Artisanal Small-scale Gold Mining, Uganda

In Uganda, almost all artisanal gold is mined and exported illegally. Unregulated gold mining has been leading conflicts in the mining sector, smuggling of gold, child labour, human rights abuses, environmental and human health concerns


Description

In Uganda, almost all artisanal gold is mined and exported illegally. Unregulated gold mining has been leading conflicts in the mining sector, competing in land uses, smuggling of gold, child labour, human rights abuses, environmental and human health concerns and tax revenue losses (1). Although the government passed the Mining Policy in 2001, the Mining Act in 2003 and Mining regulations in 2004, the current mineral policies and legislation do not provide sufficient opportunities for the formalization of artisanal gold mining. Instead artisanal mining sites have informal structures that regulate the mining, the lease of lands and settlements (4) (6) (9).  In the formalized sector, an increasing number of big multinational businesses are coming in Uganda during the past few years, but have been met with resistance due to fears from locals that large mining operations would affect their current mining efforts and livelihood. In fact, where the companies have obtained the license of mining (Rupa, Moroto, Karamoja, Kitumbi), it has been reported they consistently failed to secure free, prior, and informed consent from the local communities before they started operations on communal lands. The central and local governments have also failed to insist that the companies adhere to this established international standard. Companies arriving to carry out exploration have promised communities benefits to mitigate the loss of land use and livelihood and other impact, including schools, hospitals, boreholes, jobs, scholarships, and money in exchange for their cooperation. But even as exploration or mining has continued, the communities have not seen the promised benefits. Moreover, their condition of exploitation and lack of specialized technology for mining have not changed (7) (1) (5).

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Basic Data
NameArtisanal Small-scale Gold Mining, Uganda
CountryUganda
SiteExploitation of gold in the country has been concentrated in a few areas such as Kigezi, Mubende, Karamoja in northeastern Uganda, Buhweju and Ibanda in the West, Namayingo and Busia in eastern Uganda, Kitumbi in Central Uganda. (6).
Accuracy of LocationLOW country/state level
Source of Conflict
Type of Conflict (1st level)Mineral Ores and Building Materials Extraction
Type of Conflict (2nd level)Mineral ore exploration
Specific CommoditiesGold
Project Details and Actors
Project DetailsMining gold sector in Uganda, according official statistics, in 2016 contributed only 0.5 per cent to Gross Domestic Product (2) and for the last 15 years Uganda has never produced more than 30kg of gold annually (9). However, a study on artisanal and small-scale mining commissioned by the ministry of Energy revealed that Uganda had actually produced 1,200kg of gold in 2008 alone. Therefore, considering that in 2009 were around 28,000 artisanal gold miners and considering that Uganda has experienced several gold rushes since then (including Mubende District with up to 10,000 artisanal gold miners, the Rupa Gold Mine and Karamoja with 15,000 to 80,000), recently investigations estimate that the informal sector contributes about 3.5 per cent of GDP and there are about between 50,000 to 200,000 unlicensed artisanal gold miners around the country collecting some 2.8 tonnes of gold every year (2) (4) (5).

But this is not included in any official production figures from Uganda. These findings support the conclusions from previous research by Stop Child Labour and the UBOS report (2014) that have estimated 10,000 to 15,000 children are working in gold mining (20 to 30 percent of all artisanal miners) (5) (4).

Stop Child Labour started the campaign ‘gold in your hands’ at the end of 2015 calling on companies in the electronics sector to make a serious effort to eradicate child labour from gold mining. The electronics sector uses some 279,000 kilograms of gold up to a value of more than 10 billion euros every year. Making it the third largest buyer of gold, following the jewellery and financial sectors (5).

There have been projects on the improvement of conditions in artisanal mining, such as the Sustainable Management of Mineral Resources project of the World Bank and the Fairtrade Gold Project. The latter also included efforts to eliminate child labour in gold mining (4).
Type of PopulationSemi-urban
Potential Affected Population50,000-200,000
Start Date01/01/2007
Company Names or State EnterprisesAUC Mining Uganda Ltd from Uganda
Vangold Resources Ltd from Canada
Blaze Metal Resources Limited from Ghana
Environmental justice organisations and other supportersStop Child Labour http://www.stopchildlabour.eu

