Artisanal and Small-Scale Mining in Uganda: A Formalization Guide

Introduction: The Scale and Significance of Artisanal Mining in Uganda

Artisanal and small-scale mining (ASM) is the backbone of Uganda's mining sector. While large-scale mining projects attract international headlines and corporate investment, it is the hundreds of thousands of individual miners working with basic tools across the country who produce the majority of Uganda's mineral output by volume of participants and number of active sites.

Current estimates suggest that over 400,000 people in Uganda are directly engaged in artisanal and small-scale mining, with millions more dependent on the sector through downstream activities such as mineral trading, equipment supply, food vending, and transport. The ASM workforce is remarkably diverse: 60 to 70 percent of artisanal miners in Uganda are women and youth, making ASM one of the most significant sources of employment and income for these demographic groups in rural areas.

Artisanal miners in Uganda extract a wide range of minerals, including gold, tin (cassiterite), tantalum (coltan), tungsten (wolframite), limestone, sand, clay, kaolin, and various gemstones. These operations are found across virtually every region of the country, from the gold-bearing areas of Busia, Mubende, and Karamoja in the east and north to the tin-tantalum-tungsten deposits of southwestern Uganda.

Yet despite its economic significance, much of Uganda's ASM activity has historically operated outside the formal regulatory system. Informal mining creates a cascade of problems: miners lack legal protection and access to finance, environmental damage goes unmanaged, revenue is lost to the state, occupational health and safety risks are severe, and minerals enter opaque supply chains that may fuel conflict or undermine traceability requirements in international markets.

The Mining and Minerals Act 2022 represents Uganda's most comprehensive effort to date to bring artisanal mining into the formal legal framework. This guide explains the formalization process, the licensing requirements, the role of cooperatives, environmental obligations, and the support mechanisms available to artisanal miners seeking to operate legally and sustainably.

Understanding Artisanal and Small-Scale Mining

Before examining the formalization pathway, it is important to define what artisanal and small-scale mining encompasses.

What Qualifies as Artisanal Mining?

Under Ugandan law and international practice, artisanal mining is characterised by:

Labour-intensive methods — Mining is conducted primarily using hand tools, basic mechanised equipment, and manual processing techniques rather than heavy industrial machinery.
Limited capital investment — Operations are typically self-funded or supported by small-scale financing, with minimal fixed infrastructure.
Small geographic scale — Mining takes place over relatively small areas, often following surface deposits or shallow underground workings.
Individual or small-group operations — Work is carried out by individuals, families, or small groups, often on a seasonal or part-time basis alongside agricultural activities.

What Qualifies as Small-Scale Mining?

Small-scale mining occupies the middle ground between artisanal and large-scale operations. It involves:

Semi-mechanised methods — The use of basic machinery such as water pumps, crushers, ball mills, and small excavators alongside manual labour.
Moderate capital investment — Greater investment in equipment and infrastructure than artisanal operations, but substantially less than large-scale industrial mining.
Defined operational areas — Mining takes place within a defined license area, typically under a Location License or an Artisanal Mining License.

In practice, the boundary between artisanal and small-scale mining is often blurred, and the term ASM is used broadly to encompass the full spectrum of non-industrial mining activity.

Minerals Commonly Mined by ASM in Uganda

Uganda's artisanal miners work across a diverse range of mineral commodities:

Gold — The most widely mined artisanal mineral in Uganda, extracted from alluvial deposits (river gravels and placers) and hard-rock deposits using panning, sluicing, and basic crushing and milling.
Tin, tantalum, and tungsten (3T minerals) — Mined primarily in southwestern Uganda (Ntungamo, Isingiro, Kabale) and in Karamoja. These minerals are subject to international conflict mineral regulations and traceability requirements.
Sand and aggregate — Extracted from rivers, lakeshores, and quarries across the country for construction. Sand mining is one of the largest ASM activities by volume.
Limestone and clay — Mined for local brick-making, lime production, and cement manufacturing.
Gemstones — Including tourmaline, garnet, and other semi-precious stones found in various locations.
Kaolin — Mined for ceramics, cosmetics, and industrial applications.

The Case for Formalization

Formalizing artisanal mining is not about eliminating the sector or replacing it with large-scale operations. It is about creating a legal, regulatory, and institutional framework that allows ASM to operate safely, sustainably, and productively within the rule of law. The benefits of formalization extend to miners, communities, the government, and the broader economy.

