for the mining industry. (iii) Support to SMEs and Enterprise Development in the mining To increase on the skills level in the country, there industry (50 %) The subsector scored 53.6% under this indicator implying that some of the issues assessed have are various training institutions that support the been implemented. The areas assessed are the capacity of the institutions in the mining subsector to The Mining and Minerals sector in Uganda is driven by the development of the mineral industry. Makerere review the ESIA’s, regulating of the Mining Activities in the Reserved Areas, compliance of the mining artisanal and small scale players who are credited for University has a department that trains Geologists, companies to environment management requirements, the management of the environmental production of over 90% of the country’s produced mineral and though enrolment is still low. The highest number protection fund, conducting of environmental audits, environmental awareness creation, promoting materials, employing close to 400,000 Ugandans directly and enrolled was 21 students in the 1990’s. Busitema health and safety practices, and regulating the use of hazardous mining substances. Below is a impacting lives of over 2 million Ugandans. These employment University also produces mining engineers. These detailed explanation of how the sector has performed under these areas assessed in indicator 6; opportunities provided by the sub-sector can be substantial and graduates however still lack the required technical in some cases critical in addressing the rampant youth skills. There are no skilling institutions in which they Fig 12: Performance of the Subsector under Key Results Areas in Indicator 6 unemployment in Uganda. The study discovered that no can acquire hands-on experience in mining skills. deliberate attempts were being undertaken by the few medium scale mining projects to build SME’s. This means that local The subsector should explore the possibilities of communities are less likely to benefit from new jobs and establishing mineral beneficiation centres to act as training institutions for Artisanal Miners and improve business opportunities linked to these new mining projects. The the skills level, so as to support value addition. scorecard observes that capacity building through education, training and skills development could help overcome the skills shortage forecast challenges and would in the long-run contribute towards more sustainable communities, beyond the life of these mining projects.

RESULTS

3.2.3. Institutional Establishment and operations in the country, and as a result, miners in Mubende, (iii) Professionalization of the Development Busia, Namayingo, Karamoja region, and Ntungamo and other Mining Industry (0.0%) notable mining regions have been encouraged to form Currently, there have been no efforts to Associations and secure their operations with acquisition of professionalise the mining industry in Uganda. As a Location licenses. The Ministry of Energy and Mineral result, there is no established database of Development is in advanced stages of procuring a consultant to INDICATOR SCORE: professionals in the mining industry. The society of undertake biometric registration of all ASMs in the country ASM Geoscientists was pushed for establishment but it is 31.8% – Partially Addressed and assist in the Management of their operations. still non-existent. The law regulating activities of geoscientists doesn’t exist because there is no In order to have proper arrangements of formalising ASM register of the people to be regulated, neither a activities, the sub sector should accurately map out all bonafide professional registration body for geoscientists in Fig 6: Performance of the subsector under Key Result Areas in Indicator 3 ASMs, register them, and make arrangements to develop their Uganda. However, under Objective four (4) of the skills in modern mining methods and practices. The current new Mining and Minerals Policy, 2018 Government arrangements to develop the skills of ASM are not yet has committed to enact a law that shall regulate operationalized due to the informal nature of Artisanal miners. It geoscientists and its associate professionals; as well was also established that the Ministry of Energy and Mineral as set up a professional registration body for Capacity of the Institution Development (MEMD) is in advanced stages of procuring geoscientists in Uganda. Formalisation of ASMs consultancy services to carry out registration and assist in the Professionalisation of the Mining Industry management of Artisanal & Small-scale miners across the It should also be noted that aside from the country. Department of Geology at Makerere University, which is charged with the training of Geologists and (ii) Capacity of the Sector Busitema University in Eastern Uganda, which trains Institutions (50 %) mining engineers, there are limited opportunities for Ugandans seeking for a career in the Mining and Policy, 2001 and replaced it with a new Mining and Minerals It was noted that although the DGSM has the required capacity (i) Formalization of ASMs Minerals Sub-sector. Majority of the experts at Policy 2018, which was endorsed by Cabinet on the 7th of May (skilled staff) to efficiently carryout its mandate, the subsector (45 %) DGSM have are all graduates of Dar salaam 2018. This shall be followed by the review of the Mining Act requires to continue building the institutional capacity to develop The sector hasn’t yet developed the Mineral University in Tanzania. There are limited skills on the 2003, to address gaps in the overall governance of the Mining and strengthen local capacity for mineral development in the Development Master Plan. However, the market for the private sector and this has to a large Sub-Sector. Key among the 10 objectives of the new Mining country. Of recent, there has been a high employee turnover which framework for licensing, regulation and extent led some staff within the regulatory body of and Minerals Policy, 2018 addresses the issue of artisanal has led to brain drain for greener pastures. This is coupled with monitoring of mining activities is being the ministry to double as part-time consultants for miners. Government recognizes the participation and understaffing of the DGSM with many vacant positions available. developed. This will enhance the formalisation of the private sector leading to a conflict of interest and contribution of small scale and artisanal miners and therefore Only three (3) positions in the GRD are substantively filled leaving Artisanal Small Scale Miners in the country. corruption in the execution of their oversight the need to formalise their operations to allow legally supported twenty-four (24) vacant positions. There are collaborative arrangements between responsibilities over the mineral rights holders. operations in areas where large-scale mining is not warranted. In terms of financial resources, the subsector has been grappling DGSM, development partners and civil society Artisanal miners’ operations are often nomadic in nature; in the with inadequate funding for mineral exploration, monitoring and to promote best practices in the ASM subsector. It is therefore recommended that Tertiary Institutions case of gold that comprises the highest population of artisanal inspection of mining activities. The subsector also grapples with Notable CSOs involved in these arrangements and Universities in Uganda need to be encouraged miners, operations are mainly triggered by gold rushes. Under lack of equipment, maintenance of the information system and include: Africa Centre for Energy and Mineral to introduce mining activity related courses to fill the this arrangement, the government will ensure that ASM other infrastructures required. Policy (ACEMP), ActionAid Uganda, Ecological ever increasing job market for mining geo-scientists, activities are a preserve of only Ugandans. Christian Organisation, Saferworld and Global geologists, engineers, economists and other sector Rights Alert. related job opportunities. This scorecard acknowledges the fact that the sub-sector has already embarked on the process of registering all the ASMs

RESULTS The Government has amended the Mining

3.2.5. Local Content Development and Fig 8: Uganda’s Minig Cadestral Portal Participation

Indicator Score: 55.4% - Mostly Addressed

Fig 10: Performance of the subsector under Key Result Areas in Indicator 5

Fig 9: Gold Minig in Buhweju

RESULTS

3.2.3. Institutional Establishment and operations in the country, and as a result, miners in Mubende, (iii) Professionalization of the Development Busia, Namayingo, Karamoja region, and Ntungamo and other Mining Industry (0.0%) notable mining regions have been encouraged to form Currently, there have been no efforts to Associations and secure their operations with acquisition of professionalise the mining industry in Uganda. As a Location licenses. The Ministry of Energy and Mineral result, there is no established database of Development is in advanced stages of procuring a consultant to INDICATOR SCORE: professionals in the mining industry. The society of undertake biometric registration of all ASMs in the country ASM Geoscientists was pushed for establishment but it is 31.8% – Partially Addressed and assist in the Management of their operations. still non-existent. The law regulating activities of geoscientists doesn’t exist because there is no In order to have proper arrangements of formalising ASM register of the people to be regulated, neither a activities, the sub sector should accurately map out all bonafide professional registration body for geoscientists in Fig 6: Performance of the subsector under Key Result Areas in Indicator 3 ASMs, register them, and make arrangements to develop their Uganda. However, under Objective four (4) of the skills in modern mining methods and practices. The current new Mining and Minerals Policy, 2018 Government arrangements to develop the skills of ASM are not yet has committed to enact a law that shall regulate operationalized due to the informal nature of Artisanal miners. It geoscientists and its associate professionals; as well was also established that the Ministry of Energy and Mineral as set up a professional registration body for Capacity of the Institution Development (MEMD) is in advanced stages of procuring geoscientists in Uganda. Formalisation of ASMs consultancy services to carry out registration and assist in the Professionalisation of the Mining Industry management of Artisanal & Small-scale miners across the It should also be noted that aside from the country. Department of Geology at Makerere University, which is charged with the training of Geologists and (ii) Capacity of the Sector Busitema University in Eastern Uganda, which trains Institutions (50 %) mining engineers, there are limited opportunities for Ugandans seeking for a career in the Mining and Policy, 2001 and replaced it with a new Mining and Minerals It was noted that although the DGSM has the required capacity (i) Formalization of ASMs Minerals Sub-sector. Majority of the experts at Policy 2018, which was endorsed by Cabinet on the 7th of May (skilled staff) to efficiently carryout its mandate, the subsector (45 %) DGSM have are all graduates of Dar salaam 2018. This shall be followed by the review of the Mining Act requires to continue building the institutional capacity to develop The sector hasn’t yet developed the Mineral University in Tanzania. There are limited skills on the 2003, to address gaps in the overall governance of the Mining and strengthen local capacity for mineral development in the Development Master Plan. However, the market for the private sector and this has to a large Sub-Sector. Key among the 10 objectives of the new Mining country. Of recent, there has been a high employee turnover which framework for licensing, regulation and extent led some staff within the regulatory body of and Minerals Policy, 2018 addresses the issue of artisanal has led to brain drain for greener pastures. This is coupled with monitoring of mining activities is being the ministry to double as part-time consultants for miners. Government recognizes the participation and understaffing of the DGSM with many vacant positions available. developed. This will enhance the formalisation of the private sector leading to a conflict of interest and contribution of small scale and artisanal miners and therefore Only three (3) positions in the GRD are substantively filled leaving Artisanal Small Scale Miners in the country. corruption in the execution of their oversight the need to formalise their operations to allow legally supported twenty-four (24) vacant positions. There are collaborative arrangements between responsibilities over the mineral rights holders. operations in areas where large-scale mining is not warranted. In terms of financial resources, the subsector has been grappling DGSM, development partners and civil society Artisanal miners’ operations are often nomadic in nature; in the with inadequate funding for mineral exploration, monitoring and to promote best practices in the ASM subsector. It is therefore recommended that Tertiary Institutions case of gold that comprises the highest population of artisanal inspection of mining activities. The subsector also grapples with Notable CSOs involved in these arrangements and Universities in Uganda need to be encouraged miners, operations are mainly triggered by gold rushes. Under lack of equipment, maintenance of the information system and include: Africa Centre for Energy and Mineral to introduce mining activity related courses to fill the this arrangement, the government will ensure that ASM other infrastructures required. Policy (ACEMP), ActionAid Uganda, Ecological ever increasing job market for mining geo-scientists, activities are a preserve of only Ugandans. Christian Organisation, Saferworld and Global geologists, engineers, economists and other sector Rights Alert. related job opportunities. This scorecard acknowledges the fact that the sub-sector has already embarked on the process of registering all the ASMs

RESULTS The Government has amended the Mining RESULTS

The 2nd Annual Mining & Mineral Subsector Scorecard 23

3.2.5. Local Content Development and Fig 8: Uganda’s Minig Cadestral Portal Participation

Indicator Score: 55.4% - Mostly Addressed

Fig 10: Performance of the subsector under Key Result Areas in Indicator 5

Fig 9: Gold Minig in Buhweju

The assessment acknowledges the fact that mining companies SMEs lack the required collateral to access these Fig 11: Members of Rupa Community Development Trust on a study tour (ii) Skilling and Training of procure goods and services available in Uganda and sold by resources. They are therefore limited by financial Ugandan companies, entities and individuals. To a limited extent resources to even provide the required goods and Ugandans (60 %) Interviews with some small-scale mining companies though, the mining companies do support the development of services to the mining companies. indicated that the sub-sector faces a challenge Small and Medium Enterprises, through buying from them. For The government should soften on the requirements finding qualified and skilled manpower in the instance, the Sukulu phosphate company procures all its logistics needed by the local SMEs to access the financial various aspects of the mineral value chain. It was from local companies. However, the company has not provided support from the $12m set aside for the the required capacity to the local SMEs to provide the goods of discovered that most of the skilled manpower are development of private enterprises in the mining concentrated within the Directorate of Geological the required quantity, quality and set standards. This thus denies industry. The mining companies should also be Surveys and Mines forcing mining companies to the local SMEs the opportunity to supply the company. encouraged to enter into Community Development rely on the same human resource as part-time Agreements (CDAs) with the host communities such consultants. This compromises the regulatory Even though the local SME companies are provided with timely that they supply the required goods, so as to benefit from the resources within their community. mandate of the Directorate charged with overseeing information on investment opportunities, jobs and contracts for the overall governance of the sector and largely provision of services available in the mining industry, they in most leads to non-compliance by the mineral rights cases lack the necessary financial services to support their owners. Therefore, investing in human capital contracts execution. Even though the government set aside 12 through higher education, technical trainings, million dollars to support local SMEs to invest in mineral The subsector should also conduct a skills gap assessment apprenticeship and transferable skills development development activities and provide the required services, the local study to ascertain the available and the required skills in the is important for the competitiveness of the sector. mining industry in the country. From the study, the subsector should develop a database of available and missing skills in the 3.2.6. Health, Safety and Environment The mineral Act 2003 requires that applicants for all country. This will make it easier for the licensees to find the Conservation and Management the various licenses in the mining sector provides required skills to employ, than sourcing from outside the for the employment and training of Ugandan country. The database/skills gap study will inform the subsector citizens. It is a contractual obligation for the mineral on the areas that require urgent attention and training. Indicator Score: license holders to provide preference to Ugandans in employment but also training them with various 46.9% - Partially Addressed skills required for the mining industry. (iii) Support to SMEs and Enterprise Development in the mining To increase on the skills level in the country, there industry (50 %) The subsector scored 53.6% under this indicator implying that some of the issues assessed have are various training institutions that support the been implemented. The areas assessed are the capacity of the institutions in the mining subsector to The Mining and Minerals sector in Uganda is driven by the development of the mineral industry. Makerere review the ESIA’s, regulating of the Mining Activities in the Reserved Areas, compliance of the mining artisanal and small scale players who are credited for University has a department that trains Geologists, companies to environment management requirements, the management of the environmental production of over 90% of the country’s produced mineral and though enrolment is still low. The highest number protection fund, conducting of environmental audits, environmental awareness creation, promoting materials, employing close to 400,000 Ugandans directly and enrolled was 21 students in the 1990’s. Busitema health and safety practices, and regulating the use of hazardous mining substances. Below is a impacting lives of over 2 million Ugandans. These employment University also produces mining engineers. These detailed explanation of how the sector has performed under these areas assessed in indicator 6; opportunities provided by the sub-sector can be substantial and graduates however still lack the required technical in some cases critical in addressing the rampant youth skills. There are no skilling institutions in which they Fig 12: Performance of the Subsector under Key Results Areas in Indicator 6 unemployment in Uganda. The study discovered that no can acquire hands-on experience in mining skills. deliberate attempts were being undertaken by the few medium scale mining projects to build SME’s. This means that local The subsector should explore the possibilities of communities are less likely to benefit from new jobs and establishing mineral beneficiation centres to act as training institutions for Artisanal Miners and improve business opportunities linked to these new mining projects. The the skills level, so as to support value addition. scorecard observes that capacity building through education, training and skills development could help overcome the skills shortage forecast challenges and would in the long-run contribute towards more sustainable communities, beyond the life of these mining projects.

RESULTS

3.3.4. Mineral Production, Revenue 2003 to over 818 by the end of FY 2016/17. category of minerals to support socio-economic development and in some cases has led to stoppage Generation, Collection and Management Over all, the mineral sub-sector attracted USD 1.63 billion in of some road constructions due to litigation. capital investments by the private sector in key projects including: Regulation of these minerals and materials could see the Mining and Minerals sector contribute to a) The Guangzhou Dong Song phosphate plant between 3% - 5% to GDP.7 Indicator Score: at Sukulu in Tororo planned for commissioning by end 2018 and for 19.7% - Inadequately Addressed steel by 2019, with a total investment of USD 620 Million; • The current legal framework encourages extensive speculation and confers a lot of b) African Panther were reported to have commenced discretionary powers and unclear guidelines to mining and processing of tin in Isingiro; the Commissioner which has often resulted into Mineral Production unnecessary litigations; The minerals produced in 2016 were valued at UGX 175,928,000,000/=. The major minerals produced c) Increased limestone and cement production by four include limestone, valued at UGX 144,369,000,000/=, Pozollana valued at UGX 17,780,000,000/= and cement factories namely Tororo Cement, Hima Cement, Simba • ASM has remained largely unregulated and its Kaolin valued at UGX 4,590,000,000/=. Compared to 2015, value of minerals produced in 2016 Cement, National Cement, Kampala Cement, together with a contribution not accounted for, partly explaining increased by 2.8%. combined investment of USD 500 Million. the less than 1% contribution of the sector to GDP. From the current illegal mining in Fig 7: Performance of the subsector under Key Results Areas in Indicator 4 d) Consolidated African Mineral Resources has invested Mubende, Buhweju, Busia, Namayingo, about USD 5 Million to process 60 metric tonnes of high-grade Nakapiripirit, Amudat, Kaabong, Abim and graphite. Moroto Districts, its estimated that about 200 kgs of gold equivalent to USD 8m (current price of USD 40,000 per Kg), is being illegally mined Revenue Payments The government collects royalties, fees and rents on top of the per month (Baseline Assessment of Transfer of Royalties various taxes from the mining companies. However, the Development Minerals in Uganda, 2018) Revenue Collections government has until now failed to track or collect revenues from compared to Non Tax Revenue (NTR) of USD Utilisation of Royalties the exploitation of substances that are not defined by Article 3.2m collected annually; 244(5) of the Constitution of the Republic of Uganda, such as the stones aggregates, sand, clay and murrum which in the mining • The need to promote in-country value addition policy of 2018 have been defined as minerals. This is because of strategic minerals such as iron ore, base there was no legal provision for regulating and collecting of metals, precious metals and battery minerals; However, it was noted that the value of minerals Revenue collections, Revenue payments by the mining revenues from these substances. produced and exported declined from UGX companies, and Royalty transfer to local governments. The • The need to restrict any investor from blasting 101Billion registered in the 2015/16 financial year to performance of the subsector under each of these areas is There is urgent need regulate commercial exploitation of sand, rocks that are connected to the ecological UGX 99 Billion in the 2016/17 financial year. This elaborated bellow; stone (Rocks), clay and murram, excluded from the definition of system and those with historical significance; was largely attributed to the falling commodity the word “mineral” in Article 244(5) of the Constitution. The prices on the international market as well as lack of (i) Revenue Collections (18.8%) exclusion led to confusion as to whether these minerals should be • The ambiguity surrounding the regulation, mineral certification for Tin, Tantalum, Tungsten and Foreign Direct Investment (FDI) in the mineral sector increased regulated or not, yet the Ugandan government continues to lose certification and traceability of regional conflict Gold (3TGs). from US$5 million in 2003 to an estimated US$ 800 million in billions of shillings from speculators in the infrastructure corridors, minerals such as Tin, Tungsten, Tantalite and FY 2016/17. Similarly, revenues from license fees and royalties road constructors that present exorbitant bills of quantities for the Gold. This indicator score is at 19.7%, showing that the increased from US$0.5 million in 2003 to US$ 4.14 million in purchase of these construction materials but proceed to acquire government has inadequately addressed the issues 2016/17, mineral rights (licenses) issued, increased the same from unsuspecting land owners at a fraction of their bills Even though Article 244(6) of the Constitution gives assessed under this indicator. These issues include dramatically over the same period from 100 mineral licenses in of quantities. This has led to limited revenue generation from this Parliament powers to regulate the exploitation of any RESULTS

3.2.5. Local Content Development and Fig 8: Uganda’s Minig Cadestral Portal Participation

Indicator Score: 55.4% - Mostly Addressed

Fig 10: Performance of the subsector under Key Result Areas in Indicator 5

Fig 9: Gold Minig in Buhweju

RESULTS

3.3.4. Mineral Production, Revenue 2003 to over 818 by the end of FY 2016/17. category of minerals to support socio-economic development and in some cases has led to stoppage Generation, Collection and Management Over all, the mineral sub-sector attracted USD 1.63 billion in of some road constructions due to litigation. capital investments by the private sector in key projects including: Regulation of these minerals and materials could see the Mining and Minerals sector contribute to a) The Guangzhou Dong Song phosphate plant between 3% - 5% to GDP.7 Indicator Score: at Sukulu in Tororo planned for commissioning by end 2018 and for 19.7% - Inadequately Addressed steel by 2019, with a total investment of USD 620 Million; • The current legal framework encourages extensive speculation and confers a lot of b) African Panther were reported to have commenced discretionary powers and unclear guidelines to mining and processing of tin in Isingiro; the Commissioner which has often resulted into Mineral Production unnecessary litigations; The minerals produced in 2016 were valued at UGX 175,928,000,000/=. The major minerals produced c) Increased limestone and cement production by four include limestone, valued at UGX 144,369,000,000/=, Pozollana valued at UGX 17,780,000,000/= and cement factories namely Tororo Cement, Hima Cement, Simba • ASM has remained largely unregulated and its Kaolin valued at UGX 4,590,000,000/=. Compared to 2015, value of minerals produced in 2016 Cement, National Cement, Kampala Cement, together with a contribution not accounted for, partly explaining increased by 2.8%. combined investment of USD 500 Million. the less than 1% contribution of the sector to GDP. From the current illegal mining in Fig 7: Performance of the subsector under Key Results Areas in Indicator 4 d) Consolidated African Mineral Resources has invested Mubende, Buhweju, Busia, Namayingo, about USD 5 Million to process 60 metric tonnes of high-grade Nakapiripirit, Amudat, Kaabong, Abim and graphite. Moroto Districts, its estimated that about 200 kgs of gold equivalent to USD 8m (current price of USD 40,000 per Kg), is being illegally mined Revenue Payments The government collects royalties, fees and rents on top of the per month (Baseline Assessment of Transfer of Royalties various taxes from the mining companies. However, the Development Minerals in Uganda, 2018) Revenue Collections government has until now failed to track or collect revenues from compared to Non Tax Revenue (NTR) of USD Utilisation of Royalties the exploitation of substances that are not defined by Article 3.2m collected annually; 244(5) of the Constitution of the Republic of Uganda, such as the stones aggregates, sand, clay and murrum which in the mining • The need to promote in-country value addition policy of 2018 have been defined as minerals. This is because of strategic minerals such as iron ore, base there was no legal provision for regulating and collecting of metals, precious metals and battery minerals; However, it was noted that the value of minerals Revenue collections, Revenue payments by the mining revenues from these substances. produced and exported declined from UGX companies, and Royalty transfer to local governments. The • The need to restrict any investor from blasting 101Billion registered in the 2015/16 financial year to performance of the subsector under each of these areas is There is urgent need regulate commercial exploitation of sand, rocks that are connected to the ecological UGX 99 Billion in the 2016/17 financial year. This elaborated bellow; stone (Rocks), clay and murram, excluded from the definition of system and those with historical significance; was largely attributed to the falling commodity the word “mineral” in Article 244(5) of the Constitution. The prices on the international market as well as lack of (i) Revenue Collections (18.8%) exclusion led to confusion as to whether these minerals should be • The ambiguity surrounding the regulation, mineral certification for Tin, Tantalum, Tungsten and Foreign Direct Investment (FDI) in the mineral sector increased regulated or not, yet the Ugandan government continues to lose certification and traceability of regional conflict Gold (3TGs). from US$5 million in 2003 to an estimated US$ 800 million in billions of shillings from speculators in the infrastructure corridors, minerals such as Tin, Tungsten, Tantalite and FY 2016/17. Similarly, revenues from license fees and royalties road constructors that present exorbitant bills of quantities for the Gold. This indicator score is at 19.7%, showing that the increased from US$0.5 million in 2003 to US$ 4.14 million in purchase of these construction materials but proceed to acquire government has inadequately addressed the issues 2016/17, mineral rights (licenses) issued, increased the same from unsuspecting land owners at a fraction of their bills Even though Article 244(6) of the Constitution gives assessed under this indicator. These issues include dramatically over the same period from 100 mineral licenses in of quantities. This has led to limited revenue generation from this Parliament powers to regulate the exploitation of any RESULTS RESULTS 7 Baseline Assessment of Development Minerals in Uganda, 2018.

The 2nd Annual Mining & Mineral Subsector Scorecard 25

3.2.5. Local Content Development and Fig 8: Uganda’s Minig Cadestral Portal Participation

Indicator Score: 55.4% - Mostly Addressed

Fig 10: Performance of the subsector under Key Result Areas in Indicator 5

Fig 9: Gold Minig in Buhweju

The assessment acknowledges the fact that mining companies SMEs lack the required collateral to access these Fig 11: Members of Rupa Community Development Trust on a study tour (ii) Skilling and Training of procure goods and services available in Uganda and sold by resources. They are therefore limited by financial Ugandan companies, entities and individuals. To a limited extent resources to even provide the required goods and Ugandans (60 %) Interviews with some small-scale mining companies though, the mining companies do support the development of services to the mining companies. indicated that the sub-sector faces a challenge Small and Medium Enterprises, through buying from them. For The government should soften on the requirements finding qualified and skilled manpower in the instance, the Sukulu phosphate company procures all its logistics needed by the local SMEs to access the financial various aspects of the mineral value chain. It was from local companies. However, the company has not provided support from the $12m set aside for the the required capacity to the local SMEs to provide the goods of discovered that most of the skilled manpower are development of private enterprises in the mining concentrated within the Directorate of Geological the required quantity, quality and set standards. This thus denies industry. The mining companies should also be Surveys and Mines forcing mining companies to the local SMEs the opportunity to supply the company. encouraged to enter into Community Development rely on the same human resource as part-time Agreements (CDAs) with the host communities such consultants. This compromises the regulatory Even though the local SME companies are provided with timely that they supply the required goods, so as to benefit from the resources within their community. mandate of the Directorate charged with overseeing information on investment opportunities, jobs and contracts for the overall governance of the sector and largely provision of services available in the mining industry, they in most leads to non-compliance by the mineral rights cases lack the necessary financial services to support their owners. Therefore, investing in human capital contracts execution. Even though the government set aside 12 through higher education, technical trainings, million dollars to support local SMEs to invest in mineral The subsector should also conduct a skills gap assessment apprenticeship and transferable skills development development activities and provide the required services, the local study to ascertain the available and the required skills in the is important for the competitiveness of the sector. mining industry in the country. From the study, the subsector should develop a database of available and missing skills in the 3.2.6. Health, Safety and Environment The mineral Act 2003 requires that applicants for all country. This will make it easier for the licensees to find the Conservation and Management the various licenses in the mining sector provides required skills to employ, than sourcing from outside the for the employment and training of Ugandan country. The database/skills gap study will inform the subsector citizens. It is a contractual obligation for the mineral on the areas that require urgent attention and training. Indicator Score: license holders to provide preference to Ugandans in employment but also training them with various 46.9% - Partially Addressed skills required for the mining industry. (iii) Support to SMEs and Enterprise Development in the mining To increase on the skills level in the country, there industry (50 %) The subsector scored 53.6% under this indicator implying that some of the issues assessed have are various training institutions that support the been implemented. The areas assessed are the capacity of the institutions in the mining subsector to The Mining and Minerals sector in Uganda is driven by the development of the mineral industry. Makerere review the ESIA’s, regulating of the Mining Activities in the Reserved Areas, compliance of the mining artisanal and small scale players who are credited for University has a department that trains Geologists, companies to environment management requirements, the management of the environmental production of over 90% of the country’s produced mineral and though enrolment is still low. The highest number protection fund, conducting of environmental audits, environmental awareness creation, promoting materials, employing close to 400,000 Ugandans directly and enrolled was 21 students in the 1990’s. Busitema health and safety practices, and regulating the use of hazardous mining substances. Below is a impacting lives of over 2 million Ugandans. These employment University also produces mining engineers. These detailed explanation of how the sector has performed under these areas assessed in indicator 6; opportunities provided by the sub-sector can be substantial and graduates however still lack the required technical in some cases critical in addressing the rampant youth skills. There are no skilling institutions in which they Fig 12: Performance of the Subsector under Key Results Areas in Indicator 6 unemployment in Uganda. The study discovered that no can acquire hands-on experience in mining skills. deliberate attempts were being undertaken by the few medium scale mining projects to build SME’s. This means that local The subsector should explore the possibilities of communities are less likely to benefit from new jobs and establishing mineral beneficiation centres to act as training institutions for Artisanal Miners and improve business opportunities linked to these new mining projects. The the skills level, so as to support value addition. scorecard observes that capacity building through education, training and skills development could help overcome the skills shortage forecast challenges and would in the long-run contribute towards more sustainable communities, beyond the life of these mining projects.

RESULTS

3.2.5. Local Content Development and Fig 8: Uganda’s Minig Cadestral Portal Participation

Indicator Score: 55.4% - Mostly Addressed

Fig 10: Performance of the subsector under Key Result Areas in Indicator 5

Fig 9: Gold Minig in Buhweju

RESULTS

The 2nd Annual Mining & Mineral Subsector Scorecard 27

3.2.5. Local Content Development and Fig 8: Uganda’s Minig Cadestral Portal Participation

Indicator Score: 55.4% - Mostly Addressed

Fig 10: Performance of the subsector under Key Result Areas in Indicator 5

Fig 9: Gold Minig in Buhweju

The assessment acknowledges the fact that mining companies SMEs lack the required collateral to access these Fig 11: Members of Rupa Community Development Trust on a study tour (ii) Skilling and Training of procure goods and services available in Uganda and sold by resources. They are therefore limited by financial Ugandan companies, entities and individuals. To a limited extent resources to even provide the required goods and Ugandans (60 %) Interviews with some small-scale mining companies though, the mining companies do support the development of services to the mining companies. indicated that the sub-sector faces a challenge Small and Medium Enterprises, through buying from them. For The government should soften on the requirements finding qualified and skilled manpower in the instance, the Sukulu phosphate company procures all its logistics needed by the local SMEs to access the financial various aspects of the mineral value chain. It was from local companies. However, the company has not provided support from the $12m set aside for the the required capacity to the local SMEs to provide the goods of discovered that most of the skilled manpower are development of private enterprises in the mining concentrated within the Directorate of Geological the required quantity, quality and set standards. This thus denies industry. The mining companies should also be Surveys and Mines forcing mining companies to the local SMEs the opportunity to supply the company. encouraged to enter into Community Development rely on the same human resource as part-time Agreements (CDAs) with the host communities such consultants. This compromises the regulatory Even though the local SME companies are provided with timely that they supply the required goods, so as to benefit from the resources within their community. mandate of the Directorate charged with overseeing information on investment opportunities, jobs and contracts for the overall governance of the sector and largely provision of services available in the mining industry, they in most leads to non-compliance by the mineral rights cases lack the necessary financial services to support their owners. Therefore, investing in human capital contracts execution. Even though the government set aside 12 through higher education, technical trainings, million dollars to support local SMEs to invest in mineral The subsector should also conduct a skills gap assessment apprenticeship and transferable skills development development activities and provide the required services, the local study to ascertain the available and the required skills in the is important for the competitiveness of the sector. mining industry in the country. From the study, the subsector should develop a database of available and missing skills in the 3.2.6. Health, Safety and Environment The mineral Act 2003 requires that applicants for all country. This will make it easier for the licensees to find the Conservation and Management the various licenses in the mining sector provides required skills to employ, than sourcing from outside the for the employment and training of Ugandan country. The database/skills gap study will inform the subsector citizens. It is a contractual obligation for the mineral on the areas that require urgent attention and training. Indicator Score: license holders to provide preference to Ugandans in employment but also training them with various 46.9% - Partially Addressed skills required for the mining industry. (iii) Support to SMEs and Enterprise Development in the mining To increase on the skills level in the country, there industry (50 %) The subsector scored 53.6% under this indicator implying that some of the issues assessed have are various training institutions that support the been implemented. The areas assessed are the capacity of the institutions in the mining subsector to The Mining and Minerals sector in Uganda is driven by the development of the mineral industry. Makerere review the ESIA’s, regulating of the Mining Activities in the Reserved Areas, compliance of the mining artisanal and small scale players who are credited for University has a department that trains Geologists, companies to environment management requirements, the management of the environmental production of over 90% of the country’s produced mineral and though enrolment is still low. The highest number protection fund, conducting of environmental audits, environmental awareness creation, promoting materials, employing close to 400,000 Ugandans directly and enrolled was 21 students in the 1990’s. Busitema health and safety practices, and regulating the use of hazardous mining substances. Below is a impacting lives of over 2 million Ugandans. These employment University also produces mining engineers. These detailed explanation of how the sector has performed under these areas assessed in indicator 6; opportunities provided by the sub-sector can be substantial and graduates however still lack the required technical in some cases critical in addressing the rampant youth skills. There are no skilling institutions in which they Fig 12: Performance of the Subsector under Key Results Areas in Indicator 6 unemployment in Uganda. The study discovered that no can acquire hands-on experience in mining skills. deliberate attempts were being undertaken by the few medium scale mining projects to build SME’s. This means that local The subsector should explore the possibilities of communities are less likely to benefit from new jobs and establishing mineral beneficiation centres to act as training institutions for Artisanal Miners and improve business opportunities linked to these new mining projects. The the skills level, so as to support value addition. scorecard observes that capacity building through education, training and skills development could help overcome the skills shortage forecast challenges and would in the long-run contribute towards more sustainable communities, beyond the life of these mining projects.

RESULTS

3.2.5. Local Content Development and Fig 8: Uganda’s Minig Cadestral Portal Participation

Indicator Score: 55.4% - Mostly Addressed

Fig 10: Performance of the subsector under Key Result Areas in Indicator 5

Fig 9: Gold Minig in Buhweju

RESULTS

3.2.5. Local Content Development and Fig 8: Uganda’s Minig Cadestral Portal Participation

Indicator Score: 55.4% - Mostly Addressed

Fig 10: Performance of the subsector under Key Result Areas in Indicator 5

Skilling and Training of Ugandans Legal and Policy Framework Support to SMEs and Enterprise Development

Fig 9: Gold Minig in Buhweju

For more information, see Extractive Industries: Optimizing Value Retention in Host Countries, United Nations Conference on Trade and Development, available from: http://unctadxiii.org/en/SessionDocument/suc2012d1_en.pdf RESULTS RESULTS

The 2nd Annual Mining & Mineral Subsector Scorecard 29

The assessment acknowledges the fact that mining companies SMEs lack the required collateral to access these Fig 11: Members of Rupa Community Development Trust on a study tour (ii) Skilling and Training of procure goods and services available in Uganda and sold by resources. They are therefore limited by financial Ugandan companies, entities and individuals. To a limited extent resources to even provide the required goods and Ugandans (60 %) Interviews with some small-scale mining companies though, the mining companies do support the development of services to the mining companies. indicated that the sub-sector faces a challenge Small and Medium Enterprises, through buying from them. For The government should soften on the requirements finding qualified and skilled manpower in the instance, the Sukulu phosphate company procures all its logistics needed by the local SMEs to access the financial various aspects of the mineral value chain. It was from local companies. However, the company has not provided support from the $12m set aside for the the required capacity to the local SMEs to provide the goods of discovered that most of the skilled manpower are development of private enterprises in the mining the required quantity, quality and set standards. This thus denies concentrated within the Directorate of Geological the required quantity, quality and set standards. This thus denies industry. The mining companies should also be Surveys and Mines forcing mining companies to the local SMEs the opportunity to supply the company. encouraged to enter into Community Development rely on the same human resource as part-time Agreements (CDAs) with the host communities such consultants. This compromises the regulatory Even though the local SME companies are provided with timely that they supply the required goods, so as to benefit from the resources within their community. mandate of the Directorate charged with overseeing information on investment opportunities, jobs and contracts for the overall governance of the sector and largely provision of services available in the mining industry, they in most leads to non-compliance by the mineral rights cases lack the necessary financial services to support their owners. Therefore, investing in human capital contracts execution. Even though the government set aside 12 through higher education, technical trainings, million dollars to support local SMEs to invest in mineral The subsector should also conduct a skills gap assessment apprenticeship and transferable skills development development activities and provide the required services, the local study to ascertain the available and the required skills in the is important for the competitiveness of the sector. mining industry in the country. From the study, the subsector should develop a database of available and missing skills in the 3.2.6. Health, Safety and Environment The mineral Act 2003 requires that applicants for all country. This will make it easier for the licensees to find the Conservation and Management the various licenses in the mining sector provides required skills to employ, than sourcing from outside the for the employment and training of Ugandan country. The database/skills gap study will inform the subsector citizens. It is a contractual obligation for the mineral on the areas that require urgent attention and training. Indicator Score: license holders to provide preference to Ugandans in employment but also training them with various 46.9% - Partially Addressed skills required for the mining industry. (iii) Support to SMEs and Enterprise Development in the mining To increase on the skills level in the country, there industry (50 %) The subsector scored 53.6% under this indicator implying that some of the issues assessed have are various training institutions that support the been implemented. The areas assessed are the capacity of the institutions in the mining subsector to The Mining and Minerals sector in Uganda is driven by the development of the mineral industry. Makerere review the ESIA’s, regulating of the Mining Activities in the Reserved Areas, compliance of the mining artisanal and small scale players who are credited for University has a department that trains Geologists, companies to environment management requirements, the management of the environmental production of over 90% of the country’s produced mineral and though enrolment is still low. The highest number protection fund, conducting of environmental audits, environmental awareness creation, promoting materials, employing close to 400,000 Ugandans directly and enrolled was 21 students in the 1990’s. Busitema health and safety practices, and regulating the use of hazardous mining substances. Below is a impacting lives of over 2 million Ugandans. These employment University also produces mining engineers. These detailed explanation of how the sector has performed under these areas assessed in indicator 6; opportunities provided by the sub-sector can be substantial and graduates however still lack the required technical in some cases critical in addressing the rampant youth skills. There are no skilling institutions in which they Fig 12: Performance of the Subsector under Key Results Areas in Indicator 6 unemployment in Uganda. The study discovered that no can acquire hands-on experience in mining skills. deliberate attempts were being undertaken by the few medium scale mining projects to build SME’s. This means that local The subsector should explore the possibilities of communities are less likely to benefit from new jobs and establishing mineral beneficiation centres to act as training institutions for Artisanal Miners and improve business opportunities linked to these new mining projects. The the skills level, so as to support value addition. scorecard observes that capacity building through education, training and skills development could help overcome the skills shortage forecast challenges and would in the long-run contribute towards more sustainable communities, beyond the life of these mining projects.

3.2.5. Local Content Development and Fig 8: Uganda’s Minig Cadestral Portal Participation

Indicator Score: 55.4% - Mostly Addressed

Fig 10: Performance of the subsector under Key Result Areas in Indicator 5

Fig 9: Gold Minig in Buhweju

RESULTS

30 Mineral Licensing Status government introduces the investors to the district and it’s between the district and the investor to 3.2.2. Access to Mineral Resources A total of 371 Mineral Licenses were granted in 2016. These determine how to acquire the land. To determine the include; 155 Prospecting Licenses (PL), 126 Exploration mode of acquisition, the investors are guided by the Licenses (EL), 98 Mineral Dealers Licenses (MDL), 5 Mining RAPs, which are sometimes not prepared in INDICATOR SCORE: Leases (ML) and 19 Location Licenses (LL). Notably there were consultation with all the stakeholders. This has Retention Licenses (RL) issues in 2016. At the beginning of 52.3% - Mostly Addressed created chaos and misunderstandings between the 2016, 638 Licenses existed in the Mineral sub-sector. Within the investors and landowners, and eventually some course of the year, 371 were revoked and by the end of Under this indicator, the sector scored 52.3% and has addressed most of the key issues that were projects have failed to take off due to land wrangles. December 2016, the Sub-Sector had a total of 710 operating considered. Below are the key assessment areas that were considered and their percentage Licenses. contribution; The government should therefore put in place the procedures and regulations for the acquisition of The computerised mining Cadastre and registry system land by the mineral rights holders and see to it that Fig 5: Performance of the subsector under Key Results Areas in indicator 2 encouraged and improved online transactions and led to a the public/ communities are sensitized on the reduction of bureaucracy in the Licensing Process. regulations. This will help reduce losses on the side of the investors and land wrangles in the mining Mineral Licensing area.

3.2.5. Local Content Development and Fig 8: Uganda’s Minig Cadestral Portal Participation

Indicator Score: 55.4% - Mostly Addressed

Fig 10: Performance of the subsector under Key Result Areas in Indicator 5

Fig 9: Gold Minig in Buhweju

The assessment acknowledges the fact that mining companies SMEs lack the required collateral to access these Fig 11: Members of Rupa Community Development Trust on a study tour (ii) Skilling and Training of procure goods and services available in Uganda and sold by resources. They are therefore limited by financial Ugandan companies, entities and individuals. To a limited extent resources to even provide the required goods and Ugandans (60 %) Interviews with some small-scale mining companies though, the mining companies do support the development of services to the mining companies. indicated that the sub-sector faces a challenge Small and Medium Enterprises, through buying from them. For The government should soften on the requirements finding qualified and skilled manpower in the instance, the Sukulu phosphate company procures all its logistics needed by the local SMEs to access the financial various aspects of the mineral value chain. It was from local companies. However, the company has not provided support from the $12m set aside for the the required capacity to the local SMEs to provide the goods of discovered that most of the skilled manpower are development of private enterprises in the mining the required quantity, quality and set standards. This thus denies concentrated within the Directorate of Geological the required quantity, quality and set standards. This thus denies industry. The mining companies should also be Surveys and Mines forcing mining companies to the local SMEs the opportunity to supply the company. encouraged to enter into Community Development rely on the same human resource as part-time Agreements (CDAs) with the host communities such consultants. This compromises the regulatory Even though the local SME companies are provided with timely that they supply the required goods, so as to benefit from the resources within their community. mandate of the Directorate charged with overseeing information on investment opportunities, jobs and contracts for the overall governance of the sector and largely provision of services available in the mining industry, they in most leads to non-compliance by the mineral rights cases lack the necessary financial services to support their owners. Therefore, investing in human capital contracts execution. Even though the government set aside 12 through higher education, technical trainings, million dollars to support local SMEs to invest in mineral The subsector should also conduct a skills gap assessment apprenticeship and transferable skills development development activities and provide the required services, the local study to ascertain the available and the required skills in the is important for the competitiveness of the sector. mining industry in the country. From the study, the subsector should develop a database of available and missing skills in the 3.2.6. Health, Safety and Environment The mineral Act 2003 requires that applicants for all country. This will make it easier for the licensees to find the Conservation and Management the various licenses in the mining sector provides required skills to employ, than sourcing from outside the for the employment and training of Ugandan country. The database/skills gap study will inform the subsector citizens. It is a contractual obligation for the mineral on the areas that require urgent attention and training. Indicator Score: license holders to provide preference to Ugandans in employment but also training them with various 46.9% - Partially Addressed skills required for the mining industry. (iii) Support to SMEs and Enterprise Development in the mining To increase on the skills level in the country, there industry (50 %) The subsector scored 53.6% under this indicator implying that some of the issues assessed have are various training institutions that support the been implemented. The areas assessed are the capacity of the institutions in the mining subsector to The Mining and Minerals sector in Uganda is driven by the development of the mineral industry. Makerere review the ESIA’s, regulating of the Mining Activities in the Reserved Areas, compliance of the mining artisanal and small scale players who are credited for University has a department that trains Geologists, companies to environment management requirements, the management of the environmental production of over 90% of the country’s produced mineral and though enrolment is still low. The highest number protection fund, conducting of environmental audits, environmental awareness creation, promoting materials, employing close to 400,000 Ugandans directly and enrolled was 21 students in the 1990’s. Busitema health and safety practices, and regulating the use of hazardous mining substances. Below is a impacting lives of over 2 million Ugandans. These employment University also produces mining engineers. These detailed explanation of how the sector has performed under these areas assessed in indicator 6; opportunities provided by the sub-sector can be substantial and graduates however still lack the required technical in some cases critical in addressing the rampant youth skills. There are no skilling institutions in which they Fig 12: Performance of the Subsector under Key Results Areas in Indicator 6 unemployment in Uganda. The study discovered that no can acquire hands-on experience in mining skills. deliberate attempts were being undertaken by the few medium scale mining projects to build SME’s. This means that local Capacity of institutions to review EIA’s The subsector should explore the possibilities of communities are less likely to benefit from new jobs and Compliance to environmental Mgt requirements establishing mineral beneficiation centres to act as training institutions for Artisanal Miners and improve business opportunities linked to these new mining projects. The Conducting environmental audits the skills level, so as to support value addition. scorecard observes that capacity building through education, Promoting health and safety practices training and skills development could help overcome the skills Regulating minig in reserved areas shortage forecast challenges and would in the long-run Mnagement of environmental protection fund contribute towards more sustainable communities, beyond the Environmental awareness creation life of these mining projects. Regulating the use of hazardous substances

RESULTS RESULTS

The 2nd Annual Mining & Mineral Subsector Scorecard 31 RESULTS

of the community concerned. It has been noted that in some According to the Auditor General’s Report on areas mining activities have taken place in cultural places without regulation, monitoring and promotion of the mining (i) Capacity of the (ii) Regulating of the Mining the consent of the community, antagonising the cultural heritage sector 2015, some of the companies did not conform institutions in the mining Activities in the Reserved Areas (62.5 of the area. For instance, mining has been taking place in to any of the set requirements. At the time of the subsector to review the ESIA’s %) Athapanun, Rupa in Moroto district. This is the place where ritual assessment, none of the companies had submitted practices of initiation were conducted. It has since then been annual environmental audits and audited accounts The Institutions responsible for the management of forest (50%) diluted, according to the community members. Furthermore, to DGSM and there was no evidence to show that reserves, game reserves and national parks are mandated to Both DGSM / NEMA have the mandate to support Loorung, in Rupa, is an area of cultural heritage and thus a DGSM followed up with the applicants after issuing monitor mining activities within their territories. This research each other in reviewing of the Environmental and potential tourist site but it has since been affected by mining the licenses. noticed that these institutions have developed and Social Impact Assessments (ESIA’s) before they are activities. Free, Prior and Informed Consent, as well as other disseminated regulations to safeguard natural resources in the approved. They are both meant to have the forms of pre-project community consultation are recognized as There is need for close monitoring and supervision mining areas. Mining projects can be undertaken in of the licensee operations to ensure that rights institutional capacity to review ESIAs of mineral right international best practice that must be undertaken prior to any environmentally sensitive areas provided pre-requisite holders abide by the environmental requirements applicants and holders. It was however noted that project related land acquisition or land use6. environmental considerations have been undertaken and and standards. Mining companies should also EIAs are done by NEMA and sent to DGSM for continue submitting environmental performance review. NEMA however does not have the capacity authorisation sought from the responsible government agency. An applicant should not be granted mineral rights in any case bonds for the fulfilment of the required for reviewing ESIA’s in the mining subsector, and A case in point is the on-going Dura Limestone Quarry in the without obtaining community consent. License holders need a environmental management and management of Social License to Operate. Without community consent, this environmental issues once the companies exit the thus they are done by DGSM. Ruwenzori National Park servicing Hima Cement in Kasese. However, the actual monitoring of these mining activities by the shouldn’t be secured. Requiring such community consultations mining areas without handling the issues. will prevent negative relations between the community and the It was also noted that due to capacity gaps, both UWA and NFA is not fully conducted and hence compliance to license holder and will ensure that the community is aware and in The Mining of developmental minerals has also had human resource and financial gaps, both DGSM regulations is not fully enforced. support of an upcoming project. serious effects on the environment causing and NEMA do not have the required capacity to degradation in areas where it is conducted. The monitor compliance with ESIA’s and Environmental Section 21(1)(b) of the Mining Act 2003 provides for the (iii) Compliance of the mining Principal Assistant Secretary to the CAO in and Social Management Plans (ESMPs) during Restriction on a prospecting license and Section 78(1)(g)(h), companies to environment Rubanda district, on behalf of the CAO, noted that, projects implementation. NEMA and DGSM provides for the Restrictions on exercise of mineral rights. These sections restrict the holder of the mineral rights to management requirements (41.7%) participate jointly during the preliminary phases in “There is the mining of these development minerals ensuring that mining companies meet the required prospect over an area of land that is, or forms part of forest Section 41, Section 108 and Section 110 of the Mining Act, 2003, for construction; this activity is done on small scale Environmental Impact Assessment standards prior reserve, game reserve, national park, etc. unless the holder provide that an application for a mining right should indicate and but has environmental implications because it’s unregulated. Take an example here of Kiyorwa to commencement of the project, but follow-up on has first given notice to and obtained permission from the provide specific information (set requirements) which includes where degradation is affecting L. Bunyonyi. The relevant authorities. The act however doesn’t grant rights to the Environment Impact Assessment, Annual Environment Audits compliance in the course mining projects and president intervened and stopped the mining of post-mining was found to be lacking. relevant authority to conduct oversight and monitoring to and an Environment Restoration Plan. The scorecard sand but wanainchi crying out to him that they are ensure that the holder abides by the conditions on which assessment however noted that mining companies have not unemployed.” permission was granted. Fig 13: Mercury contaminated water flowing into farmland developed comprehensive environment management plans nor do they operate according to their environment management at a gold mining site in Amudat (iv) Management of the Forest reserves, game reserves, and national parks are all policy. endowed with specific authorities to oversee and manage their environmental protection fund Fig 13: Mercury contaminated water flowing into farmland at a Fig 14: Effects of Illegal Sand Mining on Land in Lwera Swamp, Masaka Road territories. gold mining site in Amudat (37.5%) Depletion of mineral resources and environmental Therefore, these authorities should have rights to monitor externalities as a result of air emissions, discharges mining activities occurring within the territory to ensure continuous compliance with the conditions on which the of liquid effluents, use of hazardous chemicals such permission to mine was granted instead of stopping on as Mercury and cyanide in the extraction of minerals disseminating regulations. Inter-agency coordination in the such as gold and generation of large volumes of monitoring of these mining projects to ensure compliance with solid waste are the most important environmental the ESIAs is also important and needs to be improved. issues for Uganda’s mining and minerals sub-sector. It emerged that mineral extraction activities have a Section 78 (1) (i) calls for respect of or on any land, which is visual impact on the landscape and has led to the held communally for cultural rites, without the written consent destruction or disturbance of surrounding and RESULTS

neighbouring habitats and in some cases leading to the government had to incur a cost for restoration. This should Cap 153, should give NEMA the right to request the license holder SIAs should be consultative between mining a loss of biodiversity. Furthermore, some effluents be borne by the miners, in form of a security deposited in the to commission an independent third party to conduct an companies, host communities and other generated by mining activities contain large and environment protection fund. environmental audit to be submitted to NEMA for review in cases stakeholders. dangerous toxic substances such as cyanide and where NEMA has credible cause for concern that the license Companies should also identify Community heavy metals, which pause significant human Fig 15: An Abandoned Cyanide Plant in Amudat District holder may be non- compliant. The act currently does not stipulate Engagement Personnel to work as linkages with the health and ecological risks. The study also that an audit must be undertaken by an independent third party. community and act as conflict monitors within the discovered a number of abandoned mining sites Environmental audits are critical tools that allow the sector and mining areas to help identify and alert government and unrestored mining quarries as testament to the license holders to work together to continuously mitigate structures and companies about brewing conflict. unsatisfactory environmental performance of the environmental harm if the right processes are in place. Failure to address the causes of conflict negatively mining and minerals sub-sector state of affairs. affects business and destroys communities. (vi) Environmental awareness The National Environment Act Cap 153, Section 88 (vii) Promoting health and provides for the establishment of the environment creation (54.2%) protection fund. This fund supports in the NEMA is mandated to raise awareness on environmental matters safety practices in the mining replenishing the environment. Replenishing mine and share information with the public on matters relating to the industry (45.8%) sites and mine environments is one of the key impacts of mining activities. This has been however left in the In addition to wages and benefits that are universally factors that will ultimately protect the mine’s impact hands of CSOs and other interest groups to promote awareness in important in the mining and minerals industry, one on the environment. Simple solutions like the mining areas. The miners hardly know what to do, coupled with other significant issue is the occupational health and replenishing native soils and grasses, cleaning (v) Conducting of environmental low rates of supervision, puts the management of environment safety. Accident statistics show that that the industry issues in jeopardy. There is need for NEMA to come up with a clear excess waste, proper waste removal, site audits (37.5%) poses above-average risks to employees. inspections and replanting trees and natural strategy of awareness creation and promotion on environment Unprotected underground metalliferous mines were Section 22 (1) of the National Environmental Act, Cap 153 forestry can rejuvenate a long-term ecosystem issues generally in the country and more specific in the mining reported to have the highest incidents of fatalities provides for NEMA to commission an independent audit to repair and sustain the environment for years areas. most of which are never reported by mine owners verify the credibility of the annual environment audit conducted beyond when the mine is no longer operating. The and artisanal miners for fear of shutdown of their by the mineral rights holders. It was noted that NEMA rarely entire reclamation process should include: Dispute resolution mechanism is a requirement for every project mining operations. Underground gold mining in the exercises this mandate and when it’s done, mining companies removing hazardous materials, reshaping land, developer. It forms part of the requirements in the certificates of Mubende region was reported to have the highest rarely inform the authority on the action taken to mitigate the restoring topsoil, and planting native grasses, trees approval for all mining projects. Mineral rights holders are in the number of fatalities with an estimated 10 fatalities undesirable environment effects identified. This is because or ground cover natural to the site. In cases where process of establishing mechanisms for addressing environmental per year followed by Tin mining in the Western Section 108(3) of the Mining Act 2003 doesn’t provide NEMA the miner hasn’t replenished the environment, this and social grievances, disputes and conflicts arising from region with an estimated 7-8 fatalities on an annual with the power to conduct an independent audit, in case of fund would be used to support this activity. exploration and mining activities. Disputes arise from a range of basis. Statistics here could not be verified because credible concerns of non-compliance of the license holder. issues, including land, misunderstanding of the laws governing the victims’ families and the owners of the mines are Sometimes when NEMA conducts an independent audit, Even though the fund receives funding from mining, environment degradation, and royalty sharing, among reluctant to disclose these fatalities for fear of mining companies don’t provide feedback to NEMA on the disbursements from the Government; fees charged others. imprisonment and also due to the illegal nature of mitigation measures that were taken to handle the identified under this Act; fines collected as a result of the their activities, especially those in artisanal and undesirable environmental effects. breach of the provisions of this Act or any statutory Mining companies and government should set up alternative ways small-scale mining operations. of resolving disputes. Before project implementation, Social Impact instrument made under this Act, NEMA should exercise its powers provided in NEMA Act Cap 153 to prevail over the mining companies to ensure that they Assessments (SIAs) should be prepared and these will facilitate there is need to review the act such that the mining mitigate the identified undesirable effects and regularly report the identification of mechanisms to address peoples’ grievances to companies are able to deposit funds into the to the authority. prevent latent conflict hitting crisis levels. Regular reviews of the Environment Protection Fund as a security for SIAs should be conducted to help identify sources of conflict in decommissioning, restoration of derelict lands and orderly post-mine There is also need for the review of the Mineral Act 2003 so as places where mining is being considered. SIAs should identify the to clarify on NEMA’s powers to use the information presented in context, the drivers and possible social, political and environmental disclosure. In several cases, miners have the audit to require remedial action. The Act, like the NEMA Act, causes of conflict and investors be guided on how to operate in the abandoned mine sites without restoring them and context without exacerbating tensions. The process of preparing

Fig 16: A miner in Chepkararat (Amudat District) mining without Fig 17: A miner in Amudat using mercury to separate gold from gold dust. In some communities where mining is conducted, the members movements, impairment of speech, hearing, walking any protective gear highlighted several social and health concerns that require and muscle weakness. immediate attention such as; sexual exploitation of workers in mines; exploitation of the ASMs by buying minerals from them In a quest to curb the spread of mercury use, some cheaply; employee exploitation by the mining companies; failure to organisations like Environmental Women in Action provide protective gear and medical care to local miners and for Development (EWAD) is championing Africa’s employees; injuries on the mining sites; employing foreigners first certified Fairtrade gold producer, a mining group instead of giving the opportunity to locals; among others. The in Busia called Syanyonja Artisanal Miners’ Alliance community members also complained about the increasing social to produce gold using an entirely mercury free discord and the erosion of moral values in mining areas. This has process. This if made a national program and rolled been exacerbated by the increased prostitution, alcoholism, out over the mining areas in the country, would help HIV/Aids, sexual abuse of young girls and family breakdown as curb the use and effects of mercury in gold mining in causes of conflict from increased capital flowing into mining areas the country. Workers are also exposed to a number of health as a result emigration. Fig 18: A gold kacha in Busia used to eliminate mercury from the hazards due to hostile mining environments. gold mining process These include chronic occupational diseases due (viii) Regulating the use of hazardous Although Uganda’s economy has registered a number of to dust inhalation common in gold mining and achievements, various aspects of occupational safety and mining substances (45.8%) processing as well as in the stone quarrying health (OSH) have not been adequately addressed. sectors. Most of the mining workers interviewed Management of the OSH issues at workplaces continue to be NEMA developed the National environment (waste management) were found to be oblivious of the imminent danger left unattended to by different sectors of government and regulations to mitigate waste management in the mining industry. and exposure to diseases such as private sector. The mining sector isn’t immune to this situation Along with the Explosives Act Cap 298, the sector has a legal pneumoconiosis, silicosis and lung cancer. and hence the miners are found to work in environments that framework for the handling, transportation, storage and usage of Some mining activities also endanger the lives of are not palatable with humanity. This is attributed to a number hazardous chemicals and, explosives used in exploration, mining mining communities due air pollution, releases of reasons such as the lack of well trained and facilitated activities, and radioactive materials, tailings and toxic effluents toxic substances to water streams and food inspectors to fully inspect mining areas to and emissions resulting from such activities. chains. Unprotected access to abandoned and ensure application of OSH requirements, no sensitisation and sometimes even active pits also pose a safety risk trainings of miners on the required OSH standards, mining Uganda is also on course to ratifying the Minamata Convention on to communities and their livestock in some parts of work places aren’t registered and certified, lack of coordination Mercury. The Convention aims at protecting human health and the the country. between NEMA and MGLSD before approving of EIAs, among environment from anthropogenic emissions and releases of others. mercury and mercury compounds. Mercury is a highly toxic The sector has no specific established substance that possesses some unique chemical properties that occupational health and safety requirements There is however an effort to try and train the ASMs, but are hard to find anywhere else in nature. In Uganda, the most followed by the mineral rights holders with regard because of their informal nature, it is difficult to improve their prevalent use of mercury is in the Artisanal and Small scale Gold to employers and employees in the mining health and safety standards. Under the African, Caribbean and Mining (ASGM) sector. Its use still remains highly popular and industry. The mineral rights holders are required to Pacific (ACP-EU) project funded by UNDP, ASMs are being highly unregulated in the ASGM industry. comply with the Occupational Health and Safety identified and trained in appropriate technology, environment Act 2006. However, despite government efforts to management, and occupational health and safety standards. The National Environment Management Authority (NEMA) improve safety and health of all workers in the Formalisation of the ASMs has to be fast-tracked, if the ASMs concluded the compilation of the national mercury inventory as country through funding enforcement of OSH are to benefit from such programs. Working in an informal required by the Minamata Convention on mercury. Mercury, activities, limited impact has been registered due setting will inevitably make them less adoptable and trainable despite its uses, poses many health risks including; loss of to inadequate enforcement of the OSH Act of with in HSE and use of modern technology. peripheral vision, “pins and needles” feelings, usually in the 2006. hands, feet, and around the mouth, lack of coordination of

industry in Uganda; though it still requires some improvement in strategic direction, the anticipated benefits of mining the way data is kept and disseminated to the users. to the country may not be effectively achieved. 3.2.7. Infrastructural Development DGSM should prioritise development of the minerals Due to gaps that are identified as still existing at the directorate master plan. and the lack of research and development; there are little efforts Indicator Score: geared towards adding value on the minerals that are produced in the country. 52.8% - Mostly Addressed This calls for increased budget and expenditure on research and development in the mining industry, along the minerals value The subsector scored 52.8% under this indicator implying that most of the areas had assesd chain, and establishment of a unit to coordinate and promote performed relatively well. The areas assessed included capacity of the institutions to perform its research and development. This will help the country to have mandate, the policy framework for infrastructural development and the management of mining maximum benefit from the mineral resources. samples. Below is how the subsector performed in each of the key areas assessed under this indicator; (ii) Policy framework on Infrastructural development in Mining

Fig 19:Performance of the subsector under Key Result Areas in indicator 7 Subsector (62.5%) The scorecard noted that the government has an agenda to develop infrastructure required to develop mineral resources. This includes development of roads that reach to various parts of the country such as the Tororo-Malaba road for the Sukulu project, establishing a modern and internationally certified mineral analysis and beneficiation laboratory, among others. However, DGSM does not have a policy framework on the management and maintenance of mineral equipment at the directorate headquarters.

