Experts and practitioners in the extractives industry have expressed their concerns about the dangers posed by the unregulated mining sector. They believe that without strict regulations and transparency, the country’s well-being is at risk, and its citizens may not benefit from these resources.
The government has recently introduced various laws and policies to promote responsible resource exploitation, environmental protection, and national development. However, Dr. Busingye Kabumba, a lecturer at Makerere University, argues that the illegal exploitation of existing resources, such as gold and forests, undermines the effectiveness of these regulations. He also suggests that more valuable resources like oil and rare earths may face similar challenges.
Dr. Kabumba made these remarks during the Citizens Convention on Extractives 2023 National Conference, which brought together government agencies, NGOs, and academic representatives. He emphasized that a lack of strict enforcement and transparency, coupled with reluctance within the leadership, contributes to the illegal practices in the sector. This has led to discomfort among communities hosting these resources.
In a paper titled “Extraction and Constitutional Reconstruction,” Dr. Kabumba proposed that addressing the successful exploration of Uganda’s mineral wealth should involve “state and constitutional reconstruction” to ensure a more positive approach to the country’s resources.
Other speakers at the event shared concerns that the absence of transparency and accountability, coupled with weak law enforcement, could lead to capital flight and illicit financial flows, posing threats to the country’s safety and economic development.
The two-day convention, organized by Global Rights Alert in collaboration with other NGOs and government departments, revolved around the theme “Shaping Mineral Wealth and the Energy Agenda.”
Winfred Ngabiirwe, the Executive Director of Global Rights Alert, highlighted the risk of illicit financial flows. She stressed that Uganda’s ability to benefit from its discovered minerals hinges on addressing the lack of transparency, which could hinder the transformation potential of the minerals sector.
Artisanal miners welcomed the passing of the Mining and Minerals Act during the event. They appreciated the Act’s response to many of their concerns, particularly the ability to upgrade mining licenses from Small Scale to Medium or Large Scale. However, John Bosco Bukya, the Chairman of the Uganda Association of Artisanal and Small-Scale Miners, pointed out ongoing challenges that drive some miners to operate outside the law. He cited issues with the Environmental Impact Assessment (EIA) certificate clauses, which they find too expensive.
David Sebagala, the Inspector of Mines at the Ministry of Energy and Mineral Development, explained that these clauses were introduced in response to serious environmental law violations by small-scale miners.