Benefits for Miners

Legal protection — Formalized miners hold legitimate rights to mine in defined areas, protecting them from arbitrary eviction, land disputes, and exploitation by middlemen.
Access to finance — Licensed miners and mining cooperatives can access bank loans, microfinance, and government-supported credit facilities that are unavailable to informal operators.
Technical support — Formalized miners become eligible for government training programmes, extension services, and technical assistance aimed at improving mining methods, safety, and productivity.
Market access — Licensed miners can sell their minerals through legitimate channels at fair market prices, rather than being forced to accept below-market rates from unlicensed buyers.
Safer working conditions — Formalization brings mining operations under the purview of health and safety regulations, reducing the incidence of accidents, injuries, and fatalities.

Benefits for Communities

Reduced environmental damage — Formalized operations are subject to environmental management requirements that reduce land degradation, water pollution, and deforestation.
Revenue to local government — Royalties, fees, and taxes from formalized mining contribute to district revenue, funding local services and infrastructure.
Social stability — Clear, legally recognised mineral rights reduce the land conflicts and community tensions that frequently arise around informal mining areas.

Benefits for Government

Increased revenue collection — The formalization of ASM brings previously untaxed mineral production into the formal economy, increasing government revenue from royalties and fees.
Improved mineral traceability — Formalized supply chains support compliance with international due diligence requirements for conflict-affected and high-risk minerals.
Data and planning — Registration and licensing of ASM operators provides the government with data on mining activity, mineral production, and the workforce, enabling better planning and policy development.

The Legal Framework: Mining and Minerals Act 2022

The Mining and Minerals Act 2022 provides the primary legal framework for ASM formalization in Uganda. It builds upon the earlier Mining Act 2003 while introducing significant reforms targeted at artisanal miners.

Artisanal Mining License

The 2022 Act establishes the Artisanal Mining License as the principal instrument for legalising artisanal mining activity. Key provisions include:

Eligibility — The Artisanal Mining License is available exclusively to Ugandan citizens. This restriction reflects the government's policy of reserving artisanal-scale mining opportunities for local participants.
Individual and cooperative applications — Licenses can be issued to individuals or to formally registered mining cooperatives. The cooperative route is strongly encouraged by the government as it enables resource pooling, collective bargaining, and more effective regulatory oversight.
Area limitations — The license covers a defined area appropriate for artisanal-scale operations. The specific area limits are prescribed in the regulations.
Duration and renewal — The license is granted for a defined term and is renewable, subject to compliance with its conditions.
Conditions — License holders must comply with environmental management obligations, health and safety requirements, reporting requirements, and the payment of applicable royalties and fees.
Mineral-specific — The license specifies which mineral(s) the holder is authorised to mine.

Location License

For operations that exceed the artisanal scale but remain below the threshold for a full mining lease, the Location License provides an intermediate category. This license authorises small-scale mining within a defined area and is subject to more detailed work programme and environmental management requirements than the Artisanal Mining License.

Key Regulatory Requirements

All ASM license holders must comply with the following obligations:

Environmental management — License holders must implement basic environmental management measures, including responsible waste disposal, prevention of water pollution, and rehabilitation of mined-out areas.
Health and safety — Compliance with occupational health and safety standards, including the provision of basic protective equipment and the avoidance of hazardous practices.
Reporting — Regular reporting of mineral production, sales, and any incidents to the Directorate of Geological Survey and Mines (DGSM).
Royalties — Payment of mineral royalties to the government at the prescribed rates.
No child labour — The employment of children in mining is strictly prohibited under Ugandan law and international conventions.

For a complete guide to the mining license application process, see our article on how to get a mining license in Uganda.

Forming a Mining Cooperative

The formation of mining cooperatives is a central pillar of Uganda's ASM formalization strategy. Cooperatives offer individual miners a collective structure through which they can access licenses, finance, training, and markets that would be beyond the reach of any single artisanal miner.

Why Cooperatives?

Collective licensing — A cooperative can hold a single Artisanal Mining License or Location License on behalf of its members, simplifying the regulatory process and reducing per-capita licensing costs.
Pooled resources — Members can pool their labour, equipment, and capital to invest in better mining methods, processing equipment, and safety infrastructure.
Negotiating power — A cooperative can negotiate more favourable prices with mineral buyers, equipment suppliers, and service providers than individual miners.
Training and extension — Government and NGO training programmes are more efficiently delivered to organised groups than to dispersed individual operators.
Financial inclusion — Registered cooperatives can open bank accounts, apply for loans, and access microfinance products designed for small-scale mining.