There have been massive investments in the acquisition of various equipment required in mining exploration and development; these are however left in the hands of individual departments and utilised or lent out to private firms at will, without the knowledge of (i) Research Capacity of governments and mineral host communities; cross-sectoral the directorate. There should be a clear policy on asset management and an asset registry established in order to avoid linkages and multiplier effects and local content development in Mining Institutions to improve loss and vandalising of the equipment at the hands of the the mineral industry, among others. Though it was established individuals. value addition (33.4%) that DGSM is developing a well-maintained modern There is on-going global pressure to improve social, internationally certified mineral analysis and beneficiation The National Development Plan II provides for prioritisation of developmental, and environmental performance in laboratory, the efforts to support the research and development mineral development through establishment of the mining master the mineral industry. This calls for increased theme in the mining industry is still lacking. plan containing the country’s mining vision in accordance with the expenditure on Research and Development through African Mining Vision. The purpose of the master plan is to clearly the mineral value chain. This will improve on the The directorate has a modern computerized mining cadastre provide the detailed strategic direction and guidance for the mining ability to provide evidence based decisions and but it was noted that is not regularly maintained and updated. It sector during the NDP period and beyond. It was, however noted policy based recommendations in the mining areas; also has an effective system for collection, analysis, archiving that the master plan had not been developed. Without adequate share and use of mineral revenue by local and dissemination of data and information about the mineral

Fig 20: Map of Uganda showing the NDP II proposed Minerals & Requisite Infrastructure 3.2.8. Gender, Equity, Social Inclusion and Participation

Indicator Score: 37.5% - Partially addressed

The subsector scored 37.5% under this indicator implying that the subsector has partially addressed the areas assessed under this indicator. The areas assessed included the participation of the marginalised and vulnerable groups in the mining industry, enforcement of the laws related to employment and child labour, and issues of gender based violence in the mining areas. Below is how the subsector scored in each of these areas;

Fig 21: Performance of the subsector under Key Result Areas in indicator 8

(i) Participation of the marginalised any mining operation. Companies should hire and vulnerable groups in the mining female staff in different types of work on the mine (iii) Management of Mining site, not only underground. Samples (62.5%) quantities to be exempted. Without guidelines, there is risk of industry (37.5%) Though the subsector has established a criterion for abusing the law whereby mining companies may export There are significant barriers to the full participation and According to the District Community Development the monitoring of mining samples exported out of minerals under the pretext of samples to evade payment of benefiting of vulnerable and marginalised groups in the mining Officer, Busia, women are mainly involved in the country, there are no clear guidelines to this royalties causing loss of revenues. However, the new policy industry. These include inequities in access to resources carrying soils/ores out of the pits, engaged in effect. Section 98 (3) of the Mining Act 2003 allows remains silent on the management of samples apart from including capital, information, education and training; mobility; sieving gold, and in gold trading. When it comes to for exemption of royalties on samples in quantities requiring drilling companies under the ministry of water and and legal, socio- cultural and financial constraints. There is a negotiating for compensation, the people that shall be determined by the Commissioner. environment to avail samples and logs to DGSM. Government mechanism that ensures an inclusive participation of interviewed in the various FGDs indicated that very According to the OAG report, 2006, a review of the should therefore expedite the development of the policy, disadvantaged and vulnerable people in the mineral industry. For few groups of vulnerable and marginalised people mining regulations however revealed that there were regulations and guidelines to support the mining subsector in instance, section 114 of the Minerals Act 2003, provides for participate in compensation negotiations for land no guidelines in terms of the minimum or maximum regulating the export on mineral samples. women to be employed to do underground work in any mine or access or acquisition for mineral activities.

The government therefore should holistically tackle child labour in trade unions, ignoring the use of child labour in activity that may be harmful to his or her health, education or In an FGD at Loorung Lolet Kalemureng Village in the country. Actions on ensuring food security of families, mining activities, discrimination against women, mental, physical or moral development. Moroto Village, one female participant noted that; provision of alternative livelihoods, enforcing legal provisions, violation of indigenous rights, land grabbing without raising awareness and providing comprehensive education adequate compensation. “We are not allowed to engage in the lucrative task Fig 22: A child miner in Rupa mining area, Karamoja region. of gold mining. We are restricted to picking loose ore support for children including meals without any additional costs to crash.” should be considered. According to the various respondents interviewed in both the FGDs and KIIs, GBV is very prevalent in the One elderly woman in Hamurwa TC, in Rubanda (iii) Gender Based violence in the mining areas. One Community Development Officer district, where Iron Ore is mined, revealed that, at Rupa Sub County noted that, mining areas (18.8%) “Even we women can carry that heavy iron ore, and Sustainable mineral development of Uganda’s mining and “There is prevalent gender based violence as a result after breaking it into smaller pieces. We can do the minerals sub-sector requires the recognition and provision of of alcoholism. Some of the miners in the area spend work ourselves. We even load those tippers that equal opportunities to all regardless of their gender, tribe or come for iron ore. We might work at a slower pace their income obtained from mining on alcohol.” Logiel disabilities. One of the equality issues of concern is that the but we do the work ourselves. Here it is survival for Anthony Abbot Moroto Rupa CDO the fittest. The days when we could hire people to do mining and minerals sub-sector in Uganda like any other mineral work for us are gone, everyone does any task.” rich economy remains traditionally a male-dominated industry In an FGD for men at Loorung Lolet Kalemureng, in with few women employed in the less paying sections of the value Moroto district, one participant revealed that, This calls for a need for deliberate efforts, to chain in the sector. For example, some widows in Busia and It was however noted that in most mining areas, there has been empower by skilling and training of women to Namayingo region made allegations of the existence of Because of alcohol and the young men have money rampant involvement of children in the mining activities which participate in the mining activities, such that they discrimination and abuse by their male counterparts in these they mistreat women. They intimidate and harass puts their lives in danger, even though the government has not can apply skills others than efforts in the mining mining camps. women because of alcoholism. areas. moved forward to enforce the various regulations available. According to the report “No Golden Future” published by Centre Other problems that are often associated with mining and A woman in an FGD at Buhweju revealed that, (ii) Enforcement of the laws for Research on Multinational Corporations in April 2016 , the affected women are disrupted family life, increased prostitution, number of child gold miners was estimated between 10,000 to alcoholism, domestic violence and loss of land rights. The All of us you see here are widows (Effakazi). These related to employment and 15,000 across gold mines in Uganda in some of the rich mineral scorecard identified gender disparity as one of the important dealers of ore take advantage of us because they Child Labour (56.3%) districts like Moroto, Mubende Namayingo, Buhweju etc. The issues that needs to be addressed by the industry, including see us as vulnerable people who cannot manage life on our own. Single parenthood is also a difficult International Labour Organization categorizes mining as Whereas child labour is illegal in Uganda, the use of attracting more women into professional jobs through the training situation; you have to fend for your children alone. hazardous work to children and defines it as the worst form of child labour in mining operation has been identified and skilling of more female mining engineers, geologists, child labour. as one of the critical social issues in the industry. scientists, policy analysts, lawyers and economists as well as The role of women in artisanal mining cannot be Child labour is associated with many potential equalising remuneration for men and women through the value ignored, even though the challenges are enormous. During the mapping exercise on child labour in mining health consequences to child labourers including chain in addition to ensuring that women in local communities The incomes they earn play an important role in conducted by Ecological Christian Organization (ECO) in gold over-exertion, respiratory ailments, headaches, joint benefit from mining activities. improving the livelihoods of their families. There is and marble rich Rupa and Katikekile Sub County in Moroto problems, hearing and vision loss. need make reforms in order to promote women’s district, it was noted that children go to the mines to get money Protection of human rights is another relevant social concern empowerment in the Artisanal mining sector. More to buy food, pay school fees, scholastic materials and other The Employment Act No. 6, 2006 (32) provides for: raised by mineral rich host communities, so, mining companies should put in place needs since UPE comes with other additional costs. The study (i) not employing of all children under the age of 12 mechanisms to mitigate gender based violence also revealed that the plight of the girl child is highly at risk years in any business, undertaking or work place. most especially in the Karamoja region. There have amongst their employees. (ii) Not employing or work in places which are because of the dangers eminent at the mining sites most of been accusations that some mining companies abuse human injurious to his or her health, dangerous or which are characterized by alcoholism, hence increasing rights of the indigenous communities either independently or in hazardous or otherwise unsuitable. The Children chances of early pregnancies, HIV/AIDs and rape and collusion with local and central governments. Such human rights Act Cap 59, 2000 in section 8 of the Act states that defilement. include but are not limited to paying mineral loaders unfairly low no child shall be employed or engaged in any wages, denying employees the right to organise themselves in

3.2.9. Minerals Value Addition and Marketing However, there are no skilling programs for mineral are no established processing and buying centres for mineral beneficiation and value addition in the country. commodities from Artisanal and Small Scale Miners. The These need to be established and supported to existing arrangements are informal, set up by the business ensure that the country fully benefits from the Indicator Score: mining industry. people themselves. It was also noted that there are no 45.8% - Partially addressed collaborative arrangements with the private sector to develop (ii) Value Addition, Quality and improve training institutions in mineral marketing, grading and valuation. The marketing and selling of mineral products in Control and Marketing in the The subsector scored 45.8% under this indicator implying that the subsector has partially addressed Uganda is characterised by transfer pricing, and under invoicing the areas assessed. The areas assessed included mineral beneficiation, and Value Addition, Quality Mining Industry (25.5%) to evade taxes. Control and Marketing in the Mining Industry. Below is how each of these areas contributed to the score Mineral development and value addition comes with To control these irregularities, there is need to establish a benefits derived from mining, processing and of this indicator; minerals selling and marketing agency or corporation to control assembling. It also encompasses the multiplier and carry out sales and exports of all minerals produced in effect of those industries that benefit the service Uganda; to minimize opportunities for underhand and dishonest Fig 23: Performance of the subsector under Key Result Areas in indicator 9 and supply industry, i.e., construction, energy, dealings such as, transfer pricing, under invoicing and related problems; to monitor international mineral markets and trends engineering and environmental services, and technological changes to the best advantage of the equipment parts and supplies, financial and legal Government; and to protect the interests of the country and of expertise, among others. producers and the industry.

Through NDP, the government proposed various Access to financing by the ASMs in Uganda has also been a interventions in the minerals sub-sector that would stumbling block to the development of the mining industry in the have significant impact on the economy, which country. This is because of the informal nature of the ASMs include: activities.

(i) Development of the iron smelting plant, which There are mechanisms to control and regulate the quality of would have positive spill-over effects on steel minerals produced in Uganda. When someone is applying for a manufacturing within the region and; mining lease, there are a number of expectations, which they must fulfil as stipulated in Mineral Act 2003. These are however (i) Mineral Beneficiation (66.7%) encourages it reason for which a ban was put on the (ii) Processing of phosphates into fertilizers, which loosely monitored due to lack of the necessary human resource Regarding beneficiation, government undertakes to invest in export of unprocessed iron ore and copper. Uganda would have positive benefits especially for the to monitor for compliance. strengthening the mineral dressing laboratory (value addition will be exporting finished products. There are agriculture sector. laboratory) in the Department of Geological Surveys and Mine incentives that have been put in place to encourage There have been efforts to attract investors to add value to (DGSM) to enable it carry out laboratory tests to help in various the establishment of processing and other It is projected that value addition in mineral mineral products produced form Uganda. Tin (African Panther) mineral beneficiation processes. As a strategy to reduce the beneficiation industries. Plant and machinery for development would contribute on average 0.5 commenced mining and processing of tin with value addition of export of raw minerals, priority for issuance of exploration and refining gold are exempted from import duty, and percent to total GDP per annum. concentrating the ore up to 75% as the first phase with at least mining licenses would go to projects that include the VAT is deferred for a period of one year. Some of the USD 10M investment. The second phase will include a tin establishment of processing and refining plants in Uganda and companies that have benefited include Elgon According to this scorecard, achieving this target smelter. More however needs to be done. use of modern technology, as well as, adherence to environmental Mineral Resources, which brought US$300 million remains far-fetched due to various reasons. There is standards. to invest in a gold mining and processing facility in no framework and structures for the regulation of Busia by 2019. This will be the second firm after mineral processing and marketing. The current law The sector has specific benchmarks for beneficiation and value African Gold Refinery that recently invested $15 does not provide for this and the sector is still having addition based on analysis of the full mineral value chain for each million beneficiation facility that can refine gold up to issues with AGR. The scorecard noted that there individual mineral. The current mineral policy framework 99.9% purity.

(i) Ratification of The subsector is required to implement the ICGLR declaration. Recommendation International Mining Treaties The process of domesticating the template and the statutory (75%) instruments is being finalized; much as it has been very slow. The government should provide finances to equip and build Uganda should move to entrench its desired policy The Bill to domesticate the ICGRL protocol is part of omnibus Uganda is constantly working and collaborating capacity of mineral laboratories for value addition. This should on value addition to be more inside looking as well bill on security and associated protocols that carter for mineral with other countries. There are various regional and involve providing for repairing and servicing the major as focused on exploiting the East African and certification. It was passed by Parliament on 17/5/2017 and international treaties and initiatives related to awaits ascent before implementation commences. The equipment, i.e., Atomic Absorption Spectrometer (AAS) and Sub-Saharan markets for its commodities as well as mining that are ratified and customised into the government should thus give it priority to continue providing X-Ray Fluorescence (XRF) spectrometer, which developed faults negotiating trade treaties with neighbouring transparency to the mining industry on Uganda. Ugandan legal framework. These, conventions, due to power surges. countries to remove such barriers if any currently agreements, protocols or other arrangements that exist. support good governance in the mineral industry, (ii) Cooperation with other including mineral traceability, certification and neighbouring countries (41.7%) reporting standards that the country adheres to. As a way of learning from each other and mitigating the illegal 3.2.10. Regional and International Initiatives These include the International Conference on the movement of minerals across borders, the government shares Great Lakes Regions (ICGLR), among others. The mining industry market information with regional and government is commended for participating in the international governments and bodies. There is also Indicator Score: development and review for harmonization of the co-operation in the development of human resource through legislation and technical standards in the mineral exchange of geoscience information, technology and sharing 51.4% - Partially Addressed and related sectors at regional and international facilities and expertise with regional and international levels. governments and bodies. In the region, this is mainly done with The subsector scored 51.4% under this indicator implying that the subsector has mostly addressed GDC and Kenya Geothermal Energy, where Kenyans come to the areas assessed. The areas assessed included the ratification of international mining treaties, In 2010, ICGLR Lusaka’s Declaration approved six Uganda to learn and also Ugandans shall be going to Kenya in cooperation with other neighbouring countries, and membership to other international bodies. Below tools as part of the Regional Initiative to mitigate the 2018 to share knowledge and learn from each other. However, is how the subsector scored on each of these areas assessed under this indicator; Illegal Exploitation of Natural Resources (RINR) in there are no arrangements for cross-border mineral the Great Lakes Region. The six tools developed to exploitation, development, production and processing; though curb illegal exploitation included: South Sudan has shown interest in doing it. Fig 24: Performance of the subsector under Key Result Areas in indicator 10 • Regional Certification Mechanism (iii) Membership to International (RCM), Mining Bodies (37.5%) • Harmonization of National Legislation, The subsector subscribes and maintains membership with regional and international bodies relevant to the mineral • Regional Database on mineral flows, industry development. The subsector is a member to the Organization of African Geological Surveys. However, there • Formalization of Artisanal and are a number of existing bodies which sector players can Small Scale Mining, subscribe in order to learn best practices as opposed to working in isolation. • Extractive Industry Transparency Initiative (EITI),

• Whistle Blowing Mechanism.

The scorecard identifies gaps in all areas that need to be addressed so as to improve the sub-sector’s performance and the subsequent achievement of the sector objectives. The mining and minerals subsector has also been plagued by these gaps for over the last 10-13 years and to a large extent was justification for the revision of the mining policy, 2001. Some of these gaps include:

Government and the responsible Ministry of Energy and Mineral Development /Directorate of Geological Surveys and Mines and other stakeholders need to work together need to address the following gaps:

14 Martin Jacan Gwokto Chief Administrative Officer 15 Production Officer Appendix 1: FGD Sites

KABALE NTUNGAMO NAMAYINGO BUSIA MOROTO Busia District 16 Johnson Eriyenyu Environment Officer/ Natural Resource MEN 17 Onyango Henry Community Development Officer 18 Wakapisi w.f. Agriculture officer/Production Officer 19 Wakoli. P Chief Administrative Officer 20 Ogutu Boniface District chairman WOMEN Namayingo District 21 Emma Muganza Natural Resource Officer 22 Busagwa Alex Environment Officer YOUTH 23 Nandutu Betty DCDO 24 Naigaga Rebecca Agriculture Officer 25 Andrew Mayende CFO 26 Sanya Ronald District chairman

Appendix 2: List of Key Informants at the District Level Appendix 3: Key informants guide # Names Position 1) What are the procedures for acquiring mineral rights? And what challenges does the legal and policy framework Kabale District pose to the granting and acquisition of mineral rights? 01 Mugisha James Chief Administrative Officer 2) What capacity challenges (both financial and skilled staff) exist at DGSM that could deter it from fulfilling its 02 Akatwijuka Rogers Natural Resource Officer mandate? How can these challenges be addressed? 03 Winfred Busingye District Community Development Officer 3) What type of revenues does government collect from mining activities? How does the government track and 04 Mwebesa Beda District Production Officer report on revenues generated from the imported minerals? What challenges does it face in collecting them? How 05 Mujuni Julius Chief Finance Officer are these revenues utilised? (Probe around the 20% royalties). 4) What is being done by the government to encourage Ugandans to participate and benefit from the mining Ntungamo District industry as both suppliers of goods and services and employees? 06 Dan Aritwebwa Chief Administrative Officer 5) Does DGSM enforce and monitor the implementation of the health, safety and environmental issues in the mining 07 Tumwebaze Dinnah Natural Resource Officer industry? What challenges does it face? How often does it report on its activities? 08 Turyatunga John District Community Development Officer 6) What are the major infrastructural challenges in the mining industry? What is DGSM/government doing to curb 09 Mugabe Albert District Production Officer these infrastructural challenges in the mining industry? 10 Byaruhanga Andrew Chief Finance Officer 7) What arrangements are in place to ensure that vulnerable and marginalised groups participate and benefit from the mining industry? Are there cases of child labour and domestic violence in mining areas, and what is being Moroto District done to mitigate these challenges? 11 Zahari Angella Environment/Natural Resource Officer 8) What strategies does the government have to formalise the existence of ASMs? Are there skilling, value addition 12 Logiel Anthony Abbot Community Development Officer 13 Ocengi Patrick Finance officer

and marketing programs for the ASMs in the mining areas? 9) How does the sector work with regional and international governments and bodies for the development of the mining industry in Uganda? 10) Any recommendations and suggestions that would facilitate the development of the mining industry in the country?

Appendix 4: Focus Group Discussion Guide

RESULTS 6

RESULTS According to the “Free, Prior and Informed Consent” guidelines, investors must obtain free, prior and informed consent from affected communities before the mineral right can be granted. For more information, see the UN-REDD Guidelines on Free, Prior and Informed Consent (2013) available from: http://www.unredd.org/Newsletter39/FPIC_GuidelinesLaunch/tabid/129671/Default.aspx . Also see FPIC and the extractive industries (2013) published by International Institute for Environment and Development (UK), available from: http://pubs.iied.org/pdfs/16530IIED.pdf

The 2nd Annual Mining & Mineral Subsector Scorecard 33

neighbouring habitats and in some cases leading to the government had to incur a cost for restoration. This should Cap 153, should give NEMA the right to request the license holder SIAs should be consultative between mining a loss of biodiversity. Furthermore, some effluents be borne by the miners, in form of a security deposited in the to commission an independent third party to conduct an companies, host communities and other generated by mining activities contain large and environment protection fund. environmental audit to be submitted to NEMA for review in cases stakeholders. dangerous toxic substances such as cyanide and where NEMA has credible cause for concern that the license Companies should also identify Community heavy metals, which pause significant human Fig 15: An Abandoned Cyanide Plant in Amudat District holder may be non- compliant. The act currently does not stipulate Engagement Personnel to work as linkages with the health and ecological risks. The study also that an audit must be undertaken by an independent third party. community and act as conflict monitors within the discovered a number of abandoned mining sites Environmental audits are critical tools that allow the sector and mining areas to help identify and alert government and unrestored mining quarries as testament to the license holders to work together to continuously mitigate structures and companies about brewing conflict. unsatisfactory environmental performance of the environmental harm if the right processes are in place. Failure to address the causes of conflict negatively mining and minerals sub-sector state of affairs. affects business and destroys communities. (vi) Environmental awareness The National Environment Act Cap 153, Section 88 (vii) Promoting health and provides for the establishment of the environment creation (54.2%) protection fund. This fund supports in the NEMA is mandated to raise awareness on environmental matters safety practices in the mining replenishing the environment. Replenishing mine and share information with the public on matters relating to the industry (45.8%) sites and mine environments is one of the key impacts of mining activities. This has been however left in the In addition to wages and benefits that are universally factors that will ultimately protect the mine’s impact hands of CSOs and other interest groups to promote awareness in important in the mining and minerals industry, one on the environment. Simple solutions like the mining areas. The miners hardly know what to do, coupled with other significant issue is the occupational health and replenishing native soils and grasses, cleaning (v) Conducting of environmental low rates of supervision, puts the management of environment safety. Accident statistics show that that the industry issues in jeopardy. There is need for NEMA to come up with a clear excess waste, proper waste removal, site audits (37.5%) poses above-average risks to employees. inspections and replanting trees and natural strategy of awareness creation and promotion on environment Unprotected underground metalliferous mines were Section 22 (1) of the National Environmental Act, Cap 153 forestry can rejuvenate a long-term ecosystem issues generally in the country and more specific in the mining reported to have the highest incidents of fatalities provides for NEMA to commission an independent audit to repair and sustain the environment for years areas. most of which are never reported by mine owners verify the credibility of the annual environment audit conducted beyond when the mine is no longer operating. The and artisanal miners for fear of shutdown of their by the mineral rights holders. It was noted that NEMA rarely entire reclamation process should include: Dispute resolution mechanism is a requirement for every project mining operations. Underground gold mining in the exercises this mandate and when it’s done, mining companies removing hazardous materials, reshaping land, developer. It forms part of the requirements in the certificates of Mubende region was reported to have the highest rarely inform the authority on the action taken to mitigate the restoring topsoil, and planting native grasses, trees approval for all mining projects. Mineral rights holders are in the number of fatalities with an estimated 10 fatalities undesirable environment effects identified. This is because or ground cover natural to the site. In cases where process of establishing mechanisms for addressing environmental per year followed by Tin mining in the Western Section 108(3) of the Mining Act 2003 doesn’t provide NEMA the miner hasn’t replenished the environment, this and social grievances, disputes and conflicts arising from region with an estimated 7-8 fatalities on an annual with the power to conduct an independent audit, in case of fund would be used to support this activity. exploration and mining activities. Disputes arise from a range of basis. Statistics here could not be verified because credible concerns of non-compliance of the license holder. issues, including land, misunderstanding of the laws governing the victims’ families and the owners of the mines are Sometimes when NEMA conducts an independent audit, Even though the fund receives funding from mining, environment degradation, and royalty sharing, among reluctant to disclose these fatalities for fear of mining companies don’t provide feedback to NEMA on the disbursements from the Government; fees charged others. imprisonment and also due to the illegal nature of mitigation measures that were taken to handle the identified under this Act; fines collected as a result of the their activities, especially those in artisanal and undesirable environmental effects. breach of the provisions of this Act or any statutory Mining companies and government should set up alternative ways small-scale mining operations. of resolving disputes. Before project implementation, Social Impact instrument made under this Act, NEMA should exercise its powers provided in NEMA Act Cap 153 to prevail over the mining companies to ensure that they Assessments (SIAs) should be prepared and these will facilitate there is need to review the act such that the mining mitigate the identified undesirable effects and regularly report the identification of mechanisms to address peoples’ grievances to companies are able to deposit funds into the to the authority. prevent latent conflict hitting crisis levels. Regular reviews of the Environment Protection Fund as a security for SIAs should be conducted to help identify sources of conflict in decommissioning, restoration of derelict lands and orderly post-mine There is also need for the review of the Mineral Act 2003 so as places where mining is being considered. SIAs should identify the to clarify on NEMA’s powers to use the information presented in context, the drivers and possible social, political and environmental disclosure. In several cases, miners have the audit to require remedial action. The Act, like the NEMA Act, causes of conflict and investors be guided on how to operate in the abandoned mine sites without restoring them and context without exacerbating tensions. The process of preparing

Fig 16: A miner in Chepkararat (Amudat District) mining without Fig 17: A miner in Amudat using mercury to separate gold from gold dust. In some communities where mining is conducted, the members movements, impairment of speech, hearing, walking any protective gear highlighted several social and health concerns that require and muscle weakness. immediate attention such as; sexual exploitation of workers in mines; exploitation of the ASMs by buying minerals from them In a quest to curb the spread of mercury use, some cheaply; employee exploitation by the mining companies; failure to organisations like Environmental Women in Action provide protective gear and medical care to local miners and for Development (EWAD) is championing Africa’s employees; injuries on the mining sites; employing foreigners first certified Fairtrade gold producer, a mining group instead of giving the opportunity to locals; among others. The in Busia called Syanyonja Artisanal Miners’ Alliance community members also complained about the increasing social to produce gold using an entirely mercury free discord and the erosion of moral values in mining areas. This has process. This if made a national program and rolled been exacerbated by the increased prostitution, alcoholism, out over the mining areas in the country, would help HIV/Aids, sexual abuse of young girls and family breakdown as curb the use and effects of mercury in gold mining in causes of conflict from increased capital flowing into mining areas the country. Workers are also exposed to a number of health as a result emigration. Fig 18: A gold kacha in Busia used to eliminate mercury from the hazards due to hostile mining environments. gold mining process These include chronic occupational diseases due (viii) Regulating the use of hazardous Although Uganda’s economy has registered a number of to dust inhalation common in gold mining and achievements, various aspects of occupational safety and mining substances (45.8%) processing as well as in the stone quarrying health (OSH) have not been adequately addressed. sectors. Most of the mining workers interviewed Management of the OSH issues at workplaces continue to be NEMA developed the National environment (waste management) were found to be oblivious of the imminent danger left unattended to by different sectors of government and regulations to mitigate waste management in the mining industry. and exposure to diseases such as private sector. The mining sector isn’t immune to this situation Along with the Explosives Act Cap 298, the sector has a legal pneumoconiosis, silicosis and lung cancer. and hence the miners are found to work in environments that framework for the handling, transportation, storage and usage of Some mining activities also endanger the lives of are not palatable with humanity. This is attributed to a number hazardous chemicals and, explosives used in exploration, mining mining communities due air pollution, releases of reasons such as the lack of well trained and facilitated activities, and radioactive materials, tailings and toxic effluents toxic substances to water streams and food inspectors to fully inspect mining areas to and emissions resulting from such activities. chains. Unprotected access to abandoned and ensure application of OSH requirements, no sensitisation and sometimes even active pits also pose a safety risk trainings of miners on the required OSH standards, mining Uganda is also on course to ratifying the Minamata Convention on to communities and their livestock in some parts of work places aren’t registered and certified, lack of coordination Mercury. The Convention aims at protecting human health and the the country. between NEMA and MGLSD before approving of EIAs, among environment from anthropogenic emissions and releases of others. mercury and mercury compounds. Mercury is a highly toxic The sector has no specific established substance that possesses some unique chemical properties that occupational health and safety requirements There is however an effort to try and train the ASMs, but are hard to find anywhere else in nature. In Uganda, the most followed by the mineral rights holders with regard because of their informal nature, it is difficult to improve their prevalent use of mercury is in the Artisanal and Small scale Gold to employers and employees in the mining health and safety standards. Under the African, Caribbean and Mining (ASGM) sector. Its use still remains highly popular and industry. The mineral rights holders are required to Pacific (ACP-EU) project funded by UNDP, ASMs are being highly unregulated in the ASGM industry. comply with the Occupational Health and Safety identified and trained in appropriate technology, environment Act 2006. However, despite government efforts to management, and occupational health and safety standards. The National Environment Management Authority (NEMA) improve safety and health of all workers in the Formalisation of the ASMs has to be fast-tracked, if the ASMs concluded the compilation of the national mercury inventory as country through funding enforcement of OSH are to benefit from such programs. Working in an informal required by the Minamata Convention on mercury. Mercury, activities, limited impact has been registered due setting will inevitably make them less adoptable and trainable despite its uses, poses many health risks including; loss of to inadequate enforcement of the OSH Act of with in HSE and use of modern technology. peripheral vision, “pins and needles” feelings, usually in the 2006. hands, feet, and around the mouth, lack of coordination of

Fig 20: Map of Uganda showing the NDP II proposed Minerals & Requisite Infrastructure 3.2.8. Gender, Equity, Social Inclusion and Participation

Indicator Score: 37.5% - Partially addressed

Fig 21: Performance of the subsector under Key Result Areas in indicator 8

• Whistle Blowing Mechanism.

Government and the responsible Ministry of Energy and Mineral Development /Directorate of Geological Surveys and Mines and other stakeholders need to work together need to address the following gaps:

14 Martin Jacan Gwokto Chief Administrative Officer 15 Production Officer Appendix 1: FGD Sites

Appendix 4: Focus Group Discussion Guide

03 RESULTS

neighbouring habitats and in some cases leading to the government had to incur a cost for restoration. This should Cap 153, should give NEMA the right to request the license holder SIAs should be consultative between mining a loss of biodiversity. Furthermore, some effluents be borne by the miners, in form of a security deposited in the to commission an independent third party to conduct an companies, host communities and other generated by mining activities contain large and environment protection fund. environmental audit to be submitted to NEMA for review in cases stakeholders. dangerous toxic substances such as cyanide and where NEMA has credible cause for concern that the license Companies should also identify Community heavy metals, which pause significant human Fig 15: An Abandoned Cyanide Plant in Amudat District holder may be non- compliant. The act currently does not stipulate Engagement Personnel to work as linkages with the health and ecological risks. The study also that an audit must be undertaken by an independent third party. community and act as conflict monitors within the discovered a number of abandoned mining sites Environmental audits are critical tools that allow the sector and mining areas to help identify and alert government and unrestored mining quarries as testament to the license holders to work together to continuously mitigate structures and companies about brewing conflict. unsatisfactory environmental performance of the environmental harm if the right processes are in place. Failure to address the causes of conflict negatively mining and minerals sub-sector state of affairs. affects business and destroys communities. (vi) Environmental awareness The National Environment Act Cap 153, Section 88 (vii) Promoting health and provides for the establishment of the environment creation (54.2%) protection fund. This fund supports in the NEMA is mandated to raise awareness on environmental matters safety practices in the mining replenishing the environment. Replenishing mine and share information with the public on matters relating to the industry (45.8%) sites and mine environments is one of the key impacts of mining activities. This has been however left in the In addition to wages and benefits that are universally factors that will ultimately protect the mine’s impact hands of CSOs and other interest groups to promote awareness in important in the mining and minerals industry, one on the environment. Simple solutions like the mining areas. The miners hardly know what to do, coupled with other significant issue is the occupational health and replenishing native soils and grasses, cleaning (v) Conducting of environmental low rates of supervision, puts the management of environment safety. Accident statistics show that that the industry issues in jeopardy. There is need for NEMA to come up with a clear excess waste, proper waste removal, site audits (37.5%) poses above-average risks to employees. inspections and replanting trees and natural strategy of awareness creation and promotion on environment Unprotected underground metalliferous mines were Section 22 (1) of the National Environmental Act, Cap 153 forestry can rejuvenate a long-term ecosystem issues generally in the country and more specific in the mining reported to have the highest incidents of fatalities provides for NEMA to commission an independent audit to repair and sustain the environment for years areas. most of which are never reported by mine owners verify the credibility of the annual environment audit conducted beyond when the mine is no longer operating. The and artisanal miners for fear of shutdown of their by the mineral rights holders. It was noted that NEMA rarely entire reclamation process should include: Dispute resolution mechanism is a requirement for every project mining operations. Underground gold mining in the exercises this mandate and when it’s done, mining companies removing hazardous materials, reshaping land, developer. It forms part of the requirements in the certificates of Mubende region was reported to have the highest rarely inform the authority on the action taken to mitigate the restoring topsoil, and planting native grasses, trees approval for all mining projects. Mineral rights holders are in the number of fatalities with an estimated 10 fatalities undesirable environment effects identified. This is because or ground cover natural to the site. In cases where process of establishing mechanisms for addressing environmental per year followed by Tin mining in the Western Section 108(3) of the Mining Act 2003 doesn’t provide NEMA the miner hasn’t replenished the environment, this and social grievances, disputes and conflicts arising from region with an estimated 7-8 fatalities on an annual with the power to conduct an independent audit, in case of fund would be used to support this activity. exploration and mining activities. Disputes arise from a range of basis. Statistics here could not be verified because credible concerns of non-compliance of the license holder. issues, including land, misunderstanding of the laws governing the victims’ families and the owners of the mines are Sometimes when NEMA conducts an independent audit, Even though the fund receives funding from mining, environment degradation, and royalty sharing, among reluctant to disclose these fatalities for fear of mining companies don’t provide feedback to NEMA on the disbursements from the Government; fees charged others. imprisonment and also due to the illegal nature of mitigation measures that were taken to handle the identified under this Act; fines collected as a result of the their activities, especially those in artisanal and undesirable environmental effects. breach of the provisions of this Act or any statutory Mining companies and government should set up alternative ways small-scale mining operations. of resolving disputes. Before project implementation, Social Impact instrument made under this Act, NEMA should exercise its powers provided in NEMA Act Cap 153 to prevail over the mining companies to ensure that they Assessments (SIAs) should be prepared and these will facilitate there is need to review the act such that the mining mitigate the identified undesirable effects and regularly report the identification of mechanisms to address peoples’ grievances to companies are able to deposit funds into the to the authority. prevent latent conflict hitting crisis levels. Regular reviews of the Environment Protection Fund as a security for SIAs should be conducted to help identify sources of conflict in decommissioning, restoration of derelict lands and orderly post-mine There is also need for the review of the Mineral Act 2003 so as places where mining is being considered. SIAs should identify the to clarify on NEMA’s powers to use the information presented in context, the drivers and possible social, political and environmental disclosure. In several cases, miners have the audit to require remedial action. The Act, like the NEMA Act, causes of conflict and investors be guided on how to operate in the

RESULTS abandoned mine sites without restoring them and context without exacerbating tensions. The process of preparing

Fig 16: A miner in Chepkararat (Amudat District) mining without Fig 17: A miner in Amudat using mercury to separate gold from gold dust. In some communities where mining is conducted, the members movements, impairment of speech, hearing, walking any protective gear highlighted several social and health concerns that require and muscle weakness. immediate attention such as; sexual exploitation of workers in mines; exploitation of the ASMs by buying minerals from them In a quest to curb the spread of mercury use, some cheaply; employee exploitation by the mining companies; failure to organisations like Environmental Women in Action provide protective gear and medical care to local miners and for Development (EWAD) is championing Africa’s employees; injuries on the mining sites; employing foreigners first certified Fairtrade gold producer, a mining group instead of giving the opportunity to locals; among others. The in Busia called Syanyonja Artisanal Miners’ Alliance community members also complained about the increasing social to produce gold using an entirely mercury free discord and the erosion of moral values in mining areas. This has process. This if made a national program and rolled been exacerbated by the increased prostitution, alcoholism, out over the mining areas in the country, would help HIV/Aids, sexual abuse of young girls and family breakdown as curb the use and effects of mercury in gold mining in causes of conflict from increased capital flowing into mining areas the country. Workers are also exposed to a number of health as a result emigration. Fig 18: A gold kacha in Busia used to eliminate mercury from the hazards due to hostile mining environments. gold mining process These include chronic occupational diseases due (viii) Regulating the use of hazardous Although Uganda’s economy has registered a number of to dust inhalation common in gold mining and achievements, various aspects of occupational safety and mining substances (45.8%) processing as well as in the stone quarrying health (OSH) have not been adequately addressed. sectors. Most of the mining workers interviewed Management of the OSH issues at workplaces continue to be NEMA developed the National environment (waste management) were found to be oblivious of the imminent danger left unattended to by different sectors of government and regulations to mitigate waste management in the mining industry. and exposure to diseases such as private sector. The mining sector isn’t immune to this situation Along with the Explosives Act Cap 298, the sector has a legal pneumoconiosis, silicosis and lung cancer. and hence the miners are found to work in environments that framework for the handling, transportation, storage and usage of Some mining activities also endanger the lives of are not palatable with humanity. This is attributed to a number hazardous chemicals and, explosives used in exploration, mining mining communities due air pollution, releases of reasons such as the lack of well trained and facilitated activities, and radioactive materials, tailings and toxic effluents toxic substances to water streams and food inspectors to fully inspect mining areas to and emissions resulting from such activities. chains. Unprotected access to abandoned and ensure application of OSH requirements, no sensitisation and sometimes even active pits also pose a safety risk trainings of miners on the required OSH standards, mining Uganda is also on course to ratifying the Minamata Convention on to communities and their livestock in some parts of work places aren’t registered and certified, lack of coordination Mercury. The Convention aims at protecting human health and the the country. between NEMA and MGLSD before approving of EIAs, among environment from anthropogenic emissions and releases of others. mercury and mercury compounds. Mercury is a highly toxic The sector has no specific established substance that possesses some unique chemical properties that occupational health and safety requirements There is however an effort to try and train the ASMs, but are hard to find anywhere else in nature. In Uganda, the most followed by the mineral rights holders with regard because of their informal nature, it is difficult to improve their prevalent use of mercury is in the Artisanal and Small scale Gold to employers and employees in the mining health and safety standards. Under the African, Caribbean and Mining (ASGM) sector. Its use still remains highly popular and industry. The mineral rights holders are required to Pacific (ACP-EU) project funded by UNDP, ASMs are being highly unregulated in the ASGM industry. comply with the Occupational Health and Safety identified and trained in appropriate technology, environment Act 2006. However, despite government efforts to management, and occupational health and safety standards. The National Environment Management Authority (NEMA) improve safety and health of all workers in the Formalisation of the ASMs has to be fast-tracked, if the ASMs concluded the compilation of the national mercury inventory as country through funding enforcement of OSH are to benefit from such programs. Working in an informal required by the Minamata Convention on mercury. Mercury, activities, limited impact has been registered due setting will inevitably make them less adoptable and trainable despite its uses, poses many health risks including; loss of to inadequate enforcement of the OSH Act of with in HSE and use of modern technology. peripheral vision, “pins and needles” feelings, usually in the 2006. hands, feet, and around the mouth, lack of coordination of

Fig 20: Map of Uganda showing the NDP II proposed Minerals & Requisite Infrastructure 3.2.8. Gender, Equity, Social Inclusion and Participation

Indicator Score: 37.5% - Partially addressed

Fig 21: Performance of the subsector under Key Result Areas in indicator 8

• Whistle Blowing Mechanism.

Government and the responsible Ministry of Energy and Mineral Development /Directorate of Geological Surveys and Mines and other stakeholders need to work together need to address the following gaps:

14 Martin Jacan Gwokto Chief Administrative Officer 15 Production Officer Appendix 1: FGD Sites

Appendix 4: Focus Group Discussion Guide

neighbouring habitats and in some cases leading to the government had to incur a cost for restoration. This should Cap 153, should give NEMA the right to request the license holder SIAs should be consultative between mining a loss of biodiversity. Furthermore, some effluents be borne by the miners, in form of a security deposited in the to commission an independent third party to conduct an companies, host communities and other generated by mining activities contain large and environment protection fund. environmental audit to be submitted to NEMA for review in cases stakeholders. dangerous toxic substances such as cyanide and where NEMA has credible cause for concern that the license Companies should also identify Community heavy metals, which pause significant human Fig 15: An Abandoned Cyanide Plant in Amudat District holder may be non- compliant. The act currently does not stipulate Engagement Personnel to work as linkages with the health and ecological risks. The study also that an audit must be undertaken by an independent third party. community and act as conflict monitors within the discovered a number of abandoned mining sites Environmental audits are critical tools that allow the sector and mining areas to help identify and alert government and unrestored mining quarries as testament to the license holders to work together to continuously mitigate structures and companies about brewing conflict. unsatisfactory environmental performance of the environmental harm if the right processes are in place. Failure to address the causes of conflict negatively mining and minerals sub-sector state of affairs. affects business and destroys communities. (vi) Environmental awareness The National Environment Act Cap 153, Section 88 (vii) Promoting health and provides for the establishment of the environment creation (54.2%) protection fund. This fund supports in the NEMA is mandated to raise awareness on environmental matters safety practices in the mining replenishing the environment. Replenishing mine and share information with the public on matters relating to the industry (45.8%) sites and mine environments is one of the key impacts of mining activities. This has been however left in the In addition to wages and benefits that are universally factors that will ultimately protect the mine’s impact hands of CSOs and other interest groups to promote awareness in important in the mining and minerals industry, one on the environment. Simple solutions like the mining areas. The miners hardly know what to do, coupled with other significant issue is the occupational health and replenishing native soils and grasses, cleaning (v) Conducting of environmental low rates of supervision, puts the management of environment safety. Accident statistics show that that the industry issues in jeopardy. There is need for NEMA to come up with a clear excess waste, proper waste removal, site audits (37.5%) poses above-average risks to employees. inspections and replanting trees and natural strategy of awareness creation and promotion on environment Unprotected underground metalliferous mines were Section 22 (1) of the National Environmental Act, Cap 153 forestry can rejuvenate a long-term ecosystem issues generally in the country and more specific in the mining reported to have the highest incidents of fatalities provides for NEMA to commission an independent audit to repair and sustain the environment for years areas. most of which are never reported by mine owners verify the credibility of the annual environment audit conducted beyond when the mine is no longer operating. The and artisanal miners for fear of shutdown of their by the mineral rights holders. It was noted that NEMA rarely entire reclamation process should include: Dispute resolution mechanism is a requirement for every project mining operations. Underground gold mining in the exercises this mandate and when it’s done, mining companies removing hazardous materials, reshaping land, developer. It forms part of the requirements in the certificates of Mubende region was reported to have the highest rarely inform the authority on the action taken to mitigate the restoring topsoil, and planting native grasses, trees approval for all mining projects. Mineral rights holders are in the number of fatalities with an estimated 10 fatalities undesirable environment effects identified. This is because or ground cover natural to the site. In cases where process of establishing mechanisms for addressing environmental per year followed by Tin mining in the Western Section 108(3) of the Mining Act 2003 doesn’t provide NEMA the miner hasn’t replenished the environment, this and social grievances, disputes and conflicts arising from region with an estimated 7-8 fatalities on an annual with the power to conduct an independent audit, in case of fund would be used to support this activity. exploration and mining activities. Disputes arise from a range of basis. Statistics here could not be verified because credible concerns of non-compliance of the license holder. issues, including land, misunderstanding of the laws governing the victims’ families and the owners of the mines are Sometimes when NEMA conducts an independent audit, Even though the fund receives funding from mining, environment degradation, and royalty sharing, among reluctant to disclose these fatalities for fear of mining companies don’t provide feedback to NEMA on the disbursements from the Government; fees charged others. imprisonment and also due to the illegal nature of mitigation measures that were taken to handle the identified under this Act; fines collected as a result of the their activities, especially those in artisanal and undesirable environmental effects. breach of the provisions of this Act or any statutory Mining companies and government should set up alternative ways small-scale mining operations. of resolving disputes. Before project implementation, Social Impact instrument made under this Act, NEMA should exercise its powers provided in NEMA Act Cap 153 to prevail over the mining companies to ensure that they Assessments (SIAs) should be prepared and these will facilitate there is need to review the act such that the mining mitigate the identified undesirable effects and regularly report the identification of mechanisms to address peoples’ grievances to companies are able to deposit funds into the to the authority. prevent latent conflict hitting crisis levels. Regular reviews of the Environment Protection Fund as a security for SIAs should be conducted to help identify sources of conflict in decommissioning, restoration of derelict lands and orderly post-mine There is also need for the review of the Mineral Act 2003 so as places where mining is being considered. SIAs should identify the to clarify on NEMA’s powers to use the information presented in context, the drivers and possible social, political and environmental disclosure. In several cases, miners have the audit to require remedial action. The Act, like the NEMA Act, causes of conflict and investors be guided on how to operate in the abandoned mine sites without restoring them and context without exacerbating tensions. The process of preparing RESULTS

The 2nd Annual Mining & Mineral Subsector Scorecard 35

Fig 16: A miner in Chepkararat (Amudat District) mining without Fig 17: A miner in Amudat using mercury to separate gold from gold dust. In some communities where mining is conducted, the members movements, impairment of speech, hearing, walking any protective gear highlighted several social and health concerns that require and muscle weakness. immediate attention such as; sexual exploitation of workers in mines; exploitation of the ASMs by buying minerals from them In a quest to curb the spread of mercury use, some cheaply; employee exploitation by the mining companies; failure to organisations like Environmental Women in Action provide protective gear and medical care to local miners and for Development (EWAD) is championing Africa’s employees; injuries on the mining sites; employing foreigners first certified Fairtrade gold producer, a mining group instead of giving the opportunity to locals; among others. The in Busia called Syanyonja Artisanal Miners’ Alliance community members also complained about the increasing social to produce gold using an entirely mercury free discord and the erosion of moral values in mining areas. This has process. This if made a national program and rolled been exacerbated by the increased prostitution, alcoholism, out over the mining areas in the country, would help HIV/Aids, sexual abuse of young girls and family breakdown as curb the use and effects of mercury in gold mining in causes of conflict from increased capital flowing into mining areas the country. Workers are also exposed to a number of health as a result emigration. Fig 18: A gold kacha in Busia used to eliminate mercury from the hazards due to hostile mining environments. gold mining process These include chronic occupational diseases due (viii) Regulating the use of hazardous Although Uganda’s economy has registered a number of to dust inhalation common in gold mining and achievements, various aspects of occupational safety and mining substances (45.8%) processing as well as in the stone quarrying health (OSH) have not been adequately addressed. sectors. Most of the mining workers interviewed Management of the OSH issues at workplaces continue to be NEMA developed the National environment (waste management) were found to be oblivious of the imminent danger left unattended to by different sectors of government and regulations to mitigate waste management in the mining industry. and exposure to diseases such as private sector. The mining sector isn’t immune to this situation Along with the Explosives Act Cap 298, the sector has a legal pneumoconiosis, silicosis and lung cancer. and hence the miners are found to work in environments that framework for the handling, transportation, storage and usage of Some mining activities also endanger the lives of are not palatable with humanity. This is attributed to a number hazardous chemicals and, explosives used in exploration, mining mining communities due air pollution, releases of reasons such as the lack of well trained and facilitated activities, and radioactive materials, tailings and toxic effluents toxic substances to water streams and food inspectors to fully inspect mining areas to and emissions resulting from such activities. chains. Unprotected access to abandoned and ensure application of OSH requirements, no sensitisation and sometimes even active pits also pose a safety risk trainings of miners on the required OSH standards, mining Uganda is also on course to ratifying the Minamata Convention on to communities and their livestock in some parts of work places aren’t registered and certified, lack of coordination Mercury. The Convention aims at protecting human health and the the country. between NEMA and MGLSD before approving of EIAs, among environment from anthropogenic emissions and releases of others. mercury and mercury compounds. Mercury is a highly toxic The sector has no specific established substance that possesses some unique chemical properties that occupational health and safety requirements There is however an effort to try and train the ASMs, but are hard to find anywhere else in nature. In Uganda, the most followed by the mineral rights holders with regard because of their informal nature, it is difficult to improve their prevalent use of mercury is in the Artisanal and Small scale Gold to employers and employees in the mining health and safety standards. Under the African, Caribbean and Mining (ASGM) sector. Its use still remains highly popular and industry. The mineral rights holders are required to Pacific (ACP-EU) project funded by UNDP, ASMs are being highly unregulated in the ASGM industry. comply with the Occupational Health and Safety identified and trained in appropriate technology, environment Act 2006. However, despite government efforts to management, and occupational health and safety standards. The National Environment Management Authority (NEMA) improve safety and health of all workers in the Formalisation of the ASMs has to be fast-tracked, if the ASMs concluded the compilation of the national mercury inventory as country through funding enforcement of OSH are to benefit from such programs. Working in an informal required by the Minamata Convention on mercury. Mercury, activities, limited impact has been registered due setting will inevitably make them less adoptable and trainable despite its uses, poses many health risks including; loss of to inadequate enforcement of the OSH Act of with in HSE and use of modern technology. peripheral vision, “pins and needles” feelings, usually in the 2006. hands, feet, and around the mouth, lack of coordination of

Fig 20: Map of Uganda showing the NDP II proposed Minerals & Requisite Infrastructure 3.2.8. Gender, Equity, Social Inclusion and Participation

Indicator Score: 37.5% - Partially addressed

Fig 21: Performance of the subsector under Key Result Areas in indicator 8

• Whistle Blowing Mechanism.

