Uganda’s efforts to eliminate mercury use in small-scale gold mining are facing a major financial challenge, with many miners unable to afford safer technologies and equipment needed to process gold without exposing themselves and the environment to toxic substances.
The challenge was highlighted at the fourth annual planetGOLD Uganda Stakeholders Meeting in Kampala, which brought together government officials, development partners, financial institutions and representatives of the mining sector to discuss ways of promoting mercury-free gold mining.
Uganda’s artisanal and small-scale gold mining sector employs an estimated 70,000 people, many of whom depend on the activity for their livelihoods. However, most miners operate informally, with limited access to modern equipment, affordable credit and financial services.
Although safer alternatives to mercury are available, stakeholders said the high cost of acquiring processing equipment and improving mining operations continues to prevent many miners from adopting them.
Bob Paul Lusembo, Equity Bank’s Head of Micro Business, said financial institutions need to develop solutions that address the wider needs of mining communities rather than simply providing conventional loans.
He said miners require support to acquire equipment, improve their financial management skills and formalise their businesses.
“If we are to ensure a safe and sustainable mining industry that contributes to the development of this country, we need to finance the entire value chain,” Lusembo said.
The dangers of continued mercury use were also highlighted through the testimony of a miner who shared experiences of long-term health complications associated with exposure to the substance.
Mercury is a toxic chemical that can damage the nervous system and contaminate water sources and surrounding ecosystems, posing risks to miners, their families and nearby communities.
Uganda’s mining regulations prohibit its use, making the adoption of safer gold-processing methods an important requirement for protecting public health and the environment.
Representing the National Environment Management Authority (NEMA), Dr John Ekure urged miners and other industry players to put human health and safety first, warning against prioritising financial gains at the expense of workers’ lives.
Magara Siraje, Oxfam Uganda’s Extractive Industries Coordinator, said responsible mining could contribute to Uganda’s export earnings but called for greater access to financial services and technical support for small-scale miners.
Participants called for stronger cooperation between government agencies, financial institutions, development partners and mining communities to make mercury-free technologies more accessible.
They said improving access to affordable financing and helping miners organise and formalise their operations would be essential to eliminating mercury use while protecting the livelihoods of thousands of people who depend on gold mining.