How to Form a Mining Cooperative in Uganda

The process of forming a mining cooperative involves the following steps:

Identify members — Bring together a group of artisanal miners who are working in the same area or mining the same mineral. A minimum number of members is typically required under the Cooperative Societies Act.
Draft bylaws — The cooperative must adopt bylaws (a constitution) that define its governance structure, membership criteria, decision-making procedures, and financial management rules.
Register with the Registrar of Cooperatives — The cooperative must be formally registered under the Cooperative Societies Act with the relevant district or national registrar. Registration confers legal personality on the cooperative, enabling it to hold property, enter contracts, and apply for licenses.
Open a bank account — A registered cooperative should open a dedicated bank account for managing its financial operations.
Apply for a mining license — The registered cooperative can then apply for an Artisanal Mining License or Location License through the DGSM, following the standard application process.
Develop a work plan — The cooperative should prepare a simple work plan describing its mining activities, production targets, and environmental management measures.

Environmental Obligations for ASM Operators

Environmental management is not reserved for large-scale mining operations. Under the Mining and Minerals Act 2022 and the National Environment Act 2019, ASM operators have clear environmental obligations that must be fulfilled as a condition of their license.

Key Environmental Requirements

Minimise land disturbance — Mining should be confined to the licensed area, and unnecessary clearing of vegetation and topsoil should be avoided.
Prevent water pollution — Miners must take measures to prevent sediment, chemicals, and waste from entering water bodies. This includes managing tailings, preventing runoff, and properly disposing of waste.
Rehabilitate mined-out areas — Progressive rehabilitation of areas that are no longer being mined is a legal requirement. This involves backfilling excavations, restoring topsoil, and replanting vegetation.
Proper waste management — All waste — including solid waste, tailings, and chemical waste — must be managed in an environmentally responsible manner.
Avoid protected areas — Mining is not permitted within national parks, forest reserves, wetlands, and other protected areas without special authorisation.

Mercury Reduction: The planetGOLD Programme

One of the most pressing environmental challenges in Uganda's ASM sector is the use of mercury in artisanal gold mining. Mercury is used to amalgamate fine gold particles from crushed ore — a highly effective but extremely hazardous practice. Mercury is a potent neurotoxin that poisons miners, contaminates water and soil, and accumulates in the food chain with devastating health consequences for communities.

Uganda is a signatory to the Minamata Convention on Mercury, which commits signatory countries to reducing and eventually eliminating mercury use in artisanal gold mining. The planetGOLD programme, supported by the Global Environment Facility (GEF), the United Nations Environment Programme (UNEP), and the United Nations Industrial Development Organization (UNIDO), is active in Uganda and provides:

Training in mercury-free processing techniques — Including gravity concentration, flotation, and cyanidation (where appropriate and properly managed) as alternatives to mercury amalgamation.
Demonstration and pilot projects — Establishing mercury-free processing centres where miners can process their ore using cleaner methods.
Awareness campaigns — Educating miners and communities about the health and environmental risks of mercury exposure.
Support for formalization — The planetGOLD programme works in conjunction with government formalization efforts, recognising that formalized miners are more receptive to adopting improved practices.

The transition away from mercury is not only an environmental and health imperative — it is also a market requirement. International gold buyers, refiners, and jewellery brands are increasingly demanding evidence of mercury-free and responsible sourcing. Formalized ASM operators who adopt clean processing methods gain access to premium markets, including Fairmined and Fairtrade gold certification schemes.

Government Support for ASM Formalization

The Government of Uganda, through the Ministry of Energy and Mineral Development (MEMD) and the DGSM, has implemented several initiatives to support ASM formalization:

Simplified Licensing Procedures

The introduction of the Artisanal Mining License under the Mining and Minerals Act 2022 creates a simplified, accessible licensing pathway designed specifically for ASM operators. The application process is less complex and less expensive than for exploration licenses or mining leases, reflecting the smaller scale and limited resources of artisanal miners.

Training and Extension Services

The DGSM, in collaboration with development partners, provides training to artisanal miners on topics including mining methods, safety practices, environmental management, mercury-free processing, financial management, and cooperative governance. These training programmes are delivered through field visits, workshops, and partnerships with local government and civil society organisations.