Government and the responsible Ministry of Energy and Mineral Development /Directorate of Geological Surveys and Mines and other stakeholders need to work together need to address the following gaps:

14 Martin Jacan Gwokto Chief Administrative Officer 15 Production Officer Appendix 1: FGD Sites

Appendix 4: Focus Group Discussion Guide

neighbouring habitats and in some cases leading to the government had to incur a cost for restoration. This should Cap 153, should give NEMA the right to request the license holder SIAs should be consultative between mining a loss of biodiversity. Furthermore, some effluents be borne by the miners, in form of a security deposited in the to commission an independent third party to conduct an companies, host communities and other generated by mining activities contain large and environment protection fund. environmental audit to be submitted to NEMA for review in cases stakeholders. dangerous toxic substances such as cyanide and where NEMA has credible cause for concern that the license Companies should also identify Community heavy metals, which pause significant human Fig 15: An Abandoned Cyanide Plant in Amudat District holder may be non- compliant. The act currently does not stipulate Engagement Personnel to work as linkages with the health and ecological risks. The study also that an audit must be undertaken by an independent third party. community and act as conflict monitors within the discovered a number of abandoned mining sites Environmental audits are critical tools that allow the sector and mining areas to help identify and alert government and unrestored mining quarries as testament to the license holders to work together to continuously mitigate structures and companies about brewing conflict. unsatisfactory environmental performance of the environmental harm if the right processes are in place. Failure to address the causes of conflict negatively mining and minerals sub-sector state of affairs. affects business and destroys communities. (vi) Environmental awareness The National Environment Act Cap 153, Section 88 (vii) Promoting health and provides for the establishment of the environment creation (54.2%) protection fund. This fund supports in the NEMA is mandated to raise awareness on environmental matters safety practices in the mining replenishing the environment. Replenishing mine and share information with the public on matters relating to the industry (45.8%) sites and mine environments is one of the key impacts of mining activities. This has been however left in the In addition to wages and benefits that are universally factors that will ultimately protect the mine’s impact hands of CSOs and other interest groups to promote awareness in important in the mining and minerals industry, one on the environment. Simple solutions like the mining areas. The miners hardly know what to do, coupled with other significant issue is the occupational health and replenishing native soils and grasses, cleaning (v) Conducting of environmental low rates of supervision, puts the management of environment safety. Accident statistics show that that the industry issues in jeopardy. There is need for NEMA to come up with a clear excess waste, proper waste removal, site audits (37.5%) poses above-average risks to employees. strategy of awareness creation and promotion on environment Unprotected underground metalliferous mines were inspections and replanting trees and natural Section 22 (1) of the National Environmental Act, Cap 153 issues generally in the country and more specific in the mining reported to have the highest incidents of fatalities forestry can rejuvenate a long-term ecosystem provides for NEMA to commission an independent audit to areas. most of which are never reported by mine owners repair and sustain the environment for years verify the credibility of the annual environment audit conducted and artisanal miners for fear of shutdown of their beyond when the mine is no longer operating. The by the mineral rights holders. It was noted that NEMA rarely Dispute resolution mechanism is a requirement for every project mining operations. Underground gold mining in the entire reclamation process should include: exercises this mandate and when it’s done, mining companies developer. It forms part of the requirements in the certificates of Mubende region was reported to have the highest removing hazardous materials, reshaping land, rarely inform the authority on the action taken to mitigate the approval for all mining projects. Mineral rights holders are in the number of fatalities with an estimated 10 fatalities restoring topsoil, and planting native grasses, trees undesirable environment effects identified. This is because process of establishing mechanisms for addressing environmental per year followed by Tin mining in the Western or ground cover natural to the site. In cases where Section 108(3) of the Mining Act 2003 doesn’t provide NEMA and social grievances, disputes and conflicts arising from region with an estimated 7-8 fatalities on an annual the miner hasn’t replenished the environment, this with the power to conduct an independent audit, in case of exploration and mining activities. Disputes arise from a range of basis. Statistics here could not be verified because fund would be used to support this activity. credible concerns of non-compliance of the license holder. issues, including land, misunderstanding of the laws governing the victims’ families and the owners of the mines are Sometimes when NEMA conducts an independent audit, mining, environment degradation, and royalty sharing, among reluctant to disclose these fatalities for fear of Even though the fund receives funding from mining companies don’t provide feedback to NEMA on the others. imprisonment and also due to the illegal nature of disbursements from the Government; fees charged mitigation measures that were taken to handle the identified their activities, especially those in artisanal and under this Act; fines collected as a result of the undesirable environmental effects. breach of the provisions of this Act or any statutory Mining companies and government should set up alternative ways small-scale mining operations. of resolving disputes. Before project implementation, Social Impact instrument made under this Act, NEMA should exercise its powers provided in NEMA Act Cap 153 to prevail over the mining companies to ensure that they Assessments (SIAs) should be prepared and these will facilitate there is need to review the act such that the mining mitigate the identified undesirable effects and regularly report the identification of mechanisms to address peoples’ grievances to companies are able to deposit funds into the to the authority. prevent latent conflict hitting crisis levels. Regular reviews of the Environment Protection Fund as a security for SIAs should be conducted to help identify sources of conflict in decommissioning, restoration of derelict lands and orderly post-mine There is also need for the review of the Mineral Act 2003 so as places where mining is being considered. SIAs should identify the to clarify on NEMA’s powers to use the information presented in context, the drivers and possible social, political and environmental disclosure. In several cases, miners have the audit to require remedial action. The Act, like the NEMA Act, causes of conflict and investors be guided on how to operate in the abandoned mine sites without restoring them and context without exacerbating tensions. The process of preparing

RESULTS

Fig 16: A miner in Chepkararat (Amudat District) mining without Fig 17: A miner in Amudat using mercury to separate gold from gold dust. In some communities where mining is conducted, the members movements, impairment of speech, hearing, walking any protective gear highlighted several social and health concerns that require and muscle weakness. immediate attention such as; sexual exploitation of workers in mines; exploitation of the ASMs by buying minerals from them In a quest to curb the spread of mercury use, some cheaply; employee exploitation by the mining companies; failure to organisations like Environmental Women in Action provide protective gear and medical care to local miners and for Development (EWAD) is championing Africa’s employees; injuries on the mining sites; employing foreigners first certified Fairtrade gold producer, a mining group instead of giving the opportunity to locals; among others. The in Busia called Syanyonja Artisanal Miners’ Alliance community members also complained about the increasing social to produce gold using an entirely mercury free discord and the erosion of moral values in mining areas. This has process. This if made a national program and rolled been exacerbated by the increased prostitution, alcoholism, out over the mining areas in the country, would help HIV/Aids, sexual abuse of young girls and family breakdown as curb the use and effects of mercury in gold mining in causes of conflict from increased capital flowing into mining areas the country. Workers are also exposed to a number of health as a result emigration. Fig 18: A gold kacha in Busia used to eliminate mercury from the hazards due to hostile mining environments. gold mining process These include chronic occupational diseases due (viii) Regulating the use of hazardous Although Uganda’s economy has registered a number of to dust inhalation common in gold mining and achievements, various aspects of occupational safety and mining substances (45.8%) processing as well as in the stone quarrying health (OSH) have not been adequately addressed. sectors. Most of the mining workers interviewed Management of the OSH issues at workplaces continue to be NEMA developed the National environment (waste management) were found to be oblivious of the imminent danger left unattended to by different sectors of government and regulations to mitigate waste management in the mining industry. and exposure to diseases such as private sector. The mining sector isn’t immune to this situation Along with the Explosives Act Cap 298, the sector has a legal pneumoconiosis, silicosis and lung cancer. and hence the miners are found to work in environments that framework for the handling, transportation, storage and usage of Some mining activities also endanger the lives of are not palatable with humanity. This is attributed to a number hazardous chemicals and, explosives used in exploration, mining mining communities due air pollution, releases of reasons such as the lack of well trained and facilitated activities, and radioactive materials, tailings and toxic effluents toxic substances to water streams and food inspectors to fully inspect mining areas to and emissions resulting from such activities. chains. Unprotected access to abandoned and ensure application of OSH requirements, no sensitisation and sometimes even active pits also pose a safety risk trainings of miners on the required OSH standards, mining Uganda is also on course to ratifying the Minamata Convention on to communities and their livestock in some parts of work places aren’t registered and certified, lack of coordination Mercury. The Convention aims at protecting human health and the the country. between NEMA and MGLSD before approving of EIAs, among environment from anthropogenic emissions and releases of others. mercury and mercury compounds. Mercury is a highly toxic The sector has no specific established substance that possesses some unique chemical properties that occupational health and safety requirements There is however an effort to try and train the ASMs, but are hard to find anywhere else in nature. In Uganda, the most followed by the mineral rights holders with regard because of their informal nature, it is difficult to improve their prevalent use of mercury is in the Artisanal and Small scale Gold to employers and employees in the mining health and safety standards. Under the African, Caribbean and Mining (ASGM) sector. Its use still remains highly popular and industry. The mineral rights holders are required to Pacific (ACP-EU) project funded by UNDP, ASMs are being highly unregulated in the ASGM industry. comply with the Occupational Health and Safety identified and trained in appropriate technology, environment Act 2006. However, despite government efforts to management, and occupational health and safety standards. The National Environment Management Authority (NEMA) improve safety and health of all workers in the Formalisation of the ASMs has to be fast-tracked, if the ASMs concluded the compilation of the national mercury inventory as country through funding enforcement of OSH are to benefit from such programs. Working in an informal required by the Minamata Convention on mercury. Mercury, activities, limited impact has been registered due setting will inevitably make them less adoptable and trainable despite its uses, poses many health risks including; loss of to inadequate enforcement of the OSH Act of with in HSE and use of modern technology. peripheral vision, “pins and needles” feelings, usually in the 2006. hands, feet, and around the mouth, lack of coordination of EXECUTIVE SUMMARY

Fig 20: Map of Uganda showing the NDP II proposed Minerals & Requisite Infrastructure 3.2.8. Gender, Equity, Social Inclusion and Participation

Indicator Score: 37.5% - Partially addressed

Fig 21: Performance of the subsector under Key Result Areas in indicator 8

• Whistle Blowing Mechanism.

Government and the responsible Ministry of Energy and Mineral Development /Directorate of Geological Surveys and Mines and other stakeholders need to work together need to address the following gaps:

14 Martin Jacan Gwokto Chief Administrative Officer 15 Production Officer Appendix 1: FGD Sites

Appendix 4: Focus Group Discussion Guide

neighbouring habitats and in some cases leading to the government had to incur a cost for restoration. This should Cap 153, should give NEMA the right to request the license holder SIAs should be consultative between mining a loss of biodiversity. Furthermore, some effluents be borne by the miners, in form of a security deposited in the to commission an independent third party to conduct an companies, host communities and other generated by mining activities contain large and environment protection fund. environmental audit to be submitted to NEMA for review in cases stakeholders. dangerous toxic substances such as cyanide and where NEMA has credible cause for concern that the license Companies should also identify Community heavy metals, which pause significant human Fig 15: An Abandoned Cyanide Plant in Amudat District holder may be non- compliant. The act currently does not stipulate Engagement Personnel to work as linkages with the health and ecological risks. The study also that an audit must be undertaken by an independent third party. community and act as conflict monitors within the discovered a number of abandoned mining sites Environmental audits are critical tools that allow the sector and mining areas to help identify and alert government and unrestored mining quarries as testament to the license holders to work together to continuously mitigate structures and companies about brewing conflict. unsatisfactory environmental performance of the environmental harm if the right processes are in place. Failure to address the causes of conflict negatively mining and minerals sub-sector state of affairs. affects business and destroys communities. (vi) Environmental awareness The National Environment Act Cap 153, Section 88 (vii) Promoting health and provides for the establishment of the environment creation (54.2%) protection fund. This fund supports in the NEMA is mandated to raise awareness on environmental matters safety practices in the mining replenishing the environment. Replenishing mine and share information with the public on matters relating to the industry (45.8%) sites and mine environments is one of the key impacts of mining activities. This has been however left in the In addition to wages and benefits that are universally factors that will ultimately protect the mine’s impact hands of CSOs and other interest groups to promote awareness in important in the mining and minerals industry, one on the environment. Simple solutions like the mining areas. The miners hardly know what to do, coupled with other significant issue is the occupational health and replenishing native soils and grasses, cleaning (v) Conducting of environmental low rates of supervision, puts the management of environment safety. Accident statistics show that that the industry issues in jeopardy. There is need for NEMA to come up with a clear excess waste, proper waste removal, site audits (37.5%) poses above-average risks to employees. strategy of awareness creation and promotion on environment Unprotected underground metalliferous mines were inspections and replanting trees and natural Section 22 (1) of the National Environmental Act, Cap 153 issues generally in the country and more specific in the mining reported to have the highest incidents of fatalities forestry can rejuvenate a long-term ecosystem provides for NEMA to commission an independent audit to areas. most of which are never reported by mine owners repair and sustain the environment for years verify the credibility of the annual environment audit conducted and artisanal miners for fear of shutdown of their beyond when the mine is no longer operating. The by the mineral rights holders. It was noted that NEMA rarely Dispute resolution mechanism is a requirement for every project mining operations. Underground gold mining in the entire reclamation process should include: exercises this mandate and when it’s done, mining companies developer. It forms part of the requirements in the certificates of Mubende region was reported to have the highest removing hazardous materials, reshaping land, rarely inform the authority on the action taken to mitigate the approval for all mining projects. Mineral rights holders are in the number of fatalities with an estimated 10 fatalities restoring topsoil, and planting native grasses, trees undesirable environment effects identified. This is because process of establishing mechanisms for addressing environmental per year followed by Tin mining in the Western or ground cover natural to the site. In cases where Section 108(3) of the Mining Act 2003 doesn’t provide NEMA and social grievances, disputes and conflicts arising from region with an estimated 7-8 fatalities on an annual the miner hasn’t replenished the environment, this with the power to conduct an independent audit, in case of exploration and mining activities. Disputes arise from a range of basis. Statistics here could not be verified because fund would be used to support this activity. credible concerns of non-compliance of the license holder. issues, including land, misunderstanding of the laws governing the victims’ families and the owners of the mines are Sometimes when NEMA conducts an independent audit, mining, environment degradation, and royalty sharing, among reluctant to disclose these fatalities for fear of Even though the fund receives funding from mining companies don’t provide feedback to NEMA on the others. imprisonment and also due to the illegal nature of disbursements from the Government; fees charged mitigation measures that were taken to handle the identified their activities, especially those in artisanal and under this Act; fines collected as a result of the undesirable environmental effects. breach of the provisions of this Act or any statutory Mining companies and government should set up alternative ways small-scale mining operations. of resolving disputes. Before project implementation, Social Impact instrument made under this Act, NEMA should exercise its powers provided in NEMA Act Cap 153 to prevail over the mining companies to ensure that they Assessments (SIAs) should be prepared and these will facilitate there is need to review the act such that the mining mitigate the identified undesirable effects and regularly report the identification of mechanisms to address peoples’ grievances to companies are able to deposit funds into the to the authority. prevent latent conflict hitting crisis levels. Regular reviews of the Environment Protection Fund as a security for SIAs should be conducted to help identify sources of conflict in decommissioning, restoration of derelict lands and orderly post-mine There is also need for the review of the Mineral Act 2003 so as places where mining is being considered. SIAs should identify the to clarify on NEMA’s powers to use the information presented in context, the drivers and possible social, political and environmental disclosure. In several cases, miners have the audit to require remedial action. The Act, like the NEMA Act, causes of conflict and investors be guided on how to operate in the abandoned mine sites without restoring them and context without exacerbating tensions. The process of preparing

RESULTS

Fig 16: A miner in Chepkararat (Amudat District) mining without Fig 17: A miner in Amudat using mercury to separate gold from gold dust. In some communities where mining is conducted, the members movements, impairment of speech, hearing, walking any protective gear highlighted several social and health concerns that require and muscle weakness. immediate attention such as; sexual exploitation of workers in mines; exploitation of the ASMs by buying minerals from them In a quest to curb the spread of mercury use, some cheaply; employee exploitation by the mining companies; failure to organisations like Environmental Women in Action provide protective gear and medical care to local miners and for Development (EWAD) is championing Africa’s employees; injuries on the mining sites; employing foreigners first certified Fairtrade gold producer, a mining group instead of giving the opportunity to locals; among others. The in Busia called Syanyonja Artisanal Miners’ Alliance community members also complained about the increasing social to produce gold using an entirely mercury free discord and the erosion of moral values in mining areas. This has process. This if made a national program and rolled been exacerbated by the increased prostitution, alcoholism, out over the mining areas in the country, would help HIV/Aids, sexual abuse of young girls and family breakdown as curb the use and effects of mercury in gold mining in causes of conflict from increased capital flowing into mining areas the country. Workers are also exposed to a number of health as a result emigration. Fig 18: A gold kacha in Busia used to eliminate mercury from the hazards due to hostile mining environments. gold mining process These include chronic occupational diseases due (viii) Regulating the use of hazardous Although Uganda’s economy has registered a number of to dust inhalation common in gold mining and achievements, various aspects of occupational safety and mining substances (45.8%) processing as well as in the stone quarrying health (OSH) have not been adequately addressed. sectors. Most of the mining workers interviewed Management of the OSH issues at workplaces continue to be NEMA developed the National environment (waste management) were found to be oblivious of the imminent danger left unattended to by different sectors of government and regulations to mitigate waste management in the mining industry. and exposure to diseases such as private sector. The mining sector isn’t immune to this situation Along with the Explosives Act Cap 298, the sector has a legal pneumoconiosis, silicosis and lung cancer. and hence the miners are found to work in environments that framework for the handling, transportation, storage and usage of Some mining activities also endanger the lives of are not palatable with humanity. This is attributed to a number hazardous chemicals and, explosives used in exploration, mining mining communities due air pollution, releases of reasons such as the lack of well trained and facilitated activities, and radioactive materials, tailings and toxic effluents toxic substances to water streams and food inspectors to fully inspect mining areas to and emissions resulting from such activities. chains. Unprotected access to abandoned and ensure application of OSH requirements, no sensitisation and sometimes even active pits also pose a safety risk trainings of miners on the required OSH standards, mining Uganda is also on course to ratifying the Minamata Convention on to communities and their livestock in some parts of work places aren’t registered and certified, lack of coordination Mercury. The Convention aims at protecting human health and the the country. between NEMA and MGLSD before approving of EIAs, among environment from anthropogenic emissions and releases of others. mercury and mercury compounds. Mercury is a highly toxic The sector has no specific established substance that possesses some unique chemical properties that occupational health and safety requirements There is however an effort to try and train the ASMs, but are hard to find anywhere else in nature. In Uganda, the most followed by the mineral rights holders with regard because of their informal nature, it is difficult to improve their prevalent use of mercury is in the Artisanal and Small scale Gold to employers and employees in the mining health and safety standards. Under the African, Caribbean and Mining (ASGM) sector. Its use still remains highly popular and industry. The mineral rights holders are required to Pacific (ACP-EU) project funded by UNDP, ASMs are being highly unregulated in the ASGM industry. comply with the Occupational Health and Safety identified and trained in appropriate technology, environment Act 2006. However, despite government efforts to management, and occupational health and safety standards. The National Environment Management Authority (NEMA) improve safety and health of all workers in the Formalisation of the ASMs has to be fast-tracked, if the ASMs concluded the compilation of the national mercury inventory as country through funding enforcement of OSH are to benefit from such programs. Working in an informal required by the Minamata Convention on mercury. Mercury, activities, limited impact has been registered due setting will inevitably make them less adoptable and trainable despite its uses, poses many health risks including; loss of to inadequate enforcement of the OSH Act of with in HSE and use of modern technology. peripheral vision, “pins and needles” feelings, usually in the 2006. hands, feet, and around the mouth, lack of coordination of EXECUTIVE SUMMARY BACKGROUND

The 2nd Annual Mining & Mineral Subsector Scorecard 37

Fig 20: Map of Uganda showing the NDP II proposed Minerals & Requisite Infrastructure 3.2.8. Gender, Equity, Social Inclusion and Participation

Indicator Score: 37.5% - Partially addressed

Fig 21: Performance of the subsector under Key Result Areas in indicator 8

• Whistle Blowing Mechanism.

Government and the responsible Ministry of Energy and Mineral Development /Directorate of Geological Surveys and Mines and other stakeholders need to work together need to address the following gaps:

14 Martin Jacan Gwokto Chief Administrative Officer 15 Production Officer Appendix 1: FGD Sites

Appendix 4: Focus Group Discussion Guide

neighbouring habitats and in some cases leading to the government had to incur a cost for restoration. This should Cap 153, should give NEMA the right to request the license holder SIAs should be consultative between mining a loss of biodiversity. Furthermore, some effluents be borne by the miners, in form of a security deposited in the to commission an independent third party to conduct an companies, host communities and other generated by mining activities contain large and environment protection fund. environmental audit to be submitted to NEMA for review in cases stakeholders. dangerous toxic substances such as cyanide and where NEMA has credible cause for concern that the license Companies should also identify Community heavy metals, which pause significant human Fig 15: An Abandoned Cyanide Plant in Amudat District holder may be non- compliant. The act currently does not stipulate Engagement Personnel to work as linkages with the health and ecological risks. The study also that an audit must be undertaken by an independent third party. community and act as conflict monitors within the discovered a number of abandoned mining sites Environmental audits are critical tools that allow the sector and mining areas to help identify and alert government and unrestored mining quarries as testament to the license holders to work together to continuously mitigate structures and companies about brewing conflict. unsatisfactory environmental performance of the environmental harm if the right processes are in place. Failure to address the causes of conflict negatively mining and minerals sub-sector state of affairs. affects business and destroys communities. (vi) Environmental awareness The National Environment Act Cap 153, Section 88 (vii) Promoting health and provides for the establishment of the environment creation (54.2%) protection fund. This fund supports in the NEMA is mandated to raise awareness on environmental matters safety practices in the mining replenishing the environment. Replenishing mine and share information with the public on matters relating to the industry (45.8%) sites and mine environments is one of the key impacts of mining activities. This has been however left in the In addition to wages and benefits that are universally factors that will ultimately protect the mine’s impact hands of CSOs and other interest groups to promote awareness in important in the mining and minerals industry, one on the environment. Simple solutions like the mining areas. The miners hardly know what to do, coupled with other significant issue is the occupational health and replenishing native soils and grasses, cleaning (v) Conducting of environmental low rates of supervision, puts the management of environment safety. Accident statistics show that that the industry issues in jeopardy. There is need for NEMA to come up with a clear excess waste, proper waste removal, site audits (37.5%) poses above-average risks to employees. strategy of awareness creation and promotion on environment Unprotected underground metalliferous mines were inspections and replanting trees and natural Section 22 (1) of the National Environmental Act, Cap 153 issues generally in the country and more specific in the mining reported to have the highest incidents of fatalities forestry can rejuvenate a long-term ecosystem provides for NEMA to commission an independent audit to areas. most of which are never reported by mine owners repair and sustain the environment for years verify the credibility of the annual environment audit conducted and artisanal miners for fear of shutdown of their beyond when the mine is no longer operating. The by the mineral rights holders. It was noted that NEMA rarely Dispute resolution mechanism is a requirement for every project mining operations. Underground gold mining in the entire reclamation process should include: exercises this mandate and when it’s done, mining companies developer. It forms part of the requirements in the certificates of Mubende region was reported to have the highest removing hazardous materials, reshaping land, rarely inform the authority on the action taken to mitigate the approval for all mining projects. Mineral rights holders are in the number of fatalities with an estimated 10 fatalities restoring topsoil, and planting native grasses, trees undesirable environment effects identified. This is because process of establishing mechanisms for addressing environmental per year followed by Tin mining in the Western or ground cover natural to the site. In cases where Section 108(3) of the Mining Act 2003 doesn’t provide NEMA and social grievances, disputes and conflicts arising from region with an estimated 7-8 fatalities on an annual the miner hasn’t replenished the environment, this with the power to conduct an independent audit, in case of exploration and mining activities. Disputes arise from a range of basis. Statistics here could not be verified because fund would be used to support this activity. credible concerns of non-compliance of the license holder. issues, including land, misunderstanding of the laws governing the victims’ families and the owners of the mines are Sometimes when NEMA conducts an independent audit, mining, environment degradation, and royalty sharing, among reluctant to disclose these fatalities for fear of Even though the fund receives funding from mining companies don’t provide feedback to NEMA on the others. imprisonment and also due to the illegal nature of disbursements from the Government; fees charged mitigation measures that were taken to handle the identified their activities, especially those in artisanal and under this Act; fines collected as a result of the undesirable environmental effects. breach of the provisions of this Act or any statutory Mining companies and government should set up alternative ways small-scale mining operations. of resolving disputes. Before project implementation, Social Impact instrument made under this Act, NEMA should exercise its powers provided in NEMA Act Cap 153 to prevail over the mining companies to ensure that they Assessments (SIAs) should be prepared and these will facilitate there is need to review the act such that the mining mitigate the identified undesirable effects and regularly report the identification of mechanisms to address peoples’ grievances to companies are able to deposit funds into the to the authority. prevent latent conflict hitting crisis levels. Regular reviews of the Environment Protection Fund as a security for SIAs should be conducted to help identify sources of conflict in decommissioning, restoration of derelict lands and orderly post-mine There is also need for the review of the Mineral Act 2003 so as places where mining is being considered. SIAs should identify the to clarify on NEMA’s powers to use the information presented in context, the drivers and possible social, political and environmental disclosure. In several cases, miners have the audit to require remedial action. The Act, like the NEMA Act, causes of conflict and investors be guided on how to operate in the abandoned mine sites without restoring them and context without exacerbating tensions. The process of preparing

Fig 16: A miner in Chepkararat (Amudat District) mining without Fig 17: A miner in Amudat using mercury to separate gold from gold dust. In some communities where mining is conducted, the members movements, impairment of speech, hearing, walking any protective gear highlighted several social and health concerns that require and muscle weakness. immediate attention such as; sexual exploitation of workers in mines; exploitation of the ASMs by buying minerals from them In a quest to curb the spread of mercury use, some cheaply; employee exploitation by the mining companies; failure to organisations like Environmental Women in Action provide protective gear and medical care to local miners and for Development (EWAD) is championing Africa’s employees; injuries on the mining sites; employing foreigners first certified Fairtrade gold producer, a mining group instead of giving the opportunity to locals; among others. The in Busia called Syanyonja Artisanal Miners’ Alliance community members also complained about the increasing social to produce gold using an entirely mercury free discord and the erosion of moral values in mining areas. This has process. This if made a national program and rolled been exacerbated by the increased prostitution, alcoholism, out over the mining areas in the country, would help HIV/Aids, sexual abuse of young girls and family breakdown as curb the use and effects of mercury in gold mining in causes of conflict from increased capital flowing into mining areas the country. Workers are also exposed to a number of health as a result emigration. Fig 18: A gold kacha in Busia used to eliminate mercury from the hazards due to hostile mining environments. gold mining process These include chronic occupational diseases due (viii) Regulating the use of hazardous Although Uganda’s economy has registered a number of to dust inhalation common in gold mining and achievements, various aspects of occupational safety and mining substances (45.8%) processing as well as in the stone quarrying health (OSH) have not been adequately addressed. sectors. Most of the mining workers interviewed Management of the OSH issues at workplaces continue to be NEMA developed the National environment (waste management) were found to be oblivious of the imminent danger left unattended to by different sectors of government and regulations to mitigate waste management in the mining industry. and exposure to diseases such as private sector. The mining sector isn’t immune to this situation Along with the Explosives Act Cap 298, the sector has a legal pneumoconiosis, silicosis and lung cancer. and hence the miners are found to work in environments that framework for the handling, transportation, storage and usage of Some mining activities also endanger the lives of are not palatable with humanity. This is attributed to a number hazardous chemicals and, explosives used in exploration, mining mining communities due air pollution, releases of reasons such as the lack of well trained and facilitated activities, and radioactive materials, tailings and toxic effluents toxic substances to water streams and food inspectors to fully inspect mining areas to and emissions resulting from such activities. chains. Unprotected access to abandoned and ensure application of OSH requirements, no sensitisation and sometimes even active pits also pose a safety risk trainings of miners on the required OSH standards, mining Uganda is also on course to ratifying the Minamata Convention on to communities and their livestock in some parts of work places aren’t registered and certified, lack of coordination Mercury. The Convention aims at protecting human health and the the country. between NEMA and MGLSD before approving of EIAs, among environment from anthropogenic emissions and releases of others. mercury and mercury compounds. Mercury is a highly toxic The sector has no specific established substance that possesses some unique chemical properties that occupational health and safety requirements There is however an effort to try and train the ASMs, but are hard to find anywhere else in nature. In Uganda, the most followed by the mineral rights holders with regard because of their informal nature, it is difficult to improve their prevalent use of mercury is in the Artisanal and Small scale Gold to employers and employees in the mining health and safety standards. Under the African, Caribbean and Mining (ASGM) sector. Its use still remains highly popular and industry. The mineral rights holders are required to Pacific (ACP-EU) project funded by UNDP, ASMs are being highly unregulated in the ASGM industry. comply with the Occupational Health and Safety identified and trained in appropriate technology, environment Act 2006. However, despite government efforts to management, and occupational health and safety standards. The National Environment Management Authority (NEMA) improve safety and health of all workers in the Formalisation of the ASMs has to be fast-tracked, if the ASMs concluded the compilation of the national mercury inventory as country through funding enforcement of OSH are to benefit from such programs. Working in an informal required by the Minamata Convention on mercury. Mercury, activities, limited impact has been registered due setting will inevitably make them less adoptable and trainable despite its uses, poses many health risks including; loss of to inadequate enforcement of the OSH Act of with in HSE and use of modern technology. peripheral vision, “pins and needles” feelings, usually in the 2006. hands, feet, and around the mouth, lack of coordination of

RESULTS

Fig 19:Performance of the subsector under Key Result Areas in indicator 7 Subsector (62.5%) The scorecard noted that the government has an agenda to develop infrastructure required to develop mineral resources. This includes development of roads that reach to various parts of the country such as the Tororo-Malaba road for the Sukulu project, establishing a modern and internationally certified mineral Research Capacity of Mining Institutions analysis and beneficiation laboratory, among others. However, Mnagement of the Mining Samples DGSM does not have a policy framework on the management and Policy Framework on Infrastructural Development maintenance of mineral equipment at the directorate headquarters.

Fig 20: Map of Uganda showing the NDP II proposed Minerals & Requisite Infrastructure 3.2.8. Gender, Equity, Social Inclusion and Participation

Indicator Score: 37.5% - Partially addressed

Fig 21: Performance of the subsector under Key Result Areas in indicator 8

• Whistle Blowing Mechanism.

Government and the responsible Ministry of Energy and Mineral Development /Directorate of Geological Surveys and Mines and other stakeholders need to work together need to address the following gaps:

14 Martin Jacan Gwokto Chief Administrative Officer 15 Production Officer Appendix 1: FGD Sites

Appendix 4: Focus Group Discussion Guide

neighbouring habitats and in some cases leading to the government had to incur a cost for restoration. This should Cap 153, should give NEMA the right to request the license holder SIAs should be consultative between mining a loss of biodiversity. Furthermore, some effluents be borne by the miners, in form of a security deposited in the to commission an independent third party to conduct an companies, host communities and other generated by mining activities contain large and environment protection fund. environmental audit to be submitted to NEMA for review in cases stakeholders. dangerous toxic substances such as cyanide and where NEMA has credible cause for concern that the license Companies should also identify Community heavy metals, which pause significant human Fig 15: An Abandoned Cyanide Plant in Amudat District holder may be non- compliant. The act currently does not stipulate Engagement Personnel to work as linkages with the health and ecological risks. The study also that an audit must be undertaken by an independent third party. community and act as conflict monitors within the discovered a number of abandoned mining sites Environmental audits are critical tools that allow the sector and mining areas to help identify and alert government and unrestored mining quarries as testament to the license holders to work together to continuously mitigate structures and companies about brewing conflict. unsatisfactory environmental performance of the environmental harm if the right processes are in place. Failure to address the causes of conflict negatively mining and minerals sub-sector state of affairs. affects business and destroys communities. (vi) Environmental awareness The National Environment Act Cap 153, Section 88 (vii) Promoting health and provides for the establishment of the environment creation (54.2%) protection fund. This fund supports in the NEMA is mandated to raise awareness on environmental matters safety practices in the mining replenishing the environment. Replenishing mine and share information with the public on matters relating to the industry (45.8%) sites and mine environments is one of the key impacts of mining activities. This has been however left in the In addition to wages and benefits that are universally factors that will ultimately protect the mine’s impact hands of CSOs and other interest groups to promote awareness in important in the mining and minerals industry, one on the environment. Simple solutions like the mining areas. The miners hardly know what to do, coupled with other significant issue is the occupational health and replenishing native soils and grasses, cleaning (v) Conducting of environmental low rates of supervision, puts the management of environment safety. Accident statistics show that that the industry issues in jeopardy. There is need for NEMA to come up with a clear excess waste, proper waste removal, site audits (37.5%) poses above-average risks to employees. strategy of awareness creation and promotion on environment Unprotected underground metalliferous mines were inspections and replanting trees and natural Section 22 (1) of the National Environmental Act, Cap 153 issues generally in the country and more specific in the mining reported to have the highest incidents of fatalities forestry can rejuvenate a long-term ecosystem provides for NEMA to commission an independent audit to areas. most of which are never reported by mine owners repair and sustain the environment for years verify the credibility of the annual environment audit conducted and artisanal miners for fear of shutdown of their beyond when the mine is no longer operating. The by the mineral rights holders. It was noted that NEMA rarely Dispute resolution mechanism is a requirement for every project mining operations. Underground gold mining in the entire reclamation process should include: exercises this mandate and when it’s done, mining companies developer. It forms part of the requirements in the certificates of Mubende region was reported to have the highest removing hazardous materials, reshaping land, rarely inform the authority on the action taken to mitigate the approval for all mining projects. Mineral rights holders are in the number of fatalities with an estimated 10 fatalities restoring topsoil, and planting native grasses, trees undesirable environment effects identified. This is because process of establishing mechanisms for addressing environmental per year followed by Tin mining in the Western or ground cover natural to the site. In cases where Section 108(3) of the Mining Act 2003 doesn’t provide NEMA and social grievances, disputes and conflicts arising from region with an estimated 7-8 fatalities on an annual the miner hasn’t replenished the environment, this with the power to conduct an independent audit, in case of exploration and mining activities. Disputes arise from a range of basis. Statistics here could not be verified because fund would be used to support this activity. credible concerns of non-compliance of the license holder. issues, including land, misunderstanding of the laws governing the victims’ families and the owners of the mines are Sometimes when NEMA conducts an independent audit, mining, environment degradation, and royalty sharing, among reluctant to disclose these fatalities for fear of Even though the fund receives funding from mining companies don’t provide feedback to NEMA on the others. imprisonment and also due to the illegal nature of disbursements from the Government; fees charged mitigation measures that were taken to handle the identified their activities, especially those in artisanal and under this Act; fines collected as a result of the undesirable environmental effects. breach of the provisions of this Act or any statutory Mining companies and government should set up alternative ways small-scale mining operations. of resolving disputes. Before project implementation, Social Impact instrument made under this Act, NEMA should exercise its powers provided in NEMA Act Cap 153 to prevail over the mining companies to ensure that they Assessments (SIAs) should be prepared and these will facilitate there is need to review the act such that the mining mitigate the identified undesirable effects and regularly report the identification of mechanisms to address peoples’ grievances to companies are able to deposit funds into the to the authority. prevent latent conflict hitting crisis levels. Regular reviews of the Environment Protection Fund as a security for SIAs should be conducted to help identify sources of conflict in decommissioning, restoration of derelict lands and orderly post-mine There is also need for the review of the Mineral Act 2003 so as places where mining is being considered. SIAs should identify the to clarify on NEMA’s powers to use the information presented in context, the drivers and possible social, political and environmental disclosure. In several cases, miners have the audit to require remedial action. The Act, like the NEMA Act, causes of conflict and investors be guided on how to operate in the abandoned mine sites without restoring them and context without exacerbating tensions. The process of preparing

Fig 16: A miner in Chepkararat (Amudat District) mining without Fig 17: A miner in Amudat using mercury to separate gold from gold dust. In some communities where mining is conducted, the members movements, impairment of speech, hearing, walking any protective gear highlighted several social and health concerns that require and muscle weakness. immediate attention such as; sexual exploitation of workers in mines; exploitation of the ASMs by buying minerals from them In a quest to curb the spread of mercury use, some cheaply; employee exploitation by the mining companies; failure to organisations like Environmental Women in Action provide protective gear and medical care to local miners and for Development (EWAD) is championing Africa’s employees; injuries on the mining sites; employing foreigners first certified Fairtrade gold producer, a mining group instead of giving the opportunity to locals; among others. The in Busia called Syanyonja Artisanal Miners’ Alliance community members also complained about the increasing social to produce gold using an entirely mercury free discord and the erosion of moral values in mining areas. This has process. This if made a national program and rolled been exacerbated by the increased prostitution, alcoholism, out over the mining areas in the country, would help HIV/Aids, sexual abuse of young girls and family breakdown as curb the use and effects of mercury in gold mining in causes of conflict from increased capital flowing into mining areas the country. Workers are also exposed to a number of health as a result emigration. Fig 18: A gold kacha in Busia used to eliminate mercury from the hazards due to hostile mining environments. gold mining process These include chronic occupational diseases due (viii) Regulating the use of hazardous Although Uganda’s economy has registered a number of to dust inhalation common in gold mining and achievements, various aspects of occupational safety and mining substances (45.8%) processing as well as in the stone quarrying health (OSH) have not been adequately addressed. sectors. Most of the mining workers interviewed Management of the OSH issues at workplaces continue to be NEMA developed the National environment (waste management) were found to be oblivious of the imminent danger left unattended to by different sectors of government and regulations to mitigate waste management in the mining industry. and exposure to diseases such as private sector. The mining sector isn’t immune to this situation Along with the Explosives Act Cap 298, the sector has a legal pneumoconiosis, silicosis and lung cancer. and hence the miners are found to work in environments that framework for the handling, transportation, storage and usage of Some mining activities also endanger the lives of are not palatable with humanity. This is attributed to a number hazardous chemicals and, explosives used in exploration, mining mining communities due air pollution, releases of reasons such as the lack of well trained and facilitated activities, and radioactive materials, tailings and toxic effluents toxic substances to water streams and food inspectors to fully inspect mining areas to and emissions resulting from such activities. chains. Unprotected access to abandoned and ensure application of OSH requirements, no sensitisation and sometimes even active pits also pose a safety risk trainings of miners on the required OSH standards, mining Uganda is also on course to ratifying the Minamata Convention on to communities and their livestock in some parts of work places aren’t registered and certified, lack of coordination Mercury. The Convention aims at protecting human health and the the country. between NEMA and MGLSD before approving of EIAs, among environment from anthropogenic emissions and releases of others. mercury and mercury compounds. Mercury is a highly toxic The sector has no specific established substance that possesses some unique chemical properties that occupational health and safety requirements There is however an effort to try and train the ASMs, but are hard to find anywhere else in nature. In Uganda, the most followed by the mineral rights holders with regard because of their informal nature, it is difficult to improve their prevalent use of mercury is in the Artisanal and Small scale Gold to employers and employees in the mining health and safety standards. Under the African, Caribbean and Mining (ASGM) sector. Its use still remains highly popular and industry. The mineral rights holders are required to Pacific (ACP-EU) project funded by UNDP, ASMs are being highly unregulated in the ASGM industry. comply with the Occupational Health and Safety identified and trained in appropriate technology, environment Act 2006. However, despite government efforts to management, and occupational health and safety standards. The National Environment Management Authority (NEMA) improve safety and health of all workers in the Formalisation of the ASMs has to be fast-tracked, if the ASMs concluded the compilation of the national mercury inventory as country through funding enforcement of OSH are to benefit from such programs. Working in an informal required by the Minamata Convention on mercury. Mercury, activities, limited impact has been registered due setting will inevitably make them less adoptable and trainable despite its uses, poses many health risks including; loss of to inadequate enforcement of the OSH Act of with in HSE and use of modern technology. peripheral vision, “pins and needles” feelings, usually in the 2006. hands, feet, and around the mouth, lack of coordination of

RESULTS

Fig 19:Performance of the subsector under Key Result Areas in indicator 7 Subsector (62.5%) The scorecard noted that the government has an agenda to develop infrastructure required to develop mineral resources. This includes development of roads that reach to various parts of the country such as the Tororo-Malaba road for the Sukulu project, establishing a modern and internationally certified mineral Research Capacity of Mining Institutions analysis and beneficiation laboratory, among others. However, Mnagement of the Mining Samples DGSM does not have a policy framework on the management and Policy Framework on Infrastructural Development maintenance of mineral equipment at the directorate headquarters.

The 2nd Annual Mining & Mineral Subsector Scorecard 39

Fig 20: Map of Uganda showing the NDP II proposed Minerals & Requisite Infrastructure 3.2.8. Gender, Equity, Social Inclusion and Participation

Indicator Score: 37.5% - Partially addressed

Fig 21: Performance of the subsector under Key Result Areas in indicator 8

• Whistle Blowing Mechanism.

Government and the responsible Ministry of Energy and Mineral Development /Directorate of Geological Surveys and Mines and other stakeholders need to work together need to address the following gaps:

14 Martin Jacan Gwokto Chief Administrative Officer 15 Production Officer Appendix 1: FGD Sites

Appendix 4: Focus Group Discussion Guide

neighbouring habitats and in some cases leading to the government had to incur a cost for restoration. This should Cap 153, should give NEMA the right to request the license holder SIAs should be consultative between mining a loss of biodiversity. Furthermore, some effluents be borne by the miners, in form of a security deposited in the to commission an independent third party to conduct an companies, host communities and other generated by mining activities contain large and environment protection fund. environmental audit to be submitted to NEMA for review in cases stakeholders. dangerous toxic substances such as cyanide and where NEMA has credible cause for concern that the license Companies should also identify Community heavy metals, which pause significant human Fig 15: An Abandoned Cyanide Plant in Amudat District holder may be non- compliant. The act currently does not stipulate Engagement Personnel to work as linkages with the health and ecological risks. The study also that an audit must be undertaken by an independent third party. community and act as conflict monitors within the discovered a number of abandoned mining sites Environmental audits are critical tools that allow the sector and mining areas to help identify and alert government and unrestored mining quarries as testament to the license holders to work together to continuously mitigate structures and companies about brewing conflict. unsatisfactory environmental performance of the environmental harm if the right processes are in place. Failure to address the causes of conflict negatively mining and minerals sub-sector state of affairs. affects business and destroys communities. (vi) Environmental awareness The National Environment Act Cap 153, Section 88 (vii) Promoting health and provides for the establishment of the environment creation (54.2%) protection fund. This fund supports in the NEMA is mandated to raise awareness on environmental matters safety practices in the mining replenishing the environment. Replenishing mine and share information with the public on matters relating to the industry (45.8%) sites and mine environments is one of the key impacts of mining activities. This has been however left in the In addition to wages and benefits that are universally factors that will ultimately protect the mine’s impact hands of CSOs and other interest groups to promote awareness in important in the mining and minerals industry, one on the environment. Simple solutions like the mining areas. The miners hardly know what to do, coupled with other significant issue is the occupational health and replenishing native soils and grasses, cleaning (v) Conducting of environmental low rates of supervision, puts the management of environment safety. Accident statistics show that that the industry issues in jeopardy. There is need for NEMA to come up with a clear excess waste, proper waste removal, site audits (37.5%) poses above-average risks to employees. strategy of awareness creation and promotion on environment Unprotected underground metalliferous mines were inspections and replanting trees and natural Section 22 (1) of the National Environmental Act, Cap 153 issues generally in the country and more specific in the mining reported to have the highest incidents of fatalities forestry can rejuvenate a long-term ecosystem provides for NEMA to commission an independent audit to areas. most of which are never reported by mine owners repair and sustain the environment for years verify the credibility of the annual environment audit conducted and artisanal miners for fear of shutdown of their beyond when the mine is no longer operating. The by the mineral rights holders. It was noted that NEMA rarely Dispute resolution mechanism is a requirement for every project mining operations. Underground gold mining in the entire reclamation process should include: exercises this mandate and when it’s done, mining companies developer. It forms part of the requirements in the certificates of Mubende region was reported to have the highest removing hazardous materials, reshaping land, rarely inform the authority on the action taken to mitigate the approval for all mining projects. Mineral rights holders are in the number of fatalities with an estimated 10 fatalities restoring topsoil, and planting native grasses, trees undesirable environment effects identified. This is because process of establishing mechanisms for addressing environmental per year followed by Tin mining in the Western or ground cover natural to the site. In cases where Section 108(3) of the Mining Act 2003 doesn’t provide NEMA and social grievances, disputes and conflicts arising from region with an estimated 7-8 fatalities on an annual the miner hasn’t replenished the environment, this with the power to conduct an independent audit, in case of exploration and mining activities. Disputes arise from a range of basis. Statistics here could not be verified because fund would be used to support this activity. credible concerns of non-compliance of the license holder. issues, including land, misunderstanding of the laws governing the victims’ families and the owners of the mines are Sometimes when NEMA conducts an independent audit, mining, environment degradation, and royalty sharing, among reluctant to disclose these fatalities for fear of Even though the fund receives funding from mining companies don’t provide feedback to NEMA on the others. imprisonment and also due to the illegal nature of disbursements from the Government; fees charged mitigation measures that were taken to handle the identified their activities, especially those in artisanal and under this Act; fines collected as a result of the undesirable environmental effects. breach of the provisions of this Act or any statutory Mining companies and government should set up alternative ways small-scale mining operations. of resolving disputes. Before project implementation, Social Impact instrument made under this Act, NEMA should exercise its powers provided in NEMA Act Cap 153 to prevail over the mining companies to ensure that they Assessments (SIAs) should be prepared and these will facilitate there is need to review the act such that the mining mitigate the identified undesirable effects and regularly report the identification of mechanisms to address peoples’ grievances to companies are able to deposit funds into the to the authority. prevent latent conflict hitting crisis levels. Regular reviews of the Environment Protection Fund as a security for SIAs should be conducted to help identify sources of conflict in decommissioning, restoration of derelict lands and orderly post-mine There is also need for the review of the Mineral Act 2003 so as places where mining is being considered. SIAs should identify the to clarify on NEMA’s powers to use the information presented in context, the drivers and possible social, political and environmental disclosure. In several cases, miners have the audit to require remedial action. The Act, like the NEMA Act, causes of conflict and investors be guided on how to operate in the abandoned mine sites without restoring them and context without exacerbating tensions. The process of preparing

Fig 16: A miner in Chepkararat (Amudat District) mining without Fig 17: A miner in Amudat using mercury to separate gold from gold dust. In some communities where mining is conducted, the members movements, impairment of speech, hearing, walking any protective gear highlighted several social and health concerns that require and muscle weakness. immediate attention such as; sexual exploitation of workers in mines; exploitation of the ASMs by buying minerals from them In a quest to curb the spread of mercury use, some cheaply; employee exploitation by the mining companies; failure to organisations like Environmental Women in Action provide protective gear and medical care to local miners and for Development (EWAD) is championing Africa’s employees; injuries on the mining sites; employing foreigners first certified Fairtrade gold producer, a mining group instead of giving the opportunity to locals; among others. The in Busia called Syanyonja Artisanal Miners’ Alliance community members also complained about the increasing social to produce gold using an entirely mercury free discord and the erosion of moral values in mining areas. This has process. This if made a national program and rolled been exacerbated by the increased prostitution, alcoholism, out over the mining areas in the country, would help HIV/Aids, sexual abuse of young girls and family breakdown as curb the use and effects of mercury in gold mining in causes of conflict from increased capital flowing into mining areas the country. Workers are also exposed to a number of health as a result emigration. Fig 18: A gold kacha in Busia used to eliminate mercury from the hazards due to hostile mining environments. gold mining process These include chronic occupational diseases due (viii) Regulating the use of hazardous Although Uganda’s economy has registered a number of to dust inhalation common in gold mining and achievements, various aspects of occupational safety and mining substances (45.8%) processing as well as in the stone quarrying health (OSH) have not been adequately addressed. sectors. Most of the mining workers interviewed Management of the OSH issues at workplaces continue to be NEMA developed the National environment (waste management) were found to be oblivious of the imminent danger left unattended to by different sectors of government and regulations to mitigate waste management in the mining industry. and exposure to diseases such as private sector. The mining sector isn’t immune to this situation Along with the Explosives Act Cap 298, the sector has a legal pneumoconiosis, silicosis and lung cancer. and hence the miners are found to work in environments that framework for the handling, transportation, storage and usage of Some mining activities also endanger the lives of are not palatable with humanity. This is attributed to a number hazardous chemicals and, explosives used in exploration, mining mining communities due air pollution, releases of reasons such as the lack of well trained and facilitated activities, and radioactive materials, tailings and toxic effluents toxic substances to water streams and food inspectors to fully inspect mining areas to and emissions resulting from such activities. chains. Unprotected access to abandoned and ensure application of OSH requirements, no sensitisation and sometimes even active pits also pose a safety risk trainings of miners on the required OSH standards, mining Uganda is also on course to ratifying the Minamata Convention on to communities and their livestock in some parts of work places aren’t registered and certified, lack of coordination Mercury. The Convention aims at protecting human health and the the country. between NEMA and MGLSD before approving of EIAs, among environment from anthropogenic emissions and releases of others. mercury and mercury compounds. Mercury is a highly toxic The sector has no specific established substance that possesses some unique chemical properties that occupational health and safety requirements There is however an effort to try and train the ASMs, but are hard to find anywhere else in nature. In Uganda, the most followed by the mineral rights holders with regard because of their informal nature, it is difficult to improve their prevalent use of mercury is in the Artisanal and Small scale Gold to employers and employees in the mining health and safety standards. Under the African, Caribbean and Mining (ASGM) sector. Its use still remains highly popular and industry. The mineral rights holders are required to Pacific (ACP-EU) project funded by UNDP, ASMs are being highly unregulated in the ASGM industry. comply with the Occupational Health and Safety identified and trained in appropriate technology, environment Act 2006. However, despite government efforts to management, and occupational health and safety standards. The National Environment Management Authority (NEMA) improve safety and health of all workers in the Formalisation of the ASMs has to be fast-tracked, if the ASMs concluded the compilation of the national mercury inventory as country through funding enforcement of OSH are to benefit from such programs. Working in an informal required by the Minamata Convention on mercury. Mercury, activities, limited impact has been registered due setting will inevitably make them less adoptable and trainable despite its uses, poses many health risks including; loss of to inadequate enforcement of the OSH Act of with in HSE and use of modern technology. peripheral vision, “pins and needles” feelings, usually in the 2006. hands, feet, and around the mouth, lack of coordination of

RESULTS

Fig 20: Map of Uganda showing the NDP II proposed Minerals & Requisite Infrastructure 3.2.8. Gender, Equity, Social Inclusion and Participation

Indicator Score: 37.5% - Partially addressed

Fig 21: Performance of the subsector under Key Result Areas in indicator 8

• Whistle Blowing Mechanism.

Government and the responsible Ministry of Energy and Mineral Development /Directorate of Geological Surveys and Mines and other stakeholders need to work together need to address the following gaps:

14 Martin Jacan Gwokto Chief Administrative Officer 15 Production Officer Appendix 1: FGD Sites

Appendix 4: Focus Group Discussion Guide

neighbouring habitats and in some cases leading to the government had to incur a cost for restoration. This should Cap 153, should give NEMA the right to request the license holder SIAs should be consultative between mining a loss of biodiversity. Furthermore, some effluents be borne by the miners, in form of a security deposited in the to commission an independent third party to conduct an companies, host communities and other generated by mining activities contain large and environment protection fund. environmental audit to be submitted to NEMA for review in cases stakeholders. dangerous toxic substances such as cyanide and where NEMA has credible cause for concern that the license Companies should also identify Community heavy metals, which pause significant human Fig 15: An Abandoned Cyanide Plant in Amudat District holder may be non- compliant. The act currently does not stipulate Engagement Personnel to work as linkages with the health and ecological risks. The study also that an audit must be undertaken by an independent third party. community and act as conflict monitors within the discovered a number of abandoned mining sites Environmental audits are critical tools that allow the sector and mining areas to help identify and alert government and unrestored mining quarries as testament to the license holders to work together to continuously mitigate structures and companies about brewing conflict. unsatisfactory environmental performance of the environmental harm if the right processes are in place. Failure to address the causes of conflict negatively mining and minerals sub-sector state of affairs. affects business and destroys communities. (vi) Environmental awareness The National Environment Act Cap 153, Section 88 (vii) Promoting health and provides for the establishment of the environment creation (54.2%) protection fund. This fund supports in the NEMA is mandated to raise awareness on environmental matters safety practices in the mining replenishing the environment. Replenishing mine and share information with the public on matters relating to the industry (45.8%) sites and mine environments is one of the key impacts of mining activities. This has been however left in the In addition to wages and benefits that are universally factors that will ultimately protect the mine’s impact hands of CSOs and other interest groups to promote awareness in important in the mining and minerals industry, one on the environment. Simple solutions like the mining areas. The miners hardly know what to do, coupled with other significant issue is the occupational health and replenishing native soils and grasses, cleaning (v) Conducting of environmental low rates of supervision, puts the management of environment safety. Accident statistics show that that the industry issues in jeopardy. There is need for NEMA to come up with a clear excess waste, proper waste removal, site audits (37.5%) poses above-average risks to employees. strategy of awareness creation and promotion on environment Unprotected underground metalliferous mines were inspections and replanting trees and natural Section 22 (1) of the National Environmental Act, Cap 153 issues generally in the country and more specific in the mining reported to have the highest incidents of fatalities forestry can rejuvenate a long-term ecosystem provides for NEMA to commission an independent audit to areas. most of which are never reported by mine owners repair and sustain the environment for years verify the credibility of the annual environment audit conducted and artisanal miners for fear of shutdown of their beyond when the mine is no longer operating. The by the mineral rights holders. It was noted that NEMA rarely Dispute resolution mechanism is a requirement for every project mining operations. Underground gold mining in the entire reclamation process should include: exercises this mandate and when it’s done, mining companies developer. It forms part of the requirements in the certificates of Mubende region was reported to have the highest removing hazardous materials, reshaping land, rarely inform the authority on the action taken to mitigate the approval for all mining projects. Mineral rights holders are in the number of fatalities with an estimated 10 fatalities restoring topsoil, and planting native grasses, trees undesirable environment effects identified. This is because process of establishing mechanisms for addressing environmental per year followed by Tin mining in the Western or ground cover natural to the site. In cases where Section 108(3) of the Mining Act 2003 doesn’t provide NEMA and social grievances, disputes and conflicts arising from region with an estimated 7-8 fatalities on an annual the miner hasn’t replenished the environment, this with the power to conduct an independent audit, in case of exploration and mining activities. Disputes arise from a range of basis. Statistics here could not be verified because fund would be used to support this activity. credible concerns of non-compliance of the license holder. issues, including land, misunderstanding of the laws governing the victims’ families and the owners of the mines are Sometimes when NEMA conducts an independent audit, mining, environment degradation, and royalty sharing, among reluctant to disclose these fatalities for fear of Even though the fund receives funding from mining companies don’t provide feedback to NEMA on the others. imprisonment and also due to the illegal nature of disbursements from the Government; fees charged mitigation measures that were taken to handle the identified their activities, especially those in artisanal and under this Act; fines collected as a result of the undesirable environmental effects. breach of the provisions of this Act or any statutory Mining companies and government should set up alternative ways small-scale mining operations. of resolving disputes. Before project implementation, Social Impact instrument made under this Act, NEMA should exercise its powers provided in NEMA Act Cap 153 to prevail over the mining companies to ensure that they Assessments (SIAs) should be prepared and these will facilitate there is need to review the act such that the mining mitigate the identified undesirable effects and regularly report the identification of mechanisms to address peoples’ grievances to companies are able to deposit funds into the to the authority. prevent latent conflict hitting crisis levels. Regular reviews of the Environment Protection Fund as a security for SIAs should be conducted to help identify sources of conflict in decommissioning, restoration of derelict lands and orderly post-mine There is also need for the review of the Mineral Act 2003 so as places where mining is being considered. SIAs should identify the to clarify on NEMA’s powers to use the information presented in context, the drivers and possible social, political and environmental disclosure. In several cases, miners have the audit to require remedial action. The Act, like the NEMA Act, causes of conflict and investors be guided on how to operate in the abandoned mine sites without restoring them and context without exacerbating tensions. The process of preparing

Fig 16: A miner in Chepkararat (Amudat District) mining without Fig 17: A miner in Amudat using mercury to separate gold from gold dust. In some communities where mining is conducted, the members movements, impairment of speech, hearing, walking any protective gear highlighted several social and health concerns that require and muscle weakness. immediate attention such as; sexual exploitation of workers in mines; exploitation of the ASMs by buying minerals from them In a quest to curb the spread of mercury use, some cheaply; employee exploitation by the mining companies; failure to organisations like Environmental Women in Action provide protective gear and medical care to local miners and for Development (EWAD) is championing Africa’s employees; injuries on the mining sites; employing foreigners first certified Fairtrade gold producer, a mining group instead of giving the opportunity to locals; among others. The in Busia called Syanyonja Artisanal Miners’ Alliance community members also complained about the increasing social to produce gold using an entirely mercury free discord and the erosion of moral values in mining areas. This has process. This if made a national program and rolled been exacerbated by the increased prostitution, alcoholism, out over the mining areas in the country, would help HIV/Aids, sexual abuse of young girls and family breakdown as curb the use and effects of mercury in gold mining in causes of conflict from increased capital flowing into mining areas the country. Workers are also exposed to a number of health as a result emigration. Fig 18: A gold kacha in Busia used to eliminate mercury from the hazards due to hostile mining environments. gold mining process These include chronic occupational diseases due (viii) Regulating the use of hazardous Although Uganda’s economy has registered a number of to dust inhalation common in gold mining and achievements, various aspects of occupational safety and mining substances (45.8%) processing as well as in the stone quarrying health (OSH) have not been adequately addressed. sectors. Most of the mining workers interviewed Management of the OSH issues at workplaces continue to be NEMA developed the National environment (waste management) were found to be oblivious of the imminent danger left unattended to by different sectors of government and regulations to mitigate waste management in the mining industry. and exposure to diseases such as private sector. The mining sector isn’t immune to this situation Along with the Explosives Act Cap 298, the sector has a legal pneumoconiosis, silicosis and lung cancer. and hence the miners are found to work in environments that framework for the handling, transportation, storage and usage of Some mining activities also endanger the lives of are not palatable with humanity. This is attributed to a number hazardous chemicals and, explosives used in exploration, mining mining communities due air pollution, releases of reasons such as the lack of well trained and facilitated activities, and radioactive materials, tailings and toxic effluents toxic substances to water streams and food inspectors to fully inspect mining areas to and emissions resulting from such activities. chains. Unprotected access to abandoned and ensure application of OSH requirements, no sensitisation and sometimes even active pits also pose a safety risk trainings of miners on the required OSH standards, mining Uganda is also on course to ratifying the Minamata Convention on to communities and their livestock in some parts of work places aren’t registered and certified, lack of coordination Mercury. The Convention aims at protecting human health and the the country. between NEMA and MGLSD before approving of EIAs, among environment from anthropogenic emissions and releases of others. mercury and mercury compounds. Mercury is a highly toxic The sector has no specific established substance that possesses some unique chemical properties that occupational health and safety requirements There is however an effort to try and train the ASMs, but are hard to find anywhere else in nature. In Uganda, the most followed by the mineral rights holders with regard because of their informal nature, it is difficult to improve their prevalent use of mercury is in the Artisanal and Small scale Gold to employers and employees in the mining health and safety standards. Under the African, Caribbean and Mining (ASGM) sector. Its use still remains highly popular and industry. The mineral rights holders are required to Pacific (ACP-EU) project funded by UNDP, ASMs are being highly unregulated in the ASGM industry. comply with the Occupational Health and Safety identified and trained in appropriate technology, environment Act 2006. However, despite government efforts to management, and occupational health and safety standards. The National Environment Management Authority (NEMA) improve safety and health of all workers in the Formalisation of the ASMs has to be fast-tracked, if the ASMs concluded the compilation of the national mercury inventory as country through funding enforcement of OSH are to benefit from such programs. Working in an informal required by the Minamata Convention on mercury. Mercury, activities, limited impact has been registered due setting will inevitably make them less adoptable and trainable despite its uses, poses many health risks including; loss of to inadequate enforcement of the OSH Act of with in HSE and use of modern technology. peripheral vision, “pins and needles” feelings, usually in the 2006. hands, feet, and around the mouth, lack of coordination of

RESULTS

Fig 20: Map of Uganda showing the NDP II proposed Minerals & Requisite Infrastructure 3.2.8. Gender, Equity, Social Inclusion and Participation

Indicator Score: 37.5% - Partially addressed

Fig 21: Performance of the subsector under Key Result Areas in indicator 8

Participation of Marginalised Groups Enforcement of Labour Laws GBV in Mining Areas

The 2nd Annual Mining & Mineral Subsector Scorecard 41

• Whistle Blowing Mechanism.

