Gov’t suspends gold mining in Kanungu

The Ministry of Energy and Mineral Development in Uganda has suspended all gold mining activities in Kayungwe sub-county, Kanungu district, following a significant influx of unlicensed artisanal miners. The suspension, which targets operations in Kanoni village, was prompted by concerns over illegal mining, severe environmental degradation, and critical public health risks at the makeshift mining camps. The affected area is under an existing exploration licence held by Shiye Miners Company. This decisive action underscores the Ugandan government's commitment to enforcing the Mining and Minerals Act, 2022, and the National Environment Act, 2019, while also signaling a strategic move towards formalising the artisanal and small-scale mining (ASM) sector to ensure regulated and sustainable mineral exploitation.

The Ugandan Ministry of Energy and Mineral Development recently took decisive action by suspending all gold mining activities in Kayungwe sub-county, Kanungu district. This move came in response to a burgeoning gold rush in Kanoni village, which saw hundreds of residents engaging in unlicensed operations, leading to significant environmental degradation and alarming public health concerns. The suspension highlights the government's ongoing efforts to assert regulatory control over the country's mineral sector, particularly the often-informal artisanal and small-scale mining (ASM) activities.

This incident in Kanungu serves as a critical case study in the challenges faced by mineral-rich nations in balancing economic opportunities for local populations with the imperative of regulatory compliance, environmental protection, and public health safeguards. The Ministry's intervention not only aims to restore order but also signals a broader strategy to formalise artisanal mining, encouraging miners to operate within the established legal framework. This article will delve into the legal basis for the suspension, examine the relevant statutory and regulatory provisions, and discuss the implications for practitioners and the future of Uganda's mining sector.

The suspension underscores the robust powers vested in the Ministry of Energy and Mineral Development and the National Environment Management Authority (NEMA) to enforce compliance with Uganda's mining and environmental laws. It brings to the forefront the critical need for all stakeholders, particularly artisanal miners, to understand and adhere to the licensing requirements and environmental standards stipulated in the Mining and Minerals Act, 2022, and the National Environment Act, 2019. The government's stated intention to assist in the formalisation process presents both a challenge and an opportunity for the thousands of individuals reliant on artisanal mining for their livelihoods.

The legal framework governing mining activities in Uganda is primarily anchored in the Mining and Minerals Act, 2022, which repealed and replaced the earlier Mining Act, 2003. This updated legislation, operationalised by the Mining and Minerals (Licensing) Regulation, 2023, for the first time explicitly integrates regulations for artisanal and small-scale mining (ASM), recognising it as a legal and licensable activity. Under this Act, all minerals in Uganda are vested in the Government, and no person may explore, prospect for, or mine any mineral without a licence issued in accordance with the Act. The Ministry of Energy and Mineral Development, through its Department of Geological Surveys and Mines, is the primary regulatory authority responsible for granting and overseeing mineral rights.

Complementing the mining legislation is the National Environment Act, 2019, which provides a comprehensive legal framework for environmental management and protection in Uganda. This Act places a strong emphasis on sustainable development, pollution control, and the requirement for environmental and social impact assessments (ESIAs) for projects likely to have significant environmental effects. Notably, the 2019 Act also includes provisions for the sustainable use of hilly and mountainous areas, which is particularly relevant to the topography of the Kanungu mining site. Furthermore, the Public Health Act, Cap. 281, addresses the preservation of public health, providing for measures related to sanitation, prevention of diseases, and control of water supplies, all of which are pertinent to the conditions observed in informal mining settlements.

The context of artisanal mining in Uganda reveals a sector that, while economically significant, has largely operated informally. Reports indicate that a substantial percentage of artisanal gold miners operate without licences, often leading to unregulated practices, environmental degradation, and social challenges such as child labour and human rights abuses. The use of mercury in gold extraction, despite being prohibited under the Mining and Minerals (Licensing) Regulation, 2023, remains a prevalent practice in ASM, posing severe health and environmental risks, including water source contamination. The government's policy, while recognising ASM's role in poverty alleviation, aims to regularise and improve the sector through formalisation and responsible mining practices.