The Mining Cadastre Portal

The online Mining Cadastre Portal allows miners and cooperatives to check the availability of land for licensing, submit applications, and track the status of their applications. While the portal is primarily designed for larger-scale operators, it is being adapted to improve accessibility for ASM applicants.

Development Partner Programmes

Several international development programmes support ASM formalization in Uganda, including the planetGOLD programme, the European Union-funded initiatives for responsible mineral supply chains, and programmes supported by the World Bank, the African Development Bank, and bilateral donors. These programmes provide technical assistance, capacity building, and financial support to both the government and ASM communities.

Challenges Facing ASM Formalization

Despite the progress made, significant challenges remain in the formalization of Uganda's ASM sector:

Awareness and information gaps — Many artisanal miners, particularly in remote rural areas, are unaware of the licensing requirements, the formalization process, or the benefits of operating within the legal framework. Outreach and communication efforts are ongoing but need to reach deeper into mining communities.
Cost of compliance — While licensing fees for artisanal miners are relatively modest, the combined costs of registration, environmental compliance, and reporting can be burdensome for miners earning subsistence-level incomes. The challenge is to make compliance affordable without compromising regulatory standards.
Access to finance — Even formalized ASM operators struggle to access credit and investment capital. Financial institutions often view artisanal mining as too risky or too small to warrant lending, and miners frequently lack the collateral and financial records required for loan applications.
Land tenure conflicts — Disputes between artisanal miners and landowners, large-scale mining companies, and other land users remain common. The legal framework for resolving these disputes is improving but enforcement remains inconsistent.
Technical capacity — Many artisanal miners lack the technical knowledge to improve their mining methods, adopt cleaner processing techniques, or comply with environmental and safety requirements. Sustained investment in training and technical assistance is essential.
Market access and fair pricing — Informal mineral trading networks, which often involve multiple intermediaries and opaque pricing, continue to dominate ASM supply chains. Connecting formalized miners to fair and transparent markets is critical to demonstrating the economic value of formalization.

How ALOM Supports ASM Formalization

ALOM Mining & Geohydro Services is committed to supporting the formalization and professionalization of Uganda's artisanal and small-scale mining sector. Our mineral rights management services include:

License application support — Assisting individual miners and cooperatives with the preparation and submission of Artisanal Mining License and Location License applications, including navigating the Mining Cadastre Portal and compiling required documentation.
Cooperative formation guidance — Advising groups of miners on the process of forming and registering mining cooperatives, including drafting bylaws and meeting regulatory requirements.
Environmental compliance — Helping ASM operators develop and implement basic environmental management plans that meet regulatory requirements and promote sustainable mining practices.
Technical advisory — Providing geological and mining technical advice to help ASM operators improve their mining methods, productivity, and safety.
Market linkage — Connecting formalized miners with legitimate mineral buyers and supporting participation in certified supply chains.

We believe that formalization is not just a regulatory exercise — it is a pathway to safer, more productive, and more dignified livelihoods for the hundreds of thousands of Ugandans who depend on artisanal mining. By providing professional support at every stage of the formalization process, ALOM helps miners transition from informal operations to legally compliant, economically viable, and environmentally responsible enterprises.

For those interested in the broader mining regulatory landscape, our guide on how to get a mining license in Uganda provides detailed information on the full spectrum of mineral licensing options, while our upcoming article on the Mining and Minerals Act 2022 will provide a comprehensive analysis of the new legal framework.

Conclusion

Artisanal and small-scale mining is not a marginal activity in Uganda — it is a foundational sector of the rural economy, supporting hundreds of thousands of livelihoods and contributing significantly to the country's mineral output. The challenge lies in ensuring that this vast and vital sector operates within a legal, safe, and environmentally responsible framework.

The Mining and Minerals Act 2022 provides the most comprehensive legal foundation to date for ASM formalization, establishing accessible licensing pathways, encouraging cooperative structures, and setting clear environmental and safety standards. Complementary government programmes, development partner support, and initiatives like the planetGOLD programme are building the institutional capacity and community awareness needed to make formalization a reality on the ground.

For artisanal miners, formalization offers tangible benefits: legal protection, access to finance and markets, improved safety, and a pathway to greater productivity and income. For Uganda, it offers increased revenue, improved environmental outcomes, enhanced mineral traceability, and the integration of hundreds of thousands of citizens into the formal economy.

ALOM Mining & Geohydro Services stands ready to support miners, cooperatives, and communities through every stage of the formalization journey — because responsible mining begins with the legal and institutional foundations that formalization provides.