Government and the responsible Ministry of Energy and Mineral Development /Directorate of Geological Surveys and Mines and other stakeholders need to work together need to address the following gaps:

14 Martin Jacan Gwokto Chief Administrative Officer 15 Production Officer Appendix 1: FGD Sites

Appendix 4: Focus Group Discussion Guide

neighbouring habitats and in some cases leading to the government had to incur a cost for restoration. This should Cap 153, should give NEMA the right to request the license holder SIAs should be consultative between mining a loss of biodiversity. Furthermore, some effluents be borne by the miners, in form of a security deposited in the to commission an independent third party to conduct an companies, host communities and other generated by mining activities contain large and environment protection fund. environmental audit to be submitted to NEMA for review in cases stakeholders. dangerous toxic substances such as cyanide and where NEMA has credible cause for concern that the license Companies should also identify Community heavy metals, which pause significant human Fig 15: An Abandoned Cyanide Plant in Amudat District holder may be non- compliant. The act currently does not stipulate Engagement Personnel to work as linkages with the health and ecological risks. The study also that an audit must be undertaken by an independent third party. community and act as conflict monitors within the discovered a number of abandoned mining sites Environmental audits are critical tools that allow the sector and mining areas to help identify and alert government and unrestored mining quarries as testament to the license holders to work together to continuously mitigate structures and companies about brewing conflict. unsatisfactory environmental performance of the environmental harm if the right processes are in place. Failure to address the causes of conflict negatively mining and minerals sub-sector state of affairs. affects business and destroys communities. (vi) Environmental awareness The National Environment Act Cap 153, Section 88 (vii) Promoting health and provides for the establishment of the environment creation (54.2%) protection fund. This fund supports in the NEMA is mandated to raise awareness on environmental matters safety practices in the mining replenishing the environment. Replenishing mine and share information with the public on matters relating to the industry (45.8%) sites and mine environments is one of the key impacts of mining activities. This has been however left in the In addition to wages and benefits that are universally factors that will ultimately protect the mine’s impact hands of CSOs and other interest groups to promote awareness in important in the mining and minerals industry, one on the environment. Simple solutions like the mining areas. The miners hardly know what to do, coupled with other significant issue is the occupational health and replenishing native soils and grasses, cleaning (v) Conducting of environmental low rates of supervision, puts the management of environment safety. Accident statistics show that that the industry issues in jeopardy. There is need for NEMA to come up with a clear excess waste, proper waste removal, site audits (37.5%) poses above-average risks to employees. strategy of awareness creation and promotion on environment Unprotected underground metalliferous mines were inspections and replanting trees and natural Section 22 (1) of the National Environmental Act, Cap 153 issues generally in the country and more specific in the mining reported to have the highest incidents of fatalities forestry can rejuvenate a long-term ecosystem provides for NEMA to commission an independent audit to areas. most of which are never reported by mine owners repair and sustain the environment for years verify the credibility of the annual environment audit conducted and artisanal miners for fear of shutdown of their beyond when the mine is no longer operating. The by the mineral rights holders. It was noted that NEMA rarely Dispute resolution mechanism is a requirement for every project mining operations. Underground gold mining in the entire reclamation process should include: exercises this mandate and when it’s done, mining companies developer. It forms part of the requirements in the certificates of Mubende region was reported to have the highest removing hazardous materials, reshaping land, rarely inform the authority on the action taken to mitigate the approval for all mining projects. Mineral rights holders are in the number of fatalities with an estimated 10 fatalities restoring topsoil, and planting native grasses, trees undesirable environment effects identified. This is because process of establishing mechanisms for addressing environmental per year followed by Tin mining in the Western or ground cover natural to the site. In cases where Section 108(3) of the Mining Act 2003 doesn’t provide NEMA and social grievances, disputes and conflicts arising from region with an estimated 7-8 fatalities on an annual the miner hasn’t replenished the environment, this with the power to conduct an independent audit, in case of exploration and mining activities. Disputes arise from a range of basis. Statistics here could not be verified because fund would be used to support this activity. credible concerns of non-compliance of the license holder. issues, including land, misunderstanding of the laws governing the victims’ families and the owners of the mines are Sometimes when NEMA conducts an independent audit, mining, environment degradation, and royalty sharing, among reluctant to disclose these fatalities for fear of Even though the fund receives funding from mining companies don’t provide feedback to NEMA on the others. imprisonment and also due to the illegal nature of disbursements from the Government; fees charged mitigation measures that were taken to handle the identified their activities, especially those in artisanal and under this Act; fines collected as a result of the undesirable environmental effects. breach of the provisions of this Act or any statutory Mining companies and government should set up alternative ways small-scale mining operations. of resolving disputes. Before project implementation, Social Impact instrument made under this Act, NEMA should exercise its powers provided in NEMA Act Cap 153 to prevail over the mining companies to ensure that they Assessments (SIAs) should be prepared and these will facilitate there is need to review the act such that the mining mitigate the identified undesirable effects and regularly report the identification of mechanisms to address peoples’ grievances to companies are able to deposit funds into the to the authority. prevent latent conflict hitting crisis levels. Regular reviews of the Environment Protection Fund as a security for SIAs should be conducted to help identify sources of conflict in decommissioning, restoration of derelict lands and orderly post-mine There is also need for the review of the Mineral Act 2003 so as places where mining is being considered. SIAs should identify the to clarify on NEMA’s powers to use the information presented in context, the drivers and possible social, political and environmental disclosure. In several cases, miners have the audit to require remedial action. The Act, like the NEMA Act, causes of conflict and investors be guided on how to operate in the abandoned mine sites without restoring them and context without exacerbating tensions. The process of preparing

Fig 16: A miner in Chepkararat (Amudat District) mining without Fig 17: A miner in Amudat using mercury to separate gold from gold dust. In some communities where mining is conducted, the members movements, impairment of speech, hearing, walking any protective gear highlighted several social and health concerns that require and muscle weakness. immediate attention such as; sexual exploitation of workers in mines; exploitation of the ASMs by buying minerals from them In a quest to curb the spread of mercury use, some cheaply; employee exploitation by the mining companies; failure to organisations like Environmental Women in Action provide protective gear and medical care to local miners and for Development (EWAD) is championing Africa’s employees; injuries on the mining sites; employing foreigners first certified Fairtrade gold producer, a mining group instead of giving the opportunity to locals; among others. The in Busia called Syanyonja Artisanal Miners’ Alliance community members also complained about the increasing social to produce gold using an entirely mercury free discord and the erosion of moral values in mining areas. This has process. This if made a national program and rolled been exacerbated by the increased prostitution, alcoholism, out over the mining areas in the country, would help HIV/Aids, sexual abuse of young girls and family breakdown as curb the use and effects of mercury in gold mining in causes of conflict from increased capital flowing into mining areas the country. Workers are also exposed to a number of health as a result emigration. Fig 18: A gold kacha in Busia used to eliminate mercury from the hazards due to hostile mining environments. gold mining process These include chronic occupational diseases due (viii) Regulating the use of hazardous Although Uganda’s economy has registered a number of to dust inhalation common in gold mining and achievements, various aspects of occupational safety and mining substances (45.8%) processing as well as in the stone quarrying health (OSH) have not been adequately addressed. sectors. Most of the mining workers interviewed Management of the OSH issues at workplaces continue to be NEMA developed the National environment (waste management) were found to be oblivious of the imminent danger left unattended to by different sectors of government and regulations to mitigate waste management in the mining industry. and exposure to diseases such as private sector. The mining sector isn’t immune to this situation Along with the Explosives Act Cap 298, the sector has a legal pneumoconiosis, silicosis and lung cancer. and hence the miners are found to work in environments that framework for the handling, transportation, storage and usage of Some mining activities also endanger the lives of are not palatable with humanity. This is attributed to a number hazardous chemicals and, explosives used in exploration, mining mining communities due air pollution, releases of reasons such as the lack of well trained and facilitated activities, and radioactive materials, tailings and toxic effluents toxic substances to water streams and food inspectors to fully inspect mining areas to and emissions resulting from such activities. chains. Unprotected access to abandoned and ensure application of OSH requirements, no sensitisation and sometimes even active pits also pose a safety risk trainings of miners on the required OSH standards, mining Uganda is also on course to ratifying the Minamata Convention on to communities and their livestock in some parts of work places aren’t registered and certified, lack of coordination Mercury. The Convention aims at protecting human health and the the country. between NEMA and MGLSD before approving of EIAs, among environment from anthropogenic emissions and releases of others. mercury and mercury compounds. Mercury is a highly toxic The sector has no specific established substance that possesses some unique chemical properties that occupational health and safety requirements There is however an effort to try and train the ASMs, but are hard to find anywhere else in nature. In Uganda, the most followed by the mineral rights holders with regard because of their informal nature, it is difficult to improve their prevalent use of mercury is in the Artisanal and Small scale Gold to employers and employees in the mining health and safety standards. Under the African, Caribbean and Mining (ASGM) sector. Its use still remains highly popular and industry. The mineral rights holders are required to Pacific (ACP-EU) project funded by UNDP, ASMs are being highly unregulated in the ASGM industry. comply with the Occupational Health and Safety identified and trained in appropriate technology, environment Act 2006. However, despite government efforts to management, and occupational health and safety standards. The National Environment Management Authority (NEMA) improve safety and health of all workers in the Formalisation of the ASMs has to be fast-tracked, if the ASMs concluded the compilation of the national mercury inventory as country through funding enforcement of OSH are to benefit from such programs. Working in an informal required by the Minamata Convention on mercury. Mercury, activities, limited impact has been registered due setting will inevitably make them less adoptable and trainable despite its uses, poses many health risks including; loss of to inadequate enforcement of the OSH Act of with in HSE and use of modern technology. peripheral vision, “pins and needles” feelings, usually in the 2006. hands, feet, and around the mouth, lack of coordination of

Fig 20: Map of Uganda showing the NDP II proposed Minerals & Requisite Infrastructure 3.2.8. Gender, Equity, Social Inclusion and Participation

Indicator Score: 37.5% - Partially addressed

Fig 21: Performance of the subsector under Key Result Areas in indicator 8

RESULTS

10http://collegenotester.com/plugins/candy/views/section/tree.php 42

• Whistle Blowing Mechanism.

Government and the responsible Ministry of Energy and Mineral Development /Directorate of Geological Surveys and Mines and other stakeholders need to work together need to address the following gaps:

14 Martin Jacan Gwokto Chief Administrative Officer 15 Production Officer Appendix 1: FGD Sites

Appendix 4: Focus Group Discussion Guide

neighbouring habitats and in some cases leading to the government had to incur a cost for restoration. This should Cap 153, should give NEMA the right to request the license holder SIAs should be consultative between mining a loss of biodiversity. Furthermore, some effluents be borne by the miners, in form of a security deposited in the to commission an independent third party to conduct an companies, host communities and other generated by mining activities contain large and environment protection fund. environmental audit to be submitted to NEMA for review in cases stakeholders. dangerous toxic substances such as cyanide and where NEMA has credible cause for concern that the license Companies should also identify Community heavy metals, which pause significant human Fig 15: An Abandoned Cyanide Plant in Amudat District holder may be non- compliant. The act currently does not stipulate Engagement Personnel to work as linkages with the health and ecological risks. The study also that an audit must be undertaken by an independent third party. community and act as conflict monitors within the discovered a number of abandoned mining sites Environmental audits are critical tools that allow the sector and mining areas to help identify and alert government and unrestored mining quarries as testament to the license holders to work together to continuously mitigate structures and companies about brewing conflict. unsatisfactory environmental performance of the environmental harm if the right processes are in place. Failure to address the causes of conflict negatively mining and minerals sub-sector state of affairs. affects business and destroys communities. (vi) Environmental awareness The National Environment Act Cap 153, Section 88 (vii) Promoting health and provides for the establishment of the environment creation (54.2%) protection fund. This fund supports in the NEMA is mandated to raise awareness on environmental matters safety practices in the mining replenishing the environment. Replenishing mine and share information with the public on matters relating to the industry (45.8%) sites and mine environments is one of the key impacts of mining activities. This has been however left in the In addition to wages and benefits that are universally factors that will ultimately protect the mine’s impact hands of CSOs and other interest groups to promote awareness in important in the mining and minerals industry, one on the environment. Simple solutions like the mining areas. The miners hardly know what to do, coupled with other significant issue is the occupational health and replenishing native soils and grasses, cleaning (v) Conducting of environmental low rates of supervision, puts the management of environment safety. Accident statistics show that that the industry issues in jeopardy. There is need for NEMA to come up with a clear excess waste, proper waste removal, site audits (37.5%) poses above-average risks to employees. strategy of awareness creation and promotion on environment Unprotected underground metalliferous mines were inspections and replanting trees and natural Section 22 (1) of the National Environmental Act, Cap 153 issues generally in the country and more specific in the mining reported to have the highest incidents of fatalities forestry can rejuvenate a long-term ecosystem provides for NEMA to commission an independent audit to areas. most of which are never reported by mine owners repair and sustain the environment for years verify the credibility of the annual environment audit conducted and artisanal miners for fear of shutdown of their beyond when the mine is no longer operating. The by the mineral rights holders. It was noted that NEMA rarely Dispute resolution mechanism is a requirement for every project mining operations. Underground gold mining in the entire reclamation process should include: exercises this mandate and when it’s done, mining companies developer. It forms part of the requirements in the certificates of Mubende region was reported to have the highest removing hazardous materials, reshaping land, rarely inform the authority on the action taken to mitigate the approval for all mining projects. Mineral rights holders are in the number of fatalities with an estimated 10 fatalities restoring topsoil, and planting native grasses, trees undesirable environment effects identified. This is because process of establishing mechanisms for addressing environmental per year followed by Tin mining in the Western or ground cover natural to the site. In cases where Section 108(3) of the Mining Act 2003 doesn’t provide NEMA and social grievances, disputes and conflicts arising from region with an estimated 7-8 fatalities on an annual the miner hasn’t replenished the environment, this with the power to conduct an independent audit, in case of exploration and mining activities. Disputes arise from a range of basis. Statistics here could not be verified because fund would be used to support this activity. credible concerns of non-compliance of the license holder. issues, including land, misunderstanding of the laws governing the victims’ families and the owners of the mines are Sometimes when NEMA conducts an independent audit, mining, environment degradation, and royalty sharing, among reluctant to disclose these fatalities for fear of Even though the fund receives funding from mining companies don’t provide feedback to NEMA on the others. imprisonment and also due to the illegal nature of disbursements from the Government; fees charged mitigation measures that were taken to handle the identified their activities, especially those in artisanal and under this Act; fines collected as a result of the undesirable environmental effects. breach of the provisions of this Act or any statutory Mining companies and government should set up alternative ways small-scale mining operations. of resolving disputes. Before project implementation, Social Impact instrument made under this Act, NEMA should exercise its powers provided in NEMA Act Cap 153 to prevail over the mining companies to ensure that they Assessments (SIAs) should be prepared and these will facilitate there is need to review the act such that the mining mitigate the identified undesirable effects and regularly report the identification of mechanisms to address peoples’ grievances to companies are able to deposit funds into the to the authority. prevent latent conflict hitting crisis levels. Regular reviews of the Environment Protection Fund as a security for SIAs should be conducted to help identify sources of conflict in decommissioning, restoration of derelict lands and orderly post-mine There is also need for the review of the Mineral Act 2003 so as places where mining is being considered. SIAs should identify the to clarify on NEMA’s powers to use the information presented in context, the drivers and possible social, political and environmental disclosure. In several cases, miners have the audit to require remedial action. The Act, like the NEMA Act, causes of conflict and investors be guided on how to operate in the abandoned mine sites without restoring them and context without exacerbating tensions. The process of preparing

Fig 16: A miner in Chepkararat (Amudat District) mining without Fig 17: A miner in Amudat using mercury to separate gold from gold dust. In some communities where mining is conducted, the members movements, impairment of speech, hearing, walking any protective gear highlighted several social and health concerns that require and muscle weakness. immediate attention such as; sexual exploitation of workers in mines; exploitation of the ASMs by buying minerals from them In a quest to curb the spread of mercury use, some cheaply; employee exploitation by the mining companies; failure to organisations like Environmental Women in Action provide protective gear and medical care to local miners and for Development (EWAD) is championing Africa’s employees; injuries on the mining sites; employing foreigners first certified Fairtrade gold producer, a mining group instead of giving the opportunity to locals; among others. The in Busia called Syanyonja Artisanal Miners’ Alliance community members also complained about the increasing social to produce gold using an entirely mercury free discord and the erosion of moral values in mining areas. This has process. This if made a national program and rolled been exacerbated by the increased prostitution, alcoholism, out over the mining areas in the country, would help HIV/Aids, sexual abuse of young girls and family breakdown as curb the use and effects of mercury in gold mining in causes of conflict from increased capital flowing into mining areas the country. Workers are also exposed to a number of health as a result emigration. Fig 18: A gold kacha in Busia used to eliminate mercury from the hazards due to hostile mining environments. gold mining process These include chronic occupational diseases due (viii) Regulating the use of hazardous Although Uganda’s economy has registered a number of to dust inhalation common in gold mining and achievements, various aspects of occupational safety and mining substances (45.8%) processing as well as in the stone quarrying health (OSH) have not been adequately addressed. sectors. Most of the mining workers interviewed Management of the OSH issues at workplaces continue to be NEMA developed the National environment (waste management) were found to be oblivious of the imminent danger left unattended to by different sectors of government and regulations to mitigate waste management in the mining industry. and exposure to diseases such as private sector. The mining sector isn’t immune to this situation Along with the Explosives Act Cap 298, the sector has a legal pneumoconiosis, silicosis and lung cancer. and hence the miners are found to work in environments that framework for the handling, transportation, storage and usage of Some mining activities also endanger the lives of are not palatable with humanity. This is attributed to a number hazardous chemicals and, explosives used in exploration, mining mining communities due air pollution, releases of reasons such as the lack of well trained and facilitated activities, and radioactive materials, tailings and toxic effluents toxic substances to water streams and food inspectors to fully inspect mining areas to and emissions resulting from such activities. chains. Unprotected access to abandoned and ensure application of OSH requirements, no sensitisation and sometimes even active pits also pose a safety risk trainings of miners on the required OSH standards, mining Uganda is also on course to ratifying the Minamata Convention on to communities and their livestock in some parts of work places aren’t registered and certified, lack of coordination Mercury. The Convention aims at protecting human health and the the country. between NEMA and MGLSD before approving of EIAs, among environment from anthropogenic emissions and releases of others. mercury and mercury compounds. Mercury is a highly toxic The sector has no specific established substance that possesses some unique chemical properties that occupational health and safety requirements There is however an effort to try and train the ASMs, but are hard to find anywhere else in nature. In Uganda, the most followed by the mineral rights holders with regard because of their informal nature, it is difficult to improve their prevalent use of mercury is in the Artisanal and Small scale Gold to employers and employees in the mining health and safety standards. Under the African, Caribbean and Mining (ASGM) sector. Its use still remains highly popular and industry. The mineral rights holders are required to Pacific (ACP-EU) project funded by UNDP, ASMs are being highly unregulated in the ASGM industry. comply with the Occupational Health and Safety identified and trained in appropriate technology, environment Act 2006. However, despite government efforts to management, and occupational health and safety standards. The National Environment Management Authority (NEMA) improve safety and health of all workers in the Formalisation of the ASMs has to be fast-tracked, if the ASMs concluded the compilation of the national mercury inventory as country through funding enforcement of OSH are to benefit from such programs. Working in an informal required by the Minamata Convention on mercury. Mercury, activities, limited impact has been registered due setting will inevitably make them less adoptable and trainable despite its uses, poses many health risks including; loss of to inadequate enforcement of the OSH Act of with in HSE and use of modern technology. peripheral vision, “pins and needles” feelings, usually in the 2006. hands, feet, and around the mouth, lack of coordination of

Fig 20: Map of Uganda showing the NDP II proposed Minerals & Requisite Infrastructure 3.2.8. Gender, Equity, Social Inclusion and Participation

Indicator Score: 37.5% - Partially addressed

Fig 21: Performance of the subsector under Key Result Areas in indicator 8

RESULTS

10http://collegenotester.com/plugins/candy/views/section/tree.php The 2nd Annual Mining & Mineral Subsector Scorecard 43

• Whistle Blowing Mechanism.

Government and the responsible Ministry of Energy and Mineral Development /Directorate of Geological Surveys and Mines and other stakeholders need to work together need to address the following gaps:

14 Martin Jacan Gwokto Chief Administrative Officer 15 Production Officer Appendix 1: FGD Sites

Appendix 4: Focus Group Discussion Guide

neighbouring habitats and in some cases leading to the government had to incur a cost for restoration. This should Cap 153, should give NEMA the right to request the license holder SIAs should be consultative between mining a loss of biodiversity. Furthermore, some effluents be borne by the miners, in form of a security deposited in the to commission an independent third party to conduct an companies, host communities and other generated by mining activities contain large and environment protection fund. environmental audit to be submitted to NEMA for review in cases stakeholders. dangerous toxic substances such as cyanide and where NEMA has credible cause for concern that the license Companies should also identify Community heavy metals, which pause significant human Fig 15: An Abandoned Cyanide Plant in Amudat District holder may be non- compliant. The act currently does not stipulate Engagement Personnel to work as linkages with the health and ecological risks. The study also that an audit must be undertaken by an independent third party. community and act as conflict monitors within the discovered a number of abandoned mining sites Environmental audits are critical tools that allow the sector and mining areas to help identify and alert government and unrestored mining quarries as testament to the license holders to work together to continuously mitigate structures and companies about brewing conflict. unsatisfactory environmental performance of the environmental harm if the right processes are in place. Failure to address the causes of conflict negatively mining and minerals sub-sector state of affairs. affects business and destroys communities. (vi) Environmental awareness The National Environment Act Cap 153, Section 88 (vii) Promoting health and provides for the establishment of the environment creation (54.2%) protection fund. This fund supports in the NEMA is mandated to raise awareness on environmental matters safety practices in the mining replenishing the environment. Replenishing mine and share information with the public on matters relating to the industry (45.8%) sites and mine environments is one of the key impacts of mining activities. This has been however left in the In addition to wages and benefits that are universally factors that will ultimately protect the mine’s impact hands of CSOs and other interest groups to promote awareness in important in the mining and minerals industry, one on the environment. Simple solutions like the mining areas. The miners hardly know what to do, coupled with other significant issue is the occupational health and replenishing native soils and grasses, cleaning (v) Conducting of environmental low rates of supervision, puts the management of environment safety. Accident statistics show that that the industry issues in jeopardy. There is need for NEMA to come up with a clear excess waste, proper waste removal, site audits (37.5%) poses above-average risks to employees. strategy of awareness creation and promotion on environment Unprotected underground metalliferous mines were inspections and replanting trees and natural Section 22 (1) of the National Environmental Act, Cap 153 issues generally in the country and more specific in the mining reported to have the highest incidents of fatalities forestry can rejuvenate a long-term ecosystem provides for NEMA to commission an independent audit to areas. most of which are never reported by mine owners repair and sustain the environment for years verify the credibility of the annual environment audit conducted and artisanal miners for fear of shutdown of their beyond when the mine is no longer operating. The by the mineral rights holders. It was noted that NEMA rarely Dispute resolution mechanism is a requirement for every project mining operations. Underground gold mining in the entire reclamation process should include: exercises this mandate and when it’s done, mining companies developer. It forms part of the requirements in the certificates of Mubende region was reported to have the highest removing hazardous materials, reshaping land, rarely inform the authority on the action taken to mitigate the approval for all mining projects. Mineral rights holders are in the number of fatalities with an estimated 10 fatalities restoring topsoil, and planting native grasses, trees undesirable environment effects identified. This is because process of establishing mechanisms for addressing environmental per year followed by Tin mining in the Western or ground cover natural to the site. In cases where Section 108(3) of the Mining Act 2003 doesn’t provide NEMA and social grievances, disputes and conflicts arising from region with an estimated 7-8 fatalities on an annual the miner hasn’t replenished the environment, this with the power to conduct an independent audit, in case of exploration and mining activities. Disputes arise from a range of basis. Statistics here could not be verified because fund would be used to support this activity. credible concerns of non-compliance of the license holder. issues, including land, misunderstanding of the laws governing the victims’ families and the owners of the mines are Sometimes when NEMA conducts an independent audit, mining, environment degradation, and royalty sharing, among reluctant to disclose these fatalities for fear of Even though the fund receives funding from mining companies don’t provide feedback to NEMA on the others. imprisonment and also due to the illegal nature of disbursements from the Government; fees charged mitigation measures that were taken to handle the identified their activities, especially those in artisanal and under this Act; fines collected as a result of the undesirable environmental effects. breach of the provisions of this Act or any statutory Mining companies and government should set up alternative ways small-scale mining operations. of resolving disputes. Before project implementation, Social Impact instrument made under this Act, NEMA should exercise its powers provided in NEMA Act Cap 153 to prevail over the mining companies to ensure that they Assessments (SIAs) should be prepared and these will facilitate there is need to review the act such that the mining mitigate the identified undesirable effects and regularly report the identification of mechanisms to address peoples’ grievances to companies are able to deposit funds into the to the authority. prevent latent conflict hitting crisis levels. Regular reviews of the Environment Protection Fund as a security for SIAs should be conducted to help identify sources of conflict in decommissioning, restoration of derelict lands and orderly post-mine There is also need for the review of the Mineral Act 2003 so as places where mining is being considered. SIAs should identify the to clarify on NEMA’s powers to use the information presented in context, the drivers and possible social, political and environmental disclosure. In several cases, miners have the audit to require remedial action. The Act, like the NEMA Act, causes of conflict and investors be guided on how to operate in the abandoned mine sites without restoring them and context without exacerbating tensions. The process of preparing

Fig 16: A miner in Chepkararat (Amudat District) mining without Fig 17: A miner in Amudat using mercury to separate gold from gold dust. In some communities where mining is conducted, the members movements, impairment of speech, hearing, walking any protective gear highlighted several social and health concerns that require and muscle weakness. immediate attention such as; sexual exploitation of workers in mines; exploitation of the ASMs by buying minerals from them In a quest to curb the spread of mercury use, some cheaply; employee exploitation by the mining companies; failure to organisations like Environmental Women in Action provide protective gear and medical care to local miners and for Development (EWAD) is championing Africa’s employees; injuries on the mining sites; employing foreigners first certified Fairtrade gold producer, a mining group instead of giving the opportunity to locals; among others. The in Busia called Syanyonja Artisanal Miners’ Alliance community members also complained about the increasing social to produce gold using an entirely mercury free discord and the erosion of moral values in mining areas. This has process. This if made a national program and rolled been exacerbated by the increased prostitution, alcoholism, out over the mining areas in the country, would help HIV/Aids, sexual abuse of young girls and family breakdown as curb the use and effects of mercury in gold mining in causes of conflict from increased capital flowing into mining areas the country. Workers are also exposed to a number of health as a result emigration. Fig 18: A gold kacha in Busia used to eliminate mercury from the hazards due to hostile mining environments. gold mining process These include chronic occupational diseases due (viii) Regulating the use of hazardous Although Uganda’s economy has registered a number of to dust inhalation common in gold mining and achievements, various aspects of occupational safety and mining substances (45.8%) processing as well as in the stone quarrying health (OSH) have not been adequately addressed. sectors. Most of the mining workers interviewed Management of the OSH issues at workplaces continue to be NEMA developed the National environment (waste management) were found to be oblivious of the imminent danger left unattended to by different sectors of government and regulations to mitigate waste management in the mining industry. and exposure to diseases such as private sector. The mining sector isn’t immune to this situation Along with the Explosives Act Cap 298, the sector has a legal pneumoconiosis, silicosis and lung cancer. and hence the miners are found to work in environments that framework for the handling, transportation, storage and usage of Some mining activities also endanger the lives of are not palatable with humanity. This is attributed to a number hazardous chemicals and, explosives used in exploration, mining mining communities due air pollution, releases of reasons such as the lack of well trained and facilitated activities, and radioactive materials, tailings and toxic effluents toxic substances to water streams and food inspectors to fully inspect mining areas to and emissions resulting from such activities. chains. Unprotected access to abandoned and ensure application of OSH requirements, no sensitisation and sometimes even active pits also pose a safety risk trainings of miners on the required OSH standards, mining Uganda is also on course to ratifying the Minamata Convention on to communities and their livestock in some parts of work places aren’t registered and certified, lack of coordination Mercury. The Convention aims at protecting human health and the the country. between NEMA and MGLSD before approving of EIAs, among environment from anthropogenic emissions and releases of others. mercury and mercury compounds. Mercury is a highly toxic The sector has no specific established substance that possesses some unique chemical properties that occupational health and safety requirements There is however an effort to try and train the ASMs, but are hard to find anywhere else in nature. In Uganda, the most followed by the mineral rights holders with regard because of their informal nature, it is difficult to improve their prevalent use of mercury is in the Artisanal and Small scale Gold to employers and employees in the mining health and safety standards. Under the African, Caribbean and Mining (ASGM) sector. Its use still remains highly popular and industry. The mineral rights holders are required to Pacific (ACP-EU) project funded by UNDP, ASMs are being highly unregulated in the ASGM industry. comply with the Occupational Health and Safety identified and trained in appropriate technology, environment Act 2006. However, despite government efforts to management, and occupational health and safety standards. The National Environment Management Authority (NEMA) improve safety and health of all workers in the Formalisation of the ASMs has to be fast-tracked, if the ASMs concluded the compilation of the national mercury inventory as country through funding enforcement of OSH are to benefit from such programs. Working in an informal required by the Minamata Convention on mercury. Mercury, activities, limited impact has been registered due setting will inevitably make them less adoptable and trainable despite its uses, poses many health risks including; loss of to inadequate enforcement of the OSH Act of with in HSE and use of modern technology. peripheral vision, “pins and needles” feelings, usually in the 2006. hands, feet, and around the mouth, lack of coordination of

Fig 20: Map of Uganda showing the NDP II proposed Minerals & Requisite Infrastructure 3.2.8. Gender, Equity, Social Inclusion and Participation

Indicator Score: 37.5% - Partially addressed

Fig 21: Performance of the subsector under Key Result Areas in indicator 8

RESULTS

Value Addition, Quality Control and Marketing Through NDP, the government proposed various Access to financing by the ASMs in Uganda has also been a Mineral Beneficiation interventions in the minerals sub-sector that would stumbling block to the development of the mining industry in the have significant impact on the economy, which country. This is because of the informal nature of the ASMs include: activities.

• Whistle Blowing Mechanism.

Government and the responsible Ministry of Energy and Mineral Development /Directorate of Geological Surveys and Mines and other stakeholders need to work together need to address the following gaps:

14 Martin Jacan Gwokto Chief Administrative Officer 15 Production Officer Appendix 1: FGD Sites

Appendix 4: Focus Group Discussion Guide

neighbouring habitats and in some cases leading to the government had to incur a cost for restoration. This should Cap 153, should give NEMA the right to request the license holder SIAs should be consultative between mining a loss of biodiversity. Furthermore, some effluents be borne by the miners, in form of a security deposited in the to commission an independent third party to conduct an companies, host communities and other generated by mining activities contain large and environment protection fund. environmental audit to be submitted to NEMA for review in cases stakeholders. dangerous toxic substances such as cyanide and where NEMA has credible cause for concern that the license Companies should also identify Community heavy metals, which pause significant human Fig 15: An Abandoned Cyanide Plant in Amudat District holder may be non- compliant. The act currently does not stipulate Engagement Personnel to work as linkages with the health and ecological risks. The study also that an audit must be undertaken by an independent third party. community and act as conflict monitors within the discovered a number of abandoned mining sites Environmental audits are critical tools that allow the sector and mining areas to help identify and alert government and unrestored mining quarries as testament to the license holders to work together to continuously mitigate structures and companies about brewing conflict. unsatisfactory environmental performance of the environmental harm if the right processes are in place. Failure to address the causes of conflict negatively mining and minerals sub-sector state of affairs. affects business and destroys communities. (vi) Environmental awareness The National Environment Act Cap 153, Section 88 (vii) Promoting health and provides for the establishment of the environment creation (54.2%) protection fund. This fund supports in the NEMA is mandated to raise awareness on environmental matters safety practices in the mining replenishing the environment. Replenishing mine and share information with the public on matters relating to the industry (45.8%) sites and mine environments is one of the key impacts of mining activities. This has been however left in the In addition to wages and benefits that are universally factors that will ultimately protect the mine’s impact hands of CSOs and other interest groups to promote awareness in important in the mining and minerals industry, one on the environment. Simple solutions like the mining areas. The miners hardly know what to do, coupled with other significant issue is the occupational health and replenishing native soils and grasses, cleaning (v) Conducting of environmental low rates of supervision, puts the management of environment safety. Accident statistics show that that the industry issues in jeopardy. There is need for NEMA to come up with a clear excess waste, proper waste removal, site audits (37.5%) poses above-average risks to employees. strategy of awareness creation and promotion on environment Unprotected underground metalliferous mines were inspections and replanting trees and natural Section 22 (1) of the National Environmental Act, Cap 153 issues generally in the country and more specific in the mining reported to have the highest incidents of fatalities forestry can rejuvenate a long-term ecosystem provides for NEMA to commission an independent audit to areas. most of which are never reported by mine owners repair and sustain the environment for years verify the credibility of the annual environment audit conducted and artisanal miners for fear of shutdown of their beyond when the mine is no longer operating. The by the mineral rights holders. It was noted that NEMA rarely Dispute resolution mechanism is a requirement for every project mining operations. Underground gold mining in the entire reclamation process should include: exercises this mandate and when it’s done, mining companies developer. It forms part of the requirements in the certificates of Mubende region was reported to have the highest removing hazardous materials, reshaping land, rarely inform the authority on the action taken to mitigate the approval for all mining projects. Mineral rights holders are in the number of fatalities with an estimated 10 fatalities restoring topsoil, and planting native grasses, trees undesirable environment effects identified. This is because process of establishing mechanisms for addressing environmental per year followed by Tin mining in the Western or ground cover natural to the site. In cases where Section 108(3) of the Mining Act 2003 doesn’t provide NEMA and social grievances, disputes and conflicts arising from region with an estimated 7-8 fatalities on an annual the miner hasn’t replenished the environment, this with the power to conduct an independent audit, in case of exploration and mining activities. Disputes arise from a range of basis. Statistics here could not be verified because fund would be used to support this activity. credible concerns of non-compliance of the license holder. issues, including land, misunderstanding of the laws governing the victims’ families and the owners of the mines are Sometimes when NEMA conducts an independent audit, mining, environment degradation, and royalty sharing, among reluctant to disclose these fatalities for fear of Even though the fund receives funding from mining companies don’t provide feedback to NEMA on the others. imprisonment and also due to the illegal nature of disbursements from the Government; fees charged mitigation measures that were taken to handle the identified their activities, especially those in artisanal and under this Act; fines collected as a result of the undesirable environmental effects. breach of the provisions of this Act or any statutory Mining companies and government should set up alternative ways small-scale mining operations. of resolving disputes. Before project implementation, Social Impact instrument made under this Act, NEMA should exercise its powers provided in NEMA Act Cap 153 to prevail over the mining companies to ensure that they Assessments (SIAs) should be prepared and these will facilitate there is need to review the act such that the mining mitigate the identified undesirable effects and regularly report the identification of mechanisms to address peoples’ grievances to companies are able to deposit funds into the to the authority. prevent latent conflict hitting crisis levels. Regular reviews of the Environment Protection Fund as a security for SIAs should be conducted to help identify sources of conflict in decommissioning, restoration of derelict lands and orderly post-mine There is also need for the review of the Mineral Act 2003 so as places where mining is being considered. SIAs should identify the to clarify on NEMA’s powers to use the information presented in context, the drivers and possible social, political and environmental disclosure. In several cases, miners have the audit to require remedial action. The Act, like the NEMA Act, causes of conflict and investors be guided on how to operate in the abandoned mine sites without restoring them and context without exacerbating tensions. The process of preparing

Fig 16: A miner in Chepkararat (Amudat District) mining without Fig 17: A miner in Amudat using mercury to separate gold from gold dust. In some communities where mining is conducted, the members movements, impairment of speech, hearing, walking any protective gear highlighted several social and health concerns that require and muscle weakness. immediate attention such as; sexual exploitation of workers in mines; exploitation of the ASMs by buying minerals from them In a quest to curb the spread of mercury use, some cheaply; employee exploitation by the mining companies; failure to organisations like Environmental Women in Action provide protective gear and medical care to local miners and for Development (EWAD) is championing Africa’s employees; injuries on the mining sites; employing foreigners first certified Fairtrade gold producer, a mining group instead of giving the opportunity to locals; among others. The in Busia called Syanyonja Artisanal Miners’ Alliance community members also complained about the increasing social to produce gold using an entirely mercury free discord and the erosion of moral values in mining areas. This has process. This if made a national program and rolled been exacerbated by the increased prostitution, alcoholism, out over the mining areas in the country, would help HIV/Aids, sexual abuse of young girls and family breakdown as curb the use and effects of mercury in gold mining in causes of conflict from increased capital flowing into mining areas the country. Workers are also exposed to a number of health as a result emigration. Fig 18: A gold kacha in Busia used to eliminate mercury from the hazards due to hostile mining environments. gold mining process These include chronic occupational diseases due (viii) Regulating the use of hazardous Although Uganda’s economy has registered a number of to dust inhalation common in gold mining and achievements, various aspects of occupational safety and mining substances (45.8%) processing as well as in the stone quarrying health (OSH) have not been adequately addressed. sectors. Most of the mining workers interviewed Management of the OSH issues at workplaces continue to be NEMA developed the National environment (waste management) were found to be oblivious of the imminent danger left unattended to by different sectors of government and regulations to mitigate waste management in the mining industry. and exposure to diseases such as private sector. The mining sector isn’t immune to this situation Along with the Explosives Act Cap 298, the sector has a legal pneumoconiosis, silicosis and lung cancer. and hence the miners are found to work in environments that framework for the handling, transportation, storage and usage of Some mining activities also endanger the lives of are not palatable with humanity. This is attributed to a number hazardous chemicals and, explosives used in exploration, mining mining communities due air pollution, releases of reasons such as the lack of well trained and facilitated activities, and radioactive materials, tailings and toxic effluents toxic substances to water streams and food inspectors to fully inspect mining areas to and emissions resulting from such activities. chains. Unprotected access to abandoned and ensure application of OSH requirements, no sensitisation and sometimes even active pits also pose a safety risk trainings of miners on the required OSH standards, mining Uganda is also on course to ratifying the Minamata Convention on to communities and their livestock in some parts of work places aren’t registered and certified, lack of coordination Mercury. The Convention aims at protecting human health and the the country. between NEMA and MGLSD before approving of EIAs, among environment from anthropogenic emissions and releases of others. mercury and mercury compounds. Mercury is a highly toxic The sector has no specific established substance that possesses some unique chemical properties that occupational health and safety requirements There is however an effort to try and train the ASMs, but are hard to find anywhere else in nature. In Uganda, the most followed by the mineral rights holders with regard because of their informal nature, it is difficult to improve their prevalent use of mercury is in the Artisanal and Small scale Gold to employers and employees in the mining health and safety standards. Under the African, Caribbean and Mining (ASGM) sector. Its use still remains highly popular and industry. The mineral rights holders are required to Pacific (ACP-EU) project funded by UNDP, ASMs are being highly unregulated in the ASGM industry. comply with the Occupational Health and Safety identified and trained in appropriate technology, environment Act 2006. However, despite government efforts to management, and occupational health and safety standards. The National Environment Management Authority (NEMA) improve safety and health of all workers in the Formalisation of the ASMs has to be fast-tracked, if the ASMs concluded the compilation of the national mercury inventory as country through funding enforcement of OSH are to benefit from such programs. Working in an informal required by the Minamata Convention on mercury. Mercury, activities, limited impact has been registered due setting will inevitably make them less adoptable and trainable despite its uses, poses many health risks including; loss of to inadequate enforcement of the OSH Act of with in HSE and use of modern technology. peripheral vision, “pins and needles” feelings, usually in the 2006. hands, feet, and around the mouth, lack of coordination of

Fig 20: Map of Uganda showing the NDP II proposed Minerals & Requisite Infrastructure 3.2.8. Gender, Equity, Social Inclusion and Participation

Indicator Score: 37.5% - Partially addressed

Fig 21: Performance of the subsector under Key Result Areas in indicator 8

RESULTS

The 2nd Annual Mining & Mineral Subsector Scorecard 45

• Whistle Blowing Mechanism.

Government and the responsible Ministry of Energy and Mineral Development /Directorate of Geological Surveys and Mines and other stakeholders need to work together need to address the following gaps:

14 Martin Jacan Gwokto Chief Administrative Officer 15 Production Officer Appendix 1: FGD Sites

Appendix 4: Focus Group Discussion Guide

neighbouring habitats and in some cases leading to the government had to incur a cost for restoration. This should Cap 153, should give NEMA the right to request the license holder SIAs should be consultative between mining a loss of biodiversity. Furthermore, some effluents be borne by the miners, in form of a security deposited in the to commission an independent third party to conduct an companies, host communities and other generated by mining activities contain large and environment protection fund. environmental audit to be submitted to NEMA for review in cases stakeholders. dangerous toxic substances such as cyanide and where NEMA has credible cause for concern that the license Companies should also identify Community heavy metals, which pause significant human Fig 15: An Abandoned Cyanide Plant in Amudat District holder may be non- compliant. The act currently does not stipulate Engagement Personnel to work as linkages with the health and ecological risks. The study also that an audit must be undertaken by an independent third party. community and act as conflict monitors within the discovered a number of abandoned mining sites Environmental audits are critical tools that allow the sector and mining areas to help identify and alert government and unrestored mining quarries as testament to the license holders to work together to continuously mitigate structures and companies about brewing conflict. unsatisfactory environmental performance of the environmental harm if the right processes are in place. Failure to address the causes of conflict negatively mining and minerals sub-sector state of affairs. affects business and destroys communities. (vi) Environmental awareness The National Environment Act Cap 153, Section 88 (vii) Promoting health and provides for the establishment of the environment creation (54.2%) protection fund. This fund supports in the NEMA is mandated to raise awareness on environmental matters safety practices in the mining replenishing the environment. Replenishing mine and share information with the public on matters relating to the industry (45.8%) sites and mine environments is one of the key impacts of mining activities. This has been however left in the In addition to wages and benefits that are universally factors that will ultimately protect the mine’s impact hands of CSOs and other interest groups to promote awareness in important in the mining and minerals industry, one on the environment. Simple solutions like the mining areas. The miners hardly know what to do, coupled with other significant issue is the occupational health and replenishing native soils and grasses, cleaning (v) Conducting of environmental low rates of supervision, puts the management of environment safety. Accident statistics show that that the industry issues in jeopardy. There is need for NEMA to come up with a clear excess waste, proper waste removal, site audits (37.5%) poses above-average risks to employees. strategy of awareness creation and promotion on environment Unprotected underground metalliferous mines were inspections and replanting trees and natural Section 22 (1) of the National Environmental Act, Cap 153 issues generally in the country and more specific in the mining reported to have the highest incidents of fatalities forestry can rejuvenate a long-term ecosystem provides for NEMA to commission an independent audit to areas. most of which are never reported by mine owners repair and sustain the environment for years verify the credibility of the annual environment audit conducted and artisanal miners for fear of shutdown of their beyond when the mine is no longer operating. The by the mineral rights holders. It was noted that NEMA rarely Dispute resolution mechanism is a requirement for every project mining operations. Underground gold mining in the entire reclamation process should include: exercises this mandate and when it’s done, mining companies developer. It forms part of the requirements in the certificates of Mubende region was reported to have the highest removing hazardous materials, reshaping land, rarely inform the authority on the action taken to mitigate the approval for all mining projects. Mineral rights holders are in the number of fatalities with an estimated 10 fatalities restoring topsoil, and planting native grasses, trees undesirable environment effects identified. This is because process of establishing mechanisms for addressing environmental per year followed by Tin mining in the Western or ground cover natural to the site. In cases where Section 108(3) of the Mining Act 2003 doesn’t provide NEMA and social grievances, disputes and conflicts arising from region with an estimated 7-8 fatalities on an annual the miner hasn’t replenished the environment, this with the power to conduct an independent audit, in case of exploration and mining activities. Disputes arise from a range of basis. Statistics here could not be verified because fund would be used to support this activity. credible concerns of non-compliance of the license holder. issues, including land, misunderstanding of the laws governing the victims’ families and the owners of the mines are Sometimes when NEMA conducts an independent audit, mining, environment degradation, and royalty sharing, among reluctant to disclose these fatalities for fear of Even though the fund receives funding from mining companies don’t provide feedback to NEMA on the others. imprisonment and also due to the illegal nature of disbursements from the Government; fees charged mitigation measures that were taken to handle the identified their activities, especially those in artisanal and under this Act; fines collected as a result of the undesirable environmental effects. breach of the provisions of this Act or any statutory Mining companies and government should set up alternative ways small-scale mining operations. of resolving disputes. Before project implementation, Social Impact instrument made under this Act, NEMA should exercise its powers provided in NEMA Act Cap 153 to prevail over the mining companies to ensure that they Assessments (SIAs) should be prepared and these will facilitate there is need to review the act such that the mining mitigate the identified undesirable effects and regularly report the identification of mechanisms to address peoples’ grievances to companies are able to deposit funds into the to the authority. prevent latent conflict hitting crisis levels. Regular reviews of the Environment Protection Fund as a security for SIAs should be conducted to help identify sources of conflict in decommissioning, restoration of derelict lands and orderly post-mine There is also need for the review of the Mineral Act 2003 so as places where mining is being considered. SIAs should identify the to clarify on NEMA’s powers to use the information presented in context, the drivers and possible social, political and environmental disclosure. In several cases, miners have the audit to require remedial action. The Act, like the NEMA Act, causes of conflict and investors be guided on how to operate in the abandoned mine sites without restoring them and context without exacerbating tensions. The process of preparing

Fig 16: A miner in Chepkararat (Amudat District) mining without Fig 17: A miner in Amudat using mercury to separate gold from gold dust. In some communities where mining is conducted, the members movements, impairment of speech, hearing, walking any protective gear highlighted several social and health concerns that require and muscle weakness. immediate attention such as; sexual exploitation of workers in mines; exploitation of the ASMs by buying minerals from them In a quest to curb the spread of mercury use, some cheaply; employee exploitation by the mining companies; failure to organisations like Environmental Women in Action provide protective gear and medical care to local miners and for Development (EWAD) is championing Africa’s employees; injuries on the mining sites; employing foreigners first certified Fairtrade gold producer, a mining group instead of giving the opportunity to locals; among others. The in Busia called Syanyonja Artisanal Miners’ Alliance community members also complained about the increasing social to produce gold using an entirely mercury free discord and the erosion of moral values in mining areas. This has process. This if made a national program and rolled been exacerbated by the increased prostitution, alcoholism, out over the mining areas in the country, would help HIV/Aids, sexual abuse of young girls and family breakdown as curb the use and effects of mercury in gold mining in causes of conflict from increased capital flowing into mining areas the country. Workers are also exposed to a number of health as a result emigration. Fig 18: A gold kacha in Busia used to eliminate mercury from the hazards due to hostile mining environments. gold mining process These include chronic occupational diseases due (viii) Regulating the use of hazardous Although Uganda’s economy has registered a number of to dust inhalation common in gold mining and achievements, various aspects of occupational safety and mining substances (45.8%) processing as well as in the stone quarrying health (OSH) have not been adequately addressed. sectors. Most of the mining workers interviewed Management of the OSH issues at workplaces continue to be NEMA developed the National environment (waste management) were found to be oblivious of the imminent danger left unattended to by different sectors of government and regulations to mitigate waste management in the mining industry. and exposure to diseases such as private sector. The mining sector isn’t immune to this situation Along with the Explosives Act Cap 298, the sector has a legal pneumoconiosis, silicosis and lung cancer. and hence the miners are found to work in environments that framework for the handling, transportation, storage and usage of Some mining activities also endanger the lives of are not palatable with humanity. This is attributed to a number hazardous chemicals and, explosives used in exploration, mining mining communities due air pollution, releases of reasons such as the lack of well trained and facilitated activities, and radioactive materials, tailings and toxic effluents toxic substances to water streams and food inspectors to fully inspect mining areas to and emissions resulting from such activities. chains. Unprotected access to abandoned and ensure application of OSH requirements, no sensitisation and sometimes even active pits also pose a safety risk trainings of miners on the required OSH standards, mining Uganda is also on course to ratifying the Minamata Convention on to communities and their livestock in some parts of work places aren’t registered and certified, lack of coordination Mercury. The Convention aims at protecting human health and the the country. between NEMA and MGLSD before approving of EIAs, among environment from anthropogenic emissions and releases of others. mercury and mercury compounds. Mercury is a highly toxic The sector has no specific established substance that possesses some unique chemical properties that occupational health and safety requirements There is however an effort to try and train the ASMs, but are hard to find anywhere else in nature. In Uganda, the most followed by the mineral rights holders with regard because of their informal nature, it is difficult to improve their prevalent use of mercury is in the Artisanal and Small scale Gold to employers and employees in the mining health and safety standards. Under the African, Caribbean and Mining (ASGM) sector. Its use still remains highly popular and industry. The mineral rights holders are required to Pacific (ACP-EU) project funded by UNDP, ASMs are being highly unregulated in the ASGM industry. comply with the Occupational Health and Safety identified and trained in appropriate technology, environment Act 2006. However, despite government efforts to management, and occupational health and safety standards. The National Environment Management Authority (NEMA) improve safety and health of all workers in the Formalisation of the ASMs has to be fast-tracked, if the ASMs concluded the compilation of the national mercury inventory as country through funding enforcement of OSH are to benefit from such programs. Working in an informal required by the Minamata Convention on mercury. Mercury, activities, limited impact has been registered due setting will inevitably make them less adoptable and trainable despite its uses, poses many health risks including; loss of to inadequate enforcement of the OSH Act of with in HSE and use of modern technology. peripheral vision, “pins and needles” feelings, usually in the 2006. hands, feet, and around the mouth, lack of coordination of

Fig 20: Map of Uganda showing the NDP II proposed Minerals & Requisite Infrastructure 3.2.8. Gender, Equity, Social Inclusion and Participation

Indicator Score: 37.5% - Partially addressed

Fig 21: Performance of the subsector under Key Result Areas in indicator 8

RESULTS

(i) Ratification of The subsector is required to implement the ICGLR declaration. Recommendation International Mining Treaties The process of domesticating the template and the statutory (75%) instruments is being finalized; much as it has been very slow. The government should provide finances to equip and build Uganda should move to entrench its desired policy The Bill to domesticate the ICGRL protocol is part of omnibus Uganda is constantly working and collaborating capacity of mineral laboratories for value addition. This should on value addition to be more inside looking as well bill on security and associated protocols that carter for mineral with other countries. There are various regional and involve providing for repairing and servicing the major as focused on exploiting the East African and certification. It was passed by Parliament on 17/5/2017 and international treaties and initiatives related to awaits ascent before implementation commences. The equipment, i.e., Atomic Absorption Spectrometer (AAS) and Sub-Saharan markets for its commodities as well as mining that are ratified and customised into the government should thus give it priority to continue providing X-Ray Fluorescence (XRF) spectrometer, which developed faults negotiating trade treaties with neighbouring transparency to the mining industry on Uganda. Ugandan legal framework. These, conventions, due to power surges. countries to remove such barriers if any currently agreements, protocols or other arrangements that exist. support good governance in the mineral industry, (ii) Cooperation with other including mineral traceability, certification and neighbouring countries (41.7%) reporting standards that the country adheres to. As a way of learning from each other and mitigating the illegal 3.2.10. Regional and International Initiatives These include the International Conference on the movement of minerals across borders, the government shares Great Lakes Regions (ICGLR), among others. The mining industry market information with regional and government is commended for participating in the international governments and bodies. There is also Indicator Score: development and review for harmonization of the co-operation in the development of human resource through legislation and technical standards in the mineral exchange of geoscience information, technology and sharing 51.4% - Partially Addressed and related sectors at regional and international facilities and expertise with regional and international levels. governments and bodies. In the region, this is mainly done with The subsector scored 51.4% under this indicator implying that the subsector has mostly addressed GDC and Kenya Geothermal Energy, where Kenyans come to the areas assessed. The areas assessed included the ratification of international mining treaties, In 2010, ICGLR Lusaka’s Declaration approved six Uganda to learn and also Ugandans shall be going to Kenya in cooperation with other neighbouring countries, and membership to other international bodies. Below tools as part of the Regional Initiative to mitigate the 2018 to share knowledge and learn from each other. However, is how the subsector scored on each of these areas assessed under this indicator; Illegal Exploitation of Natural Resources (RINR) in there are no arrangements for cross-border mineral the Great Lakes Region. The six tools developed to exploitation, development, production and processing; though curb illegal exploitation included: South Sudan has shown interest in doing it. Fig 24: Performance of the subsector under Key Result Areas in indicator 10 • Regional Certification Mechanism (iii) Membership to International (RCM), Mining Bodies (37.5%) • Harmonization of National Legislation, The subsector subscribes and maintains membership with Membership to International Mining Bodies regional and international bodies relevant to the mineral Cooperation with neighbouring states • Regional Database on mineral flows, industry development. The subsector is a member to the Ratification of International Mining Treaties Organization of African Geological Surveys. However, there • Formalization of Artisanal and are a number of existing bodies which sector players can Small Scale Mining, subscribe in order to learn best practices as opposed to working in isolation. • Extractive Industry Transparency Initiative (EITI),

• Whistle Blowing Mechanism.

