Illegal miners face Shs1b fine

Artisanal miners search for gold in Tiira Village, Tiira  Town Council, Busia District, Uganda in 2020. PHOTO/ FILE

What you need to know:

  • However, some stakeholders say the proposed law is not practical and may instead frustrate the fight against some or majority of the illegal tendencies that it seeks to cure.
  • The brutal penalty is contained in the Mining and Mineral Bill, 2021, that was endorsed by a plenary session chaired by Deputy Speaker Anita Among on Thursday evening.

A section of MPs have endorsed a proposed law that, if enacted, will see all persons or corporate entities extracting the county’s wealth without the requisite licence jailed for at least five years or pay a Shs1b fine.
The brutal penalty is contained in the Mining and Mineral Bill, 2021, that was endorsed by a plenary session chaired by Deputy Speaker Anita Among on Thursday evening.

The sitting that ran for more than eight hours, was also devoid of Opposition legislators following their decision to boycott plenary sessions for two weeks as a way to compel government to swing into action against the pronounced and recurring acts of human rights violation, including illegal arrests and torture allegedly at the hands of the country’s security operatives.

The Shs1b penalty is lighter compared to the initial proposal advanced by the proponents, the Ministry of Energy and Mineral Development, led by the most immediate former Government Chief Whip, Ms Ruth Nankabirwa.
The line ministry had suggested that all persons found guilty of illegal mining be slapped with financial punishment of Shs2b. 
However, this was revised by lawmakers on the Committee on Environment and Natural Resources chaired by Mr Emmanuel Otaala (West Budama County South - NRM).
The committee said the Shs1b fine was high enough to discourage would-be perpetrators.

“The committee contends that there is need to provide for a forfeiture clause under Clause 10, and also penalise persons who shall aid or assist illegal operators or prospectors,” Mr Otaala said as he presented the committee report on the floor of Parliament.
This Shs1b penalty was, however, also objected to by a handful of MPs, including Mr Muhammad Nsereko (Kampala Central), who instead proposed a Shs500m fine.
This was backed the Kiboga East MP Mr Keefa Kiwanuka, who suggested that punishment for individuals found to be liable of the offence be different from that subjected to the companies involved in illegal mining.

“There should be a fine for small artisanal miners and a fine for bigger companies. I don’t think they can all pay the same,” Mr Kiwanuuka said.
These pleas were countered by pronounced opposition from lawmakers such as the Sheema Municipality MP Dickson Kateshumbwa, who reasoned that the Shs500m fine would not be deterrent enough since miners deal in highly valuable items that fetch high amounts of cash.

But Deputy Attorney General Jackson Kafuuzi defended the Shs1b proposal, saying many artisanal miners operate with the backing of very rich dealers in the sector.
“I want us to acknowledge we have small artisanal miners, but we also know that behind some small artisanal miners, there are very big operators behind them. So if we exempt these small artisanal miners, every big operator will go underground and operate as a small artisanal miner,” Mr Kafuuzi said.

With more than 300 clauses, the Bill seeks to repeal the Mining Act, 2003, streamline the operations of the sector, and promote in-country value addition.
Government also wants to use the Bill to ensure transparency in the sector, and enable the state to optimally collect revenue nested within the entity.

Stakeholders dismayed
The chairperson of the Uganda Association of Artisanal and Small-scale Miners (UGASM), Mr John Bosco Bukya, expressed displeasure over the manner in which the Bill was passed, let alone the harsh provisions therein contained.
“As of now, I may not be able to tell you the particular input from us that was passed or left out because the Bill was passed at night. I wonder why the rush. We had not yet even received the recommendations that were made by Parliament,” Mr Bukya told Sunday Monitor in a telephone interview.

Mr Bukya added that the proposed law is not practical and may instead frustrate the fight against some or majority of the illegal tendencies that it seeks to cure in the sector.
“It is one thing to talk about such a penalty and implementing it. If you found an artisanal [miner], for example, doing illegal mining, who has nothing to eat and you charge him with such a penalty, is that practical?” Mr Bukya wondered.

Policy expert and also executive director of the Advocates Coalition for Development and Environment (Acode), Mr Arthur Bainomugisha, said the proponents of the law should have aimed at promoting exploration of the country’s minerals by according necessary support to all players in the sector such as the artisanal miners, who are said to be the majority.

“A good law must undertake to promote their welfare to improve the circumstances under which they work,”Mr Bainomugisha said.
He added: “So the law should not only regulate but also be fair so that it promotes equitable distribution resources and substance of livelihoods.”


Minerals in Uganda

Uganda is believed to be endowed with at least 27 minerals, including gold, copper, cobalt and Tin. We also have limestone, gemstones, wolfram, kaolin, vermiculite, marble, rate earth minerals, nickel and tantalite, among others.
However, it is believed that most these are illegally extracted, thus causing government an immense revenue loss.
Among others proposals contained in the Bill, the lawmakers recommended that government takes 70 percent, district local government 15 percent, sub-county or town council 10 percent and owner of the land on which the mineral is extracted to have five percent share of the entire proceeds realised from the treasure.
 

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