The Ministry of Energy and Mineral Development together with development partners Transparency International Uganda, ACODE Uganda, Action Aid, and Global Rights Alert organized a third annual Citizen Convention on Mining in Uganda under the theme “Amplifying citizens’ voices, harnessing mineral wealth opportunities for Uganda” at Hotel Africana.
The convention, which is still going on is being attended by major stakeholders in the mining sector, small scale and artisanal miners, officials from the Ministry of Energy and Mineral Development, officials from Uganda Revenue Authority, Auditor General’s office, Members of Parliament mostly from areas where mining is taking place, among other dignitaries.
Everyone weighed in on the current status of the mining sector in Uganda addressing several issues spanning from the process of licencing mining companies by government, land disputes, security of miners, health issues to taxes and royalties among others.
It is during this convention that Joseph Hirya, Director of Audit Central Government 2 in the Auditor General’s office revealed in a report that financial audits in the mining sector show that uncollected royalties on Gold exports are estimated at Shs34.9 billion in the financial year 2015/16 alone.
According to data extracted from African Center for Media Excellence’s data website, there are currently 63 mining companies with location, mining, and exploration licenses dealing in Gold and other minerals, 51 of which are registered to explore and mine exclusively Gold.
Hirya also used the same report to highlight the fact that over Shs354 million and Shs451 million is still unpaid from 2016/17 and 2017/18 respectively to landowners of the areas where mining is being carried out.
According to the Mining Act of 2003, these landowners are entitled to a three percent royalty for the use of their land annually from government.
The report read out in summary by Hirya also revealed that mining and exploration companies owe government over Shs2.5 in annual mineral rent fees.
The reason as to why government has not yet devised means through which it can recover this money that has been accumulating to close to five years now has not been given yet, but Matooke Republic will follow this closely for any new developments that may arise in the mining sector.
It should also be noted that artisanal and small scale miners managed to create Uganda Association of Artisans and Small-Scale Miners (UGASMA) that governs their activities, and are now in a great position to receive grants and technical help from the government and donors to improve their working conditions. The accociation is chaired by Bosco Bukya.