RESULTS

11National Development Plan (NDP-II 2015/16- 2019/20) Pge.134

Government and the responsible Ministry of Energy and Mineral Development /Directorate of Geological Surveys and Mines and other stakeholders need to work together need to address the following gaps:

14 Martin Jacan Gwokto Chief Administrative Officer 15 Production Officer Appendix 1: FGD Sites

Appendix 4: Focus Group Discussion Guide

neighbouring habitats and in some cases leading to the government had to incur a cost for restoration. This should Cap 153, should give NEMA the right to request the license holder SIAs should be consultative between mining a loss of biodiversity. Furthermore, some effluents be borne by the miners, in form of a security deposited in the to commission an independent third party to conduct an companies, host communities and other generated by mining activities contain large and environment protection fund. environmental audit to be submitted to NEMA for review in cases stakeholders. dangerous toxic substances such as cyanide and where NEMA has credible cause for concern that the license Companies should also identify Community heavy metals, which pause significant human Fig 15: An Abandoned Cyanide Plant in Amudat District holder may be non- compliant. The act currently does not stipulate Engagement Personnel to work as linkages with the health and ecological risks. The study also that an audit must be undertaken by an independent third party. community and act as conflict monitors within the discovered a number of abandoned mining sites Environmental audits are critical tools that allow the sector and mining areas to help identify and alert government and unrestored mining quarries as testament to the license holders to work together to continuously mitigate structures and companies about brewing conflict. unsatisfactory environmental performance of the environmental harm if the right processes are in place. Failure to address the causes of conflict negatively mining and minerals sub-sector state of affairs. affects business and destroys communities. (vi) Environmental awareness The National Environment Act Cap 153, Section 88 (vii) Promoting health and provides for the establishment of the environment creation (54.2%) protection fund. This fund supports in the NEMA is mandated to raise awareness on environmental matters safety practices in the mining replenishing the environment. Replenishing mine and share information with the public on matters relating to the industry (45.8%) sites and mine environments is one of the key impacts of mining activities. This has been however left in the In addition to wages and benefits that are universally factors that will ultimately protect the mine’s impact hands of CSOs and other interest groups to promote awareness in important in the mining and minerals industry, one on the environment. Simple solutions like the mining areas. The miners hardly know what to do, coupled with other significant issue is the occupational health and replenishing native soils and grasses, cleaning (v) Conducting of environmental low rates of supervision, puts the management of environment safety. Accident statistics show that that the industry issues in jeopardy. There is need for NEMA to come up with a clear excess waste, proper waste removal, site audits (37.5%) poses above-average risks to employees. strategy of awareness creation and promotion on environment Unprotected underground metalliferous mines were inspections and replanting trees and natural Section 22 (1) of the National Environmental Act, Cap 153 issues generally in the country and more specific in the mining reported to have the highest incidents of fatalities forestry can rejuvenate a long-term ecosystem provides for NEMA to commission an independent audit to areas. most of which are never reported by mine owners repair and sustain the environment for years verify the credibility of the annual environment audit conducted and artisanal miners for fear of shutdown of their beyond when the mine is no longer operating. The by the mineral rights holders. It was noted that NEMA rarely Dispute resolution mechanism is a requirement for every project mining operations. Underground gold mining in the entire reclamation process should include: exercises this mandate and when it’s done, mining companies developer. It forms part of the requirements in the certificates of Mubende region was reported to have the highest removing hazardous materials, reshaping land, rarely inform the authority on the action taken to mitigate the approval for all mining projects. Mineral rights holders are in the number of fatalities with an estimated 10 fatalities restoring topsoil, and planting native grasses, trees undesirable environment effects identified. This is because process of establishing mechanisms for addressing environmental per year followed by Tin mining in the Western or ground cover natural to the site. In cases where Section 108(3) of the Mining Act 2003 doesn’t provide NEMA and social grievances, disputes and conflicts arising from region with an estimated 7-8 fatalities on an annual the miner hasn’t replenished the environment, this with the power to conduct an independent audit, in case of exploration and mining activities. Disputes arise from a range of basis. Statistics here could not be verified because fund would be used to support this activity. credible concerns of non-compliance of the license holder. issues, including land, misunderstanding of the laws governing the victims’ families and the owners of the mines are Sometimes when NEMA conducts an independent audit, mining, environment degradation, and royalty sharing, among reluctant to disclose these fatalities for fear of Even though the fund receives funding from mining companies don’t provide feedback to NEMA on the others. imprisonment and also due to the illegal nature of disbursements from the Government; fees charged mitigation measures that were taken to handle the identified their activities, especially those in artisanal and under this Act; fines collected as a result of the undesirable environmental effects. breach of the provisions of this Act or any statutory Mining companies and government should set up alternative ways small-scale mining operations. of resolving disputes. Before project implementation, Social Impact instrument made under this Act, NEMA should exercise its powers provided in NEMA Act Cap 153 to prevail over the mining companies to ensure that they Assessments (SIAs) should be prepared and these will facilitate there is need to review the act such that the mining mitigate the identified undesirable effects and regularly report the identification of mechanisms to address peoples’ grievances to companies are able to deposit funds into the to the authority. prevent latent conflict hitting crisis levels. Regular reviews of the Environment Protection Fund as a security for SIAs should be conducted to help identify sources of conflict in decommissioning, restoration of derelict lands and orderly post-mine There is also need for the review of the Mineral Act 2003 so as places where mining is being considered. SIAs should identify the to clarify on NEMA’s powers to use the information presented in context, the drivers and possible social, political and environmental disclosure. In several cases, miners have the audit to require remedial action. The Act, like the NEMA Act, causes of conflict and investors be guided on how to operate in the abandoned mine sites without restoring them and context without exacerbating tensions. The process of preparing

Fig 16: A miner in Chepkararat (Amudat District) mining without Fig 17: A miner in Amudat using mercury to separate gold from gold dust. In some communities where mining is conducted, the members movements, impairment of speech, hearing, walking any protective gear highlighted several social and health concerns that require and muscle weakness. immediate attention such as; sexual exploitation of workers in mines; exploitation of the ASMs by buying minerals from them In a quest to curb the spread of mercury use, some cheaply; employee exploitation by the mining companies; failure to organisations like Environmental Women in Action provide protective gear and medical care to local miners and for Development (EWAD) is championing Africa’s employees; injuries on the mining sites; employing foreigners first certified Fairtrade gold producer, a mining group instead of giving the opportunity to locals; among others. The in Busia called Syanyonja Artisanal Miners’ Alliance community members also complained about the increasing social to produce gold using an entirely mercury free discord and the erosion of moral values in mining areas. This has process. This if made a national program and rolled been exacerbated by the increased prostitution, alcoholism, out over the mining areas in the country, would help HIV/Aids, sexual abuse of young girls and family breakdown as curb the use and effects of mercury in gold mining in causes of conflict from increased capital flowing into mining areas the country. Workers are also exposed to a number of health as a result emigration. Fig 18: A gold kacha in Busia used to eliminate mercury from the hazards due to hostile mining environments. gold mining process These include chronic occupational diseases due (viii) Regulating the use of hazardous Although Uganda’s economy has registered a number of to dust inhalation common in gold mining and achievements, various aspects of occupational safety and mining substances (45.8%) processing as well as in the stone quarrying health (OSH) have not been adequately addressed. sectors. Most of the mining workers interviewed Management of the OSH issues at workplaces continue to be NEMA developed the National environment (waste management) were found to be oblivious of the imminent danger left unattended to by different sectors of government and regulations to mitigate waste management in the mining industry. and exposure to diseases such as private sector. The mining sector isn’t immune to this situation Along with the Explosives Act Cap 298, the sector has a legal pneumoconiosis, silicosis and lung cancer. and hence the miners are found to work in environments that framework for the handling, transportation, storage and usage of Some mining activities also endanger the lives of are not palatable with humanity. This is attributed to a number hazardous chemicals and, explosives used in exploration, mining mining communities due air pollution, releases of reasons such as the lack of well trained and facilitated activities, and radioactive materials, tailings and toxic effluents toxic substances to water streams and food inspectors to fully inspect mining areas to and emissions resulting from such activities. chains. Unprotected access to abandoned and ensure application of OSH requirements, no sensitisation and sometimes even active pits also pose a safety risk trainings of miners on the required OSH standards, mining Uganda is also on course to ratifying the Minamata Convention on to communities and their livestock in some parts of work places aren’t registered and certified, lack of coordination Mercury. The Convention aims at protecting human health and the the country. between NEMA and MGLSD before approving of EIAs, among environment from anthropogenic emissions and releases of others. mercury and mercury compounds. Mercury is a highly toxic The sector has no specific established substance that possesses some unique chemical properties that occupational health and safety requirements There is however an effort to try and train the ASMs, but are hard to find anywhere else in nature. In Uganda, the most followed by the mineral rights holders with regard because of their informal nature, it is difficult to improve their prevalent use of mercury is in the Artisanal and Small scale Gold to employers and employees in the mining health and safety standards. Under the African, Caribbean and Mining (ASGM) sector. Its use still remains highly popular and industry. The mineral rights holders are required to Pacific (ACP-EU) project funded by UNDP, ASMs are being highly unregulated in the ASGM industry. comply with the Occupational Health and Safety identified and trained in appropriate technology, environment Act 2006. However, despite government efforts to management, and occupational health and safety standards. The National Environment Management Authority (NEMA) improve safety and health of all workers in the Formalisation of the ASMs has to be fast-tracked, if the ASMs concluded the compilation of the national mercury inventory as country through funding enforcement of OSH are to benefit from such programs. Working in an informal required by the Minamata Convention on mercury. Mercury, activities, limited impact has been registered due setting will inevitably make them less adoptable and trainable despite its uses, poses many health risks including; loss of to inadequate enforcement of the OSH Act of with in HSE and use of modern technology. peripheral vision, “pins and needles” feelings, usually in the 2006. hands, feet, and around the mouth, lack of coordination of

Fig 20: Map of Uganda showing the NDP II proposed Minerals & Requisite Infrastructure 3.2.8. Gender, Equity, Social Inclusion and Participation

Indicator Score: 37.5% - Partially addressed

Fig 21: Performance of the subsector under Key Result Areas in indicator 8

• Whistle Blowing Mechanism.

RESULTS

The 2nd Annual Mining & Mineral Subsector Scorecard 47

Government and the responsible Ministry of Energy and Mineral Development /Directorate of Geological Surveys and Mines and other stakeholders need to work together need to address the following gaps:

14 Martin Jacan Gwokto Chief Administrative Officer 15 Production Officer Appendix 1: FGD Sites

Appendix 4: Focus Group Discussion Guide

neighbouring habitats and in some cases leading to the government had to incur a cost for restoration. This should Cap 153, should give NEMA the right to request the license holder SIAs should be consultative between mining a loss of biodiversity. Furthermore, some effluents be borne by the miners, in form of a security deposited in the to commission an independent third party to conduct an companies, host communities and other generated by mining activities contain large and environment protection fund. environmental audit to be submitted to NEMA for review in cases stakeholders. dangerous toxic substances such as cyanide and where NEMA has credible cause for concern that the license Companies should also identify Community heavy metals, which pause significant human Fig 15: An Abandoned Cyanide Plant in Amudat District holder may be non- compliant. The act currently does not stipulate Engagement Personnel to work as linkages with the health and ecological risks. The study also that an audit must be undertaken by an independent third party. community and act as conflict monitors within the discovered a number of abandoned mining sites Environmental audits are critical tools that allow the sector and mining areas to help identify and alert government and unrestored mining quarries as testament to the license holders to work together to continuously mitigate structures and companies about brewing conflict. unsatisfactory environmental performance of the environmental harm if the right processes are in place. Failure to address the causes of conflict negatively mining and minerals sub-sector state of affairs. affects business and destroys communities. (vi) Environmental awareness The National Environment Act Cap 153, Section 88 (vii) Promoting health and provides for the establishment of the environment creation (54.2%) protection fund. This fund supports in the NEMA is mandated to raise awareness on environmental matters safety practices in the mining replenishing the environment. Replenishing mine and share information with the public on matters relating to the industry (45.8%) sites and mine environments is one of the key impacts of mining activities. This has been however left in the In addition to wages and benefits that are universally factors that will ultimately protect the mine’s impact hands of CSOs and other interest groups to promote awareness in important in the mining and minerals industry, one on the environment. Simple solutions like the mining areas. The miners hardly know what to do, coupled with other significant issue is the occupational health and replenishing native soils and grasses, cleaning (v) Conducting of environmental low rates of supervision, puts the management of environment safety. Accident statistics show that that the industry issues in jeopardy. There is need for NEMA to come up with a clear excess waste, proper waste removal, site audits (37.5%) poses above-average risks to employees. strategy of awareness creation and promotion on environment Unprotected underground metalliferous mines were inspections and replanting trees and natural Section 22 (1) of the National Environmental Act, Cap 153 issues generally in the country and more specific in the mining reported to have the highest incidents of fatalities forestry can rejuvenate a long-term ecosystem provides for NEMA to commission an independent audit to areas. most of which are never reported by mine owners repair and sustain the environment for years verify the credibility of the annual environment audit conducted and artisanal miners for fear of shutdown of their beyond when the mine is no longer operating. The by the mineral rights holders. It was noted that NEMA rarely Dispute resolution mechanism is a requirement for every project mining operations. Underground gold mining in the entire reclamation process should include: exercises this mandate and when it’s done, mining companies developer. It forms part of the requirements in the certificates of Mubende region was reported to have the highest removing hazardous materials, reshaping land, rarely inform the authority on the action taken to mitigate the approval for all mining projects. Mineral rights holders are in the number of fatalities with an estimated 10 fatalities restoring topsoil, and planting native grasses, trees undesirable environment effects identified. This is because process of establishing mechanisms for addressing environmental per year followed by Tin mining in the Western or ground cover natural to the site. In cases where Section 108(3) of the Mining Act 2003 doesn’t provide NEMA and social grievances, disputes and conflicts arising from region with an estimated 7-8 fatalities on an annual the miner hasn’t replenished the environment, this with the power to conduct an independent audit, in case of exploration and mining activities. Disputes arise from a range of basis. Statistics here could not be verified because fund would be used to support this activity. credible concerns of non-compliance of the license holder. issues, including land, misunderstanding of the laws governing the victims’ families and the owners of the mines are Sometimes when NEMA conducts an independent audit, mining, environment degradation, and royalty sharing, among reluctant to disclose these fatalities for fear of Even though the fund receives funding from mining companies don’t provide feedback to NEMA on the others. imprisonment and also due to the illegal nature of disbursements from the Government; fees charged mitigation measures that were taken to handle the identified their activities, especially those in artisanal and under this Act; fines collected as a result of the undesirable environmental effects. breach of the provisions of this Act or any statutory Mining companies and government should set up alternative ways small-scale mining operations. of resolving disputes. Before project implementation, Social Impact instrument made under this Act, NEMA should exercise its powers provided in NEMA Act Cap 153 to prevail over the mining companies to ensure that they Assessments (SIAs) should be prepared and these will facilitate there is need to review the act such that the mining mitigate the identified undesirable effects and regularly report the identification of mechanisms to address peoples’ grievances to companies are able to deposit funds into the to the authority. prevent latent conflict hitting crisis levels. Regular reviews of the Environment Protection Fund as a security for SIAs should be conducted to help identify sources of conflict in decommissioning, restoration of derelict lands and orderly post-mine There is also need for the review of the Mineral Act 2003 so as places where mining is being considered. SIAs should identify the to clarify on NEMA’s powers to use the information presented in context, the drivers and possible social, political and environmental disclosure. In several cases, miners have the audit to require remedial action. The Act, like the NEMA Act, causes of conflict and investors be guided on how to operate in the abandoned mine sites without restoring them and context without exacerbating tensions. The process of preparing

Fig 16: A miner in Chepkararat (Amudat District) mining without Fig 17: A miner in Amudat using mercury to separate gold from gold dust. In some communities where mining is conducted, the members movements, impairment of speech, hearing, walking any protective gear highlighted several social and health concerns that require and muscle weakness. immediate attention such as; sexual exploitation of workers in mines; exploitation of the ASMs by buying minerals from them In a quest to curb the spread of mercury use, some cheaply; employee exploitation by the mining companies; failure to organisations like Environmental Women in Action provide protective gear and medical care to local miners and for Development (EWAD) is championing Africa’s employees; injuries on the mining sites; employing foreigners first certified Fairtrade gold producer, a mining group instead of giving the opportunity to locals; among others. The in Busia called Syanyonja Artisanal Miners’ Alliance community members also complained about the increasing social to produce gold using an entirely mercury free discord and the erosion of moral values in mining areas. This has process. This if made a national program and rolled been exacerbated by the increased prostitution, alcoholism, out over the mining areas in the country, would help HIV/Aids, sexual abuse of young girls and family breakdown as curb the use and effects of mercury in gold mining in causes of conflict from increased capital flowing into mining areas the country. Workers are also exposed to a number of health as a result emigration. Fig 18: A gold kacha in Busia used to eliminate mercury from the hazards due to hostile mining environments. gold mining process These include chronic occupational diseases due (viii) Regulating the use of hazardous Although Uganda’s economy has registered a number of to dust inhalation common in gold mining and achievements, various aspects of occupational safety and mining substances (45.8%) processing as well as in the stone quarrying health (OSH) have not been adequately addressed. sectors. Most of the mining workers interviewed Management of the OSH issues at workplaces continue to be NEMA developed the National environment (waste management) were found to be oblivious of the imminent danger left unattended to by different sectors of government and regulations to mitigate waste management in the mining industry. and exposure to diseases such as private sector. The mining sector isn’t immune to this situation Along with the Explosives Act Cap 298, the sector has a legal pneumoconiosis, silicosis and lung cancer. and hence the miners are found to work in environments that framework for the handling, transportation, storage and usage of Some mining activities also endanger the lives of are not palatable with humanity. This is attributed to a number hazardous chemicals and, explosives used in exploration, mining mining communities due air pollution, releases of reasons such as the lack of well trained and facilitated activities, and radioactive materials, tailings and toxic effluents toxic substances to water streams and food inspectors to fully inspect mining areas to and emissions resulting from such activities. chains. Unprotected access to abandoned and ensure application of OSH requirements, no sensitisation and sometimes even active pits also pose a safety risk trainings of miners on the required OSH standards, mining Uganda is also on course to ratifying the Minamata Convention on to communities and their livestock in some parts of work places aren’t registered and certified, lack of coordination Mercury. The Convention aims at protecting human health and the the country. between NEMA and MGLSD before approving of EIAs, among environment from anthropogenic emissions and releases of others. mercury and mercury compounds. Mercury is a highly toxic The sector has no specific established substance that possesses some unique chemical properties that occupational health and safety requirements There is however an effort to try and train the ASMs, but are hard to find anywhere else in nature. In Uganda, the most followed by the mineral rights holders with regard because of their informal nature, it is difficult to improve their prevalent use of mercury is in the Artisanal and Small scale Gold to employers and employees in the mining health and safety standards. Under the African, Caribbean and Mining (ASGM) sector. Its use still remains highly popular and industry. The mineral rights holders are required to Pacific (ACP-EU) project funded by UNDP, ASMs are being highly unregulated in the ASGM industry. comply with the Occupational Health and Safety identified and trained in appropriate technology, environment Act 2006. However, despite government efforts to management, and occupational health and safety standards. The National Environment Management Authority (NEMA) improve safety and health of all workers in the Formalisation of the ASMs has to be fast-tracked, if the ASMs concluded the compilation of the national mercury inventory as country through funding enforcement of OSH are to benefit from such programs. Working in an informal required by the Minamata Convention on mercury. Mercury, activities, limited impact has been registered due setting will inevitably make them less adoptable and trainable despite its uses, poses many health risks including; loss of to inadequate enforcement of the OSH Act of with in HSE and use of modern technology. peripheral vision, “pins and needles” feelings, usually in the 2006. hands, feet, and around the mouth, lack of coordination of

Fig 20: Map of Uganda showing the NDP II proposed Minerals & Requisite Infrastructure 3.2.8. Gender, Equity, Social Inclusion and Participation

Indicator Score: 37.5% - Partially addressed

Fig 21: Performance of the subsector under Key Result Areas in indicator 8

• Whistle Blowing Mechanism.

Conclusions and 04 Key Recommendations

Inadequate institutional funding and human resource most especially in the mines 01 department;

Human rights violations most pronounced during the inglorious evictions of illegal 02 miners in Mubende in 2017;

A highly disorganized and predominantly illegal Artisanal and informal sector 03 characterized by a heavy environmental, health and safety footprint, socio-economic issues and human rights abuses some exacerbated

Continued use of unregulated hazardous chemical substances such as mercury and 04 cyanide;

Lack of mechanisms and standards to enforce environmental obligations in the mining 05 sector; 06 Failure to license and regulate the mining of Sand, Murrum, Clay and Stones; Reported cases of illegal mining and smuggling involving the mining police and other 07 security agencies meant to protect the mines and eliminate the same illegal mining vices;

Insufficient royalties of (10%/7%/3% for Districts/Local Governments/and Land Owners) 08 and uncoordinated disbursement of the same to the intended beneficiaries;

Challenges of accessing land for mineral exploration and development amidst other 09 competing economic sectors such as pastoralism and agriculture; and

Limited national and community participation in mineral development and lack of 10 national and community awareness about backward, forward and lateral linkages to mining among others.

Lack of a mechanism stipulating the minimum and maximum quantities that can be 11 exported for sampling without taxes.

Government and the responsible Ministry of Energy and Mineral Development /Directorate of Geological Surveys and Mines and other stakeholders need to work together need to address the following gaps: Conclusions

14 Martin Jacan Gwokto Chief Administrative Officer 15 Production Officer Appendix 1: FGD Sites

Appendix 4: Focus Group Discussion Guide

1) How are you, as bona fide local communities involved in the process of granting mineral rights to mining companies? (probe around involvement in the development of RAPs) 2) Do the bona fide locals freely engage in the mining process as ASMs? If, they do, what challenges do you meet? If you don’t, what prohibits you from engaging in mining as ASMs? 3) What opportunities are there for host communities/project affected persons to do in the mining areas? (Probe for both employment and supplier of goods and services.) 4) What kind of support has this mining community ever received to enable it to improve on the quality of goods and services supplied to the mining companies? Who provided the support? 5) Has this community been engaged in programs that would improve their skills in mining, value addition and marketing? What marketing challenges do the ASMs meet and how have you addressed these challenges? 6) What services (SCR) has the host community received from mining companies? 7) What services does the local government provide to this mining community as a result of the royalties shared from the government? 8) Are there health and social grievances between the community and the mining companies experienced in this community? How have they been handled? 9) Are there cases of Gender Based Violence (GBV) associated with mining activities in your community? Are communities sensitised on issues of HIV/AIDS, GBV, etc. When and how is this sensitisation conducted? 10) Are there vulnerable and marginalised groups of people in the community that participate in mining activities? How do they participate? 11) Are there roles designated for women and special interest groups during mining activities in your community? How have you participated? 12) What do you suggest should be done to develop mining in your community and also improve the quality of your lives? of the community concerned. It has been noted that in some According to the Auditor General’s Report on areasof the mining community activities concerned. have taken It placehas been in cultural noted places that in without some regulation,According monitoringto the Auditor and promotion General’s of Reportthe mining on (i) Capacity of the (ii) Regulating of the Mining theareas consent mining of activities the community, have taken antagonising place in cultural the cultural places heritage without sectorregulation, 2015, monitoring some of the and companies promotion did of not the conform mining institutions(i) Capacity in the of mining the Activities(ii) Regulating in the Reserved of the Mining Areas (62.5 ofthe the consent area. ofFor the instance, community, mining antagonising has been the takingcultural place heritage in tosector any 2015,of the some set requirements. of the companies At the did nottime conform of the subsectorinstitutions to in review the mining the ESIA’s %)Activities in the Reserved Areas (62.5 Athapanun,of the area. Rupa For ininstance, Moroto district. mining This has is beenthe place taking where place ritual in assessment,to any of the none set requirements.of the companies At thehad time submitted of the practicesAthapanun, of Rupainitiation in Moroto were conducted.district. This It is has the placesince wherethen been ritual annualassessment, environmental none of theaudits companies and audited had submittedaccounts subsector to review the ESIA’s The%) Institutions responsible for the management of forest (50%) diluted,practices according of initiation to werethe community conducted. members.It has since Furthermore, then been toannual DGSM environmental and there was audits no evidenceand audited to show accounts that reserves,The Institutions game reserves responsible and nationalfor the parksmanagement are mandated of forest to Both(50%) DGSM / NEMA have the mandate to support Loorung,diluted, accordingin Rupa, isto anthe area community of cultural members. heritage Furthermore,and thus a DGSMto DGSM followed and there up with was the no applicants evidence afterto show issuing that monitorreserves, mining game activities reserves within and national their territories. parks are This mandated research to eachBoth otherDGSM in / reviewingNEMA have of thethe Environmentalmandate to support and potentialLoorung, touristin Rupa, site isbut an it areahas sinceof cultural been heritage affected andby miningthus a theDGSM licenses. followed up with the applicants after issuing noticedmonitor miningthat theseactivities institutions within their haveterritories. developed This research and Socialeach Impactother in Assessments reviewing of (ESIA’s) the Environmental before they areand activities.potential Free,tourist Prior site butand itInformed has since Consent, been affected as well byas miningother the licenses. disseminatednoticed that regulations these institutionsto safeguard naturalhave resourcesdeveloped in theand There is need for close monitoring and supervision approved.Social Impact They Assessments are both (ESIA’s)meant beforeto have they the are formsactivities. of pre-project Free, Prior community and Informed consultation Consent, are as recognized well as other as miningdisseminated areas. regulations Mining projectsto safeguard can natural be undertakenresources in thein of the licensee operations to ensure that rights institutionalapproved. capacityThey are to reviewboth ESIAsmeant of tomineral have right the internationalforms of pre-project best practice community that must consultation be undertaken are recognized prior to any as There is need for close monitoring and supervision environmentally sensitive areas provided pre-requisite holders abide by the environmental requirements applicants and holders. It was however noted that mining areas. Mining projects can be undertaken in 6 of the licensee operations to ensure that rights institutional capacity to review ESIAs of mineral right projectinternational related best land practice acquisition that or must land be use undertaken. prior to any and standards. Mining companies should also environmentalenvironmentally considerations sensitive areashave beenprovided undertaken pre-requisite and holders abide by the environmental requirements EIAsapplicants are done and byholders. NEMA It andwas senthowever to DGSM noted thatfor 6 continue submitting environmental performance project related land acquisition or land use . and standards. Mining companies should also authorisationenvironmental sought considerations from the responsible have been government undertaken agency. and An applicant should not be granted mineral rights in any case bonds for the fulfilment of the required review.EIAs areNEMA done however by NEMA does and not senthave tothe DGSM capacity for continue submitting environmental performance A case in point is the on-going Dura Limestone Quarry in the without obtaining community consent. License holders need a environmental management and management of forreview. reviewing NEMA ESIA’s however in thedoes mining not have subsector, the capacity and authorisation sought from the responsible government agency. An applicant should not be granted mineral rights in any case bonds for the fulfilment of the required Social License to Operate. Without community consent, this environmental issues once the companies exit the thus they are done by DGSM. RuwenzoriA case in pointNational is the Park on-going servicing Dura Hima Limestone Cement Quarry in Kasese. in the without obtaining community consent. License holders need a environmental management and management of for reviewing ESIA’s in the mining subsector, and shouldn’t be secured. Requiring such community consultations mining areas without handling the issues. However,Ruwenzori the National actual monitoring Park servicing of these Hima mining Cement activities in Kasese. by the Social License to Operate. Without community consent, this environmental issues once the companies exit the thus they are done by DGSM. will prevent negative relations between the community and the shouldn’t be secured. Requiring such community consultations mining areas without handling the issues. It was also noted that due to capacity gaps, both UWAHowever, and NFAthe actual is not monitoringfully conducted of these and mining hence activitiescompliance by theto license holder and will ensure that the community is aware and in will prevent negative relations between the community and the The Mining of developmental minerals has also had regulations is not fully enforced. support of an upcoming project. humanIt was resourcealso noted and that financial due to capacitygaps, both gaps, DGSM both UWA and NFA is not fully conducted and hence compliance to license holder and will ensure that the community is aware and in seriousThe Mining effects of developmental on the environment minerals has alsocausing had andhuman NEMA resource do not and have financial the required gaps, capacityboth DGSM to regulations is not fully enforced. support of an upcoming project. Section 21(1)(b) of the Mining Act 2003 provides for the degradationserious effects in areas on wherethe environmentit is conducted. causing The monitorand NEMA compliance do not with have ESIA’s the required and Environmental capacity to (iii) Compliance of the mining Restriction on a prospecting license and Section 78(1)(g)(h), Principaldegradation Assistant in areas Secretary where it isto conducted.the CAO Thein andmonitor Social compliance Management with ESIA’sPlans and(ESMPs) Environmental during Section 21(1)(b) of the Mining Act 2003 provides for the (iii) Compliance of the mining provides for the Restrictions on exercise of mineral rights. companies to environment RubandaPrincipal district,Assistant on behalfSecretary of the CAO,to the noted CAO that, in projectsand Social implementation. Management PlansNEMA (ESMPs)and DGSM during Restriction on a prospecting license and Section 78(1)(g)(h), Theseprovides sections for the restrict Restrictions the holder on exercise of the mineralof mineral rights rights. to managementcompanies to requirements environment (41.7%) Rubanda district, on behalf of the CAO, noted that, participateprojects jointlyimplementation. during the preliminaryNEMA and phases DGSM in “There is the mining of these development minerals prospectThese sections over an restrictarea of theland holder that is, of or the forms mineral part ofrights forest to Sectionmanagement 41, Section 108 requirements and Section 110 of the (41.7%) Mining Act, 2003, ensuringparticipate that jointly mining during companies the preliminary meet the phasesrequired in for“There construction; is the mining this activityof these is development done on small minerals scale reserve, game reserve, national park, etc. unless the holder provide that an application for a mining right should indicate and but has environmental implications because it’s Environmentalensuring that miningImpact companiesAssessment meet standards the required prior prospect over an area of land that is, or forms part of forest Section 41, Section 108 and Section 110 of the Mining Act, 2003, for construction; this activity is done on small scale unregulated. Take an example here of Kiyorwa to commencement of the project, but follow-up on hasreserve, first givengame noticereserve, to nationaland obtained park, etc.permission unless thefrom holder the provideprovide specificthat an applicationinformation for (set a mining requirements) right should which indicate includes and but has environmental implications because it’s Environmental Impact Assessment standards prior where degradation is affecting L. Bunyonyi. The relevant authorities. The act however doesn’t grant rights to the Environment Impact Assessment, Annual Environment Audits unregulated. Take an example here of Kiyorwa complianceto commencement in the ofcourse the project, mining but projects follow-up and on has first given notice to and obtained permission from the provide specific information (set requirements) which includes presidentwhere degradation intervened isand affecting stopped L. theBunyonyi. mining The of relevantrelevant authorityauthorities. to The conduct act however oversight doesn’t and grant monitoring rights to theto andEnvironment an Environment Impact Assessment, Restoration Annual Plan. Environment The scorecard Audits post-miningcompliance was in foundthe course to be lacking. mining projects and sandpresident but wanainchi intervened crying and outstopped to him the that mining they are of ensure that the holder abides by the conditions on which assessment however noted that mining companies have not unemployed.” post-mining was found to be lacking. relevant authority to conduct oversight and monitoring to and an Environment Restoration Plan. The scorecard sand but wanainchi crying out to him that they are permissionensure that was the granted. holder abides by the conditions on which developedassessment comprehensive however noted environment that mining management companies planshave nornot unemployed.” permission was granted. dodeveloped they operate comprehensive according environmentto their environment management management plans nor (iv) Management of the Forest reserves, game reserves, and national parks are all policy. do they operate according to their environment management (iv) Management of the endowedForest reserves, with specific game authorities reserves, to andoversee national and manageparks are their all environmental protection fund Fig 13: Mercury contaminated water flowing into farmland at a Figpolicy. 14: Effects of Illegal Sand Mining on Land in Lwera Swamp, Masaka Road territories.endowed with specific authorities to oversee and manage their (37.5%)environmental protection fund goldFig mining13: Mercury site in contaminatedAmudat water flowing into farmland at a Fig 14: Effects of Illegal Sand Mining on Land in Lwera Swamp, Masaka Road territories. Depletion of mineral resources and environmental gold mining site in Amudat (37.5%) Therefore, these authorities should have rights to monitor externalitiesDepletion of as mineral a result resources of air emissions, and environmental discharges mining activities occurring within the territory to ensure Therefore, these authorities should have rights to monitor ofexternalities liquid effluents, as a resultuse of of hazardous air emissions, chemicals discharges such continuousmining activities compliance occurring with withinthe conditions the territory on whichto ensure the as Mercury and cyanide in the extraction of minerals permissioncontinuous tocompliance mine was with granted the conditionsinstead of onstopping which onthe of liquid effluents, use of hazardous chemicals such disseminatingpermission to regulations. mine was Inter-agencygranted instead coordination of stopping in theon suchas Mercury as gold and and cyanide generation in the extractionof large volumes of minerals of monitoring of these mining projects to ensure compliance with disseminating regulations. Inter-agency coordination in the solidsuch wasteas gold are and the generation most important of large environmental volumes of the ESIAs is also important and needs to be improved. monitoring of these mining projects to ensure compliance with issuessolid waste for Uganda’s are the mining most andimportant minerals environmental sub-sector. the ESIAs is also important and needs to be improved. Itissues emerged for Uganda’s that mineral mining extraction and minerals activities sub-sector. have a Section 78 (1) (i) calls for respect of or on any land, which is visualIt emerged impact that on mineralthe landscape extraction and activities has led haveto the a heldSection communally 78 (1) (i) for calls cultural for respect rites, without of or on the any written land, consentwhich is destructionvisual impact or on disturbance the landscape of andsurrounding has led toand the held communally for cultural rites, without the written consent destruction or disturbance of surrounding and

neighbouring habitats and in some cases leading to the government had to incur a cost for restoration. This should Cap 153, should give NEMA the right to request the license holder SIAs should be consultative between mining aneighbouring loss of biodiversity. habitats Furthermore, and in some casessome leadingeffluents to bethe borne government by the miners,had to incurin form a cost of a for security restoration. deposited This shouldin the toCap commission 153, should angive independentNEMA the right third to request party theto licenseconduct holder an companies,SIAs should hostbe consultativecommunities between and miningother generateda loss of biodiversity.by mining activitiesFurthermore, contain some large effluents and environmentbe borne by protection the miners, fund. in form of a security deposited in the environmentalto commission audit an to independentbe submitted thirdto NEMA party for reviewto conduct in cases an stakeholders.companies, host communities and other dangerousgenerated toxicby mining substances activities such contain as cyanide large andand environment protection fund. whereenvironmental NEMA hasaudit credible to be submitted cause for to concernNEMA for that review the inlicense cases Companiesstakeholders. should also identify Community heavydangerous metals, toxic which substances pause suchsignificant as cyanide human and Fig 15: An Abandoned Cyanide Plant in Amudat District holderwhere mayNEMA be non-has compliant.credible cause The act for currently concern does that not the stipulate license EngagementCompanies Personnelshould alsoto work identify as linkages Community with the healthheavy andmetals, ecological which pauserisks. significantThe study humanalso Fig 15: An Abandoned Cyanide Plant in Amudat District thatholder an mayaudit be must non- be compliant. undertaken The byact an currently independent does not third stipulate party. communityEngagement and Personnel act as conflictto work monitorsas linkages within with thethe discoveredhealth and a numberecological of abandonedrisks. The mining study sitesalso Environmentalthat an audit mustaudits be are undertaken critical tools by anthat independent allow the sector third party. and miningcommunity areas and to helpact asidentify conflict and monitors alert government within the anddiscovered unrestored a numbermining quarries of abandoned as testament mining to sitesthe licenseEnvironmental holders audits to workare criticaltogether tools to that continuously allow the sector mitigate and structuresmining areas and to companies help identify about and alertbrewing government conflict. unsatisfactoryand unrestored environmental mining quarries performance as testament of to the the environmentallicense holders harm to if thework right together processes to arecontinuously in place. mitigate Failurestructures to address and companies the causes about of conflict brewing negatively conflict. miningunsatisfactory and minerals environmental sub-sector performancestate of affairs. of the environmental harm if the right processes are in place. affectsFailure business to address and the destroys causes communities. of conflict negatively mining and minerals sub-sector state of affairs. (vi) Environmental awareness affects business and destroys communities. The National Environment Act Cap 153, Section 88 creation(vi) Environmental (54.2%) awareness (vii) Promoting health and providesThe National for the Environment establishment Act Capof the 153, environment Section 88 (vii) Promoting health and protectionprovides forfund. the establishmentThis fund supportsof the environment in the NEMAcreation is mandated (54.2%) to raise awareness on environmental matters safety practices in the mining replenishingprotection thefund. environment. This fund Replenishingsupports in mine the andNEMA share is mandated information to withraise the awareness public on on matters environmental relating matters to the industrysafety practices (45.8%) in the mining sitesreplenishing and mine the environments environment. isReplenishing one of the minekey impactsand share of mininginformation activities. with theThis public has beenon matters however relating left into thethe Inindustry addition to wages (45.8%) and benefits that are universally factorssites andthat willmine ultimately environments protect isthe one mine’s of theimpact key handsimpacts of CSOsof mining and otheractivities. interest This groups has been to promote however awareness left in the in importantIn addition in to the wages mining and andbenefits minerals that are industry, universally one onfactors the thatenvironment. will ultimately Simpleprotect thesolutions mine’s impactlike thehands mining of CSOs areas. and The other miners interest hardly groups know whatto promote to do, awarenesscoupled with in otherimportant significant in the issue mining is theand occupational minerals industry, health andone replenishingon the environment. native soils andSimple grasses, solutions cleaning like (v) Conducting of environmental lowthe ratesmining of areas. supervision, The miners puts hardly the managementknow what to do,of environmentcoupled with safety.other significantAccident statistics issue is theshow occupational that that the health industry and issueslow rates in jeopardy. of supervision, There is needputs thefor NEMAmanagement to come ofup environment with a clear excessreplenishing waste, native proper soils wasteand grasses, removal, cleaning site audits(v) Conducting(37.5%) of environmental posessafety. Accidentabove-average statistics showrisks that to that theemployees. industry inspectionsexcess waste, and replantingproper waste trees removal,and natural site strategyissues in of jeopardy. awareness There creation is need forand NEMA promotion to come on up environment with a clear Unprotectedposes above-average underground metalliferousrisks to minesemployees. were Sectionaudits 22 (37.5%)(1) of the National Environmental Act, Cap 153 forestryinspections can rejuvenateand replanting a long-term trees andecosystem natural issuesstrategy generally of awareness in the countrycreation and and more promotion specific on in environment the mining reportedUnprotected to have underground the highest metalliferous incidents minesof fatalities were providesSection 22for (1)NEMA of theto commissionNational Environmental an independent Act, Capaudit 153to repairforestry and can sustain rejuvenate the environmenta long-term forecosystem years areas.issues generally in the country and more specific in the mining mostreported of which to have are thenever highest reported incidents by mine of fatalitiesowners verifyprovides the credibilityfor NEMA of tothe commission annual environment an independent audit conducted audit to beyondrepair whenand sustainthe mine theis no environment longer operating. for yearsThe areas. andmost artisanal of which miners are never for fearreported of shutdown by mine ofowners their byverify the themineral credibility rights of holders. the annual It was environment noted that audit NEMA conducted rarely entirebeyond reclamationwhen the mine process is no longer should operating. include: The Dispute resolution mechanism is a requirement for every project miningand artisanal operations. miners Underground for fear of goldshutdown mining of in their the exercisesby the mineral this mandate rights holders. and when It wasit’s done, noted mining that NEMA companies rarely removingentire reclamationhazardous materials,process reshapingshould include: land, developer.Dispute resolution It forms partmechanism of the requirements is a requirement in the for certificates every project of Mubendemining operations. region was Underground reported to goldhave mining the highest in the rarelyexercises inform this the mandate authority and on when the action it’s done, taken mining to mitigate companies the restoringremoving topsoil, hazardous and planting materials, native reshaping grasses, treesland, approvaldeveloper. for It all forms mining part projects. of the requirementsMineral rights in holders the certificates are in the of numberMubende of regionfatalities was with reported an estimated to have 10the fatalities highest undesirablerarely inform environment the authority effects on the identified.action taken This to ismitigate because the orrestoring ground covertopsoil, natural and planting to the site.native In grasses,cases where trees processapproval of for establishing all mining mechanismsprojects. Mineral for addressing rights holders environmental are in the pernumber year offollowed fatalities by with Tin an mining estimated in the 10 Westernfatalities Sectionundesirable 108(3) environment of the Mining effects Act 2003 identified. doesn’t This provide is because NEMA theor groundminer hasn’t cover replenishednatural to the the site. environment, In cases where this andprocess social of establishinggrievances, mechanisms disputes andfor addressing conflicts environmentalarising from regionper year with followed an estimated by Tin 7-8 mining fatalities in onthe an Western annual withSection the power108(3) toof theconduct Mining an Act independent 2003 doesn’t audit, provide in case NEMA of fundthe wouldminer hasn’tbe used replenished to support thethis environment,activity. this explorationand social and grievances, mining activities. disputes Disputes and conflictsarise from arising a range from of basis.region Statistics with an estimated here could 7-8 not fatalities be verified on an because annual crediblewith the concerns power to ofconduct non-compliance an independent of the audit, license in caseholder. of fund would be used to support this activity. issues,exploration including and miningland, misunderstandingactivities. Disputes of arise the fromlaws agoverning range of thebasis. victims’ Statistics families here and could the ownersnot be verifiedof the mines because are Sometimescredible concerns when NEMAof non-compliance conducts an of independentthe license holder.audit, Even though the fund receives funding from mining,issues, environmentincluding land, degradation, misunderstanding and royalty of the sharing, laws governing among reluctantthe victims’ to families disclose and these the owners fatalities of the for mines fear areof miningSometimes companies when don’tNEMA provide conducts feedback an independentto NEMA on audit, the disbursementsEven though fromthe thefund Government; receives feesfunding charged from others.mining, environment degradation, and royalty sharing, among imprisonmentreluctant to discloseand also thesedue to fatalitiesthe illegal for nature fear ofof mitigationmining companies measures don’tthat wereprovide taken feedback to handle to NEMAthe identified on the underdisbursements this Act; finesfrom thecollected Government; as a result fees chargedof the others. theirimprisonment activities, and especially also due those to the in illegal artisanal nature and of undesirablemitigation measures environmental that effects.were taken to handle the identified Mining companies and government should set up alternative ways their activities, especially those in artisanal and breachunder ofthis the Act; provisions fines collected of this Act as or a any result statutory of the undesirable environmental effects. small-scale mining operations. ofMining resolving companies disputes. and Before government project implementation,should set up alternative Social Impact ways instrumentbreach of themade provisions under this of Act,this Act or any statutory NEMA should exercise its powers provided in NEMA Act Cap small-scale mining operations. of resolving disputes. Before project implementation, Social Impact instrument made under this Act, 153 NEMA to prevail should over exercise the mining its powers companies provided to inensure NEMA that Act they Cap Assessments (SIAs) should be prepared and these will facilitate there is need to review the act such that the mining mitigate153 to prevailthe identified over the undesirable mining companies effects and to ensureregularly that report they theAssessments identification (SIAs) of mechanisms should be toprepared address and peoples’ these grievances will facilitate to companiesthere is need are to reviewable to the deposit act such funds that theinto mining the tomitigate the authority. the identified undesirable effects and regularly report preventthe identification latent conflict of mechanisms hitting crisis to levels.address Regular peoples’ reviews grievances of the to Environmentcompanies areProtection able to Fund deposit as afunds security into forthe to the authority. SIAsprevent should latent be conflict conducted hitting to crisishelp identifylevels. Regular sources reviews of conflict of thein decommissioning,Environment Protection restoration Fund of derelictas a security lands and for There is also need for the review of the Mineral Act 2003 so as placesSIAs should where bemining conducted is being to considered. help identify SIAs sources should of identify conflict the in orderlydecommissioning, post-mine restoration of derelict lands and orderly post-mine toThere clarify is on also NEMA’s need forpowers the review to use of the the information Mineral Act presented 2003 so inas context,places wherethe drivers mining and is possible being considered. social, political SIAs and should environmental identify the disclosure. In several cases, miners have theto clarifyaudit to on require NEMA’s remedial powers action. to use Thethe informationAct, like the presented NEMA Act, in causescontext, of the conflict drivers and and investors possible be social, guided political on how and to operateenvironmental in the abandoneddisclosure. mineIn sitesseveral without cases, restoring miners them andhave the audit to require remedial action. The Act, like the NEMA Act, contextcauses withoutof conflict exacerbating and investors tensions. be guided The on process how to operateof preparing in the abandoned mine sites without restoring them and context without exacerbating tensions. The process of preparing

mines;immediate exploitation attention of suchthe ASMsas; sexual by buying exploitation minerals of fromworkers them in In a quest to curb the spread of mercury use, some

cheaply;mines; exploitation employee exploitation of the ASMs by theby miningbuying companies;minerals from failure them to organisationsIn a quest to curblike Environmentalthe spread of mercury Women use,in Action some providecheaply; protective employee gearexploitation and medical by the miningcare to companies; local miners failure and to fororganisations Development like (EWAD) Environmental is championing Women in Africa’s Action employees;provide protective injuries gearon theand mining medical sites; care employing to local minersforeigners and firstfor certifiedDevelopment Fairtrade (EWAD) gold producer,is championing a mining Africa’s group insteademployees; of giving injuries the onopportunity the mining to sites;locals; employing among others. foreigners The infirst Busia certified called Fairtrade Syanyonja gold Artisanal producer, Miners’ a mining Alliance group communityinstead of membersgiving the also opportunity complained to aboutlocals; the among increasing others. social The toin Busiaproduce called gold Syanyonja using an Artisanal entirely Miners’ mercury Alliance free discordcommunity and membersthe erosion also of moralcomplained values about in mining the increasing areas. This social has process.to produce This goldif made using a national an entirely program mercury and rolled free process. This if made a national program and rolled beendiscord exacerbated and the erosion by theof moral increased values prostitution,in mining areas. alcoholism, This has out over the mining areas in the country, would help out over the mining areas in the country, would help HIV/Aids,been exacerbated sexual abuse by ofthe young increased girls and prostitution, family breakdown alcoholism, as curb the use and effects of mercury in gold mining in curb the use and effects of mercury in gold mining in causesHIV/Aids, of conflictsexual fromabuse increased of young capital girls andflowing family into breakdown mining areas as the country. causes of conflict from increased capital flowing into mining areas the country. Workers are also exposed to a number of health as a result emigration. as a result emigration. Fig 18: A gold kacha in Busia used to eliminate mercury from the hazardsWorkers dueare alsoto hostileexposed mining to a number environments. of health goldFig 18:mining A gold process kacha in Busia used to eliminate mercury from the Thesehazards include due chronicto hostile occupational mining diseasesenvironments. due (viii) Regulating the use of hazardous Although Uganda’s economy has registered a number of gold mining process toThese dust includeinhalation chronic common occupational in gold diseasesmining and due (viii) Regulating the use of hazardous achievements,Although Uganda’s various economy aspects hasof occupationalregistered a safetynumber and of mining substances (45.8%) processingto dust inhalation as well commonas in the in stonegold miningquarrying and healthachievements, (OSH) varioushave notaspects been of adequatelyoccupational addressed.safety and mining substances (45.8%) sectors.processing Most as of wellthe miningas in workersthe stone interviewed quarrying Managementhealth (OSH) of thehave OSH notissues been at workplaces adequately continue addressed. to be NEMA developed the National environment (waste management) weresectors. found Most to be of oblivious the mining of the workers imminent interviewed danger leftManagement unattended of tothe by OSH different issues sectorsat workplaces of government continue toand be regulationsNEMA developed to mitigate the Nationalwaste management environment in (waste the mining management) industry. andwere foundexposure to be obliviousto diseases of the imminent such dangeras privateleft unattended sector. The to mining by different sector isn’tsectors immune of government to this situation and Alongregulations with the to mitigateExplosives waste Act management Cap 298, the in thesector mining has industry.a legal pneumoconiosis,and exposure silicosis to anddiseases lung cancer. such as andprivate hence sector. the minersThe mining are foundsector to isn’t work immune in environments to this situation that frameworkAlong with for the the Explosives handling, Acttransportation, Cap 298, thestorage sector and has usage a legal of pneumoconiosis, silicosis and lung cancer. and hence the miners are found to work in environments that framework for the handling, transportation, storage and usage of Some mining activities also endanger the lives of are not palatable with humanity. This is attributed to a number hazardous chemicals and, explosives used in exploration, mining are not palatable with humanity. This is attributed to a number hazardous chemicals and, explosives used in exploration, mining miningSome communitiesmining activities due also air pollution, endanger releases the lives of of reasons such as the lack of well trained and facilitated activities, and radioactive materials, tailings and toxic effluents reasons such as the lack of well trained and facilitated activities, and radioactive materials, tailings and toxic effluents toxicmining substances communities to duewater air pollution,streams releasesand food of inspectors to fully inspect mining areas to and emissions resulting from such activities. inspectors to fully inspect mining areas to and emissions resulting from such activities. chains.toxic substancesUnprotected to access water tostreams abandoned and andfood ensure application of OSH requirements, no sensitisation and ensure application of OSH requirements, no sensitisation and sometimeschains. Unprotected even active accesspits also to pose abandoned a safety riskand trainings of miners on the required OSH standards, mining Uganda is also on course to ratifying the Minamata Convention on trainings of miners on the required OSH standards, mining Uganda is also on course to ratifying the Minamata Convention on tosometimes communities even and active their pitslivestock also pose in some a safety parts risk of work places aren’t registered and certified, lack of coordination Mercury. The Convention aims at protecting human health and the work places aren’t registered and certified, lack of coordination Mercury. The Convention aims at protecting human health and the theto communitiescountry. and their livestock in some parts of between NEMA and MGLSD before approving of EIAs, among environment from anthropogenic emissions and releases of the country. others.between NEMA and MGLSD before approving of EIAs, among mercuryenvironment and frommercury anthropogenic compounds. emissionsMercury isand a highlyreleases toxic of The sector has no specific established others. substancemercury andthat mercurypossesses compounds. some unique Mercury chemical is propertiesa highly toxicthat The sector has no specific established occupational health and safety requirements There is however an effort to try and train the ASMs, but aresubstance hard to thatfind possesses anywhere someelse in unique nature. chemical In Uganda, properties the most that occupational health and safety requirements followed by the mineral rights holders with regard becauseThere is of however their informal an effort nature, to tryit is and difficult train to the improve ASMs, their but prevalentare hard useto find of mercury anywhere is inelse the inArtisanal nature. andIn Uganda, Small scale the Goldmost followed by the mineral rights holders with regard to employers and employees in the mining healthbecause and of safety their standards.informal nature, Under itthe is African,difficult toCaribbean improve andtheir Miningprevalent (ASGM) use of sector.mercury Its is use in the still Artisanal remains and highly Small popular scale Goldand to employers and employees in the mining industry. The mineral rights holders are required to Pacifichealth (ACP-EU)and safety projectstandards. funded Under by the UNDP, African, ASMs Caribbean are being and highlyMining unregulated (ASGM) sector. in the ItsASGM use industry.still remains highly popular and industry. The mineral rights holders are required to comply with the Occupational Health and Safety identifiedPacific (ACP-EU) and trained project in appropriate funded by technology,UNDP, ASMs environment are being highly unregulated in the ASGM industry. comply with the Occupational Health and Safety Act 2006. However, despite government efforts to management,identified and andtrained occupational in appropriate health technology, and safety environment standards. The National Environment Management Authority (NEMA) Act 2006. However, despite government efforts to improve safety and health of all workers in the Formalisationmanagement, of and the occupationalASMs has to healthbe fast-tracked, and safety if thestandards. ASMs concludedThe National the compilationEnvironment of theManagement national mercury Authority inventory (NEMA) as improve safety and health of all workers in the country through funding enforcement of OSH areFormalisation to benefit offrom the suchASMs programs. has to be Workingfast-tracked, in an if theinformal ASMs requiredconcluded by the the compilation Minamata ofConvention the national on mercury mercury. inventory Mercury, as country through funding enforcement of OSH activities, limited impact has been registered due settingare to willbenefit inevitably from makesuch themprograms. less adoptableWorking inand an trainable informal despiterequired its by uses, the Minamataposes many Convention health risks on including;mercury. Mercury,loss of activities, limited impact has been registered due to inadequate enforcement of the OSH Act of withsetting in HSE will andinevitably use of make modern them technology. less adoptable and trainable peripheraldespite its vision, uses, “pinsposes and many needles” health feelings,risks including; usually lossin the of 2006.to inadequate enforcement of the OSH Act of with in HSE and use of modern technology. hands,peripheral feet, vision, and around“pins and the needles”mouth, lackfeelings, of coordination usually in theof 2006. hands, feet, and around the mouth, lack of coordination of

industry in Uganda; though it still requires some improvement in strategic direction, the anticipated benefits of mining theindustry way data in Uganda; is kept and though disseminated it still requires to the some users. improvement in tostrategic the country direction, may the notanticipated be effectively benefits achieved. of mining 3.2.7. Infrastructural Development the way data is kept and disseminated to the users. to the country may not be effectively achieved. 3.2.7. Infrastructural Development DGSM should prioritise development of the minerals Due to gaps that are identified as still existing at the directorate masterDGSM plan.should prioritise development of the minerals andDue the to gapslack of that research are identified and development; as still existing there at are the little directorate efforts master plan. and the lack of research and development; there are little efforts Indicator Score: geared towards adding value on the minerals that are produced in Indicator Score: thegeared country. towards adding value on the minerals that are produced in 52.8% - Mostly Addressed the country. 52.8% - Mostly Addressed This calls for increased budget and expenditure on research and developmentThis calls for inincreased the mining budget industry, and expenditure along the onminerals research value and The subsector scored 52.8% under this indicator implying that most of the areas had assesd chain,development and establishment in the mining of industry,a unit to alongcoordinate the minerals and promote value performedThe subsector relatively scored well. 52.8% The areas under assessed this indicator included implying capacity that of most the institutionsof the areas to hadperform assesd its researchchain, and and establishment development. of This a unit will tohelp coordinate the country and topromote have mandate,performed the relatively policy frameworkwell. The areas for infrastructural assessed included development capacity and of the institutionsmanagement to performof mining its maximumresearch benefitand development. from the mineral This resources.will help the country to have samples.mandate, Below the policy is how framework the subsector for infrastructural performed in development each of the andkey areasthe management assessed under of mining this maximum benefit from the mineral resources. samples. Below is how the subsector performed in each of the key areas assessed under this indicator; (ii) Policy framework on indicator; (ii) Policy framework on Infrastructural development in Mining Infrastructural development in Mining Fig 19:Performance of the subsector under Key Result Areas in indicator 7 Subsector (62.5%) Fig 19:Performance of the subsector under Key Result Areas in indicator 7 TheSubsector scorecard noted (62.5%) that the government has an agenda to The scorecard noted that the government has an agenda to develop infrastructure required to develop mineral resources. This includesdevelop developmentinfrastructure ofrequired roads thatto develop reach mineralto various resources. parts of Thisthe countryincludes such development as the Tororo-Malaba of roads that roadreach for to thevarious Sukulu parts project, of the establishingcountry such a as modern the Tororo-Malaba and internationally road for thecertified Sukulu mineralproject, establishing a modern and internationally certified mineral analysis and beneficiation laboratory, among others. However, analysis and beneficiation laboratory, among others. However, DGSM does not have a policy framework on the management and DGSM does not have a policy framework on the management and maintenance of mineral equipment at the directorate maintenance of mineral equipment at the directorate headquarters. headquarters. There have been massive investments in the acquisition of various equipmentThere have required been massive in mining investments exploration in theand acquisition development; of various these areequipment however required left in inthe mining hands exploration of individual and development;departments theseand utilisedare however or lent outleft toin private the hands firms atof will,individual without departmentsthe knowledge and of (i) Research Capacity of governments and mineral host communities; cross-sectoral theutilised directorate. or lent out There to private should firms beat will,a withoutclear policy the knowledge on asset of (i) Research Capacity of governments and mineral host communities; cross-sectoral managementthe directorate. and Therean asset should registry be established a clear policyin order on to avoidasset linkages and multiplier effects and local content development in management and an asset registry established in order to avoid Mining Institutions to improve linkages and multiplier effects and local content development in loss and vandalising of the equipment at the hands of the Mining Institutions to improve the mineral industry, among others. Though it was established individuals.loss and vandalising of the equipment at the hands of the value addition (33.4%) the mineral industry, among others. Though it was established individuals. that DGSM is developing a well-maintained modern value addition (33.4%) that DGSM is developing a well-maintained modern There is on-going global pressure to improve social, internationally certified mineral analysis and beneficiation There is on-going global pressure to improve social, The National Development Plan II provides for prioritisation of developmental, and environmental performance in internationally certified mineral analysis and beneficiation The National Development Plan II provides for prioritisation of laboratory, the efforts to support the research and development mineral development through establishment of the mining master developmental, and environmental performance in laboratory, the efforts to support the research and development the mineral industry. This calls for increased theme in the mining industry is still lacking. mineral development through establishment of the mining master the mineral industry. This calls for increased plan containing the country’s mining vision in accordance with the expenditure on Research and Development through theme in the mining industry is still lacking. plan containing the country’s mining vision in accordance with the expenditure on Research and Development through African Mining Vision. The purpose of the master plan is to clearly the mineral value chain. This will improve on the African Mining Vision. The purpose of the master plan is to clearly The directorate has a modern computerized mining cadastre provide the detailed strategic direction and guidance for the mining the mineral value chain. This will improve on the The directorate has a modern computerized mining cadastre ability to provide evidence based decisions and but it was noted that is not regularly maintained and updated. It provide the detailed strategic direction and guidance for the mining ability to provide evidence based decisions and sector during the NDP period and beyond. It was, however noted policy based recommendations in the mining areas; but it was noted that is not regularly maintained and updated. It sector during the NDP period and beyond. It was, however noted also has an effective system for collection, analysis, archiving that the master plan had not been developed. Without adequate policy based recommendations in the mining areas; also has an effective system for collection, analysis, archiving share and use of mineral revenue by local and dissemination of data and information about the mineral that the master plan had not been developed. Without adequate share and use of mineral revenue by local and dissemination of data and information about the mineral

