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Uganda: Illegal Gold Miners Fleecing Economy of Sh50b Annually
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New Vision (Kampala)
8 May 2008
Posted to the web 9 May 2008
Kiganda Ssonko
Kampala
UGANDA loses over $30m (about sh50b) annually to illegal artisanal miners in Busia district.
The miners sell the gold to the neighbouring Kenya, the parliamentary committees on natural resources and national economy, were told on Wednesday.
Peter May, the acting manager at Busitema Gold Mining, claimed to the legislators who toured the mine that over 400 illegal small-scale miners, were mining on the company's licensed exploration area.
"Busitema Gold Mine has an area of 1km by 6kms on, which there are over 30 pits where artisanal miners in their small groups mine gold illegally and sell to Kenya. It's estimated that every year, they produce over one tonne of gold which converts to over $30m," May said.
He moaned: "Unfortunately, they do this on our mining lease area which threatens our current and future targets and causing revenue losses to the Government from this valuable mineral."
The over 35 MPs led by Emmanuel Dombo, the chairman of the natural resources committee, toured six mining areas in eastern region to assess their activities.
May disclosed that the illegal miners use mercury in separating gold from the soil.
He said mercury was a hazardous chemical to the environment and human health.
May also complained of three tenants who he said had resisted compensation to leave the exploration land. He said this had stalled their mining activities.
"We shall not resume mining until the three tenants accept compensation and go off our land," May said.
However, MPs were shocked to learn that the company produces only 4kgs of gold a month.
Joshua Tuhumwire, the commissioner for geological surveys and mines, explained that plans were underway to organise illegal miners into cooperatives so that they access funding and improved mining technologies.
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Kamanda Bataringaya, the mineral development state minister, said small-scale miners should follow the laws instead of encroaching on gazetted areas.
"We want to exploit our minerals fully but in an organised way that benefits the country and its people. This form of mining is bad and I urge the miners to follow the law," Bataringaya said.
We are committed to developing the mining sector. We shall sensitise small miners on the best practices. "We want all miners of whatever economic strength to co-exist and do acceptable mining."
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