The Ministry of Energy and Mineral Development's suspension of gold mining in Kanungu is firmly rooted in the legal provisions of the Mining and Minerals Act, 2022. The State Minister for Minerals, Phiona Nyamutoro, explicitly stated that the miners were operating illegally because they lacked the necessary approvals required under the Act. Section 4 of the Mining and Minerals Act, 2022, makes it clear that no person may explore or mine any mineral in Uganda except under and in accordance with a licence issued under the Act. Furthermore, the area in question was found to be under an existing Exploration Licence (EL00135) granted to Shiye Miners Company, rendering any other mining activity within that area by unlicensed individuals as trespassing and illegal.

The environmental degradation and public health concerns cited by the Ministry also provide a strong legal basis for the suspension. The National Environment Act, 2019, mandates sustainable environmental management and prohibits activities that cause pollution or degrade natural resources. Reports from Kanungu indicated pollution of water sources through poor waste disposal and the use of mercury, directly contravening environmental protection principles and specific prohibitions against mercury use in mining. The Act also empowers the National Environment Management Authority (NEMA) to monitor and enforce environmental compliance, often in collaboration with lead agencies like the Ministry of Energy and Mineral Development. The dire public health conditions at the mining camp, lacking basic sanitation facilities, health centres, or first-aid services, fall squarely under the purview of the Public Health Act, Cap. 281, which places duties on local authorities to prevent pollution of water supplies and address nuisances that compromise public health.

The government's approach in Kanungu reflects a broader national strategy to formalise artisanal mining. While the Mining and Minerals Act, 2022, for the first time, provides a legal pathway for artisanal miners to obtain licences, significant barriers to formalisation persist, including high compliance costs and complex bureaucratic procedures. The Ministry's offer to support miners in organising themselves into cooperatives to acquire legal licences is a practical step towards addressing these challenges and bringing the informal sector into compliance. This approach seeks to balance the economic realities of ASM, which supports hundreds of thousands of livelihoods, with the need for responsible and regulated mineral exploitation.

Previous instances of illegal mining crackdowns in Uganda, such as the suspension of gold mining in Kassanda District, demonstrate a consistent enforcement posture by the Ministry against unlicensed operations and activities exceeding exploration permits. These actions underscore the government's resolve to curb illicit mining, which often leads to revenue loss, environmental damage, and social exploitation. The Kanungu incident further highlights the challenges of enforcing regulations in remote areas and managing sudden gold rushes, necessitating a multi-faceted approach that combines enforcement with support for formalisation and community engagement.

The suspension of gold mining activities in Kanungu district by the Ministry of Energy and Mineral Development serves as a stark reminder of the legal and regulatory imperatives governing Uganda's mineral sector. It reinforces the principle that mineral exploitation, regardless of scale, must adhere to the licensing requirements of the Mining and Minerals Act, 2022, and the environmental and public health standards set forth in the National Environment Act, 2019, and the Public Health Act, Cap. 281. For legal practitioners, this event underscores the critical importance of advising clients, particularly those involved in artisanal and small-scale mining, on stringent compliance with these laws to avoid severe penalties, including arrests and forfeiture of minerals.

Looking ahead, the government's stated commitment to formalising artisanal mining presents a significant area for development and legal engagement. Practitioners should closely monitor the implementation of policies aimed at assisting miners in forming cooperatives and acquiring the necessary licences. This will involve navigating the complexities of the Mining and Minerals (Licensing) Regulation, 2023, and ensuring that environmental and social safeguards are integrated into formalised operations. The Kanungu incident is likely to catalyse further enforcement actions across Uganda, making proactive legal counsel on regulatory compliance, environmental impact assessments, and community engagement indispensable for all stakeholders in the mining sector.