Centre for Research on Multinational Corporations (SOMO) https://www.somo.nl

Global Rights Alert

https://globalrightsalert.org/
The Conflict and the Mobilization
Intensity of Conflict (at highest level)LOW (some local organising)
When did the mobilization beginPREVENTIVE resistance (precautionary phase)
Groups MobilizingArtisanal miners
International ejos
Religious groups
Forms of MobilizationInvolvement of national and international NGOs
Appeals/recourse to economic valuation of the environment
Boycotts of companies-products
Impacts
Environmental ImpactsVisible: Air pollution, Noise pollution, Waste overflow, Surface water pollution / Decreasing water (physico-chemical, biological) quality, Groundwater pollution or depletion
Potential: Global warming, Loss of landscape/aesthetic degradation, Soil erosion, Deforestation and loss of vegetation cover
Health ImpactsVisible: Accidents, Infectious diseases, Deaths
Potential: Mental problems including stress, depression and suicide, Violence related health impacts (homicides, rape, etc..) , Health problems related to alcoholism, prostitution, Occupational disease and accidents
Socio-economic ImpactsVisible: Lack of work security, labour absenteeism, firings, unemployment, Violations of human rights, Land dispossession, Other socio-economic impacts
Potential: Increase in Corruption/Co-optation of different actors, Displacement, Increase in violence and crime, Loss of livelihood, Social problems (alcoholism, prostitution, etc..)
OtherForced child labour
Outcome
Project StatusIn operation
Pathways for conflict outcome / responseCorruption
Under negotiation
Development of AlternativesRecommendation for downstream companies in the gold supply chain. Companies in the gold supply chain, such as refineries, electronics companies, jewellery and banks, should take steps to ban mercury in (artisanal) mining. Move beyond the area of conflict minerals in your due diligence with regard to the gold used in your products; do not focus solely on gold sourced from the DRC and neighbouring countries but extend your policies to all countries producing (artisanal) gold. Companies must map – if possible, jointly – their entire gold supply chains including the artisanal gold supply, and share this information publicly. Companies have to know which countries, specific regions and suppliers they source gold from, carry out a risk assessment of all the countries and regions involved, and identify in which supply chains and at what specific points the company can use its influence to achieve a positive impact. The risks identified have to be mitigated through initiatives taken by companies together with other stakeholders. It is crucial to involve local organisations and initiatives in both risk assessment and remediation efforts. ‡ An engagement with actors within the supply chain, as well as other local actors, to work towards progressive improvement in the artisanal and small scale mining – including formalization and improving working conditions for adult workers -, is to be preferred over avoidance of artisanal mining. ‡ Work with and/or support local initiatives to get children from gold mine areas to school and to make sure that all children receive full-time quality education. Recommendations for CSO’s ‡ Initiatives on eliminating child labour in artisanal mining should be done in cooperation with other efforts on combatting child labour and improving the educational infrastructure and quality - either by the government and/or local or national NGOs, community based organizations and trade unions ‡ Social and communities empowerment programs are further encouraged in mining communities targeting all children including underprivileged children (i.e. orphans, children from poor families etc.) in these communities. The programs should focus on ensuring these children remain in school and that these children receive quality education. To the Ugandan Government ‡ Work with local stakeholders (local government, companies, mining cooperatives, mine owners, NGOs, unions, local child rights groups, etc.) to raise awareness about child labour, and set up programmes to prevent and remedy both this and other labour rights violations found in mining sites. ‡ Work with pan-African and/or regional African organizations (e.g. ECOWAS) to develop programmes that tackle child labour and improve working conditions for adult workers in goldproducing communities. Wherever possible, channel these efforts into the context of regularising illegal mining. ‡ Ensure an effective control of mines operating within the bounds of legality, and take action to tackle both money-laundering and the smuggling of gold to other countries. ‡ Take measures to abolish the use of mercury in gold mining ‡ Improve the education infrastructure and make sure that all children in mining areas receive full-time quality education without charging fees or paying other costs. ‡ Adopt legal provisions on small scale and artisanal mines, including attention to working conditions and child labour, that effectively prevent child labour in gold mines under 18 and provides decent working conditions for adults. ‡ Investigate the number and working conditions of children participating in mining and activities related to mining, and share these with the public, policy makers and other stakeholders. Involve all stakeholders in interventions on child labour in artisanal gold mining (4) (7)
Do you consider this as a success?No
Sources and Materials
References

(1) Francis Mugerwa, Uganda: Mubende Gold Miners Cash in Amidst Destruction, The Monitor, 20 FEBRUARY 2017
[click to view]

(2) Mark Keith Muhumuza, Mubende illegal gold miners apply for location licence, Daily Monitor, APRIL 1 2016
[click to view]

(4) Irene Schipper & Esther de Haan (SOMO) and Stephen Turyahikayo (CRSS), No Golden Future. Use of child labour in gold mining in Uganda, Stichting Onderzoek Multinationale Ondernemingen Centre for Research on Multinational Corporations, Amsterdam, April 2016
[click to view]

(3)Annie Kelly, Silence far from golden for child labourers in the mines of Uganda, The Guardian, 20 May 2016
[click to view]

(5) raregoldnuggets, Mining for Gold and Metals in Uganda, november 11 2015
[click to view]

(6) Ronald Musoke, Uganda: Inside Mubende's Golden Villages, The Indipendent, 1 NOVEMBER 2016
[click to view]

(7) Jessica Evans,Uganda: Rights at Risk in New Mining Region, Urgent Need to Protect Indigenous Land Rights in Karamoja, Human Rights Watch, FEBRUARY 3, 2014
[click to view]

(8) John Emerson, "How Can We Survive Here?" The Impact of Mining on Human Rights in Karamoja, Uganda, FEBRUARY 3, 2014, Human Rights Watch
[click to view]

Winfred Ngabiirwe, Robert B Tumwesigye, Hassan B. Muloopa, Human Rights Status in the Gold Supply Chain of Uganda: A Case for Artisanal Small-Scale Mining in Karamoja Region, Global Rights Alert, Dec 2012
[click to view]

(9) Alon Mwesigwa, Uganda: Billions Lost in Secret Gold Trade, The Observer, 2 SEPTEMBER 2015
[click to view]

Links

Kamalenge Gold Mining Project, Uganda Invest
[click to view]

Other Documents

(8)
[click to view]

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ContributorCarla Petricca
Last update21/03/2017
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