Countries across the globe have benefitted from this wide spread of mineral resources, often in places that have very limited diversity from an economic standpoint. Mining can be an option for people who don’t have a lot of options.
One such place is Uganda. This country is blessed with the gold deposits, whose availability has helped to sustain as well as change many lives for the better, although not always without conflict. Let’s look at Uganda’s gold mining sector in the account given below.
Early Gold in Uganda
The mining industry of gold has been on the rise in Uganda over the years. The gold sales add up to 30% of Uganda’s export revenue. In 2016, $514 million dollars in gold were exported from Uganda, representing a 50x increase over the decade. The country is endowed with various gold deposits in different locations. As a result, the country has numerous investment opportunities in gold mining.
When it comes to gold mining, much of the activities are highly concentrated in locations such as Kigezi, Karamoja, Mubende, Busia as well as Buhweju. In the recent past, the mining was undertaken on a small-scale basis in the region such as Buhweju basin.
In fairly recent history, a number of international mining companies have shown interest in this country, investing substantial capital in the mining sector. As a result, the country has recorded an increase in terms of productivity which is a good sign for the country’s mining industry in the near future.
Mining of gold in Uganda likely dates back thousands of years. Indigenous miners undertook gold mining on a very minimal scale especially along the river basins. Later intrusions of Spanish and Portuguese slave traders in the region brought additional interest to gold in the region.
The Past Century | Turbulent Times for Ugandan Mining
Many regions in Uganda produce fine gold from the river gravels.
In 1986 there was a change of things when President Yoweri Museveni came into power. His coming led to the political stability of the country. As a result, various international mining companies begun to express interest in obtaining gold exploration licenses, in order to have access to gold prospecting in the country. This was good for large mining firms, although less positive for small-scale miners (more on that later).
When big companies were brought on board, some earliest gold discoveries in the country included the Mubenda, Kanungu as well as Busia Districts. Subsequently, mines such as Busitema Gold Mine and the Kisita Gold Mine were established. However, despite the coming of huge mines on board, the small-scale mining had continued in different locations within the country.
It is also important to note that Uganda has a number of places yet to be explored and commissioned for commercial gold mining, as most of them are still being mined using the traditional methods of mining.
Growth Likely to Continue
Potential miners who wish embark on the journey of gold mining in Uganda, should also be aware that for one to have access to do mining, there is need to have a prospecting license which is subject to renewal annually. On the other hand, there are other special licenses which when obtained would be required to be renewed even after 20 years. And all these documents are offered to potential prospectors through the Ministry of Environment.
Today the mining industry in Uganda is very vibrant with Vangold being the largest player in the industry. Vangold has been able to carry out the gold mining explorations using two major subsidiaries namely the Dome Mines Ltd and the Rwenzori Cu & Ni Ltd. Vangold is known to carry out prospecting activities within the West Nile Region, which covers the greenstone belt on the Ugandan side, and the area known as Kilo Moto gold fields on the side of the Democratic Republic of Congo.
Other notable players highly involved in gold mining in Uganda include the Ghana’s Blaze Metal Resources Ashanti. This company operates in the eastern districts of Uganda such as Namayingo and Bugiri. And from the information collected on prospecting activities, the districts are reported to have several gold deposits.
Artisanal Mining and Conflict
A growing mining sector may be good for the large companies moving into Uganda to explore and work the gold reserves, it is not so positive for the average Ugandan. Many mining areas that have been traditionally worked by the locals are being claimed by large multinational companies. Smaller miners are being removed from these areas.
Gold mining in Uganda has a great potential to expand in terms of total gold production, but in some places where the activity is dominated by the local people who do the mining using the traditional methods, people are not willing to give up their land to give way for commercial mining of gold. In some instances, villagers have been forcibly removed from their existing mining grounds to make way for commercial operations.
Assurances that the companies would be able to give back to the community through the construction of schools, health facilities can be a difficult way to convince someone to stop working their traditional mining grounds. Corruption has been well-documented. Small miners often have no way of obtaining permits. Reports of human rights abuses, environmental damage, and conflict are commonplace. And the large companies often find a way to avoid paying the taxes that they should due to weakness and loopholes in mining law.