Fig 20: Map of Uganda showing the NDP II proposed Minerals & Requisite Infrastructure Fig 20: Map of Uganda showing the NDP II proposed Minerals & Requisite Infrastructure 3.2.8. Gender, Equity, Social Inclusion and 3.2.8. Gender, Equity, Social Inclusion and ParticipationParticipation

IndicatorIndicator Score:Score: 37.5%37.5% -- PartiallyPartially addressedaddressed

The subsector scored 37.5% under this indicator implying that the subsector has partially The subsector scored 37.5% under this indicator implying that the subsector has partially addressed the areas assessed under this indicator. The areas assessed included the participation addressed the areas assessed under this indicator. The areas assessed included the participation of the marginalised and vulnerable groups in the mining industry, enforcement of the laws related of the marginalised and vulnerable groups in the mining industry, enforcement of the laws related to employment and child labour, and issues of gender based violence in the mining areas. Below to employment and child labour, and issues of gender based violence in the mining areas. Below is how the subsector scored in each of these areas; is how the subsector scored in each of these areas;

Fig 21: Performance of the subsector under Key Result Areas in indicator 8 Fig 21: Performance of the subsector under Key Result Areas in indicator 8

any mining operation. Companies should hire (i) Participation of the marginalised any mining operation. Companies should hire (i) Participation of the marginalised female staff in different types of work on the mine and vulnerable groups in the mining female staff in different types of work on the mine (iii) Management of Mining and vulnerable groups in the mining site, not only underground. (iii) Management of Mining site, not only underground. Samples (62.5%) quantities to be exempted. Without guidelines, there is risk of industry (37.5%) Samples (62.5%) quantities to be exempted. Without guidelines, there is risk of industry (37.5%) Though the subsector has established a criterion for abusing the law whereby mining companies may export There are significant barriers to the full participation and According to the District Community Development Though the subsector has established a criterion for abusing the law whereby mining companies may export There are significant barriers to the full participation and According to the District Community Development the monitoring of mining samples exported out of minerals under the pretext of samples to evade payment of benefiting of vulnerable and marginalised groups in the mining Officer, Busia, women are mainly involved in the monitoring of mining samples exported out of minerals under the pretext of samples to evade payment of benefiting of vulnerable and marginalised groups in the mining Officer, Busia, women are mainly involved in the country, there are no clear guidelines to this royalties causing loss of revenues. However, the new policy industry. These include inequities in access to resources carrying soils/ores out of the pits, engaged in the country, there are no clear guidelines to this royalties causing loss of revenues. However, the new policy industry. These include inequities in access to resources carrying soils/ores out of the pits, engaged in effect. Section 98 (3) of the Mining Act 2003 allows remains silent on the management of samples apart from including capital, information, education and training; mobility; sieving gold, and in gold trading. When it comes to effect. Section 98 (3) of the Mining Act 2003 allows remains silent on the management of samples apart from including capital, information, education and training; mobility; sieving gold, and in gold trading. When it comes to for exemption of royalties on samples in quantities requiring drilling companies under the ministry of water and and legal, socio- cultural and financial constraints. There is a negotiating for compensation, the people for exemption of royalties on samples in quantities requiring drilling companies under the ministry of water and and legal, socio- cultural and financial constraints. There is a negotiating for compensation, the people that shall be determined by the Commissioner. environment to avail samples and logs to DGSM. Government mechanism that ensures an inclusive participation of interviewed in the various FGDs indicated that very that shall be determined by the Commissioner. environment to avail samples and logs to DGSM. Government mechanism that ensures an inclusive participation of interviewed in the various FGDs indicated that very According to the OAG report, 2006, a review of the should therefore expedite the development of the policy, disadvantaged and vulnerable people in the mineral industry. For few groups of vulnerable and marginalised people According to the OAG report, 2006, a review of the should therefore expedite the development of the policy, disadvantaged and vulnerable people in the mineral industry. For few groups of vulnerable and marginalised people mining regulations however revealed that there were regulations and guidelines to support the mining subsector in instance, section 114 of the Minerals Act 2003, provides for participate in compensation negotiations for land mining regulations however revealed that there were regulations and guidelines to support the mining subsector in instance, section 114 of the Minerals Act 2003, provides for participate in compensation negotiations for land no guidelines in terms of the minimum or maximum regulating the export on mineral samples. women to be employed to do underground work in any mine or access or acquisition for mineral activities. no guidelines in terms of the minimum or maximum regulating the export on mineral samples. women to be employed to do underground work in any mine or access or acquisition for mineral activities.

The government therefore should holistically tackle child labour in trade unions, ignoring the use of child labour in In an FGD at Loorung Lolet Kalemureng Village in activity that may be harmful to his or her health, education or The government therefore should holistically tackle child labour in trade unions, ignoring the use of child labour in In an FGD at Loorung Lolet Kalemureng Village in activity that may be harmful to his or her health, education or the country. Actions on ensuring food security of families, mining activities, discrimination against women, mental, physical or moral development. the country. Actions on ensuring food security of families, mining activities, discrimination against women, Moroto Village, one female participant noted that; mental, physical or moral development. provision of alternative livelihoods, enforcing legal provisions, violation of indigenous rights, land grabbing without Moroto Village, one female participant noted that; provision of alternative livelihoods, enforcing legal provisions, violation of indigenous rights, land grabbing without raising awareness and providing comprehensive education adequate compensation. “We are not allowed to engage in the lucrative task raising awareness and providing comprehensive education adequate compensation. “We are not allowed to engage in the lucrative task Fig 22: A child miner in Rupa mining area, Karamoja region. of gold mining. We are restricted to picking loose ore Fig 22: A child miner in Rupa mining area, Karamoja region. support for children including meals without any additional costs of gold mining. We are restricted to picking loose ore support for children including meals without any additional costs to crash.” should be considered. According to the various respondents interviewed in to crash.” should be considered. According to the various respondents interviewed in both the FGDs and KIIs, GBV is very prevalent in the both the FGDs and KIIs, GBV is very prevalent in the One elderly woman in Hamurwa TC, in Rubanda mining areas. One Community Development Officer One elderly woman in Hamurwa TC, in Rubanda (iii) Gender Based violence in the mining areas. One Community Development Officer district, where Iron Ore is mined, revealed that, (iii) Gender Based violence in the at Rupa Sub County noted that, district, where Iron Ore is mined, revealed that, at Rupa Sub County noted that, miningmining areasareas (18.8%)(18.8%) “Even we women can carry that heavy iron ore, and Sustainable mineral development of Uganda’s mining and “Even we women can carry that heavy iron ore, and Sustainable mineral development of Uganda’s mining and “There is prevalent gender based violence as a result after breaking it into smaller pieces. We can do the minerals sub-sector requires the recognition and provision of “There is prevalent gender based violence as a result after breaking it into smaller pieces. We can do the minerals sub-sector requires the recognition and provision of of alcoholism. Some of the miners in the area spend work ourselves. We even load those tippers that of alcoholism. Some of the miners in the area spend work ourselves. We even load those tippers that equal opportunities to all regardless of their gender, tribe or come for iron ore. We might work at a slower pace equal opportunities to all regardless of their gender, tribe or their income obtained from mining on alcohol.” Logiel come for iron ore. We might work at a slower pace disabilities. One of the equality issues of concern is that the their income obtained from mining on alcohol.” Logiel but we do the work ourselves. Here it is survival for disabilities. One of the equality issues of concern is that the Anthony Abbot Moroto Rupa CDO but we do the work ourselves. Here it is survival for Anthony Abbot Moroto Rupa CDO the fittest. The days when we could hire people to do mining and minerals sub-sector in Uganda like any other mineral the fittest. The days when we could hire people to do mining and minerals sub-sector in Uganda like any other mineral work for us are gone, everyone does any task.” rich economy remains traditionally a male-dominated industry work for us are gone, everyone does any task.” rich economy remains traditionally a male-dominated industry In an FGD for men at Loorung Lolet Kalemureng, in with few women employed in the less paying sections of the value In an FGD for men at Loorung Lolet Kalemureng, in with few women employed in the less paying sections of the value Moroto district, one participant revealed that, This calls for a need for deliberate efforts, to chain in the sector. For example, some widows in Busia and Moroto district, one participant revealed that, This calls for a need for deliberate efforts, to chain in the sector. For example, some widows in Busia and empower by skilling and training of women to It was however noted that in most mining areas, there has been Namayingo region made allegations of the existence of empower by skilling and training of women to It was however noted that in most mining areas, there has been Namayingo region made allegations of the existence of Because of alcohol and the young men have money participate in the mining activities, such that they rampant involvement of children in the mining activities which discrimination and abuse by their male counterparts in these Because of alcohol and the young men have money participate in the mining activities, such that they rampant involvement of children in the mining activities which discrimination and abuse by their male counterparts in these they mistreat women. They intimidate and harass puts their lives in danger, even though the government has not they mistreat women. They intimidate and harass can apply skills others than efforts in the mining puts their lives in danger, even though the government has not mining camps. women because of alcoholism. can apply skills others than efforts in the mining mining camps. women because of alcoholism. areas. moved forward to enforce the various regulations available. areas. moved forward to enforce the various regulations available. According to the report “No Golden Future” published by Centre Other problems that are often associated with mining and According to the report “No Golden Future” published by Centre Other problems that are often associated with mining and A woman in an FGD at Buhweju revealed that, for Research on Multinational Corporations in April 2016 , the affected women are disrupted family life, increased prostitution, A woman in an FGD at Buhweju revealed that, (ii)(ii) Enforcement Enforcement ofof thethe lawslaws for Research on Multinational Corporations in April 2016 , the affected women are disrupted family life, increased prostitution, number of child gold miners was estimated between 10,000 to alcoholism, domestic violence and loss of land rights. The All of us you see here are widows (Effakazi). These number of child gold miners was estimated between 10,000 to alcoholism, domestic violence and loss of land rights. The All of us you see here are widows (Effakazi). These related to employment and 15,000 across gold mines in Uganda in some of the rich mineral scorecard identified gender disparity as one of the important dealers of ore take advantage of us because they related to employment and 15,000 across gold mines in Uganda in some of the rich mineral scorecard identified gender disparity as one of the important dealers of ore take advantage of us because they see us as vulnerable people who cannot manage life Child Labour (56.3%) districts like Moroto, Mubende Namayingo, Buhweju etc. The issues that needs to be addressed by the industry, including see us as vulnerable people who cannot manage life Child Labour (56.3%) districts like Moroto, Mubende Namayingo, Buhweju etc. The issues that needs to be addressed by the industry, including on our own. Single parenthood is also a difficult International Labour Organization categorizes mining as on our own. Single parenthood is also a difficult Whereas child labour is illegal in Uganda, the use of International Labour Organization categorizes mining as attracting more women into professional jobs through the training situation; you have to fend for your children alone. Whereas child labour is illegal in Uganda, the use of attracting more women into professional jobs through the training situation; you have to fend for your children alone. child labour in mining operation has been identified hazardous work to children and defines it as the worst form of and skilling of more female mining engineers, geologists, child labour in mining operation has been identified hazardous work to children and defines it as the worst form of and skilling of more female mining engineers, geologists, child labour. as one of the critical social issues in the industry. child labour. scientists, policy analysts, lawyers and economists as well as The role of women in artisanal mining cannot be as one of the critical social issues in the industry. scientists, policy analysts, lawyers and economists as well as The role of women in artisanal mining cannot be Child labour is associated with many potential equalising remuneration for men and women through the value Child labour is associated with many potential equalising remuneration for men and women through the value ignored, even though the challenges are enormous. During the mapping exercise on child labour in mining ignored, even though the challenges are enormous. health consequences to child labourers including During the mapping exercise on child labour in mining chain in addition to ensuring that women in local communities The incomes they earn play an important role in health consequences to child labourers including chain in addition to ensuring that women in local communities The incomes they earn play an important role in over-exertion, respiratory ailments, headaches, joint conducted by Ecological Christian Organization (ECO) in gold benefit from mining activities. over-exertion, respiratory ailments, headaches, joint conducted by Ecological Christian Organization (ECO) in gold benefit from mining activities. improving the livelihoods of their families. There is and marble rich Rupa and Katikekile Sub County in Moroto improving the livelihoods of their families. There is problems, hearing and vision loss. and marble rich Rupa and Katikekile Sub County in Moroto need make reforms in order to promote women’s problems, hearing and vision loss. need make reforms in order to promote women’s district,district, it it was was noted noted that that children children go go to to the the mines mines to to get get money money Protection of human rights is another relevant social concern Protection of human rights is another relevant social concern empowermentempowerment inin thethe ArtisanalArtisanal miningmining sector.sector. MoreMore The Employment Act No. 6, 2006 (32) provides for: toto buybuy food,food, paypay schoolschool fees,fees, scholasticscholastic materialsmaterials andand otherother raised by mineral rich host communities, The Employment Act No. 6, 2006 (32) provides for: raised by mineral rich host communities, so,so, miningmining companiescompanies shouldshould putput inin placeplace (i) not employing of all children under the age of 12 needsneeds since since UPE UPE comes comes with with other other additional additional c costs.osts. The The study study (i) not employing of all children under the age of 12 mechanismsmechanisms toto mitigatemitigate gendergender basedbased violenceviolence years in any business, undertaking or work place. alsoalso revealedrevealed thatthat thethe plightplight ofof thethe girlgirl childchild isis highlyhighly atat riskrisk most especially in the Karamoja region. There have years in any business, undertaking or work place. most especially in the Karamoja region. There have amongstamongst theirtheir employees.employees. because of the dangers eminent at the mining sites most of been accusations that some mining companies abuse human (ii)(ii) NotNot employingemploying oror workwork inin placesplaces whichwhich areare because of the dangers eminent at the mining sites most of been accusations that some mining companies abuse human which are characterized by alcoholism, hence increasing rights of the indigenous communities either independently or in injuriousinjurious toto hishis oror herher health,health, dangerousdangerous oror which are characterized by alcoholism, hence increasing rights of the indigenous communities either independently or in chances of early pregnancies, HIV/AIDs and rape and collusion with local and central governments. Such human rights hazardoushazardous oror otherwiseotherwise unsuitable.unsuitable. The The ChildrenChildren chances of early pregnancies, HIV/AIDs and rape and collusion with local and central governments. Such human rights defilement. include but are not limited to paying mineral loaders unfairly low ActAct Cap Cap 59, 59, 2000 2000 in in section section 8 8 of of the the Act Act states states that that defilement. include but are not limited to paying mineral loaders unfairly low wages, denying employees the right to organise themselves in nono child child shall shall be be employed employed or or engaged engaged in in any any wages, denying employees the right to organise themselves in

3.2.9. Minerals Value Addition and Marketing 3.2.9. Minerals Value Addition and Marketing However,However, therethere areare nono skillingskilling programsprograms forfor mineralmineral areare nono establishedestablished processingprocessing andand buyingbuying centrescentres forfor mineralmineral beneficiation and value addition in the country. beneficiation and value addition in the country. commoditiescommodities fromfrom ArtisanalArtisanal andand SmallSmall ScaleScale Miners.Miners. TheThe TheseThese needneed toto bebe establishedestablished andand supportedsupported toto existingexisting arrangementsarrangements areare informal,informal, setset upup byby thethe businessbusiness ensureensure thatthat thethe countrycountry fullyfully benefitsbenefits fromfrom thethe people themselves. It was also noted that there are no IndicatorIndicator Score:Score: miningmining industry. industry. people themselves. It was also noted that there are no collaborativecollaborative arrangementsarrangements withwith thethe privateprivate sectorsector toto developdevelop 45.8%45.8% -- PartiallyPartially addressedaddressed and improve training institutions in mineral marketing, grading (ii)(ii) Value Value Addition,Addition, QualityQuality and improve training institutions in mineral marketing, grading andand valuation.valuation. The The marketingmarketing andand sellingselling ofof mineralmineral productsproducts inin ControlControl andand MarketingMarketing inin thethe Uganda is characterised by transfer pricing, and under invoicing TheThe subsector subsector scored scored 45.8% 45.8% under under this this indicator indicator implying implying that that the the subsector subsector has has partially partially addressed addressed Uganda is characterised by transfer pricing, and under invoicing to evade taxes. thethe areas areas assessed. assessed. The The areas areas assessed assessed included included mineral mineral beneficiation, beneficiation, and and Value Value Addition, Addition, Quality Quality MiningMining IndustryIndustry (25.5%)(25.5%) to evade taxes.

ControlControl and and Marketing Marketing in in the the Mining Mining Industry. Industry. Below Below is is how how each each of of these these areas areas contributed contributed to to the the score score MineralMineral development development and and value value addition addition comes comes with with ToTo controlcontrol thesethese irregularities,irregularities, therethere isis needneed toto establishestablish aa of this indicator; benefitsbenefits derivedderived fromfrom mining,mining, processingprocessing andand of this indicator; mineralsminerals sellingselling andand marketingmarketing agencyagency oror corporationcorporation toto controlcontrol assembling. It also encompasses the multiplier assembling. It also encompasses the multiplier andand carrycarry outout salessales andand exportsexports ofof allall mineralsminerals producedproduced inin effecteffect ofof thosethose industriesindustries thatthat benefitbenefit thethe serviceservice Uganda;Uganda; to to minimize minimize opportunitiesopportunities forfor underhandunderhand andand dishonestdishonest and supply industry, i.e., construction, energy, dealings such as, transfer pricing, under invoicing and related FigFig 23: 23: Performance Performance of of the the subsector subsector under under Key Key Result Result Areas Areas in in indicator indicator 9 9 and supply industry, i.e., construction, energy, dealings such as, transfer pricing, under invoicing and related problems;problems; toto monitormonitor internationalinternational mineralmineral marketsmarkets andand trendstrends engineeringengineering andand environmentalenvironmental services,services, andand technologicaltechnological changeschanges toto thethe bestbest advantageadvantage ofof thethe equipment parts and supplies, financial and legal equipment parts and supplies, financial and legal Government;Government; andand toto protectprotect thethe interestsinterests ofof thethe countrycountry andand ofof expertise,expertise, among among others. others. producersproducers andand thethe industry.industry.

ThroughThrough NDP,NDP, thethe governmentgovernment proposedproposed variousvarious AccessAccess toto financingfinancing byby thethe ASMsASMs inin UgandaUganda hashas alsoalso beenbeen aa interventionsinterventions inin thethe mineralsminerals sub-sectorsub-sector thatthat wouldwould stumblingstumbling blockblock toto thethe developmentdevelopment ofof thethe miningmining industryindustry inin thethe havehave significantsignificant impactimpact onon thethe economy,economy, whichwhich country.country. ThisThis isis becausebecause ofof thethe informalinformal naturenature ofof thethe ASMsASMs include:include: activities.activities.

(i)(i) Development Development ofof thethe ironiron smeltingsmelting plant,plant, whichwhich ThereThere areare mechanismsmechanisms toto controlcontrol andand regulateregulate thethe qualityquality ofof wouldwould havehave positivepositive spill-overspill-over effectseffects onon steelsteel mineralsminerals producedproduced inin Uganda.Uganda. WhenWhen someonesomeone isis applyingapplying forfor aa manufacturingmanufacturing within within the the region region and;and; miningmining lease,lease, therethere areare aa numbernumber ofof expectations,expectations, whichwhich theythey mustmust fulfilfulfil asas stipulatedstipulated inin MineralMineral ActAct 2003.2003. TheseThese areare howeverhowever encourages it reason for which a ban was put on the (i)(i) Mineral Mineral Beneficiation Beneficiation (66.7%)(66.7%) encourages it reason for which a ban was put on the (ii)(ii) Processing Processing of of phosphates phosphates into into fertilizers, fertilizers, whichwhich looselyloosely monitored monitored duedue toto lacklack ofof thethe necessarynecessary humanhuman resourceresource export of unprocessed iron ore and copper. Uganda RegardingRegarding beneficiation,beneficiation, governmentgovernment undertakesundertakes toto investinvest inin export of unprocessed iron ore and copper. Uganda wouldwould havehave positivepositive benefitsbenefits especiallyespecially forfor thethe toto monitormonitor forfor compliance.compliance. will be exporting finished products. There are strengtheningstrengthening thethe mineralmineral dressingdressing laboratorylaboratory (value(value additionaddition will be exporting finished products. There are agricultureagriculture sector. sector. incentives that have been put in place to encourage laboratory)laboratory) in in the the Department Department of of Geological Geological Surveys Surveys andand MineMine incentives that have been put in place to encourage ThereThere havehave beenbeen effortsefforts toto attractattract investorsinvestors toto addadd valuevalue toto the establishment of processing and other (DGSM)(DGSM) to to enable enable it it carry carry out out laboratory laboratory tests tests to to help help in in various various the establishment of processing and other ItIt isis projectedprojected thatthat valuevalue additionaddition inin mineralmineral mineralmineral productsproducts producedproduced formform Uganda.Uganda. TinTin (African(African Panther)Panther) beneficiation industries. Plant and machinery for mineralmineral beneficiationbeneficiation processes.processes. AsAs aa strategystrategy toto reducereduce thethe beneficiation industries. Plant and machinery for developmentdevelopment wouldwould contributecontribute onon averageaverage 0.50.5 commencedcommenced miningmining andand processingprocessing ofof tintin withwith valuevalue additionaddition ofof refining gold are exempted from import duty, and exportexport of of raw raw minerals, minerals, priority priority for for issuance issuance ofof explorationexploration andand refining gold are exempted from import duty, and percentpercent to to total total GDP GDP per per annum. annum. concentratingconcentrating thethe oreore upup toto 75%75% asas thethe firstfirst phasephase withwith atat leastleast VAT is deferred for a period of one year. Some of the miningmining licenseslicenses wouldwould gogo toto projectsprojects thatthat includeinclude thethe VAT is deferred for a period of one year. Some of the USDUSD 10M10M investment.investment. TheThe secondsecond phasephase willwill includeinclude aa tintin companies that have benefited include Elgon establishmentestablishment of of processing processing and and refining refining plants plants in in Uganda Uganda and and companies that have benefited include Elgon AccordingAccording toto thisthis scorecard,scorecard, achievingachieving thisthis targettarget smelter.smelter. MoreMore howeverhowever needsneeds toto bebe done.done. Mineral Resources, which brought US$300 million useuse of of modern modern technology, technology, as as well well as, as, adherence adherence to to environmental environmental Mineral Resources, which brought US$300 million remainsremains far-fetched far-fetched due due to to various various reasons. reasons. There There is is to invest in a gold mining and processing facility in standards.standards. to invest in a gold mining and processing facility in nono frameworkframework andand structuresstructures forfor thethe regulationregulation ofof Busia by 2019. This will be the second firm after Busia by 2019. This will be the second firm after mineralmineral processingprocessing andand marketing.marketing. The The currentcurrent lawlaw African Gold Refinery that recently invested $15 TheThe sector sector has has specific specific benchmarks benchmarks for for beneficiation beneficiation and and value value African Gold Refinery that recently invested $15 doesdoes not not provide provide for for this this and and the the sector sector is is still still having having million beneficiation facility that can refine gold up to additionaddition based based on on analysis analysis of of the the full full mineral mineral value value chain chain for for each each million beneficiation facility that can refine gold up to issuesissues withwith AGR.AGR. TheThe scorecardscorecard notednoted thatthat therethere 99.9% purity. individualindividual mineral.mineral. TheThe currentcurrent mineralmineral policypolicy frameworkframework 99.9% purity.

(i)(i) Ratification Ratification ofof TheThe subsectorsubsector isis requiredrequired toto implementimplement thethe ICGLRICGLR declaration.declaration. RecommendationRecommendation International Mining Treaties International Mining Treaties TheThe processprocess ofof domesticatingdomesticating thethe templatetemplate andand thethe statutorystatutory (75%)(75%) instrumentsinstruments isis beingbeing finalized;finalized; muchmuch asas itit hashas beenbeen veryvery slow.slow. TheThe government government should should provide provide finances finances to to equip equip and and build build UgandaUganda should should move move to to entrench entrench its its desired desired policy policy TheThe BillBill toto domesticatedomesticate thethe ICGRLICGRL protocolprotocol isis partpart ofof omnibusomnibus UgandaUganda isis constantlyconstantly workingworking andand collaboratingcollaborating capacitycapacity of of mineral mineral laboratories laboratories for for value value addition. addition. This This should should onon value value addition addition to to be be more more inside inside looking looking as as well well billbill onon securitysecurity andand associatedassociated protocolsprotocols thatthat cartercarter forfor mineralmineral withwith other other countries. countries. There There are are various various regional regional and and involveinvolve providing providing for for repairing repairing and and servicing servicing the the major major asas focusedfocused onon exploitingexploiting thethe EastEast AfricanAfrican andand certification.certification. ItIt waswas passedpassed byby ParliamentParliament onon 17/5/201717/5/2017 andand international treaties and initiatives related to awaits ascent before implementation commences. The equipment, i.e., Atomic Absorption Spectrometer (AAS) and Sub-Saharan markets for its commodities as well as international treaties and initiatives related to awaits ascent before implementation commences. The equipment, i.e., Atomic Absorption Spectrometer (AAS) and Sub-Saharan markets for its commodities as well as government should thus give it priority to continue providing miningmining thatthat areare ratifiedratified andand customisedcustomised intointo thethe government should thus give it priority to continue providing X-RayX-Ray Fluorescence Fluorescence (XRF) (XRF) spectrometer, spectrometer, which which developed developed faults faults negotiatingnegotiating tradetrade treatiestreaties withwith neighbouringneighbouring transparencytransparency toto thethe miningmining industryindustry onon Uganda.Uganda. UgandanUgandan legallegal framework.framework. These,These, conventions,conventions, duedue to to power power surges. surges. countriescountries toto removeremove suchsuch barriersbarriers ifif anyany currentlycurrently agreements,agreements, protocolsprotocols oror otherother arrangementsarrangements thatthat exist.exist. supportsupport goodgood governancegovernance inin thethe mineralmineral industry,industry, (ii)(ii) Cooperation Cooperation withwith otherother includingincluding mineralmineral traceability,traceability, certificationcertification andand neighbouringneighbouring countriescountries (41.7%)(41.7%) reportingreporting standardsstandards thatthat thethe countrycountry adheresadheres to.to. AsAs aa wayway ofof learninglearning fromfrom eacheach otherother andand mitigatingmitigating thethe illegalillegal These include the International Conference on the 3.2.10.3.2.10. Regional Regional andand InternationalInternational InitiativesInitiatives These include the International Conference on the movementmovement ofof mineralsminerals acrossacross borders,borders, thethe governmentgovernment sharesshares GreatGreat LakesLakes RegionsRegions (ICGLR),(ICGLR), amongamong others.others. The The miningmining industryindustry marketmarket informationinformation withwith regionalregional andand governmentgovernment isis commendedcommended forfor participatingparticipating inin thethe internationalinternational governmentsgovernments andand bodies.bodies. ThereThere isis alsoalso IndicatorIndicator Score:Score: developmentdevelopment andand reviewreview forfor harmonizationharmonization ofof thethe co-operationco-operation inin thethe developmentdevelopment ofof humanhuman resourceresource throughthrough legislationlegislation andand technicaltechnical standardsstandards inin thethe mineralmineral exchangeexchange ofof geosciencegeoscience information,information, technologytechnology andand sharingsharing 51.4%51.4% -- PartiallyPartially AddressedAddressed andand relatedrelated sectorssectors atat regionalregional andand internationalinternational facilitiesfacilities andand expertiseexpertise withwith regionalregional andand internationalinternational levels.levels. governmentsgovernments andand bodies.bodies. InIn thethe region,region, thisthis isis mainlymainly donedone withwith The subsector scored 51.4% under this indicator implying that the subsector has mostly addressed The subsector scored 51.4% under this indicator implying that the subsector has mostly addressed GDCGDC andand KenyaKenya GeothermalGeothermal Energy,Energy, wherewhere KenyansKenyans comecome toto the areas assessed. The areas assessed included the ratification of international mining treaties, the areas assessed. The areas assessed included the ratification of international mining treaties, InIn 2010, 2010, ICGLR ICGLR Lusaka’sLusaka’s DeclarationDeclaration approvedapproved sixsix UgandaUganda toto learnlearn andand alsoalso UgandansUgandans shallshall bebe goinggoing toto KenyaKenya inin cooperation with other neighbouring countries, and membership to other international bodies. Below cooperation with other neighbouring countries, and membership to other international bodies. Below toolstools as as part part of of the the Regional Regional Initiative Initiative to to mitigate mitigate the the 20182018 toto shareshare knowledgeknowledge andand learnlearn fromfrom eacheach other.other. However,However, is how the subsector scored on each of these areas assessed under this indicator; is how the subsector scored on each of these areas assessed under this indicator; IllegalIllegal ExploitationExploitation ofof NaturalNatural ResourcesResources (RINR)(RINR) inin therethere areare nono arrangementsarrangements forfor cross-bordercross-border mineralmineral thethe Great Great Lakes Lakes Region. Region. The The six six tools tools developeddeveloped toto exploitation,exploitation, development,development, productionproduction andand processing;processing; thoughthough curbcurb illegal illegal exploitation exploitation included: included: SouthSouth SudanSudan hashas shownshown interestinterest inin doingdoing it.it. FigFig 24: 24: Performance Performance of of the the subsector subsector under under Key Key Result Result Areas Areas in in indicator indicator 10 10 •• RegionalRegional CertificationCertification MechanismMechanism (iii)(iii) Membership Membership toto InternationalInternational (RCM),(RCM), MiningMining BodiesBodies (37.5%)(37.5%) •• Harmonization Harmonization ofof NationalNational Legislation,Legislation, TheThe subsectorsubsector subscribessubscribes andand maintainsmaintains membershipmembership withwith regionalregional andand internationalinternational bodiesbodies relevantrelevant toto thethe mineralmineral •• Regional Regional DatabaseDatabase onon mineralmineral flows,flows, industryindustry development.development. TheThe subsectorsubsector isis aa membermember toto thethe OrganizationOrganization ofof AfricanAfrican GeologicalGeological Surveys.Surveys. However,However, therethere •• Formalization Formalization ofof ArtisanalArtisanal andand areare aa numbernumber ofof existingexisting bodiesbodies whichwhich sectorsector playersplayers cancan Small Small ScaleScale Mining,Mining, subscribesubscribe inin orderorder toto learnlearn bestbest practicespractices asas opposedopposed toto workingworking inin isolation.isolation. •• Extractive Extractive IndustryIndustry Transparency Transparency Initiative Initiative (EITI),(EITI),

•• Whistle Whistle BlowingBlowing MechanismMechanism..

Conclusions and 04 Key Recommendations

TheThe scorecard scorecard identifies identifies gaps gaps in in all all areas areas that that need need to to be be addressed addressed so so as as to to improve improve the the sub-sector’s sub-sector’s performance performance and and the the Full operationalization of the minerals and mining policy (2017) and new proposed government agencies such as, subsequentsubsequent achievement achievement of of the the sector sector objectives. objectives. The The mining mining and and minerals minerals subsector subsector has has also also been been plagued plagued by by these these gaps gaps the Mineral Exploration Unit, Licensing/Mining Cadastre Unit, Mineral Audit Agency and the Mining Tribunal, to improve mineral exploration, licensing, monitor compliance and address existing and emerging legal issues and forfor over over the the last last 10-13 10-13 years years and and to to a a large large extent extent was was justification justification for for the the revision revision of of the the mining mining policy, policy, 2001. 2001. Some Some of of these these 01 conflicts in the sub-sector; gapsgaps include: include:

Increase budget allocations to the Directorate of Geological Surveys and Mines for efficient implementation of the new Mining and Minerals Policy, 2018; Inadequate institutional funding and human resource most especially in the mines 02 01 department; Improve revenue collection from the sector by introducing online self-assessments and compliance by mining companies; introduction of weigh bridges on all mining regional routes to monitor mineral production and Human rights violations most pronounced during the inglorious evictions of illegal 03 declarations by companies; enforcement of regulations and termination of all non-performing exploration and 02 miners in Mubende in 2017; mining licenses;

A highly disorganized and predominantly illegal Artisanal and informal sector characterized by a heavy environmental, health and safety footprint, socio-economic Ensure that the OECD traceability initiatives and ICGLR mineral certification mechanism is fully domesticated in 03 order to plug revenue leakages in the exploitation of Tin, Tantalum and Tungsten and Gold (3TGs) to enable miners issues and human rights abuses some exacerbated and exporters access international markets and reduce the rampant mineral smuggling of these commodities; 04 Continued use of unregulated hazardous chemical substances such as mercury and 04 cyanide; Strengthening infrastructural development in the sector especially in the Karamoja region to ease access to the diverse mineral potential in the region; full regulation and formalisation of ASMs activities across the country; 05 amend the constitution and the regulatory framework to bring sand mining, rocks (stones), murrum and clay under Lack of mechanisms and standards to enforce environmental obligations in the mining the ambit of the mining and mineral policy and regulatory framework; 05 sector;

Failure to license and regulate the mining of Sand, Murrum, Clay and Stones; Emphasize the role of the Mining Police Protection Unit and clearly outline charges against those illegally engaging 06 in mining and mineral trade. 06 Reported cases of illegal mining and smuggling involving the mining police and other 07 security agencies meant to protect the mines and eliminate the same illegal mining Formalize ASM operations and activities by undertaking a bio-metric registration of all Artisanal and Small-scale vices; 07 miners;

Insufficient royalties of (10%/7%/3% for Districts/Local Governments/and Land Owners) Review and operationalize of the ASM Management Strategy; 08 and uncoordinated disbursement of the same to the intended beneficiaries; 08

Challenges of accessing land for mineral exploration and development amidst other Establish and National ASM Task-Force involving all key Government MDAs and other stakeholders in the overall 09 competing economic sectors such as pastoralism and agriculture; and 09 governance of the ASM sub-sector;

Limited national and community participation in mineral development and lack of Improved transparency and disclosure of all the required information, training and skilling of the ASMs, promotion 10 national and community awareness about backward, forward and lateral linkages to and awareness creation of the environment issues within the mining areas, among others; 10 mining among others.

Establish beneficial ownership of controversial passive exploration and mining rights and termination of mining Lack of a mechanism stipulating the minimum and maximum quantities that can be rights for non-compliance to free the sub-sector of speculators; 11 exported for sampling without taxes. 11

Identify and fast track the development of strategic mineral projects such as the Osukuru Phosphates Project in GovernmentGovernment and and the the responsible responsible Ministry Ministry of of Energy Energy and and Mineral Mineral Development Development /Directorate /Directorate of of Geological Geological Surveys Surveys and and Mines Mines Tororo District (Eastern Uganda), the Copper/Cobalt Project in Kasese (Western Uganda), the Rio-Tinto/Sipa Resources Copper/Cobalt and Nickel Project in Kitgum (Northern Uganda), the Rare Earth Elements Project in 12 andand other other stakeholders stakeholders need need to to work work together together need need to to address address the the following following gaps: gaps: Bugiri District (Eastern Uganda) and the Muko-Iron Ore Smelter Project in Rubanda District (Western Uganda). Key Recommendations Conclusions

The 2nd Annual Mining & Mineral Subsector Scorecard 49

14 14 Martin Martin JacanJacan GwoktoGwokto Chief Chief AdministrativeAdministrative OfficerOfficer 1515 ProductionProduction OfficerOfficer Appendix Appendix 1: 1: FGD FGD SitesSites

Busia District KABALEKABALE NTUNGAMO NTUNGAMO NAMAYINGO NAMAYINGO BUSIA BUSIA MOROTO MOROTO Busia District 1616 JohnsonJohnson EriyenyuEriyenyu EnvironmentEnvironment Officer/Officer/ NaturalNatural ResourceResource 17 Onyango Henry Community Development Officer MENMEN 17 Onyango Henry Community Development Officer 1818 WakapisiWakapisi w.f.w.f. AgricultureAgriculture officer/Productionofficer/Production OfficerOfficer 1919 Wakoli.Wakoli. PP ChiefChief AdministrativeAdministrative OfficerOfficer 2020 OgutuOgutu BonifaceBoniface DistrictDistrict chairmanchairman WOMENWOMEN NamayingoNamayingo District District 2121 EmmaEmma MuganzaMuganza NaturalNatural ResourceResource OfficerOfficer 2222 BusagwaBusagwa AlexAlex EnvironmentEnvironment OfficerOfficer 23 Nandutu Betty DCDO YOUTHYOUTH 23 Nandutu Betty DCDO 2424 NaigagaNaigaga RebeccaRebecca AgricultureAgriculture OfficerOfficer 2525 AndrewAndrew MayendeMayende CFOCFO 2626 SanyaSanya RonaldRonald DistrictDistrict chairmanchairman

AppendixAppendix 2: 2: List List of of KeyKey InformantsInformants atat thethe DistrictDistrict LevelLevel AppendixAppendix 3:3: KeyKey informantsinformants guideguide ## NamesNames PositionPosition 1)1) What What are are the the procedures procedures for for acquiring acquiring mineralmineral rights?rights? AndAnd whatwhat challengeschallenges doesdoes thethe legallegal andand policypolicy frameworkframework pose to the granting and acquisition of mineral rights? KabaleKabale District District pose to the granting and acquisition of mineral rights? 2) What capacity challenges (both financial and skilled staff) exist at DGSM that could deter it from fulfilling its 01 01 Mugisha Mugisha James James Chief Chief Administrative Administrative Officer Officer 2) What capacity challenges (both financial and skilled staff) exist at DGSM that could deter it from fulfilling its mandate? How can these challenges be addressed? 0202 AkatwijukaAkatwijuka Rogers Rogers NaturalNatural Resource Resource Officer Officer mandate? How can these challenges be addressed? 3) What type of revenues does government collect from mining activities? How does the government track and 03 03 Winfred Winfred Busingye Busingye District District Community Community Development Development Officer Officer 3) What type of revenues does government collect from mining activities? How does the government track and report on revenues generated from the imported minerals? What challenges does it face in collecting them? How 04 04 Mwebesa Mwebesa Beda Beda District District Production Production Officer Officer report on revenues generated from the imported minerals? What challenges does it face in collecting them? How are these revenues utilised? (Probe around the 20% royalties). 05 05 Mujuni Mujuni Julius Julius Chief Chief Finance Finance Officer Officer are these revenues utilised? (Probe around the 20% royalties). 4)4) What What isis beingbeing donedone byby thethe governmentgovernment toto encourageencourage UgandansUgandans toto participateparticipate andand benefitbenefit fromfrom thethe miningmining industry as both suppliers of goods and services and employees? NtungamoNtungamo District District industry as both suppliers of goods and services and employees? 5) Does DGSM enforce and monitor the implementation of the health, safety and environmental issues in the mining 06 06 Dan Dan Aritwebwa Aritwebwa Chief Chief Administrative Administrative Officer Officer 5) Does DGSM enforce and monitor the implementation of the health, safety and environmental issues in the mining industry? What challenges does it face? How often does it report on its activities? 07 07 Tumwebaze Tumwebaze Dinnah Dinnah Natural Natural Resource Resource Officer Officer industry? What challenges does it face? How often does it report on its activities? 6) What are the major infrastructural challenges in the mining industry? What is DGSM/government doing to curb 08 08 Turyatunga Turyatunga John John District District Community Community Development Development Officer Officer 6) What are the major infrastructural challenges in the mining industry? What is DGSM/government doing to curb these infrastructural challenges in the mining industry? 09 09 Mugabe Mugabe Albert Albert District District Production Production Officer Officer these infrastructural challenges in the mining industry? 7) What arrangements are in place to ensure that vulnerable and marginalised groups participate and benefit from 10 10 Byaruhanga Byaruhanga Andrew Andrew Chief Chief Finance Finance Officer Officer 7) What arrangements are in place to ensure that vulnerable and marginalised groups participate and benefit from thethe miningmining industry?industry? AreAre therethere casescases ofof childchild labourlabour andand domesticdomestic violenceviolence inin miningmining areas,areas, andand whatwhat isis beingbeing done to mitigate these challenges? MorotoMoroto District District done to mitigate these challenges? 8) What strategies does the government have to formalise the existence of ASMs? Are there skilling, value addition 1111 ZahariZahari Angella Angella Environment/NaturalEnvironment/Natural Resource Resource Officer Officer 8) What strategies does the government have to formalise the existence of ASMs? Are there skilling, value addition 12 12 Logiel Logiel Anthony Anthony Abbot Abbot Community Community Development Development Officer Officer 1313 OcengiOcengi Patrick Patrick FinanceFinance officer officer

andand marketing marketing programs programs for for the the ASMs ASMs in in the the mining mining areas? areas? 9)9) How How does does the the sector sector work work with with regional regional and and international international governments governments and and bodies bodies for for the the development development of of the the miningmining industry industry in in Uganda? Uganda? 10) Any recommendations and suggestions that would facilitate the development of the mining industry in the 10) Any recommendations and suggestions that would facilitate the development of the mining industry in the country? country?

AppendixAppendix 4: 4: Focus Focus GroupGroup DiscussionDiscussion GuideGuide

1) How are you, as bona fide local communities involved in the process of granting mineral rights to mining 1) How are you, as bona fide local communities involved in the process of granting mineral rights to mining companies? (probe around involvement in the development of RAPs) companies? (probe around involvement in the development of RAPs) 2) Do the bona fide locals freely engage in the mining process as ASMs? If, they do, what challenges do you meet? 2) Do the bona fide locals freely engage in the mining process as ASMs? If, they do, what challenges do you meet? If you don’t, what prohibits you from engaging in mining as ASMs? If you don’t, what prohibits you from engaging in mining as ASMs? 3) What opportunities are there for host communities/project affected persons to do in the mining areas? (Probe for 3) What opportunities are there for host communities/project affected persons to do in the mining areas? (Probe for both employment and supplier of goods and services.) both employment and supplier of goods and services.) 4) What kind of support has this mining community ever received to enable it to improve on the quality of goods and 4) What kind of support has this mining community ever received to enable it to improve on the quality of goods and services supplied to the mining companies? Who provided the support? services supplied to the mining companies? Who provided the support? 5) Has this community been engaged in programs that would improve their skills in mining, value addition and 5) Has this community been engaged in programs that would improve their skills in mining, value addition and marketing? What marketing challenges do the ASMs meet and how have you addressed these challenges? marketing? What marketing challenges do the ASMs meet and how have you addressed these challenges? 6) What services (SCR) has the host community received from mining companies? 6) What services (SCR) has the host community received from mining companies? 7) What services does the local government provide to this mining community as a result of the royalties shared 7) What services does the local government provide to this mining community as a result of the royalties shared from the government? from the government? 8) Are there health and social grievances between the community and the mining companies experienced in this 8) Are there health and social grievances between the community and the mining companies experienced in this community? How have they been handled? community? How have they been handled? 9) Are there cases of Gender Based Violence (GBV) associated with mining activities in your community? Are 9) Are there cases of Gender Based Violence (GBV) associated with mining activities in your community? Are communities sensitised on issues of HIV/AIDS, GBV, etc. When and how is this sensitisation conducted? communities sensitised on issues of HIV/AIDS, GBV, etc. When and how is this sensitisation conducted? 10) Are there vulnerable and marginalised groups of people in the community that participate in mining activities? 10) Are there vulnerable and marginalised groups of people in the community that participate in mining activities? How do they participate? How do they participate? 11) Are there roles designated for women and special interest groups during mining activities in your community? 11) Are there roles designated for women and special interest groups during mining activities in your community? How have you participated? How have you participated? 12) What do you suggest should be done to develop mining in your community and also improve the quality of your 12) What do you suggest should be done to develop mining in your community and also improve the quality of your lives? lives? of the community concerned. It has been noted that in some According to the Auditor General’s Report on areas mining activities have taken place in cultural places without regulation, monitoring and promotion of the mining (i) Capacity of the (ii) Regulating of the Mining the consent of the community, antagonising the cultural heritage sector 2015, some of the companies did not conform institutions in the mining Activities in the Reserved Areas (62.5 of the area. For instance, mining has been taking place in to any of the set requirements. At the time of the subsector to review the ESIA’s %) Athapanun, Rupa in Moroto district. This is the place where ritual assessment, none of the companies had submitted practices of initiation were conducted. It has since then been annual environmental audits and audited accounts The Institutions responsible for the management of forest (50%) diluted, according to the community members. Furthermore, to DGSM and there was no evidence to show that reserves, game reserves and national parks are mandated to Both DGSM / NEMA have the mandate to support Loorung, in Rupa, is an area of cultural heritage and thus a DGSM followed up with the applicants after issuing monitor mining activities within their territories. This research each other in reviewing of the Environmental and potential tourist site but it has since been affected by mining the licenses. noticed that these institutions have developed and Social Impact Assessments (ESIA’s) before they are activities. Free, Prior and Informed Consent, as well as other disseminated regulations to safeguard natural resources in the approved. They are both meant to have the forms of pre-project community consultation are recognized as There is need for close monitoring and supervision mining areas. Mining projects can be undertaken in of the licensee operations to ensure that rights institutional capacity to review ESIAs of mineral right international best practice that must be undertaken prior to any environmentally sensitive areas provided pre-requisite holders abide by the environmental requirements applicants and holders. It was however noted that project related land acquisition or land use6. environmental considerations have been undertaken and and standards. Mining companies should also EIAs are done by NEMA and sent to DGSM for continue submitting environmental performance review. NEMA however does not have the capacity authorisation sought from the responsible government agency. An applicant should not be granted mineral rights in any case bonds for the fulfilment of the required for reviewing ESIA’s in the mining subsector, and A case in point is the on-going Dura Limestone Quarry in the without obtaining community consent. License holders need a environmental management and management of Social License to Operate. Without community consent, this environmental issues once the companies exit the thus they are done by DGSM. Ruwenzori National Park servicing Hima Cement in Kasese. However, the actual monitoring of these mining activities by the shouldn’t be secured. Requiring such community consultations mining areas without handling the issues. will prevent negative relations between the community and the It was also noted that due to capacity gaps, both UWA and NFA is not fully conducted and hence compliance to license holder and will ensure that the community is aware and in The Mining of developmental minerals has also had human resource and financial gaps, both DGSM regulations is not fully enforced. support of an upcoming project. serious effects on the environment causing and NEMA do not have the required capacity to degradation in areas where it is conducted. The monitor compliance with ESIA’s and Environmental Section 21(1)(b) of the Mining Act 2003 provides for the (iii) Compliance of the mining Principal Assistant Secretary to the CAO in and Social Management Plans (ESMPs) during Restriction on a prospecting license and Section 78(1)(g)(h), companies to environment Rubanda district, on behalf of the CAO, noted that, projects implementation. NEMA and DGSM provides for the Restrictions on exercise of mineral rights. These sections restrict the holder of the mineral rights to management requirements (41.7%) participate jointly during the preliminary phases in “There is the mining of these development minerals ensuring that mining companies meet the required prospect over an area of land that is, or forms part of forest Section 41, Section 108 and Section 110 of the Mining Act, 2003, for construction; this activity is done on small scale Environmental Impact Assessment standards prior reserve, game reserve, national park, etc. unless the holder provide that an application for a mining right should indicate and but has environmental implications because it’s unregulated. Take an example here of Kiyorwa to commencement of the project, but follow-up on has first given notice to and obtained permission from the provide specific information (set requirements) which includes where degradation is affecting L. Bunyonyi. The relevant authorities. The act however doesn’t grant rights to the Environment Impact Assessment, Annual Environment Audits compliance in the course mining projects and president intervened and stopped the mining of post-mining was found to be lacking. relevant authority to conduct oversight and monitoring to and an Environment Restoration Plan. The scorecard sand but wanainchi crying out to him that they are ensure that the holder abides by the conditions on which assessment however noted that mining companies have not unemployed.” permission was granted. developed comprehensive environment management plans nor do they operate according to their environment management (iv) Management of the Forest reserves, game reserves, and national parks are all policy. endowed with specific authorities to oversee and manage their environmental protection fund Fig 13: Mercury contaminated water flowing into farmland at a Fig 14: Effects of Illegal Sand Mining on Land in Lwera Swamp, Masaka Road territories. gold mining site in Amudat (37.5%) Depletion of mineral resources and environmental Therefore, these authorities should have rights to monitor externalities as a result of air emissions, discharges mining activities occurring within the territory to ensure continuous compliance with the conditions on which the of liquid effluents, use of hazardous chemicals such permission to mine was granted instead of stopping on as Mercury and cyanide in the extraction of minerals disseminating regulations. Inter-agency coordination in the such as gold and generation of large volumes of monitoring of these mining projects to ensure compliance with solid waste are the most important environmental the ESIAs is also important and needs to be improved. issues for Uganda’s mining and minerals sub-sector. It emerged that mineral extraction activities have a Section 78 (1) (i) calls for respect of or on any land, which is visual impact on the landscape and has led to the held communally for cultural rites, without the written consent destruction or disturbance of surrounding and

neighbouring habitats and in some cases leading to the government had to incur a cost for restoration. This should Cap 153, should give NEMA the right to request the license holder SIAs should be consultative between mining a loss of biodiversity. Furthermore, some effluents be borne by the miners, in form of a security deposited in the to commission an independent third party to conduct an companies, host communities and other generated by mining activities contain large and environment protection fund. environmental audit to be submitted to NEMA for review in cases stakeholders. dangerous toxic substances such as cyanide and where NEMA has credible cause for concern that the license Companies should also identify Community heavy metals, which pause significant human Fig 15: An Abandoned Cyanide Plant in Amudat District holder may be non- compliant. The act currently does not stipulate Engagement Personnel to work as linkages with the health and ecological risks. The study also that an audit must be undertaken by an independent third party. community and act as conflict monitors within the discovered a number of abandoned mining sites Environmental audits are critical tools that allow the sector and mining areas to help identify and alert government and unrestored mining quarries as testament to the license holders to work together to continuously mitigate structures and companies about brewing conflict. unsatisfactory environmental performance of the environmental harm if the right processes are in place. Failure to address the causes of conflict negatively mining and minerals sub-sector state of affairs. affects business and destroys communities. (vi) Environmental awareness The National Environment Act Cap 153, Section 88 (vii) Promoting health and provides for the establishment of the environment creation (54.2%) protection fund. This fund supports in the NEMA is mandated to raise awareness on environmental matters safety practices in the mining replenishing the environment. Replenishing mine and share information with the public on matters relating to the industry (45.8%) sites and mine environments is one of the key impacts of mining activities. This has been however left in the In addition to wages and benefits that are universally factors that will ultimately protect the mine’s impact hands of CSOs and other interest groups to promote awareness in important in the mining and minerals industry, one on the environment. Simple solutions like the mining areas. The miners hardly know what to do, coupled with other significant issue is the occupational health and replenishing native soils and grasses, cleaning (v) Conducting of environmental low rates of supervision, puts the management of environment safety. Accident statistics show that that the industry issues in jeopardy. There is need for NEMA to come up with a clear excess waste, proper waste removal, site audits (37.5%) poses above-average risks to employees. strategy of awareness creation and promotion on environment Unprotected underground metalliferous mines were inspections and replanting trees and natural Section 22 (1) of the National Environmental Act, Cap 153 issues generally in the country and more specific in the mining reported to have the highest incidents of fatalities forestry can rejuvenate a long-term ecosystem provides for NEMA to commission an independent audit to areas. most of which are never reported by mine owners repair and sustain the environment for years verify the credibility of the annual environment audit conducted and artisanal miners for fear of shutdown of their beyond when the mine is no longer operating. The by the mineral rights holders. It was noted that NEMA rarely Dispute resolution mechanism is a requirement for every project mining operations. Underground gold mining in the entire reclamation process should include: exercises this mandate and when it’s done, mining companies developer. It forms part of the requirements in the certificates of Mubende region was reported to have the highest removing hazardous materials, reshaping land, rarely inform the authority on the action taken to mitigate the approval for all mining projects. Mineral rights holders are in the number of fatalities with an estimated 10 fatalities restoring topsoil, and planting native grasses, trees undesirable environment effects identified. This is because process of establishing mechanisms for addressing environmental per year followed by Tin mining in the Western or ground cover natural to the site. In cases where Section 108(3) of the Mining Act 2003 doesn’t provide NEMA and social grievances, disputes and conflicts arising from region with an estimated 7-8 fatalities on an annual the miner hasn’t replenished the environment, this with the power to conduct an independent audit, in case of exploration and mining activities. Disputes arise from a range of basis. Statistics here could not be verified because fund would be used to support this activity. credible concerns of non-compliance of the license holder. issues, including land, misunderstanding of the laws governing the victims’ families and the owners of the mines are Sometimes when NEMA conducts an independent audit, mining, environment degradation, and royalty sharing, among reluctant to disclose these fatalities for fear of Even though the fund receives funding from mining companies don’t provide feedback to NEMA on the others. imprisonment and also due to the illegal nature of disbursements from the Government; fees charged mitigation measures that were taken to handle the identified their activities, especially those in artisanal and under this Act; fines collected as a result of the undesirable environmental effects. breach of the provisions of this Act or any statutory Mining companies and government should set up alternative ways small-scale mining operations. of resolving disputes. Before project implementation, Social Impact instrument made under this Act, NEMA should exercise its powers provided in NEMA Act Cap 153 to prevail over the mining companies to ensure that they Assessments (SIAs) should be prepared and these will facilitate there is need to review the act such that the mining mitigate the identified undesirable effects and regularly report the identification of mechanisms to address peoples’ grievances to companies are able to deposit funds into the to the authority. prevent latent conflict hitting crisis levels. Regular reviews of the Environment Protection Fund as a security for SIAs should be conducted to help identify sources of conflict in decommissioning, restoration of derelict lands and orderly post-mine There is also need for the review of the Mineral Act 2003 so as places where mining is being considered. SIAs should identify the to clarify on NEMA’s powers to use the information presented in context, the drivers and possible social, political and environmental disclosure. In several cases, miners have the audit to require remedial action. The Act, like the NEMA Act, causes of conflict and investors be guided on how to operate in the abandoned mine sites without restoring them and context without exacerbating tensions. The process of preparing

Fig 16: A miner in Chepkararat (Amudat District) mining without Fig 17: A miner in Amudat using mercury to separate gold from gold dust. In some communities where mining is conducted, the members movements, impairment of speech, hearing, walking any protective gear highlighted several social and health concerns that require and muscle weakness. immediate attention such as; sexual exploitation of workers in mines; exploitation of the ASMs by buying minerals from them In a quest to curb the spread of mercury use, some cheaply; employee exploitation by the mining companies; failure to organisations like Environmental Women in Action provide protective gear and medical care to local miners and for Development (EWAD) is championing Africa’s employees; injuries on the mining sites; employing foreigners first certified Fairtrade gold producer, a mining group instead of giving the opportunity to locals; among others. The in Busia called Syanyonja Artisanal Miners’ Alliance community members also complained about the increasing social to produce gold using an entirely mercury free discord and the erosion of moral values in mining areas. This has process. This if made a national program and rolled been exacerbated by the increased prostitution, alcoholism, out over the mining areas in the country, would help HIV/Aids, sexual abuse of young girls and family breakdown as curb the use and effects of mercury in gold mining in causes of conflict from increased capital flowing into mining areas the country. Workers are also exposed to a number of health as a result emigration. Fig 18: A gold kacha in Busia used to eliminate mercury from the hazards due to hostile mining environments. gold mining process These include chronic occupational diseases due (viii) Regulating the use of hazardous Although Uganda’s economy has registered a number of to dust inhalation common in gold mining and achievements, various aspects of occupational safety and mining substances (45.8%) processing as well as in the stone quarrying health (OSH) have not been adequately addressed. sectors. Most of the mining workers interviewed Management of the OSH issues at workplaces continue to be NEMA developed the National environment (waste management) were found to be oblivious of the imminent danger left unattended to by different sectors of government and regulations to mitigate waste management in the mining industry. and exposure to diseases such as private sector. The mining sector isn’t immune to this situation Along with the Explosives Act Cap 298, the sector has a legal pneumoconiosis, silicosis and lung cancer. and hence the miners are found to work in environments that framework for the handling, transportation, storage and usage of Some mining activities also endanger the lives of are not palatable with humanity. This is attributed to a number hazardous chemicals and, explosives used in exploration, mining mining communities due air pollution, releases of reasons such as the lack of well trained and facilitated activities, and radioactive materials, tailings and toxic effluents toxic substances to water streams and food inspectors to fully inspect mining areas to and emissions resulting from such activities. chains. Unprotected access to abandoned and ensure application of OSH requirements, no sensitisation and sometimes even active pits also pose a safety risk trainings of miners on the required OSH standards, mining Uganda is also on course to ratifying the Minamata Convention on to communities and their livestock in some parts of work places aren’t registered and certified, lack of coordination Mercury. The Convention aims at protecting human health and the the country. between NEMA and MGLSD before approving of EIAs, among environment from anthropogenic emissions and releases of others. mercury and mercury compounds. Mercury is a highly toxic The sector has no specific established substance that possesses some unique chemical properties that occupational health and safety requirements There is however an effort to try and train the ASMs, but are hard to find anywhere else in nature. In Uganda, the most followed by the mineral rights holders with regard because of their informal nature, it is difficult to improve their prevalent use of mercury is in the Artisanal and Small scale Gold to employers and employees in the mining health and safety standards. Under the African, Caribbean and Mining (ASGM) sector. Its use still remains highly popular and industry. The mineral rights holders are required to Pacific (ACP-EU) project funded by UNDP, ASMs are being highly unregulated in the ASGM industry. comply with the Occupational Health and Safety identified and trained in appropriate technology, environment Act 2006. However, despite government efforts to management, and occupational health and safety standards. The National Environment Management Authority (NEMA) improve safety and health of all workers in the Formalisation of the ASMs has to be fast-tracked, if the ASMs concluded the compilation of the national mercury inventory as country through funding enforcement of OSH are to benefit from such programs. Working in an informal required by the Minamata Convention on mercury. Mercury, activities, limited impact has been registered due setting will inevitably make them less adoptable and trainable despite its uses, poses many health risks including; loss of to inadequate enforcement of the OSH Act of with in HSE and use of modern technology. peripheral vision, “pins and needles” feelings, usually in the 2006. hands, feet, and around the mouth, lack of coordination of

Fig 20: Map of Uganda showing the NDP II proposed Minerals & Requisite Infrastructure 3.2.8. Gender, Equity, Social Inclusion and Participation

Indicator Score: 37.5% - Partially addressed

Fig 21: Performance of the subsector under Key Result Areas in indicator 8

• Whistle Blowing Mechanism.

