MUMA license formalising artisanal mining brings significant benefits to Uganda

__________________

OPINION

By John Bosco Bukya

Friday, November 7, 2025, was a momentous day in Bukuya Town Council, Kassanda District, as the local mining community celebrated the official commencement of legal gold mining operations under the Mubende United Miners’ Assembly’s (MUMA) Small-Scale Mining License (SML 00575).

The five-year license authorises MUMA to carry out small-scale gold mining operations over 100.8 hectares of land in Bukuya. The license itself was originally issued on June 25, 2025, the fourth of eight small-scale mining licenses issued by the Ministry so far.

The function brought together government officials, miners’ associations, civil society partners, and local leaders to recognise the significance of this achievement, which represents a new chapter for Uganda’s artisanal and small-scale mining (ASM) community.

Uganda had for a long time placed a huge question mark over our operations as artisanal and small-scale miners (ASMs).

Its concerns: that we were mining illegally and not paying taxes, that we were employing child labour, that we were also hiring foreign nationals in a trade ring-fenced for locals and that we were using dangerous chemicals and mercury, which was destroying the environment, amongst many other issues.

This was what had culminated in our abrupt eviction from the Greater Mubende gold mining areas on August 4, 2017, by security forces as the government sought to formalise our operations.

While that experience had left many of us in a state of despair, we refused to give up. With the help of civil society organisations (CSOs), we remobilised, organised and put our house in order.

It is from these efforts that not only MUMA but also the Uganda Association of Artisanal and Small Scale Miners Limited (UGAASM) emerged. I chair both entities.

Fast forward, our negotiations with the state initially saw ASMs granted location licenses, which were the only available legal document under the Mining Act, 2003, to enable us to mine formally.

Later, this law was repealed and replaced by the Mining and Minerals Act, 2022, which officially recognised ASMs – introducing the artisanal and small-scale mining licenses.

In June this year, MUMA was granted the fourth small-scale mining license by the Ministry of Energy and Mineral Development after fulfilling all the the legal, financial and technical requirements before being licensed – and then the real work officially commenced on November 7, 2025, when the minister’s representative, Agnes Alaba, the Commissioner, Department of Geological Survey and Mines (DGSM), flagged us off.

What a turn-around!

So why is this good news for Uganda?

The Mining and Minerals Act, 2022, officially ring-fences ASM activities for Ugandan citizens to ensure that local communities and the country benefit directly from their natural resources – through jobs and revenues.

Studies have noted that ASM employs 20 times more people than large-scale mining and keeps over 80% of its earnings circulating locally.

In their remarks at the recent event, many local leaders, including Bukuya County MP, Dr Michael Bukenya and Phoebe Namulindwa, the Kassanda district RDC, noted the rapid growth of Bukuya T/C, which is said to be the fastest developing town council in Uganda.

Magnificent buildings are mushrooming everywhere while local agricultural products and market commodities are being consumed at supersonic speeds.

This was exactly what the government of Uganda envisioned when it sought to formalise the ASM sub-sector, Alaba said.

Adding that over 60% of Uganda’s mining workforce was employed in ASM and that with the right support, ASMs can be a major driver of economic transformation – supporting Uganda’s ambitions to grow the economy from $50 billion to $500 billion by 2040.

Crucially, as well, this license now allows MUMA to take part in the Bank of Uganda’s Domestic Gold Purchase Program, where the Central Bank will be buying only locally mined gold from licensed miners to supplement the country's foreign currency reserves and strengthen the shilling.

Which brings me to this related concern. I have seen some media reports linking the MUMA license to Euro Gold Refinery. This is totally false. The MUMA membership is 100% Ugandan – and that is why we were granted the small-scale mining license, anyway.

I believe the reporters of the false news were confused with the discussions MUMA has held with the refinery to help process our gold.

At the moment, no transaction has been done between MUMA and Euro Gold Refinery – be it trading, smelting, processing or refining our gold.

MUMA continues to have discussions with potential strategic partners, not only with refiners, but also with expert trainers and international agencies so as to implement best practices in technical mining processes, plus health and safety, amongst others, as we seek to transform not only the community within which we operate, but the nation at large.

The writer is the Chairman of MUMA and UGAASM