Government and the responsible Ministry of Energy and Mineral Development /Directorate of Geological Surveys and Mines and other stakeholders need to work together need to address the following gaps:

05 Appendices

14 Martin Jacan Gwokto Chief Administrative Officer 15 Production Officer Appendix 1: FGD Sites

KABALE NTUNGAMO NAMAYINGO BUSIA MOROTO Busia District 16 Johnson Eriyenyu Environment Officer/ Natural Resource MEN 17 Onyango Henry Community Development Officer Hamurwa Ruhama SC, Bukana SC; Sikuda SC; Rupa SC; 18 Wakapisi w.f. Agriculture officer/Production Officer TC Mwerasandu Khabagaya Village Tiira Village Loorung Village 19 Wakoli. P Chief Administrative Officer village 20 Ogutu Boniface District chairman WOMEN Hamurwa Ruhama SC, Bukana SC; Busitema SC; Rupa SC; Namayingo District TC Mwerasandu Nakudi Village Shanyonja Village Loorung Village 21 Emma Muganza Natural Resource Officer village 22 Busagwa Alex Environment Officer YOUTH 23 Nandutu Betty DCDO Hamurwa Ruhama SC, Sikulu SC; Sikuda SC; Rupa SC; 24 Naigaga Rebecca Agriculture Officer TC Mwerasandu Buyanga Village Tiira Village Loorung Village 25 Andrew Mayende CFO village 26 Sanya Ronald District chairman

Appendix 4: Focus Group Discussion Guide

1) How are you, as bona fide local communities involved in the process of granting mineral rights to mining companies? (probe around involvement in the development of RAPs) 2) Do the bona fide locals freely engage in the mining process as ASMs? If, they do, what challenges do you meet? If you don’t, what prohibits you from engaging in mining as ASMs? 3) What opportunities are there for host communities/project affected persons to do in the mining areas? (Probe for both employment and supplier of goods and services.) 4) What kind of support has this mining community ever received to enable it to improve on the quality of goods and services supplied to the mining companies? Who provided the support? 5) Has this community been engaged in programs that would improve their skills in mining, value addition and marketing? What marketing challenges do the ASMs meet and how have you addressed these challenges? 6) What services (SCR) has the host community received from mining companies? 7) What services does the local government provide to this mining community as a result of the royalties shared from the government? 8) Are there health and social grievances between the community and the mining companies experienced in this community? How have they been handled? 9) Are there cases of Gender Based Violence (GBV) associated with mining activities in your community? Are communities sensitised on issues of HIV/AIDS, GBV, etc. When and how is this sensitisation conducted? 10) Are there vulnerable and marginalised groups of people in the community that participate in mining activities? How do they participate? 11) Are there roles designated for women and special interest groups during mining activities in your community? How have you participated? 12) What do you suggest should be done to develop mining in your community and also improve the quality of your lives? of the community concerned. It has been noted that in some According to the Auditor General’s Report on areasof the mining community activities concerned. have taken It hasplace been in cultural noted places that in without some regulation,According monitoringto the Auditor and promotion General’s of Reportthe mining on (i) Capacity of the (ii) Regulating of the Mining areas mining activities have taken place in cultural places without regulation, monitoring and promotion of the mining (i) Capacity of the (ii) Regulating of the Mining the consent of the community, antagonising the cultural heritage sector 2015, some of the companies did not conform institutions in the mining Activities in the Reserved Areas (62.5 ofthe the consent area. of For the instance,community, mining antagonising has been the culturaltaking placeheritage in tosector any 2015,of the some set requirements.of the companies At thedid nottime conform of the institutions in the mining Activities in the Reserved Areas (62.5 Athapanun,of the area. Rupa For ininstance, Moroto district.mining This has is beenthe place taking where place ritual in assessment,to any of the none set requirements.of the companies At the had time submitted of the subsector to review the ESIA’s %) Athapanun, Rupa in Moroto district. This is the place where ritual assessment, none of the companies had submitted subsector to review the ESIA’s %) practices of initiation were conducted. It has since then been annual environmental audits and audited accounts The Institutions responsible for the management of forest practices of initiation were conducted. It has since then been annual environmental audits and audited accounts (50%) The Institutions responsible for the management of forest diluted, according to the community members. Furthermore, to DGSM and there was no evidence to show that (50%) reserves, game reserves and national parks are mandated to diluted, according to the community members. Furthermore, to DGSM and there was no evidence to show that Both DGSM / NEMA have the mandate to support reserves, game reserves and national parks are mandated to Loorung, in Rupa, is an area of cultural heritage and thus a DGSM followed up with the applicants after issuing Both DGSM / NEMA have the mandate to support monitor mining activities within their territories. This research Loorung, in Rupa, is an area of cultural heritage and thus a DGSM followed up with the applicants after issuing each other in reviewing of the Environmental and monitor mining activities within their territories. This research potential tourist site but it has since been affected by mining the licenses. each other in reviewing of the Environmental and noticed that these institutions have developed and potential tourist site but it has since been affected by mining the licenses. Social Impact Assessments (ESIA’s) before they are noticed that these institutions have developed and activities. Free, Prior and Informed Consent, as well as other Social Impact Assessments (ESIA’s) before they are disseminated regulations to safeguard natural resources in the activities. Free, Prior and Informed Consent, as well as other There is need for close monitoring and supervision approved. They are both meant to have the disseminated regulations to safeguard natural resources in the forms of pre-project community consultation are recognized as approved. They are both meant to have the mining areas. Mining projects can be undertaken in forms of pre-project community consultation are recognized as ofThere the islicensee need for operations close monitoring to ensure and supervisionthat rights institutional capacity to review ESIAs of mineral right mining areas. Mining projects can be undertaken in international best practice that must be undertaken prior to any institutional capacity to review ESIAs of mineral right environmentally sensitive areas provided pre-requisite holdersof the licenseeabide by operations the environmental to ensure requirements that rights applicants and holders. It was however noted that international best practice that must be undertaken6 prior to any environmentally sensitive areas provided pre-requisite project related land acquisition or land use . andholders standards. abide by Miningthe environmental companies requirementsshould also applicants and holders. It was however noted that environmental considerations have been undertaken and project related land acquisition or land use6. EIAs are done by NEMA and sent to DGSM for environmental considerations have been undertaken and continueand standards. submitting Mining environmental companies performanceshould also EIAs are done by NEMA and sent to DGSM for authorisation sought from the responsible government agency. An applicant should not be granted mineral rights in any case bondscontinue forsubmitting the fulfilment environmental of theperformance required review. NEMA however does not have the capacity authorisation sought from the responsible government agency. review. NEMA however does not have the capacity A case in point is the on-going Dura Limestone Quarry in the withoutAn applicant obtaining should community not be granted consent. mineral License rights holders in any need case a environmentalbonds for themanagement fulfilment andof managementthe required of for reviewing ESIA’s in the mining subsector, and A case in point is the on-going Dura Limestone Quarry in the for reviewing ESIA’s in the mining subsector, and Ruwenzori National Park servicing Hima Cement in Kasese. Socialwithout Licenseobtaining to communityOperate. Withoutconsent. community License holders consent, need this a environmental issuesmanagement once the and companies management exit theof thus they are done by DGSM. Ruwenzori National Park servicing Hima Cement in Kasese. Social License to Operate. Without community consent, this environmental issues once the companies exit the thus they are done by DGSM. However, the actual monitoring of these mining activities by the shouldn’t be secured. Requiring such community consultations mining areas without handling the issues. However, the actual monitoring of these mining activities by the willshouldn’t prevent be negative secured. relations Requiring between such community the community consultations and the mining areas without handling the issues. It was also noted that due to capacity gaps, both UWA and NFA is not fully conducted and hence compliance to licensewill prevent holder negative and will relationsensure that between the community the community is aware and and the in It was also noted that due to capacity gaps, both UWA and NFA is not fully conducted and hence compliance to license holder and will ensure that the community is aware and in The Mining of developmental minerals has also had human resource and financial gaps, both DGSM regulations is not fully enforced. support of an upcoming project. The Mining of developmental minerals has also had human resource and financial gaps, both DGSM regulations is not fully enforced. support of an upcoming project. serious effects on the environment causing and NEMA do not have the required capacity to serious effects on the environment causing and NEMA do not have the required capacity to Section 21(1)(b) of the Mining Act 2003 provides for the degradation in areas where it is conducted. The monitor compliance with ESIA’s and Environmental Section 21(1)(b) of the Mining Act 2003 provides for the (iii) Compliance of the mining degradation in areas where it is conducted. The monitor compliance with ESIA’s and Environmental Restriction on a prospecting license and Section 78(1)(g)(h), (iii) Compliance of the mining Principal Assistant Secretary to the CAO in and Social Management Plans (ESMPs) during Restriction on a prospecting license and Section 78(1)(g)(h), Principal Assistant Secretary to the CAO in and Social Management Plans (ESMPs) during provides for the Restrictions on exercise of mineral rights. companies to environment Rubanda district, on behalf of the CAO, noted that, projects implementation. NEMA and DGSM provides for the Restrictions on exercise of mineral rights. companies to environment Rubanda district, on behalf of the CAO, noted that, projects implementation. NEMA and DGSM These sections restrict the holder of the mineral rights to management requirements (41.7%) participate jointly during the preliminary phases in “There is the mining of these development minerals participate jointly during the preliminary phases in These sections restrict the holder of the mineral rights to management requirements (41.7%) ensuring that mining companies meet the required prospect over an area of land that is, or forms part of forest Section 41, Section 108 and Section 110 of the Mining Act, 2003, for“There construction; is the mining this ofactivity these is development done on small minerals scale ensuring that mining companies meet the required prospect over an area of land that is, or forms part of forest Section 41, Section 108 and Section 110 of the Mining Act, 2003, for construction; this activity is done on small scale Environmental Impact Assessment standards prior reserve, game reserve, national park, etc. unless the holder provide that an application for a mining right should indicate and but has environmental implications because it’s Environmental Impact Assessment standards prior reserve, game reserve, national park, etc. unless the holder provide that an application for a mining right should indicate and unregulated.but has environmental Take an example implications here becauseof Kiyorwa it’s to commencement of the project, but follow-up on has first given notice to and obtained permission from the provide specific information (set requirements) which includes has first given notice to and obtained permission from the provide specific information (set requirements) which includes whereunregulated. degradation Take anis affectingexample L.here Bunyonyi. of Kiyorwa The to commencement of the project, but follow-up on relevant authorities. The act however doesn’t grant rights to the Environment Impact Assessment, Annual Environment Audits compliance in the course mining projects and presidentwhere degradation intervened is and affecting stopped L. Bunyonyi.the mining The of compliance in the course mining projects and relevant authorities. The act however doesn’t grant rights to the Environment Impact Assessment, Annual Environment Audits post-mining was found to be lacking. relevant authority to conduct oversight and monitoring to and an Environment Restoration Plan. The scorecard sandpresident but wanainchiintervened crying and outstopped to him the that mining they are of relevant authority to conduct oversight and monitoring to and an Environment Restoration Plan. The scorecard post-mining was found to be lacking. ensure that the holder abides by the conditions on which assessment however noted that mining companies have not unemployed.”sand but wanainchi crying out to him that they are ensure that the holder abides by the conditions on which assessment however noted that mining companies have not unemployed.” permission was granted. developed comprehensive environment management plans nor permission was granted. developed comprehensive environment management plans nor do they operate according to their environment management do they operate according to their environment management (iv) Management of the Forest reserves, game reserves, and national parks are all policy. (iv) Management of the Forest reserves, game reserves, and national parks are all endowed with specific authorities to oversee and manage their policy. environmental protection fund Fig 13: Mercury contaminated water flowing into farmland at a endowed with specific authorities to oversee and manage their Fig 14: Effects of Illegal Sand Mining on Land in Lwera Swamp, Masaka Road environmental protection fund Fig 13: Mercury contaminated water flowing into farmland at a territories. Fig 14: Effects of Illegal Sand Mining on Land in Lwera Swamp, Masaka Road (37.5%) gold mining site in Amudat territories. gold mining site in Amudat Depletion(37.5%) of mineral resources and environmental Depletion of mineral resources and environmental Therefore, these authorities should have rights to monitor externalities as a result of air emissions, discharges miningTherefore, activities these occurringauthorities withinshould the have territory rights to monitorensure externalities as a result of air emissions, discharges mining activities occurring within the territory to ensure of liquid effluents, use of hazardous chemicals such continuous compliance with the conditions on which the of liquid effluents, use of hazardous chemicals such permissioncontinuous tocompliance mine was with granted the conditionsinstead of on stopping which theon as Mercury and cyanide in the extraction of minerals as Mercury and cyanide in the extraction of minerals disseminatingpermission to regulations.mine was Inter-agencygranted instead coordination of stopping in theon such as gold and generation of large volumes of disseminating regulations. Inter-agency coordination in the such as gold and generation of large volumes of monitoring of these mining projects to ensure compliance with solid waste are the most important environmental themonitoring ESIAs is of also these important mining projectsand needs to ensureto be improved. compliance with solid waste are the most important environmental the ESIAs is also important and needs to be improved. issues for Uganda’s mining and minerals sub-sector. issues for Uganda’s mining and minerals sub-sector. It emerged that mineral extraction activities have a Section 78 (1) (i) calls for respect of or on any land, which is It emerged that mineral extraction activities have a Section 78 (1) (i) calls for respect of or on any land, which is visual impact on the landscape and has led to the held communally for cultural rites, without the written consent visual impact on the landscape and has led to the held communally for cultural rites, without the written consent destruction or disturbance of surrounding and destruction or disturbance of surrounding and

neighbouring habitats and in some cases leading to the government had to incur a cost for restoration. This should Cap 153, should give NEMA the right to request the license holder SIAs should be consultative between mining neighbouring habitats and in some cases leading to the government had to incur a cost for restoration. This should Cap 153, should give NEMA the right to request the license holder SIAs should be consultative between mining a loss of biodiversity. Furthermore, some effluents be borne by the miners, in form of a security deposited in the to commission an independent third party to conduct an companies, host communities and other a loss of biodiversity. Furthermore, some effluents be borne by the miners, in form of a security deposited in the to commission an independent third party to conduct an companies, host communities and other generated by mining activities contain large and environment protection fund. environmental audit to be submitted to NEMA for review in cases stakeholders. generated by mining activities contain large and environment protection fund. environmental audit to be submitted to NEMA for review in cases stakeholders. dangerous toxic substances such as cyanide and where NEMA has credible cause for concern that the license Companies should also identify Community dangerous toxic substances such as cyanide and where NEMA has credible cause for concern that the license Companies should also identify Community heavy metals, which pause significant human Fig 15: An Abandoned Cyanide Plant in Amudat District holder may be non- compliant. The act currently does not stipulate Engagement Personnel to work as linkages with the heavy metals, which pause significant human Fig 15: An Abandoned Cyanide Plant in Amudat District holder may be non- compliant. The act currently does not stipulate Engagement Personnel to work as linkages with the health and ecological risks. The study also that an audit must be undertaken by an independent third party. community and act as conflict monitors within the health and ecological risks. The study also that an audit must be undertaken by an independent third party. community and act as conflict monitors within the discovered a number of abandoned mining sites Environmental audits are critical tools that allow the sector and mining areas to help identify and alert government discovered a number of abandoned mining sites Environmental audits are critical tools that allow the sector and mining areas to help identify and alert government and unrestored mining quarries as testament to the license holders to work together to continuously mitigate structures and companies about brewing conflict. and unrestored mining quarries as testament to the license holders to work together to continuously mitigate structures and companies about brewing conflict. unsatisfactory environmental performance of the environmental harm if the right processes are in place. Failure to address the causes of conflict negatively unsatisfactory environmental performance of the environmental harm if the right processes are in place. Failure to address the causes of conflict negatively mining and minerals sub-sector state of affairs. affects business and destroys communities. mining and minerals sub-sector state of affairs. affects business and destroys communities. (vi) Environmental awareness The National Environment Act Cap 153, Section 88 (vi) Environmental awareness The National Environment Act Cap 153, Section 88 (vii) Promoting health and provides for the establishment of the environment creation (54.2%) (vii) Promoting health and provides for the establishment of the environment creation (54.2%) protection fund. This fund supports in the NEMA is mandated to raise awareness on environmental matters safety practices in the mining protection fund. This fund supports in the NEMA is mandated to raise awareness on environmental matters safety practices in the mining replenishing the environment. Replenishing mine and share information with the public on matters relating to the industry (45.8%) replenishing the environment. Replenishing mine and share information with the public on matters relating to the industry (45.8%) sites and mine environments is one of the key impacts of mining activities. This has been however left in the In addition to wages and benefits that are universally sites and mine environments is one of the key impacts of mining activities. This has been however left in the In addition to wages and benefits that are universally factors that will ultimately protect the mine’s impact hands of CSOs and other interest groups to promote awareness in important in the mining and minerals industry, one factors that will ultimately protect the mine’s impact hands of CSOs and other interest groups to promote awareness in important in the mining and minerals industry, one on the environment. Simple solutions like the mining areas. The miners hardly know what to do, coupled with other significant issue is the occupational health and on the environment. Simple solutions like the mining areas. The miners hardly know what to do, coupled with other significant issue is the occupational health and replenishing native soils and grasses, cleaning (v) Conducting of environmental low rates of supervision, puts the management of environment safety. Accident statistics show that that the industry replenishing native soils and grasses, cleaning (v) Conducting of environmental low rates of supervision, puts the management of environment safety. Accident statistics show that that the industry excess waste, proper waste removal, site issues in jeopardy. There is need for NEMA to come up with a clear poses above-average risks to employees. excess waste, proper waste removal, site audits (37.5%) issues in jeopardy. There is need for NEMA to come up with a clear poses above-average risks to employees. inspections and replanting trees and natural audits (37.5%) strategy of awareness creation and promotion on environment Unprotected underground metalliferous mines were inspections and replanting trees and natural Section 22 (1) of the National Environmental Act, Cap 153 strategy of awareness creation and promotion on environment Unprotected underground metalliferous mines were forestry can rejuvenate a long-term ecosystem Section 22 (1) of the National Environmental Act, Cap 153 issues generally in the country and more specific in the mining reported to have the highest incidents of fatalities forestry can rejuvenate a long-term ecosystem provides for NEMA to commission an independent audit to issues generally in the country and more specific in the mining reported to have the highest incidents of fatalities repair and sustain the environment for years provides for NEMA to commission an independent audit to areas. most of which are never reported by mine owners repair and sustain the environment for years verify the credibility of the annual environment audit conducted areas. most of which are never reported by mine owners beyond when the mine is no longer operating. The verify the credibility of the annual environment audit conducted and artisanal miners for fear of shutdown of their beyond when the mine is no longer operating. The by the mineral rights holders. It was noted that NEMA rarely and artisanal miners for fear of shutdown of their entire reclamation process should include: by the mineral rights holders. It was noted that NEMA rarely Dispute resolution mechanism is a requirement for every project mining operations. Underground gold mining in the entire reclamation process should include: exercises this mandate and when it’s done, mining companies Dispute resolution mechanism is a requirement for every project mining operations. Underground gold mining in the removing hazardous materials, reshaping land, exercises this mandate and when it’s done, mining companies developer. It forms part of the requirements in the certificates of Mubende region was reported to have the highest removing hazardous materials, reshaping land, rarely inform the authority on the action taken to mitigate the developer. It forms part of the requirements in the certificates of Mubende region was reported to have the highest restoring topsoil, and planting native grasses, trees rarely inform the authority on the action taken to mitigate the approval for all mining projects. Mineral rights holders are in the number of fatalities with an estimated 10 fatalities restoring topsoil, and planting native grasses, trees undesirable environment effects identified. This is because approval for all mining projects. Mineral rights holders are in the number of fatalities with an estimated 10 fatalities or ground cover natural to the site. In cases where undesirable environment effects identified. This is because process of establishing mechanisms for addressing environmental per year followed by Tin mining in the Western or ground cover natural to the site. In cases where Section 108(3) of the Mining Act 2003 doesn’t provide NEMA process of establishing mechanisms for addressing environmental per year followed by Tin mining in the Western the miner hasn’t replenished the environment, this Section 108(3) of the Mining Act 2003 doesn’t provide NEMA and social grievances, disputes and conflicts arising from region with an estimated 7-8 fatalities on an annual the miner hasn’t replenished the environment, this with the power to conduct an independent audit, in case of and social grievances, disputes and conflicts arising from region with an estimated 7-8 fatalities on an annual fund would be used to support this activity. with the power to conduct an independent audit, in case of exploration and mining activities. Disputes arise from a range of basis. Statistics here could not be verified because fund would be used to support this activity. credible concerns of non-compliance of the license holder. exploration and mining activities. Disputes arise from a range of basis. Statistics here could not be verified because credible concerns of non-compliance of the license holder. issues, including land, misunderstanding of the laws governing the victims’ families and the owners of the mines are Sometimes when NEMA conducts an independent audit, issues, including land, misunderstanding of the laws governing the victims’ families and the owners of the mines are Even though the fund receives funding from Sometimes when NEMA conducts an independent audit, mining, environment degradation, and royalty sharing, among reluctant to disclose these fatalities for fear of Even though the fund receives funding from mining companies don’t provide feedback to NEMA on the mining, environment degradation, and royalty sharing, among reluctant to disclose these fatalities for fear of disbursements from the Government; fees charged mining companies don’t provide feedback to NEMA on the others. imprisonment and also due to the illegal nature of disbursements from the Government; fees charged mitigation measures that were taken to handle the identified others. imprisonment and also due to the illegal nature of under this Act; fines collected as a result of the mitigation measures that were taken to handle the identified their activities, especially those in artisanal and undesirable environmental effects. their activities, especially those in artisanal and under this Act; fines collected as a result of the undesirable environmental effects. Mining companies and government should set up alternative ways breach of the provisions of this Act or any statutory Mining companies and government should set up alternative ways small-scale mining operations. breach of the provisions of this Act or any statutory of resolving disputes. Before project implementation, Social Impact small-scale mining operations. instrument made under this Act, NEMA should exercise its powers provided in NEMA Act Cap instrument made under this Act, of resolving disputes. Before project implementation, Social Impact 153 NEMA to prevail should over exercise the mining its powers companies provided to in ensure NEMA that Act theyCap Assessments (SIAs) should be prepared and these will facilitate Assessments (SIAs) should be prepared and these will facilitate there is need to review the act such that the mining mitigate153 to prevail the identified over the undesirable mining companies effects and to ensureregularly that report they the identification of mechanisms to address peoples’ grievances to there is need to review the act such that the mining mitigate the identified undesirable effects and regularly report the identification of mechanisms to address peoples’ grievances to companies are able to deposit funds into the to the authority. prevent latent conflict hitting crisis levels. Regular reviews of the companies are able to deposit funds into the to the authority. prevent latent conflict hitting crisis levels. Regular reviews of the Environment Protection Fund as a security for SIAs should be conducted to help identify sources of conflict in decommissioning,Environment Protection restoration Fund of asderelict a security lands and for SIAs should be conducted to help identify sources of conflict in decommissioning, restoration of derelict lands and There is also need for the review of the Mineral Act 2003 so as places where mining is being considered. SIAs should identify the orderly post-mine There is also need for the review of the Mineral Act 2003 so as places where mining is being considered. SIAs should identify the orderly post-mine to clarify on NEMA’s powers to use the information presented in context, the drivers and possible social, political and environmental to clarify on NEMA’s powers to use the information presented in context, the drivers and possible social, political and environmental disclosure. In several cases, miners have the audit to require remedial action. The Act, like the NEMA Act, causes of conflict and investors be guided on how to operate in the disclosure. In several cases, miners have the audit to require remedial action. The Act, like the NEMA Act, causes of conflict and investors be guided on how to operate in the abandoned mine sites without restoring them and context without exacerbating tensions. The process of preparing abandoned mine sites without restoring them and context without exacerbating tensions. The process of preparing

Fig 16: A miner in Chepkararat (Amudat District) mining without Fig 17: A miner in Amudat using mercury to separate gold from gold dust. In some communities where mining is conducted, the members movements, impairment of speech, hearing, walking Fig 16: A miner in Chepkararat (Amudat District) mining without Fig 17: A miner in Amudat using mercury to separate gold from gold dust. In some communities where mining is conducted, the members movements, impairment of speech, hearing, walking any protective gear highlighted several social and health concerns that require and muscle weakness. any protective gear highlighted several social and health concerns that require and muscle weakness. immediate attention such as; sexual exploitation of workers in immediate attention such as; sexual exploitation of workers in mines; exploitation of the ASMs by buying minerals from them In a quest to curb the spread of mercury use, some mines; exploitation of the ASMs by buying minerals from them In a quest to curb the spread of mercury use, some cheaply; employee exploitation by the mining companies; failure to organisations like Environmental Women in Action cheaply; employee exploitation by the mining companies; failure to organisations like Environmental Women in Action provide protective gear and medical care to local miners and for Development (EWAD) is championing Africa’s provide protective gear and medical care to local miners and for Development (EWAD) is championing Africa’s employees; injuries on the mining sites; employing foreigners first certified Fairtrade gold producer, a mining group employees; injuries on the mining sites; employing foreigners first certified Fairtrade gold producer, a mining group instead of giving the opportunity to locals; among others. The in Busia called Syanyonja Artisanal Miners’ Alliance instead of giving the opportunity to locals; among others. The in Busia called Syanyonja Artisanal Miners’ Alliance community members also complained about the increasing social to produce gold using an entirely mercury free community members also complained about the increasing social to produce gold using an entirely mercury free discord and the erosion of moral values in mining areas. This has process. This if made a national program and rolled discord and the erosion of moral values in mining areas. This has process. This if made a national program and rolled been exacerbated by the increased prostitution, alcoholism, out over the mining areas in the country, would help been exacerbated by the increased prostitution, alcoholism, out over the mining areas in the country, would help HIV/Aids, sexual abuse of young girls and family breakdown as curb the use and effects of mercury in gold mining in HIV/Aids, sexual abuse of young girls and family breakdown as curb the use and effects of mercury in gold mining in causes of conflict from increased capital flowing into mining areas the country. causes of conflict from increased capital flowing into mining areas the country. as a result emigration. Workers are also exposed to a number of health as a result emigration. Workers are also exposed to a number of health Fig 18: A gold kacha in Busia used to eliminate mercury from the hazards due to hostile mining environments. Fig 18: A gold kacha in Busia used to eliminate mercury from the hazards due to hostile mining environments. gold mining process These include chronic occupational diseases due (viii) Regulating the use of hazardous gold mining process These include chronic occupational diseases due Although Uganda’s economy has registered a number of (viii) Regulating the use of hazardous to dust inhalation common in gold mining and Although Uganda’s economy has registered a number of to dust inhalation common in gold mining and achievements, various aspects of occupational safety and mining substances (45.8%) processing as well as in the stone quarrying achievements, various aspects of occupational safety and mining substances (45.8%) processing as well as in the stone quarrying health (OSH) have not been adequately addressed. sectors. Most of the mining workers interviewed health (OSH) have not been adequately addressed. sectors. Most of the mining workers interviewed Management of the OSH issues at workplaces continue to be NEMA developed the National environment (waste management) were found to be oblivious of the imminent danger Management of the OSH issues at workplaces continue to be NEMA developed the National environment (waste management) were found to be oblivious of the imminent danger left unattended to by different sectors of government and regulations to mitigate waste management in the mining industry. and exposure to diseases such as left unattended to by different sectors of government and regulations to mitigate waste management in the mining industry. and exposure to diseases such as private sector. The mining sector isn’t immune to this situation Along with the Explosives Act Cap 298, the sector has a legal pneumoconiosis, silicosis and lung cancer. private sector. The mining sector isn’t immune to this situation Along with the Explosives Act Cap 298, the sector has a legal pneumoconiosis, silicosis and lung cancer. and hence the miners are found to work in environments that framework for the handling, transportation, storage and usage of and hence the miners are found to work in environments that framework for the handling, transportation, storage and usage of are not palatable with humanity. This is attributed to a number hazardous chemicals and, explosives used in exploration, mining Some mining activities also endanger the lives of are not palatable with humanity. This is attributed to a number hazardous chemicals and, explosives used in exploration, mining Some mining activities also endanger the lives of reasons such as the lack of well trained and facilitated activities, and radioactive materials, tailings and toxic effluents mining communities due air pollution, releases of reasons such as the lack of well trained and facilitated activities, and radioactive materials, tailings and toxic effluents mining communities due air pollution, releases of inspectors to fully inspect mining areas to and emissions resulting from such activities. toxic substances to water streams and food inspectors to fully inspect mining areas to and emissions resulting from such activities. toxic substances to water streams and food ensure application of OSH requirements, no sensitisation and chains. Unprotected access to abandoned and ensure application of OSH requirements, no sensitisation and chains. Unprotected access to abandoned and trainings of miners on the required OSH standards, mining Uganda is also on course to ratifying the Minamata Convention on sometimes even active pits also pose a safety risk trainings of miners on the required OSH standards, mining Uganda is also on course to ratifying the Minamata Convention on sometimes even active pits also pose a safety risk work places aren’t registered and certified, lack of coordination Mercury. The Convention aims at protecting human health and the to communities and their livestock in some parts of work places aren’t registered and certified, lack of coordination Mercury. The Convention aims at protecting human health and the to communities and their livestock in some parts of between NEMA and MGLSD before approving of EIAs, among environment from anthropogenic emissions and releases of the country. between NEMA and MGLSD before approving of EIAs, among environment from anthropogenic emissions and releases of the country. others. mercury and mercury compounds. Mercury is a highly toxic others. mercury and mercury compounds. Mercury is a highly toxic The sector has no specific established substance that possesses some unique chemical properties that The sector has no specific established substance that possesses some unique chemical properties that occupational health and safety requirements There is however an effort to try and train the ASMs, but are hard to find anywhere else in nature. In Uganda, the most occupational health and safety requirements There is however an effort to try and train the ASMs, but are hard to find anywhere else in nature. In Uganda, the most followed by the mineral rights holders with regard because of their informal nature, it is difficult to improve their prevalent use of mercury is in the Artisanal and Small scale Gold followed by the mineral rights holders with regard because of their informal nature, it is difficult to improve their prevalent use of mercury is in the Artisanal and Small scale Gold to employers and employees in the mining health and safety standards. Under the African, Caribbean and Mining (ASGM) sector. Its use still remains highly popular and to employers and employees in the mining health and safety standards. Under the African, Caribbean and Mining (ASGM) sector. Its use still remains highly popular and industry. The mineral rights holders are required to Pacific (ACP-EU) project funded by UNDP, ASMs are being highly unregulated in the ASGM industry. industry. The mineral rights holders are required to Pacific (ACP-EU) project funded by UNDP, ASMs are being highly unregulated in the ASGM industry. comply with the Occupational Health and Safety identified and trained in appropriate technology, environment comply with the Occupational Health and Safety identified and trained in appropriate technology, environment Act 2006. However, despite government efforts to management, and occupational health and safety standards. The National Environment Management Authority (NEMA) Act 2006. However, despite government efforts to management, and occupational health and safety standards. The National Environment Management Authority (NEMA) improve safety and health of all workers in the Formalisation of the ASMs has to be fast-tracked, if the ASMs concluded the compilation of the national mercury inventory as improve safety and health of all workers in the Formalisation of the ASMs has to be fast-tracked, if the ASMs concluded the compilation of the national mercury inventory as country through funding enforcement of OSH are to benefit from such programs. Working in an informal required by the Minamata Convention on mercury. Mercury, country through funding enforcement of OSH are to benefit from such programs. Working in an informal required by the Minamata Convention on mercury. Mercury, activities, limited impact has been registered due setting will inevitably make them less adoptable and trainable despite its uses, poses many health risks including; loss of activities, limited impact has been registered due setting will inevitably make them less adoptable and trainable despite its uses, poses many health risks including; loss of to inadequate enforcement of the OSH Act of with in HSE and use of modern technology. peripheral vision, “pins and needles” feelings, usually in the to inadequate enforcement of the OSH Act of with in HSE and use of modern technology. peripheral vision, “pins and needles” feelings, usually in the 2006. hands, feet, and around the mouth, lack of coordination of 2006. hands, feet, and around the mouth, lack of coordination of

industry in Uganda; though it still requires some improvement in strategic direction, the anticipated benefits of mining industry in Uganda; though it still requires some improvement in strategic direction, the anticipated benefits of mining the way data is kept and disseminated to the users. to the country may not be effectively achieved. the way data is kept and disseminated to the users. to the country may not be effectively achieved. 3.2.7. Infrastructural Development DGSM should prioritise development of the minerals 3.2.7. Infrastructural Development DGSM should prioritise development of the minerals Due to gaps that are identified as still existing at the directorate master plan. Due to gaps that are identified as still existing at the directorate master plan. and the lack of research and development; there are little efforts and the lack of research and development; there are little efforts geared towards adding value on the minerals that are produced in Indicator Score: geared towards adding value on the minerals that are produced in Indicator Score: the country. 52.8% - Mostly Addressed the country. 52.8% - Mostly Addressed This calls for increased budget and expenditure on research and This calls for increased budget and expenditure on research and development in the mining industry, along the minerals value development in the mining industry, along the minerals value The subsector scored 52.8% under this indicator implying that most of the areas had assesd chain, and establishment of a unit to coordinate and promote The subsector scored 52.8% under this indicator implying that most of the areas had assesd chain, and establishment of a unit to coordinate and promote performed relatively well. The areas assessed included capacity of the institutions to perform its research and development. This will help the country to have performed relatively well. The areas assessed included capacity of the institutions to perform its research and development. This will help the country to have mandate, the policy framework for infrastructural development and the management of mining maximum benefit from the mineral resources. mandate, the policy framework for infrastructural development and the management of mining maximum benefit from the mineral resources. samples. Below is how the subsector performed in each of the key areas assessed under this samples. Below is how the subsector performed in each of the key areas assessed under this indicator; indicator; (ii)(ii) Policy Policy frameworkframework onon InfrastructuralInfrastructural developmentdevelopment inin MiningMining Fig 19:Performance of the subsector under Key Result Areas in indicator 7 Subsector (62.5%) Fig 19:Performance of the subsector under Key Result Areas in indicator 7 Subsector (62.5%) The scorecard noted that the government has an agenda to The scorecard noted that the government has an agenda to develop infrastructure required to develop mineral resources. This develop infrastructure required to develop mineral resources. This includes development of roads that reach to various parts of the includes development of roads that reach to various parts of the country such as the Tororo-Malaba road for the Sukulu project, country such as the Tororo-Malaba road for the Sukulu project, establishing a modern and internationally certified mineral establishing a modern and internationally certified mineral analysis and beneficiation laboratory, among others. However, analysis and beneficiation laboratory, among others. However, DGSM does not have a policy framework on the management and DGSM does not have a policy framework on the management and maintenance of mineral equipment at the directorate maintenance of mineral equipment at the directorate headquarters. headquarters.

There have been massive investments in the acquisition of various There have been massive investments in the acquisition of various equipment required in mining exploration and development; these equipment required in mining exploration and development; these are however left in the hands of individual departments and are however left in the hands of individual departments and utilised or lent out to private firms at will, without the knowledge of utilised or lent out to private firms at will, without the knowledge of the directorate. There should be a clear policy on asset (i) Research Capacity of governments and mineral host communities; cross-sectoral the directorate. There should be a clear policy on asset (i) Research Capacity of governments and mineral host communities; cross-sectoral management and an asset registry established in order to avoid linkages and multiplier effects and local content development in management and an asset registry established in order to avoid linkages and multiplier effects and local content development in loss and vandalising of the equipment at the hands of the Mining Institutions to improve loss and vandalising of the equipment at the hands of the Mining Institutions to improve the mineral industry, among others. Though it was established individuals. value addition (33.4%) the mineral industry, among others. Though it was established individuals. value addition (33.4%) that DGSM is developing a well-maintained modern that DGSM is developing a well-maintained modern There is on-going global pressure to improve social, internationally certified mineral analysis and beneficiation There is on-going global pressure to improve social, internationally certified mineral analysis and beneficiation The National Development Plan II provides for prioritisation of developmental, and environmental performance in The National Development Plan II provides for prioritisation of developmental, and environmental performance in laboratory, the efforts to support the research and development mineral development through establishment of the mining master laboratory, the efforts to support the research and development mineral development through establishment of the mining master the mineral industry. This calls for increased theme in the mining industry is still lacking. the mineral industry. This calls for increased theme in the mining industry is still lacking. plan containing the country’s mining vision in accordance with the expenditure on Research and Development through plan containing the country’s mining vision in accordance with the expenditure on Research and Development through African Mining Vision. The purpose of the master plan is to clearly the mineral value chain. This will improve on the African Mining Vision. The purpose of the master plan is to clearly the mineral value chain. This will improve on the The directorate has a modern computerized mining cadastre provide the detailed strategic direction and guidance for the mining The directorate has a modern computerized mining cadastre provide the detailed strategic direction and guidance for the mining ability to provide evidence based decisions and but it was noted that is not regularly maintained and updated. It ability to provide evidence based decisions and but it was noted that is not regularly maintained and updated. It sector during the NDP period and beyond. It was, however noted policy based recommendations in the mining areas; sector during the NDP period and beyond. It was, however noted policy based recommendations in the mining areas; also has an effective system for collection, analysis, archiving that the master plan had not been developed. Without adequate also has an effective system for collection, analysis, archiving that the master plan had not been developed. Without adequate share and use of mineral revenue by local and dissemination of data and information about the mineral share and use of mineral revenue by local and dissemination of data and information about the mineral

Fig 20: Map of Uganda showing the NDP II proposed Minerals & Requisite Infrastructure Fig 20: Map of Uganda showing the NDP II proposed Minerals & Requisite Infrastructure

3.2.8. Gender, Equity, Social Inclusion and Participation

IndicatorIndicator Score:Score: 37.5% - Partially addressed

Fig 21: Performance of the subsector under Key Result Areas in indicator 8 Fig 21: Performance of the subsector under Key Result Areas in indicator 8

(i)(i) Participation Participation ofof thethe marginalisedmarginalised any mining operation. Companies should hire female staff in different types of work on the mine (iii) Management of Mining and vulnerable groups in the mining female staff in different types of work on the mine (iii) Management of Mining site, not only underground. quantities to be exempted. Without guidelines, there is risk of industry (37.5%) SamplesSamples (62.5%)(62.5%) quantities to be exempted. Without guidelines, there is risk of industry (37.5%) abusing the law whereby mining companies may export There are significant barriers to the full participation and ThoughThough thethe subsectorsubsector hashas establishedestablished aa criterioncriterion forfor abusing the law whereby mining companies may export There are significant barriers to the full participation and According to the District Community Development minerals under the pretext of samples to evade payment of benefiting of vulnerable and marginalised groups in the mining thethe monitoringmonitoring ofof miningmining samplessamples exportedexported outout ofof minerals under the pretext of samples to evade payment of benefiting of vulnerable and marginalised groups in the mining Officer, Busia, women are mainly involved in royalties causing loss of revenues. However, the new policy industry. These include inequities in access to resources thethe country,country, therethere areare nono clearclear guidelinesguidelines toto thisthis royalties causing loss of revenues. However, the new policy industry. These include inequities in access to resources carrying soils/ores out of the pits, engaged in remains silent on the management of samples apart from including capital, information, education and training; mobility; effect.effect. SectionSection 9898 (3)(3) ofof thethe MiningMining ActAct 20032003 allowsallows remains silent on the management of samples apart from including capital, information, education and training; mobility; sieving gold, and in gold trading. When it comes to requiring drilling companies under the ministry of water and and legal, socio- cultural and financial constraints. There is a forfor exemptionexemption ofof royaltiesroyalties onon samplessamples inin quantitiesquantities requiring drilling companies under the ministry of water and and legal, socio- cultural and financial constraints. There is a negotiating for compensation, the people environment to avail samples and logs to DGSM. Government mechanism that ensures an inclusive participation of thatthat shallshall bebe determineddetermined byby thethe Commissioner.Commissioner. environment to avail samples and logs to DGSM. Government mechanism that ensures an inclusive participation of interviewedinterviewed inin thethe variousvarious FGDsFGDs indicatedindicated thatthat very should therefore expedite the development of the policy, disadvantaged and vulnerable people in the mineral industry. For AccordingAccording toto thethe OAGOAG report,report, 2006,2006, aa reviewreview ofof thethe should therefore expedite the development of the policy, disadvantaged and vulnerable people in the mineral industry. For fewfew groupsgroups ofof vulnerablevulnerable and marginalised people regulations and guidelines to support the mining subsector in instance, section 114 of the Minerals Act 2003, provides for miningmining regulationsregulations howeverhowever revealedrevealed thatthat therethere werewere regulations and guidelines to support the mining subsector in instance, section 114 of the Minerals Act 2003, provides for participate in compensation negotiations for land regulating the export on mineral samples. women to be employed to do underground work in any mine or nono guidelinesguidelines inin termsterms ofof thethe minimumminimum oror maximummaximum regulating the export on mineral samples. women to be employed to do underground work in any mine or access or acquisition for mineral activities.

The government therefore should holistically tackle child labour in tradetrade unions,unions, ignoringignoring thethe use of child labour in In an FGD at Loorung Lolet Kalemureng Village in activityactivity thatthat maymay bebe harmfulharmful toto hishis oror herher health,health, educationeducation oror In an FGD at Loorung Lolet Kalemureng Village in thethe country.country. ActionsActions onon ensuringensuring foodfood securitysecurity ofof families,families, mining activities, discrimination against women, Moroto Village, one female participant noted that; mental,mental, physicalphysical oror moralmoral development.development. Moroto Village, one female participant noted that; provisionprovision of alternative livelihoods, enforcing legal provisions, violation of indigenous rights, land grabbing without raisingraising awarenessawareness andand providingproviding comprehensivecomprehensive educationeducation adequate compensation. “We are not allowed to engage in the lucrative task Fig 22: A child miner in Rupa mining area, Karamoja region. “We are not allowed to engage in the lucrative task Fig 22: A child miner in Rupa mining area, Karamoja region. support for children including meals without any additional costs ofof goldgold mining.mining. We We areare restrictedrestricted toto pickingpicking looseloose oreore support for children including meals without any additional costs should be considered. According to the various respondents interviewed in toto crash.”crash.” should be considered. According to the various respondents interviewed in both the FGDs and KIIs, GBV is very prevalent in the mining areas. One Community Development Officer OneOne elderlyelderly womanwoman inin HamurwaHamurwa TC,TC, inin RubandaRubanda (iii)(iii) Gender Gender BasedBased violenceviolence inin the mining areas. One Community Development Officer at Rupa Sub County noted that, district,district, wherewhere IronIron OreOre isis mined,mined, revealedrevealed that,that, at Rupa Sub County noted that, mining areas (18.8%) “Even we women can carry that heavy iron ore, and Sustainable mineral development of Uganda’s mining and “Even we women can carry that heavy iron ore, and Sustainable mineral development of Uganda’s mining and “There“There is prevalent gender based violence as a result afterafter breakingbreaking itit intointo smallersmaller pieces.pieces. WeWe cancan dodo thethe minerals sub-sector requires the recognition and provision of of alcoholism. Some of the miners in the area spend work ourselves. We even load those tippers that of alcoholism. Some of the miners in the area spend work ourselves. We even load those tippers that equalequal opportunities to all regardless of their gender, tribe or their income obtained from mining on alcohol.” Logiel comecome forfor ironiron ore.ore. WeWe mightmight workwork atat aa slowerslower pacepace their income obtained from mining on alcohol.” Logiel disabilities.disabilities. One of the equality issues of concern is that the Anthony Abbot Moroto Rupa CDO butbut wewe dodo thethe workwork ourselves.ourselves. HereHere itit isis survivalsurvival forfor Anthony Abbot Moroto Rupa CDO the fittest. The days when we could hire people to do mining and minerals sub-sector in Uganda like any other mineral the fittest. The days when we could hire people to do mining and minerals sub-sector in Uganda like any other mineral work for us are gone, everyone does any task.” rich economy remains traditionally a male-dominated industry work for us are gone, everyone does any task.” rich economy remains traditionally a male-dominated industry InIn anan FGDFGD forfor menmen atat LoorungLoorung Lolet Kalemureng, in with few women employed in the less paying sections of the value with few women employed in the less paying sections of the value Moroto district, one participant revealed that, This calls for a need for deliberate efforts, to chain in the sector. For example, some widows in Busia and This calls for a need for deliberate efforts, to chain in the sector. For example, some widows in Busia and empower by skilling and training of women to ItIt waswas howeverhowever notednoted thatthat inin mostmost miningmining areas,areas, therethere hashas beenbeen Namayingo region made allegations of the existence of empower by skilling and training of women to Namayingo region made allegations of the existence of Because of alcohol and the young men have money participate in the mining activities, such that they rampantrampant involvementinvolvement ofof childrenchildren inin thethe miningmining activitiesactivities whichwhich discrimination and abuse by their male counterparts in these participate in the mining activities, such that they discrimination and abuse by their male counterparts in these theythey mistreatmistreat women.women. TheyThey intimidate and harass can apply skills others than efforts in the mining putsputs theirtheir liveslives inin danger,danger, eveneven thoughthough thethe governmentgovernment hashas notnot mining camps. can apply skills others than efforts in the mining mining camps. women because of alcoholism. moved forward to enforce the various regulations available. areas.areas. moved forward to enforce the various regulations available. AccordingAccording toto thethe reportreport “No“No GoldenGolden Future”Future” publishedpublished byby CentreCentre Other problems that are often associated with mining and Other problems that are often associated with mining and A woman in an FGD at Buhweju revealed that, for Research on Multinational Corporations in April 2016 , the affected women are disrupted family life, increased prostitution, (ii)(ii) Enforcement Enforcement ofof thethe lawslaws for Research on Multinational Corporations in April 2016 , the affected women are disrupted family life, increased prostitution, number of child gold miners was estimated between 10,000 to alcoholism, domestic violence and loss of land rights. The All of us you see here are widows (Effakazi). These related to employment and number of child gold miners was estimated between 10,000 to alcoholism, domestic violence and loss of land rights. The All of us you see here are widows (Effakazi). These related to employment and 15,00015,000 acrossacross goldgold minesmines inin UgandaUganda inin somesome ofof thethe richrich mineralmineral scorecardscorecard identifiedidentified gender disparity as one of the important dealers of ore take advantage of us because they see us as vulnerable people who cannot manage life ChildChild LabourLabour (56.3%)(56.3%) districtsdistricts likelike Moroto,Moroto, MubendeMubende Namayingo,Namayingo, BuhwejuBuhweju etc.etc. TheThe issuesissues thatthat needsneeds toto bebe addressedaddressed byby thethe industry,industry, includingincluding see us as vulnerable people who cannot manage life on our own. Single parenthood is also a difficult Whereas child labour is illegal in Uganda, the use of InternationalInternational LabourLabour OrganizationOrganization categorizescategorizes miningmining asas attracting more women into professional jobs through the training Whereas child labour is illegal in Uganda, the use of attracting more women into professional jobs through the training situation; you have to fend for your children alone. child labour in mining operation has been identified hazardoushazardous workwork toto childrenchildren andand definesdefines itit asas thethe worstworst formform ofof and skilling of more female mining engineers, geologists, child labour in mining operation has been identified and skilling of more female mining engineers, geologists, as one of the critical social issues in the industry. childchild labour.labour. scientists, policy analysts, lawyers and economists as well as as one of the critical social issues in the industry. scientists, policy analysts, lawyers and economists as well as The role of women in artisanal mining cannot be Child labour is associated with many potential equalising remuneration for men and women through the value Child labour is associated with many potential equalising remuneration for men and women through the value ignored,ignored, eveneven thoughthough thethe challengeschallenges areare enormous.enormous. health consequences to child labourers including DuringDuring thethe mappingmapping exerciseexercise onon childchild labourlabour inin miningmining chain in addition to ensuring that women in local communities health consequences to child labourers including chain in addition to ensuring that women in local communities The incomes they earn play an important role in over-exertion, respiratory ailments, headaches, joint conductedconducted byby EcologicalEcological ChristianChristian OrganizationOrganization (ECO)(ECO) inin goldgold benefit from mining activities. over-exertion, respiratory ailments, headaches, joint benefit from mining activities. improvingimproving thethe livelihoodslivelihoods ofof theirtheir families.families. ThereThere is problems, hearing and vision loss. andand marblemarble richrich RupaRupa andand KatikekileKatikekile SubSub CountyCounty inin MorotoMoroto problems, hearing and vision loss. need make reforms in order to promote women’s district,district, itit waswas notednoted thatthat childrenchildren gogo toto thethe minesmines toto getget moneymoney Protection of human rights is another relevant social concern Protection of human rights is another relevant social concern empowerment in the Artisanal mining sector. More The Employment Act No. 6, 2006 (32) provides for: toto buybuy food,food, paypay schoolschool fees,fees, scholasticscholastic materialsmaterials andand otherother raised by mineral rich host communities, The Employment Act No. 6, 2006 (32) provides for: raised by mineral rich host communities, so, mining companies should put in place (i) not employing of all children under the age of 12 needsneeds sincesince UPEUPE comescomes withwith otherother additionaladditional ccosts.osts. TheThe studystudy (i) not employing of all children under the age of 12 mechanisms to mitigate gender based violence years in any business, undertaking or work place. alsoalso revealedrevealed thatthat thethe plightplight ofof thethe girlgirl childchild isis highlyhighly atat riskrisk most especially in the Karamoja region. There have years in any business, undertaking or work place. most especially in the Karamoja region. There have amongst their employees. because of the dangers eminent at the mining sites most of (ii)(ii) NotNot employingemploying oror workwork inin placesplaces whichwhich areare because of the dangers eminent at the mining sites most of beenbeen accusations that some mining companies abuse human which are characterized by alcoholism, hence increasing injuriousinjurious toto hishis oror herher health,health, dangerousdangerous oror which are characterized by alcoholism, hence increasing rightsrights ofof thethe indigenousindigenous communitiescommunities eithereither independentlyindependently oror inin chances of early pregnancies, HIV/AIDs and rape and hazardoushazardous oror otherwiseotherwise unsuitable.unsuitable. TheThe ChildrenChildren chances of early pregnancies, HIV/AIDs and rape and collusioncollusion withwith locallocal andand central governments. Such human rights defilement. ActAct CapCap 59,59, 20002000 inin sectionsection 88 ofof thethe ActAct statesstates thatthat defilement. includeinclude butbut areare notnot limitedlimited toto payingpaying mineralmineral loadersloaders unfairlyunfairly lowlow nono childchild shallshall bebe employedemployed oror engagedengaged inin anyany wages, denying employees the right to organise themselves in

3.2.9. Minerals Value Addition and Marketing 3.2.9. Minerals Value Addition and Marketing However, there are no skilling programs for mineral are no established processing and buying centres for mineral beneficiation and value addition in the country. beneficiation and value addition in the country. commodities from Artisanal and Small Scale Miners. The These need to be established and supported to existing arrangements are informal, set up by the business ensureensure that the country fully benefits from the people themselves. It was also noted that there are no IndicatorIndicator Score:Score: mining industry. people themselves. It was also noted that there are no collaborative arrangements with the private sector to develop 45.8%45.8% -- PartiallyPartially addressedaddressed and improve training institutions in mineral marketing, grading (ii)(ii) Value Value Addition,Addition, QualityQuality and improve training institutions in mineral marketing, grading and valuation. The marketing and selling of mineral products in Control and Marketing in the Uganda is characterised by transfer pricing, and under invoicing TheThe subsectorsubsector scoredscored 45.8%45.8% underunder thisthis indicatorindicator implyingimplying thatthat thethe subsectorsubsector hashas partiallypartially addressedaddressed Uganda is characterised by transfer pricing, and under invoicing to evade taxes. thethe areasareas assessed.assessed. TheThe areasareas assessedassessed includedincluded mineralmineral beneficiation,beneficiation, andand ValueValue Addition,Addition, QualityQuality Mining Industry (25.5%) to evade taxes.

ControlControl andand MarketingMarketing inin thethe MiningMining Industry.Industry. BelowBelow isis howhow eacheach ofof thesethese areasareas contributedcontributed toto thethe scorescore Mineral development and value addition comes with To control these irregularities, there is need to establish a of this indicator; benefitsbenefits derived from mining, processing and of this indicator; minerals selling and marketing agency or corporation to control assembling. It also encompasses the multiplier assembling. It also encompasses the multiplier and carry out sales and exports of all minerals produced in effecteffect of those industries that benefit the service Uganda; to minimize opportunities for underhand and dishonest dealings such as, transfer pricing, under invoicing and related FigFig 23:23: PerformancePerformance ofof thethe subsectorsubsector underunder KeyKey ResultResult AreasAreas inin indicatorindicator 99 andand supply industry, i.e., construction, energy, dealings such as, transfer pricing, under invoicing and related problems; to monitor international mineral markets and trends engineeringengineering and environmental services, and technological changes to the best advantage of the equipment parts and supplies, financial and legal equipment parts and supplies, financial and legal Government; and to protect the interests of the country and of expertise,expertise, among others. producers and the industry.

Through NDP, the government proposed various Access to financing by the ASMs in Uganda has also been a interventionsinterventions inin thethe mineralsminerals sub-sectorsub-sector thatthat wouldwould stumbling block to the development of the mining industry in the havehave significant impact on the economy, which country. This is because of the informal nature of the ASMs include:include: activities.

(i)(i) Development Development ofof thethe ironiron smeltingsmelting plant,plant, whichwhich There are mechanisms to control and regulate the quality of would have positive spill-over effects on steel minerals produced in Uganda. When someone is applying for a manufacturing within the region and; mining lease, there are a number of expectations, which they must fulfil as stipulated in Mineral Act 2003. These are however encourages it reason for which a ban was put on the (i)(i) Mineral Mineral BeneficiationBeneficiation (66.7%)(66.7%) encourages it reason for which a ban was put on the (ii)(ii) Processing Processing ofof phosphatesphosphates intointo fertilizers,fertilizers, whichwhich looselyloosely monitoredmonitored duedue toto lacklack ofof thethe necessarynecessary humanhuman resourceresource export of unprocessed iron ore and copper. Uganda RegardingRegarding beneficiation,beneficiation, governmentgovernment undertakesundertakes toto investinvest inin export of unprocessed iron ore and copper. Uganda would have positive benefits especially for the toto monitormonitor forfor compliance.compliance. will be exporting finished products. There are strengtheningstrengthening thethe mineralmineral dressingdressing laboratorylaboratory (value(value additionaddition will be exporting finished products. There are agriculture sector. incentives that have been put in place to encourage laboratory)laboratory) inin thethe DepartmentDepartment ofof GeologicalGeological SurveysSurveys andand MineMine incentives that have been put in place to encourage There have been efforts to attract investors to add value to the establishment of processing and other (DGSM)(DGSM) toto enableenable itit carrycarry outout laboratorylaboratory teststests toto helphelp inin variousvarious the establishment of processing and other ItIt isis projectedprojected thatthat valuevalue additionaddition inin mineralmineral mineral products produced form Uganda. Tin (African Panther) beneficiation industries. Plant and machinery for mineralmineral beneficiationbeneficiation processes.processes. AsAs aa strategystrategy toto reducereduce thethe beneficiation industries. Plant and machinery for developmentdevelopment would contribute on average 0.5 commenced mining and processing of tin with value addition of refining gold are exempted from import duty, and exportexport ofof rawraw minerals,minerals, prioritypriority forfor issuanceissuance ofof explorationexploration andand refining gold are exempted from import duty, and percentpercent to total GDP per annum. concentrating the ore up to 75% as the first phase with at least VAT is deferred for a period of one year. Some of the miningmining licenseslicenses wouldwould gogo toto projectsprojects thatthat includeinclude thethe VAT is deferred for a period of one year. Some of the USD 10M investment. The second phase will include a tin companies that have benefited include Elgon establishmentestablishment ofof processingprocessing andand refiningrefining plantsplants inin UgandaUganda andand companies that have benefited include Elgon According to this scorecard, achieving this target smelter. More however needs to be done. Mineral Resources, which brought US$300 million useuse ofof modernmodern technology,technology, asas wellwell as,as, adherenceadherence toto environmentalenvironmental Mineral Resources, which brought US$300 million remainsremains far-fetchedfar-fetched duedue toto variousvarious reasons.reasons. ThereThere isis to invest in a gold mining and processing facility in standards.standards. to invest in a gold mining and processing facility in nono framework and structures for the regulation of BusiaBusia byby 2019.2019. ThisThis willwill bebe thethe secondsecond firmfirm afterafter mineral processing and marketing. The current law African Gold Refinery that recently invested $15 TheThe sectorsector hashas specificspecific benchmarksbenchmarks forfor beneficiationbeneficiation andand valuevalue African Gold Refinery that recently invested $15 doesdoes not provide for this and the sector is still having million beneficiation facility that can refine gold up to additionaddition basedbased onon analysisanalysis ofof thethe fullfull mineralmineral valuevalue chainchain forfor eacheach million beneficiation facility that can refine gold up to issuesissues withwith AGR.AGR. TheThe scorecardscorecard notednoted thatthat therethere 99.9% purity. individualindividual mineral.mineral. TheThe currentcurrent mineralmineral policypolicy frameworkframework 99.9% purity.

(i)(i) Ratification Ratification ofof The subsector is required to implement the ICGLR declaration. RecommendationRecommendation International Mining Treaties International Mining Treaties The process of domesticating the template and the statutory instrumentsinstruments isis beingbeing finalized;finalized; muchmuch asas itit hashas beenbeen veryvery slow. The government should provide finances to equip and build (75%)(75%) The government should provide finances to equip and build UgandaUganda shouldshould movemove toto entrenchentrench itsits desireddesired policypolicy The Bill to domesticate the ICGRL protocol is part of omnibus Uganda is constantly working and collaborating capacitycapacity ofof mineralmineral laboratorieslaboratories forfor valuevalue addition.addition. ThisThis shouldshould onon valuevalue additionaddition toto bebe moremore insideinside lookinglooking asas wellwell bill on security and associated protocols that carter for mineral with other countries. There are various regional and certification. It was passed by Parliament on 17/5/2017 and involveinvolve providingproviding forfor repairingrepairing andand servicingservicing thethe majormajor asas focusedfocused onon exploitingexploiting thethe EastEast AfricanAfrican andand certification. It was passed by Parliament on 17/5/2017 and international treaties and initiatives related to awaits ascent before implementation commences. The equipment, i.e., Atomic Absorption Spectrometer (AAS) and Sub-Saharan markets for its commodities as well as international treaties and initiatives related to awaits ascent before implementation commences. The equipment, i.e., Atomic Absorption Spectrometer (AAS) and Sub-Saharan markets for its commodities as well as government should thus give it priority to continue providing mining that are ratified and customised into the government should thus give it priority to continue providing X-RayX-Ray FluorescenceFluorescence (XRF)(XRF) spectrometer,spectrometer, whichwhich developeddeveloped faultsfaults negotiatingnegotiating tradetrade treatiestreaties withwith neighbouringneighbouring transparencytransparency toto thethe miningmining industryindustry on Uganda. Ugandan legal framework. These, conventions, duedue toto powerpower surges.surges. countriescountries toto removeremove suchsuch barriersbarriers ifif anyany currentlycurrently agreements,agreements, protocols or other arrangements that exist.exist. supportsupport goodgood governancegovernance in the mineral industry, (ii) Cooperation with other includingincluding mineralmineral traceability,traceability, certificationcertification andand neighbouring countries (41.7%) reportingreporting standardsstandards thatthat thethe countrycountry adheresadheres to.to. As a way of learning from each other and mitigating the illegal These include the International Conference on the 3.2.10.3.2.10. Regional Regional andand InternationalInternational InitiativesInitiatives These include the International Conference on the movement of minerals across borders, the government shares Great Lakes Regions (ICGLR), among others. The mining industry market information with regional and governmentgovernment is commended for participating in the internationalinternational governmentsgovernments andand bodies.bodies. ThereThere isis also IndicatorIndicator Score:Score: developmentdevelopment and review for harmonization of the co-operation in the development of human resource through legislationlegislation andand technicaltechnical standardsstandards inin thethe mineralmineral exchange of geoscience information, technology and sharing 51.4%51.4% -- PartiallyPartially AddressedAddressed andand related sectors at regional and international facilitiesfacilities andand expertiseexpertise withwith regionalregional and international levels.levels. governments and bodies. In the region, this is mainly done with The subsector scored 51.4% under this indicator implying that the subsector has mostly addressed The subsector scored 51.4% under this indicator implying that the subsector has mostly addressed GDC and Kenya Geothermal Energy, where Kenyans come to the areas assessed. The areas assessed included the ratification of international mining treaties, the areas assessed. The areas assessed included the ratification of international mining treaties, InIn 2010,2010, ICGLRICGLR Lusaka’sLusaka’s DeclarationDeclaration approvedapproved sixsix Uganda to learn and also Ugandans shall be going to Kenya in cooperation with other neighbouring countries, and membership to other international bodies. Below cooperation with other neighbouring countries, and membership to other international bodies. Below toolstools asas partpart ofof thethe RegionalRegional InitiativeInitiative toto mitigatemitigate thethe 2018 to share knowledge and learn from each other. However, is how the subsector scored on each of these areas assessed under this indicator; is how the subsector scored on each of these areas assessed under this indicator; IllegalIllegal ExploitationExploitation ofof NaturalNatural ResourcesResources (RINR)(RINR) inin therethere areare nono arrangementsarrangements forfor cross-border mineral thethe GreatGreat LakesLakes Region.Region. TheThe sixsix toolstools developeddeveloped toto exploitation, development, production and processing; though curbcurb illegalillegal exploitationexploitation included: South Sudan has shown interest in doing it. FigFig 24:24: PerformancePerformance ofof thethe subsectorsubsector underunder KeyKey ResultResult AreasAreas inin indicatorindicator 1010 •• RegionalRegional CertificationCertification MechanismMechanism (iii) Membership to International (RCM),(RCM), Mining Bodies (37.5%) •• Harmonization Harmonization ofof NationalNational Legislation,Legislation, The subsector subscribes and maintains membership with regionalregional andand internationalinternational bodies relevant to the mineral •• Regional Regional DatabaseDatabase onon mineralmineral flows,flows, industryindustry development.development. TheThe subsectorsubsector isis aa membermember to the Organization of African Geological Surveys. However, there •• Formalization Formalization ofof ArtisanalArtisanal andand are a number of existing bodies which sector players can Small Small ScaleScale Mining,Mining, subscribe in order to learn best practices as opposed to working in isolation. •• Extractive Extractive IndustryIndustry TransparencyTransparency Initiative Initiative (EITI),(EITI),

•• Whistle Whistle BlowingBlowing MechanismMechanism..

TheThe scorecardscorecard identifiesidentifies gapsgaps inin allall areasareas thatthat needneed toto bebe addressedaddressed soso asas toto improveimprove thethe sub-sector’ssub-sector’s performanceperformance andand thethe subsequentsubsequent achievementachievement ofof thethe sectorsector objectives.objectives. TheThe miningmining andand mineralsminerals subsectorsubsector hashas alsoalso beenbeen plaguedplagued byby thesethese gapsgaps forfor overover thethe lastlast 10-1310-13 yearsyears andand toto aa largelarge extentextent waswas justificationjustification forfor thethe revisionrevision ofof thethe miningmining policy,policy, 2001.2001. SomeSome ofof thesethese gapsgaps include:include:

GovernmentGovernment andand thethe responsibleresponsible MinistryMinistry ofof EnergyEnergy andand MineralMineral DevelopmentDevelopment /Directorate/Directorate ofof GeologicalGeological SurveysSurveys andand MinesMines andand otherother stakeholdersstakeholders needneed toto workwork togethertogether needneed toto addressaddress thethe followingfollowing gaps:gaps:

05 Appendices

14 14 Martin Martin JacanJacan GwoktoGwokto Chief Chief AdministrativeAdministrative OfficerOfficer 1515 ProductionProduction OfficerOfficer AppendixAppendix 1:1: FGDFGD SitesSites

KABALEKABALE NTUNGAMO NTUNGAMO NAMAYINGO NAMAYINGO BUSIA BUSIA MOROTO MOROTO Busia District 1616 JohnsonJohnson EriyenyuEriyenyu EnvironmentEnvironment Officer/Officer/ Natural Resource MENMEN 1717 OnyangoOnyango HenryHenry CommunityCommunity DevelopmentDevelopment Officer Hamurwa Ruhama SC, Bukana SC; Sikuda SC; Rupa SC; 1818 WakapisiWakapisi w.f.w.f. AgricultureAgriculture officer/Productionofficer/Production Officer TC Mwerasandu Khabagaya Village Tiira Village Loorung Village 1919 Wakoli.Wakoli. PP ChiefChief AdministrativeAdministrative Officer village 2020 OgutuOgutu BonifaceBoniface DistrictDistrict chairmanchairman WOMENWOMEN Hamurwa Ruhama SC, Bukana SC; Busitema SC; Rupa SC; Namayingo District TC Mwerasandu Nakudi Village Shanyonja Village Loorung Village 2121 EmmaEmma MuganzaMuganza NaturalNatural ResourceResource Officer village 2222 BusagwaBusagwa AlexAlex EnvironmentEnvironment OfficerOfficer YOUTHYOUTH 2323 NandutuNandutu BettyBetty DCDODCDO Hamurwa Ruhama SC, Sikulu SC; Sikuda SC; Rupa SC; 2424 NaigagaNaigaga RebeccaRebecca AgricultureAgriculture OfficerOfficer TC Mwerasandu Buyanga Village Tiira Village Loorung Village 2525 AndrewAndrew MayendeMayende CFOCFO village 2626 SanyaSanya RonaldRonald DistrictDistrict chairmanchairman

AppendixAppendix 2:2: ListList ofof KeyKey InformantsInformants atat thethe DistrictDistrict LevelLevel Appendix 3: Key informants guide ## NamesNames PositionPosition 1) What are the procedures for acquiring mineral rights? And what challenges does the legal and policy framework KabaleKabale DistrictDistrict pose to the granting and acquisition of mineral rights? 01 01 Mugisha Mugisha JamesJames Chief Chief AdministrativeAdministrative OfficerOfficer 2) What capacity challenges (both financial and skilled staff) exist at DGSM that could deter it from fulfilling its 0202 AkatwijukaAkatwijuka RogersRogers NaturalNatural ResourceResource OfficerOfficer mandate? How can these challenges be addressed? 03 03 Winfred Winfred BusingyeBusingye District District CommunityCommunity DevelopmentDevelopment OfficerOfficer 3) What type of revenues does government collect from mining activities? How does the government track and 04 04 Mwebesa Mwebesa BedaBeda District District ProductionProduction OfficerOfficer reportreport onon revenuesrevenues generatedgenerated fromfrom thethe importedimported minerals?minerals? WhatWhat challenges does it face in collecting them? How 05 05 Mujuni Mujuni JuliusJulius Chief Chief FinanceFinance OfficerOfficer are these revenues utilised? (Probe around the 20% royalties). 4) What is being done by the government to encourage Ugandans to participate and benefit from the mining NtungamoNtungamo DistrictDistrict industryindustry asas bothboth supplierssuppliers ofof goodsgoods andand servicesservices andand employees?employees? 06 06 Dan Dan AritwebwaAritwebwa Chief Chief AdministrativeAdministrative OfficerOfficer 5) Does DGSM enforce and monitor the implementation of the health, safety and environmental issues in the mining 07 07 Tumwebaze Tumwebaze DinnahDinnah Natural Natural ResourceResource OfficerOfficer industry?industry? WhatWhat challengeschallenges doesdoes itit face?face? HowHow oftenoften doesdoes itit reportreport onon itsits activities?activities? 08 08 Turyatunga Turyatunga JohnJohn District District CommunityCommunity DevelopmentDevelopment OfficerOfficer 6) What are the major infrastructural challenges in the mining industry? What is DGSM/government doing to curb 09 09 Mugabe Mugabe AlbertAlbert District District ProductionProduction OfficerOfficer thesethese infrastructuralinfrastructural challengeschallenges inin thethe miningmining industry?industry? 10 10 Byaruhanga Byaruhanga AndrewAndrew Chief Chief FinanceFinance OfficerOfficer 7) What arrangements are in place to ensure that vulnerable and marginalised groups participate and benefit from thethe miningmining industry?industry? AreAre therethere casescases ofof childchild labourlabour andand domesticdomestic violenceviolence inin miningmining areas, and what is being MorotoMoroto DistrictDistrict done to mitigate these challenges? 1111 ZahariZahari AngellaAngella Environment/NaturalEnvironment/Natural ResourceResource OfficerOfficer 8) What strategies does the government have to formalise the existence of ASMs? Are there skilling, value addition 12 12 Logiel Logiel AnthonyAnthony AbbotAbbot Community Community DevelopmentDevelopment OfficerOfficer 1313 OcengiOcengi PatrickPatrick FinanceFinance officerofficer APPENDICES APPENDICES

The 2nd Annual Mining & Mineral Subsector Scorecard 51

andand marketingmarketing programsprograms forfor thethe ASMsASMs inin thethe miningmining areas?areas? 9)9) How How doesdoes thethe sectorsector workwork withwith regionalregional andand internationalinternational governmentsgovernments andand bodiesbodies forfor thethe developmentdevelopment ofof thethe miningmining industryindustry inin Uganda?Uganda? 10)10) Any Any recommendationsrecommendations andand suggestionssuggestions thatthat wouldwould facilitatefacilitate thethe developmentdevelopment ofof thethe miningmining industryindustry inin thethe country?country?

AppendixAppendix 4:4: FocusFocus GroupGroup DiscussionDiscussion GuideGuide

1)1) How How areare you,you, asas bonabona fidefide locallocal communitiescommunities involvedinvolved inin thethe processprocess ofof grantinggranting mineralmineral rightsrights toto miningmining companies?companies? (probe(probe aroundaround involvementinvolvement inin thethe developmentdevelopment ofof RAPs)RAPs) 2)2) Do Do thethe bonabona fidefide localslocals freelyfreely engageengage inin thethe miningmining processprocess asas ASMs?ASMs? If,If, theythey do,do, whatwhat challengeschallenges dodo youyou meet?meet? IfIf youyou don’t,don’t, whatwhat prohibitsprohibits youyou fromfrom engagingengaging inin miningmining asas ASMs?ASMs? 3)3) What What opportunitiesopportunities areare therethere forfor hosthost communities/projectcommunities/project affectedaffected personspersons toto dodo inin thethe miningmining areas?areas? (Probe(Probe forfor bothboth employmentemployment andand suppliersupplier ofof goodsgoods andand services.)services.) 4)4) What What kindkind ofof supportsupport hashas thisthis miningmining communitycommunity everever receivedreceived toto enableenable itit toto improveimprove onon thethe qualityquality ofof goodsgoods andand servicesservices suppliedsupplied toto thethe miningmining companies?companies? WhoWho providedprovided thethe support?support? 5)5) Has Has thisthis communitycommunity beenbeen engagedengaged inin programsprograms thatthat wouldwould improveimprove theirtheir skillsskills inin mining,mining, valuevalue additionaddition andand marketing?marketing? WhatWhat marketingmarketing challengeschallenges dodo thethe ASMsASMs meetmeet andand howhow havehave youyou addressedaddressed thesethese challenges?challenges? 6)6) What What servicesservices (SCR)(SCR) hashas thethe hosthost communitycommunity receivedreceived fromfrom miningmining companies?companies? 7)7) What What servicesservices doesdoes thethe locallocal governmentgovernment provideprovide toto thisthis miningmining communitycommunity asas aa resultresult ofof thethe royaltiesroyalties sharedshared fromfrom thethe government?government? 8)8) Are Are therethere healthhealth andand socialsocial grievancesgrievances betweenbetween thethe communitycommunity andand thethe miningmining companiescompanies experiencedexperienced inin thisthis community?community? HowHow havehave theythey beenbeen handled?handled? 9)9) Are Are therethere casescases ofof GenderGender BasedBased ViolenceViolence (GBV)(GBV) associatedassociated withwith miningmining activitiesactivities inin youryour community?community? AreAre communitiescommunities sensitisedsensitised onon issuesissues ofof HIV/AIDS,HIV/AIDS, GBV,GBV, etc.etc. WhenWhen andand howhow isis thisthis sensitisationsensitisation conducted?conducted? 10)10) Are Are therethere vulnerablevulnerable andand marginalisedmarginalised groupsgroups ofof peoplepeople inin thethe communitycommunity thatthat participateparticipate inin miningmining activities?activities? HowHow dodo theythey participate?participate? 11)11) Are Are therethere rolesroles designateddesignated forfor womenwomen andand specialspecial interestinterest groupsgroups duringduring miningmining activitiesactivities inin youryour community?community? HowHow havehave youyou participated?participated? 12)12) What What dodo youyou suggestsuggest shouldshould bebe donedone toto developdevelop miningmining inin youryour communitycommunity andand alsoalso improveimprove thethe qualityquality ofof youryour lives?lives? of the community concerned. It has been noted that in some According to the Auditor General’s Report on areas mining activities have taken place in cultural places without regulation, monitoring and promotion of the mining (i) Capacity of the (ii) Regulating of the Mining the consent of the community, antagonising the cultural heritage sector 2015, some of the companies did not conform institutions in the mining Activities in the Reserved Areas (62.5 of the area. For instance, mining has been taking place in to any of the set requirements. At the time of the subsector to review the ESIA’s %) Athapanun, Rupa in Moroto district. This is the place where ritual assessment, none of the companies had submitted practices of initiation were conducted. It has since then been annual environmental audits and audited accounts The Institutions responsible for the management of forest (50%) diluted, according to the community members. Furthermore, to DGSM and there was no evidence to show that reserves, game reserves and national parks are mandated to Both DGSM / NEMA have the mandate to support Loorung, in Rupa, is an area of cultural heritage and thus a DGSM followed up with the applicants after issuing monitor mining activities within their territories. This research each other in reviewing of the Environmental and potential tourist site but it has since been affected by mining the licenses. noticed that these institutions have developed and Social Impact Assessments (ESIA’s) before they are activities. Free, Prior and Informed Consent, as well as other disseminated regulations to safeguard natural resources in the approved. They are both meant to have the forms of pre-project community consultation are recognized as There is need for close monitoring and supervision mining areas. Mining projects can be undertaken in of the licensee operations to ensure that rights institutional capacity to review ESIAs of mineral right international best practice that must be undertaken prior to any environmentally sensitive areas provided pre-requisite holders abide by the environmental requirements applicants and holders. It was however noted that project related land acquisition or land use6. environmental considerations have been undertaken and and standards. Mining companies should also EIAs are done by NEMA and sent to DGSM for continue submitting environmental performance review. NEMA however does not have the capacity authorisation sought from the responsible government agency. An applicant should not be granted mineral rights in any case bonds for the fulfilment of the required for reviewing ESIA’s in the mining subsector, and A case in point is the on-going Dura Limestone Quarry in the without obtaining community consent. License holders need a environmental management and management of Social License to Operate. Without community consent, this environmental issues once the companies exit the thus they are done by DGSM. Ruwenzori National Park servicing Hima Cement in Kasese. However, the actual monitoring of these mining activities by the shouldn’t be secured. Requiring such community consultations mining areas without handling the issues. will prevent negative relations between the community and the It was also noted that due to capacity gaps, both UWA and NFA is not fully conducted and hence compliance to license holder and will ensure that the community is aware and in The Mining of developmental minerals has also had human resource and financial gaps, both DGSM regulations is not fully enforced. support of an upcoming project. serious effects on the environment causing and NEMA do not have the required capacity to degradation in areas where it is conducted. The monitor compliance with ESIA’s and Environmental Section 21(1)(b) of the Mining Act 2003 provides for the (iii) Compliance of the mining Principal Assistant Secretary to the CAO in and Social Management Plans (ESMPs) during Restriction on a prospecting license and Section 78(1)(g)(h), companies to environment Rubanda district, on behalf of the CAO, noted that, projects implementation. NEMA and DGSM provides for the Restrictions on exercise of mineral rights. These sections restrict the holder of the mineral rights to management requirements (41.7%) participate jointly during the preliminary phases in “There is the mining of these development minerals ensuring that mining companies meet the required prospect over an area of land that is, or forms part of forest Section 41, Section 108 and Section 110 of the Mining Act, 2003, for construction; this activity is done on small scale Environmental Impact Assessment standards prior reserve, game reserve, national park, etc. unless the holder provide that an application for a mining right should indicate and but has environmental implications because it’s unregulated. Take an example here of Kiyorwa to commencement of the project, but follow-up on has first given notice to and obtained permission from the provide specific information (set requirements) which includes where degradation is affecting L. Bunyonyi. The relevant authorities. The act however doesn’t grant rights to the Environment Impact Assessment, Annual Environment Audits compliance in the course mining projects and president intervened and stopped the mining of post-mining was found to be lacking. relevant authority to conduct oversight and monitoring to and an Environment Restoration Plan. The scorecard sand but wanainchi crying out to him that they are ensure that the holder abides by the conditions on which assessment however noted that mining companies have not unemployed.” permission was granted. developed comprehensive environment management plans nor do they operate according to their environment management (iv) Management of the Forest reserves, game reserves, and national parks are all policy. endowed with specific authorities to oversee and manage their environmental protection fund Fig 13: Mercury contaminated water flowing into farmland at a Fig 14: Effects of Illegal Sand Mining on Land in Lwera Swamp, Masaka Road territories. gold mining site in Amudat (37.5%) Depletion of mineral resources and environmental Therefore, these authorities should have rights to monitor externalities as a result of air emissions, discharges mining activities occurring within the territory to ensure continuous compliance with the conditions on which the of liquid effluents, use of hazardous chemicals such permission to mine was granted instead of stopping on as Mercury and cyanide in the extraction of minerals disseminating regulations. Inter-agency coordination in the such as gold and generation of large volumes of monitoring of these mining projects to ensure compliance with solid waste are the most important environmental the ESIAs is also important and needs to be improved. issues for Uganda’s mining and minerals sub-sector. It emerged that mineral extraction activities have a Section 78 (1) (i) calls for respect of or on any land, which is visual impact on the landscape and has led to the held communally for cultural rites, without the written consent destruction or disturbance of surrounding and

neighbouring habitats and in some cases leading to the government had to incur a cost for restoration. This should Cap 153, should give NEMA the right to request the license holder SIAs should be consultative between mining a loss of biodiversity. Furthermore, some effluents be borne by the miners, in form of a security deposited in the to commission an independent third party to conduct an companies, host communities and other generated by mining activities contain large and environment protection fund. environmental audit to be submitted to NEMA for review in cases stakeholders. dangerous toxic substances such as cyanide and where NEMA has credible cause for concern that the license Companies should also identify Community heavy metals, which pause significant human Fig 15: An Abandoned Cyanide Plant in Amudat District holder may be non- compliant. The act currently does not stipulate Engagement Personnel to work as linkages with the health and ecological risks. The study also that an audit must be undertaken by an independent third party. community and act as conflict monitors within the discovered a number of abandoned mining sites Environmental audits are critical tools that allow the sector and mining areas to help identify and alert government and unrestored mining quarries as testament to the license holders to work together to continuously mitigate structures and companies about brewing conflict. unsatisfactory environmental performance of the environmental harm if the right processes are in place. Failure to address the causes of conflict negatively mining and minerals sub-sector state of affairs. affects business and destroys communities. (vi) Environmental awareness The National Environment Act Cap 153, Section 88 (vii) Promoting health and provides for the establishment of the environment creation (54.2%) protection fund. This fund supports in the NEMA is mandated to raise awareness on environmental matters safety practices in the mining replenishing the environment. Replenishing mine and share information with the public on matters relating to the industry (45.8%) sites and mine environments is one of the key impacts of mining activities. This has been however left in the In addition to wages and benefits that are universally factors that will ultimately protect the mine’s impact hands of CSOs and other interest groups to promote awareness in important in the mining and minerals industry, one on the environment. Simple solutions like the mining areas. The miners hardly know what to do, coupled with other significant issue is the occupational health and replenishing native soils and grasses, cleaning (v) Conducting of environmental low rates of supervision, puts the management of environment safety. Accident statistics show that that the industry issues in jeopardy. There is need for NEMA to come up with a clear excess waste, proper waste removal, site audits (37.5%) poses above-average risks to employees. strategy of awareness creation and promotion on environment Unprotected underground metalliferous mines were inspections and replanting trees and natural Section 22 (1) of the National Environmental Act, Cap 153 issues generally in the country and more specific in the mining reported to have the highest incidents of fatalities forestry can rejuvenate a long-term ecosystem provides for NEMA to commission an independent audit to areas. most of which are never reported by mine owners repair and sustain the environment for years verify the credibility of the annual environment audit conducted and artisanal miners for fear of shutdown of their beyond when the mine is no longer operating. The by the mineral rights holders. It was noted that NEMA rarely Dispute resolution mechanism is a requirement for every project mining operations. Underground gold mining in the entire reclamation process should include: exercises this mandate and when it’s done, mining companies developer. It forms part of the requirements in the certificates of Mubende region was reported to have the highest removing hazardous materials, reshaping land, rarely inform the authority on the action taken to mitigate the approval for all mining projects. Mineral rights holders are in the number of fatalities with an estimated 10 fatalities restoring topsoil, and planting native grasses, trees undesirable environment effects identified. This is because process of establishing mechanisms for addressing environmental per year followed by Tin mining in the Western or ground cover natural to the site. In cases where Section 108(3) of the Mining Act 2003 doesn’t provide NEMA and social grievances, disputes and conflicts arising from region with an estimated 7-8 fatalities on an annual the miner hasn’t replenished the environment, this with the power to conduct an independent audit, in case of exploration and mining activities. Disputes arise from a range of basis. Statistics here could not be verified because fund would be used to support this activity. credible concerns of non-compliance of the license holder. issues, including land, misunderstanding of the laws governing the victims’ families and the owners of the mines are Sometimes when NEMA conducts an independent audit, mining, environment degradation, and royalty sharing, among reluctant to disclose these fatalities for fear of Even though the fund receives funding from mining companies don’t provide feedback to NEMA on the others. imprisonment and also due to the illegal nature of disbursements from the Government; fees charged mitigation measures that were taken to handle the identified their activities, especially those in artisanal and under this Act; fines collected as a result of the undesirable environmental effects. breach of the provisions of this Act or any statutory Mining companies and government should set up alternative ways small-scale mining operations. of resolving disputes. Before project implementation, Social Impact instrument made under this Act, NEMA should exercise its powers provided in NEMA Act Cap 153 to prevail over the mining companies to ensure that they Assessments (SIAs) should be prepared and these will facilitate there is need to review the act such that the mining mitigate the identified undesirable effects and regularly report the identification of mechanisms to address peoples’ grievances to companies are able to deposit funds into the to the authority. prevent latent conflict hitting crisis levels. Regular reviews of the Environment Protection Fund as a security for SIAs should be conducted to help identify sources of conflict in decommissioning, restoration of derelict lands and orderly post-mine There is also need for the review of the Mineral Act 2003 so as places where mining is being considered. SIAs should identify the to clarify on NEMA’s powers to use the information presented in context, the drivers and possible social, political and environmental disclosure. In several cases, miners have the audit to require remedial action. The Act, like the NEMA Act, causes of conflict and investors be guided on how to operate in the abandoned mine sites without restoring them and context without exacerbating tensions. The process of preparing

Fig 16: A miner in Chepkararat (Amudat District) mining without Fig 17: A miner in Amudat using mercury to separate gold from gold dust. In some communities where mining is conducted, the members movements, impairment of speech, hearing, walking any protective gear highlighted several social and health concerns that require and muscle weakness. immediate attention such as; sexual exploitation of workers in mines; exploitation of the ASMs by buying minerals from them In a quest to curb the spread of mercury use, some cheaply; employee exploitation by the mining companies; failure to organisations like Environmental Women in Action provide protective gear and medical care to local miners and for Development (EWAD) is championing Africa’s employees; injuries on the mining sites; employing foreigners first certified Fairtrade gold producer, a mining group instead of giving the opportunity to locals; among others. The in Busia called Syanyonja Artisanal Miners’ Alliance community members also complained about the increasing social to produce gold using an entirely mercury free discord and the erosion of moral values in mining areas. This has process. This if made a national program and rolled been exacerbated by the increased prostitution, alcoholism, out over the mining areas in the country, would help HIV/Aids, sexual abuse of young girls and family breakdown as curb the use and effects of mercury in gold mining in causes of conflict from increased capital flowing into mining areas the country. Workers are also exposed to a number of health as a result emigration. Fig 18: A gold kacha in Busia used to eliminate mercury from the hazards due to hostile mining environments. gold mining process These include chronic occupational diseases due (viii) Regulating the use of hazardous Although Uganda’s economy has registered a number of to dust inhalation common in gold mining and achievements, various aspects of occupational safety and mining substances (45.8%) processing as well as in the stone quarrying health (OSH) have not been adequately addressed. sectors. Most of the mining workers interviewed Management of the OSH issues at workplaces continue to be NEMA developed the National environment (waste management) were found to be oblivious of the imminent danger left unattended to by different sectors of government and regulations to mitigate waste management in the mining industry. and exposure to diseases such as private sector. The mining sector isn’t immune to this situation Along with the Explosives Act Cap 298, the sector has a legal pneumoconiosis, silicosis and lung cancer. and hence the miners are found to work in environments that framework for the handling, transportation, storage and usage of Some mining activities also endanger the lives of are not palatable with humanity. This is attributed to a number hazardous chemicals and, explosives used in exploration, mining mining communities due air pollution, releases of reasons such as the lack of well trained and facilitated activities, and radioactive materials, tailings and toxic effluents toxic substances to water streams and food inspectors to fully inspect mining areas to and emissions resulting from such activities. chains. Unprotected access to abandoned and ensure application of OSH requirements, no sensitisation and sometimes even active pits also pose a safety risk trainings of miners on the required OSH standards, mining Uganda is also on course to ratifying the Minamata Convention on to communities and their livestock in some parts of work places aren’t registered and certified, lack of coordination Mercury. The Convention aims at protecting human health and the the country. between NEMA and MGLSD before approving of EIAs, among environment from anthropogenic emissions and releases of others. mercury and mercury compounds. Mercury is a highly toxic The sector has no specific established substance that possesses some unique chemical properties that occupational health and safety requirements There is however an effort to try and train the ASMs, but are hard to find anywhere else in nature. In Uganda, the most followed by the mineral rights holders with regard because of their informal nature, it is difficult to improve their prevalent use of mercury is in the Artisanal and Small scale Gold to employers and employees in the mining health and safety standards. Under the African, Caribbean and Mining (ASGM) sector. Its use still remains highly popular and industry. The mineral rights holders are required to Pacific (ACP-EU) project funded by UNDP, ASMs are being highly unregulated in the ASGM industry. comply with the Occupational Health and Safety identified and trained in appropriate technology, environment Act 2006. However, despite government efforts to management, and occupational health and safety standards. The National Environment Management Authority (NEMA) improve safety and health of all workers in the Formalisation of the ASMs has to be fast-tracked, if the ASMs concluded the compilation of the national mercury inventory as country through funding enforcement of OSH are to benefit from such programs. Working in an informal required by the Minamata Convention on mercury. Mercury, activities, limited impact has been registered due setting will inevitably make them less adoptable and trainable despite its uses, poses many health risks including; loss of to inadequate enforcement of the OSH Act of with in HSE and use of modern technology. peripheral vision, “pins and needles” feelings, usually in the 2006. hands, feet, and around the mouth, lack of coordination of

Fig 20: Map of Uganda showing the NDP II proposed Minerals & Requisite Infrastructure 3.2.8. Gender, Equity, Social Inclusion and Participation

Indicator Score: 37.5% - Partially addressed

Fig 21: Performance of the subsector under Key Result Areas in indicator 8

• Whistle Blowing Mechanism.

Government and the responsible Ministry of Energy and Mineral Development /Directorate of Geological Surveys and Mines and other stakeholders need to work together need to address the following gaps:

14 Martin Jacan Gwokto Chief Administrative Officer 15 Production Officer Appendix 1: FGD Sites

05 Appendices

Appendix 4: Focus Group Discussion Guide

52 of the community concerned. It has been noted that in some According to the Auditor General’s Report on areas mining activities have taken place in cultural places without regulation, monitoring and promotion of the mining (i) Capacity of the (ii) Regulating of the Mining the consent of the community, antagonising the cultural heritage sector 2015, some of the companies did not conform institutions in the mining Activities in the Reserved Areas (62.5 of the area. For instance, mining has been taking place in to any of the set requirements. At the time of the subsector to review the ESIA’s %) Athapanun, Rupa in Moroto district. This is the place where ritual assessment, none of the companies had submitted practices of initiation were conducted. It has since then been annual environmental audits and audited accounts The Institutions responsible for the management of forest (50%) diluted, according to the community members. Furthermore, to DGSM and there was no evidence to show that reserves, game reserves and national parks are mandated to Both DGSM / NEMA have the mandate to support Loorung, in Rupa, is an area of cultural heritage and thus a DGSM followed up with the applicants after issuing monitor mining activities within their territories. This research each other in reviewing of the Environmental and potential tourist site but it has since been affected by mining the licenses. noticed that these institutions have developed and Social Impact Assessments (ESIA’s) before they are activities. Free, Prior and Informed Consent, as well as other disseminated regulations to safeguard natural resources in the approved. They are both meant to have the forms of pre-project community consultation are recognized as There is need for close monitoring and supervision mining areas. Mining projects can be undertaken in of the licensee operations to ensure that rights institutional capacity to review ESIAs of mineral right international best practice that must be undertaken prior to any environmentally sensitive areas provided pre-requisite holders abide by the environmental requirements applicants and holders. It was however noted that project related land acquisition or land use6. environmental considerations have been undertaken and and standards. Mining companies should also EIAs are done by NEMA and sent to DGSM for continue submitting environmental performance review. NEMA however does not have the capacity authorisation sought from the responsible government agency. An applicant should not be granted mineral rights in any case bonds for the fulfilment of the required for reviewing ESIA’s in the mining subsector, and A case in point is the on-going Dura Limestone Quarry in the without obtaining community consent. License holders need a environmental management and management of Social License to Operate. Without community consent, this environmental issues once the companies exit the thus they are done by DGSM. Ruwenzori National Park servicing Hima Cement in Kasese. However, the actual monitoring of these mining activities by the shouldn’t be secured. Requiring such community consultations mining areas without handling the issues. will prevent negative relations between the community and the It was also noted that due to capacity gaps, both UWA and NFA is not fully conducted and hence compliance to license holder and will ensure that the community is aware and in The Mining of developmental minerals has also had human resource and financial gaps, both DGSM regulations is not fully enforced. support of an upcoming project. serious effects on the environment causing and NEMA do not have the required capacity to degradation in areas where it is conducted. The monitor compliance with ESIA’s and Environmental Section 21(1)(b) of the Mining Act 2003 provides for the (iii) Compliance of the mining Principal Assistant Secretary to the CAO in and Social Management Plans (ESMPs) during Restriction on a prospecting license and Section 78(1)(g)(h), companies to environment Rubanda district, on behalf of the CAO, noted that, projects implementation. NEMA and DGSM provides for the Restrictions on exercise of mineral rights. These sections restrict the holder of the mineral rights to management requirements (41.7%) participate jointly during the preliminary phases in “There is the mining of these development minerals ensuring that mining companies meet the required prospect over an area of land that is, or forms part of forest Section 41, Section 108 and Section 110 of the Mining Act, 2003, for construction; this activity is done on small scale Environmental Impact Assessment standards prior reserve, game reserve, national park, etc. unless the holder provide that an application for a mining right should indicate and but has environmental implications because it’s unregulated. Take an example here of Kiyorwa to commencement of the project, but follow-up on has first given notice to and obtained permission from the provide specific information (set requirements) which includes where degradation is affecting L. Bunyonyi. The relevant authorities. The act however doesn’t grant rights to the Environment Impact Assessment, Annual Environment Audits compliance in the course mining projects and president intervened and stopped the mining of post-mining was found to be lacking. relevant authority to conduct oversight and monitoring to and an Environment Restoration Plan. The scorecard sand but wanainchi crying out to him that they are ensure that the holder abides by the conditions on which assessment however noted that mining companies have not unemployed.” permission was granted. developed comprehensive environment management plans nor do they operate according to their environment management (iv) Management of the Forest reserves, game reserves, and national parks are all policy. endowed with specific authorities to oversee and manage their environmental protection fund Fig 13: Mercury contaminated water flowing into farmland at a Fig 14: Effects of Illegal Sand Mining on Land in Lwera Swamp, Masaka Road territories. gold mining site in Amudat (37.5%) Depletion of mineral resources and environmental Therefore, these authorities should have rights to monitor externalities as a result of air emissions, discharges mining activities occurring within the territory to ensure continuous compliance with the conditions on which the of liquid effluents, use of hazardous chemicals such permission to mine was granted instead of stopping on as Mercury and cyanide in the extraction of minerals disseminating regulations. Inter-agency coordination in the such as gold and generation of large volumes of monitoring of these mining projects to ensure compliance with solid waste are the most important environmental the ESIAs is also important and needs to be improved. issues for Uganda’s mining and minerals sub-sector. It emerged that mineral extraction activities have a Section 78 (1) (i) calls for respect of or on any land, which is visual impact on the landscape and has led to the held communally for cultural rites, without the written consent destruction or disturbance of surrounding and

neighbouring habitats and in some cases leading to the government had to incur a cost for restoration. This should Cap 153, should give NEMA the right to request the license holder SIAs should be consultative between mining a loss of biodiversity. Furthermore, some effluents be borne by the miners, in form of a security deposited in the to commission an independent third party to conduct an companies, host communities and other generated by mining activities contain large and environment protection fund. environmental audit to be submitted to NEMA for review in cases stakeholders. dangerous toxic substances such as cyanide and where NEMA has credible cause for concern that the license Companies should also identify Community heavy metals, which pause significant human Fig 15: An Abandoned Cyanide Plant in Amudat District holder may be non- compliant. The act currently does not stipulate Engagement Personnel to work as linkages with the health and ecological risks. The study also that an audit must be undertaken by an independent third party. community and act as conflict monitors within the discovered a number of abandoned mining sites Environmental audits are critical tools that allow the sector and mining areas to help identify and alert government and unrestored mining quarries as testament to the license holders to work together to continuously mitigate structures and companies about brewing conflict. unsatisfactory environmental performance of the environmental harm if the right processes are in place. Failure to address the causes of conflict negatively mining and minerals sub-sector state of affairs. affects business and destroys communities. (vi) Environmental awareness The National Environment Act Cap 153, Section 88 (vii) Promoting health and provides for the establishment of the environment creation (54.2%) protection fund. This fund supports in the NEMA is mandated to raise awareness on environmental matters safety practices in the mining replenishing the environment. Replenishing mine and share information with the public on matters relating to the industry (45.8%) sites and mine environments is one of the key impacts of mining activities. This has been however left in the In addition to wages and benefits that are universally factors that will ultimately protect the mine’s impact hands of CSOs and other interest groups to promote awareness in important in the mining and minerals industry, one on the environment. Simple solutions like the mining areas. The miners hardly know what to do, coupled with other significant issue is the occupational health and replenishing native soils and grasses, cleaning (v) Conducting of environmental low rates of supervision, puts the management of environment safety. Accident statistics show that that the industry issues in jeopardy. There is need for NEMA to come up with a clear excess waste, proper waste removal, site audits (37.5%) poses above-average risks to employees. strategy of awareness creation and promotion on environment Unprotected underground metalliferous mines were inspections and replanting trees and natural Section 22 (1) of the National Environmental Act, Cap 153 issues generally in the country and more specific in the mining reported to have the highest incidents of fatalities forestry can rejuvenate a long-term ecosystem provides for NEMA to commission an independent audit to areas. most of which are never reported by mine owners repair and sustain the environment for years verify the credibility of the annual environment audit conducted and artisanal miners for fear of shutdown of their beyond when the mine is no longer operating. The by the mineral rights holders. It was noted that NEMA rarely Dispute resolution mechanism is a requirement for every project mining operations. Underground gold mining in the entire reclamation process should include: exercises this mandate and when it’s done, mining companies developer. It forms part of the requirements in the certificates of Mubende region was reported to have the highest removing hazardous materials, reshaping land, rarely inform the authority on the action taken to mitigate the approval for all mining projects. Mineral rights holders are in the number of fatalities with an estimated 10 fatalities restoring topsoil, and planting native grasses, trees undesirable environment effects identified. This is because process of establishing mechanisms for addressing environmental per year followed by Tin mining in the Western or ground cover natural to the site. In cases where Section 108(3) of the Mining Act 2003 doesn’t provide NEMA and social grievances, disputes and conflicts arising from region with an estimated 7-8 fatalities on an annual the miner hasn’t replenished the environment, this with the power to conduct an independent audit, in case of exploration and mining activities. Disputes arise from a range of basis. Statistics here could not be verified because fund would be used to support this activity. credible concerns of non-compliance of the license holder. issues, including land, misunderstanding of the laws governing the victims’ families and the owners of the mines are Sometimes when NEMA conducts an independent audit, mining, environment degradation, and royalty sharing, among reluctant to disclose these fatalities for fear of Even though the fund receives funding from mining companies don’t provide feedback to NEMA on the others. imprisonment and also due to the illegal nature of disbursements from the Government; fees charged mitigation measures that were taken to handle the identified their activities, especially those in artisanal and under this Act; fines collected as a result of the undesirable environmental effects. breach of the provisions of this Act or any statutory Mining companies and government should set up alternative ways small-scale mining operations. of resolving disputes. Before project implementation, Social Impact instrument made under this Act, NEMA should exercise its powers provided in NEMA Act Cap 153 to prevail over the mining companies to ensure that they Assessments (SIAs) should be prepared and these will facilitate there is need to review the act such that the mining mitigate the identified undesirable effects and regularly report the identification of mechanisms to address peoples’ grievances to companies are able to deposit funds into the to the authority. prevent latent conflict hitting crisis levels. Regular reviews of the Environment Protection Fund as a security for SIAs should be conducted to help identify sources of conflict in decommissioning, restoration of derelict lands and orderly post-mine There is also need for the review of the Mineral Act 2003 so as places where mining is being considered. SIAs should identify the to clarify on NEMA’s powers to use the information presented in context, the drivers and possible social, political and environmental disclosure. In several cases, miners have the audit to require remedial action. The Act, like the NEMA Act, causes of conflict and investors be guided on how to operate in the abandoned mine sites without restoring them and context without exacerbating tensions. The process of preparing

Fig 16: A miner in Chepkararat (Amudat District) mining without Fig 17: A miner in Amudat using mercury to separate gold from gold dust. In some communities where mining is conducted, the members movements, impairment of speech, hearing, walking any protective gear highlighted several social and health concerns that require and muscle weakness. immediate attention such as; sexual exploitation of workers in mines; exploitation of the ASMs by buying minerals from them In a quest to curb the spread of mercury use, some cheaply; employee exploitation by the mining companies; failure to organisations like Environmental Women in Action provide protective gear and medical care to local miners and for Development (EWAD) is championing Africa’s employees; injuries on the mining sites; employing foreigners first certified Fairtrade gold producer, a mining group instead of giving the opportunity to locals; among others. The in Busia called Syanyonja Artisanal Miners’ Alliance community members also complained about the increasing social to produce gold using an entirely mercury free discord and the erosion of moral values in mining areas. This has process. This if made a national program and rolled been exacerbated by the increased prostitution, alcoholism, out over the mining areas in the country, would help HIV/Aids, sexual abuse of young girls and family breakdown as curb the use and effects of mercury in gold mining in causes of conflict from increased capital flowing into mining areas the country. Workers are also exposed to a number of health as a result emigration. Fig 18: A gold kacha in Busia used to eliminate mercury from the hazards due to hostile mining environments. gold mining process These include chronic occupational diseases due (viii) Regulating the use of hazardous Although Uganda’s economy has registered a number of to dust inhalation common in gold mining and achievements, various aspects of occupational safety and mining substances (45.8%) processing as well as in the stone quarrying health (OSH) have not been adequately addressed. sectors. Most of the mining workers interviewed Management of the OSH issues at workplaces continue to be NEMA developed the National environment (waste management) were found to be oblivious of the imminent danger left unattended to by different sectors of government and regulations to mitigate waste management in the mining industry. and exposure to diseases such as private sector. The mining sector isn’t immune to this situation Along with the Explosives Act Cap 298, the sector has a legal pneumoconiosis, silicosis and lung cancer. and hence the miners are found to work in environments that framework for the handling, transportation, storage and usage of Some mining activities also endanger the lives of are not palatable with humanity. This is attributed to a number hazardous chemicals and, explosives used in exploration, mining mining communities due air pollution, releases of reasons such as the lack of well trained and facilitated activities, and radioactive materials, tailings and toxic effluents toxic substances to water streams and food inspectors to fully inspect mining areas to and emissions resulting from such activities. chains. Unprotected access to abandoned and ensure application of OSH requirements, no sensitisation and sometimes even active pits also pose a safety risk trainings of miners on the required OSH standards, mining Uganda is also on course to ratifying the Minamata Convention on to communities and their livestock in some parts of work places aren’t registered and certified, lack of coordination Mercury. The Convention aims at protecting human health and the the country. between NEMA and MGLSD before approving of EIAs, among environment from anthropogenic emissions and releases of others. mercury and mercury compounds. Mercury is a highly toxic The sector has no specific established substance that possesses some unique chemical properties that occupational health and safety requirements There is however an effort to try and train the ASMs, but are hard to find anywhere else in nature. In Uganda, the most followed by the mineral rights holders with regard because of their informal nature, it is difficult to improve their prevalent use of mercury is in the Artisanal and Small scale Gold to employers and employees in the mining health and safety standards. Under the African, Caribbean and Mining (ASGM) sector. Its use still remains highly popular and industry. The mineral rights holders are required to Pacific (ACP-EU) project funded by UNDP, ASMs are being highly unregulated in the ASGM industry. comply with the Occupational Health and Safety identified and trained in appropriate technology, environment Act 2006. However, despite government efforts to management, and occupational health and safety standards. The National Environment Management Authority (NEMA) improve safety and health of all workers in the Formalisation of the ASMs has to be fast-tracked, if the ASMs concluded the compilation of the national mercury inventory as country through funding enforcement of OSH are to benefit from such programs. Working in an informal required by the Minamata Convention on mercury. Mercury, activities, limited impact has been registered due setting will inevitably make them less adoptable and trainable despite its uses, poses many health risks including; loss of to inadequate enforcement of the OSH Act of with in HSE and use of modern technology. peripheral vision, “pins and needles” feelings, usually in the 2006. hands, feet, and around the mouth, lack of coordination of

Fig 20: Map of Uganda showing the NDP II proposed Minerals & Requisite Infrastructure 3.2.8. Gender, Equity, Social Inclusion and Participation

Indicator Score: 37.5% - Partially addressed

Fig 21: Performance of the subsector under Key Result Areas in indicator 8

• Whistle Blowing Mechanism.

Government and the responsible Ministry of Energy and Mineral Development /Directorate of Geological Surveys and Mines and other stakeholders need to work together need to address the following gaps:

14 Martin Jacan Gwokto Chief Administrative Officer 15 Production Officer Appendix 1: FGD Sites

05 Appendices

Appendix 4: Focus Group Discussion Guide

The 2nd Annual Mining & Mineral Subsector Scorecard 53 CONTACT AND ADDRESS DETAILS

National Planning Authority Africa Centre for Energy and Planning House Mineral Policy (ACEMP) Plot 17B, Clement Hill Road Plot A 30, Nsambya Estate, Gogonya Road P.o. Box 21434, Kampala – Uganda P.O.Box 1164, Kampala Tel. +256-414- 250229/+256- Tel: +2563924003934 312-310730 Email: [email protected] Email :[email protected] Website: www.acemp.org Website: www.npa.ug