Wednesday, May 1, 2024

Illegal Mining

Karamoja Mining Rush Threatens Livelihoods of Indigenous People

Billions of investments into mining projects have breathed new life in Uganda’s once-neglected Karamoja region, creating thousands of jobs in mineral-rich heartlands near the Kenyan border but the investment rush has also brought new problems, fueling environmental degradation, rights violations, and land grabbing, threatening livelihoods of millions of indigenous Karamojong people.

Ugandan authorities are investigating the latest deadly clash in the impoverished gold mining sub-county of Rupa Moroto district which happened in late April, that left a 28-year old local defense personnel dead and forced several hundred locals to flee their homes after armed assailants staged a daytime raid and stole gold ores, worth millions of Ugandan shillings. Days earlier, dozens of policemen from Uganda’s mineral protection police who had been deployed to secure the lucrative gold mining village abandoned their positions, due to rising attacks, blamed on assailants, who usually cross from Kenya’s Turkana region.

In a region long inhabited traditionally by cattle-herders, the rush to get the region’s precious minerals gold, limestone, and marble, is uprooting people, damaging key water sources, and stirring social unrest. Locals talk of being displaced from their ancestral farmlands by land grabbers while others are now suffering from many diseases, including skin infections and diarrhea, blamed on consuming water from contaminated water bodies, as some miners use hazardous chemicals including mercury to extract gold.

Impact On The Environment

“We have been invaded by foreigners who don’t care about our livelihoods,” said Anne Napeyo, a 30-year old mother in Rupa. “Many of our people are getting wounds on their skin because the water here is contaminated”

Thousands in Karamoja have taken jobs in the mines while others have become “artisanal diggers” digging their own holes and tunnels, risking cave-ins and other dangers in pursuit of buried treasure, local leaders say. In addition to hazards such as contaminated water bodies, mining activities are leaving behind gaping pits, which now dot vast areas as artisan miners leave these behind in search of new grounds. Small children sometimes drown in these pits, while local farmers have lost livestock.

Sacred grounds known as ‘Akiriket’ are also being destroyed. According to the Karamoja traditional setting, every community is socially organized to have its own Akiriket from where the assemble for social events from initiations to naming happens. Community leaders say the minerals are turning into a curse.

“We want development but it can’t be at the expense of our peoples’ lives and livelihoods,” said Margerate Lomonyang coordinator of Karamoja Women Cultural Group and Karamoja representative on the multi-stakeholder group for the Extractives Industries Transparency initiative EITI. “Investors are taking advantage of desperate people who are trying to make a living in the mines”

Land Grabbing

A total of 17,083 square kilometers of land area in Karamoja is licensed for mineral exploration and extraction activities, according to official data. In 2018, Chinese mining company Sunbelt was given 3.3 square kilometers of land to set up a $13 million marble mining factory in Rupa sub-county. A year later, the company expanded its operations to cover additional 4.1 square kilometers, ostensibly after a deal with local leaders. Hundreds of families have since been pushed out of their ancestral homes, local officials say. Locals accuse Rupa Community development trust, a community trustee group created three years ago, of conniving with investors to steal their land.

“The community leaders came to us with compensation documents saying they were going to help us demand compensation when investors come,” one local known as Lokol, said “They tricked us to sign them without paying anything, now we have nowhere to go.”

While Sunbelt insists that company representatives went through the right channels to acquire the land, including signing a memorandum of understanding with the local leaders, authorities are investigating the transaction, according to the energy and minerals ministry.

“Sunbelt violated the community members’ rights to fair and adequate compensation in the land acquisition process. They didn’t involve the community members who are the real custodians of the land,” said Lomonyang.

Another company DAO Marble Africa Limited, which operates a mining license to mine marble has been accused by Human Rights Watch for rights violations, including allegations that the company connived and paid off a few local chiefs without compensating the local residents.

Land ownership in Karamoja is under customary tenure and communally owned and managed. This means that land is held in trust by one generation for another with the elders as ‘stewards’. This very unclear land ownership model makes fair compensation a difficult issue as few elders negotiate with the companies for the temporary acquisition of land.

Local Miners Association To The Rescue

Karamoja Miners Association unites miners in the region and was formed to sensitize local mining communities about their rights, help locals demand accountability from their leaders, and seek fair compensation from mining companies.

A Woman makes a submission during a meeting organized by Resource Rights Africa and karamoja Miners Association to educate miners about their labor rights
Women engage in mining activities in Karamoja. Poor working conditions and environmental degradation pose health risks for them. Credit: Resource Rights Africa

“We organize miners in groups so that they have a formidable voice and can negotiate for better wages and working conditions from mining companies,” says Simon Nagiro the chairperson of the association. “We have also embarked on interpreting into local languages miners’ rights as enshrined under the mining laws.”

Regions’ Mineral Potential

Karamoja is endowed with a vast array of metallic and industrial minerals that have the potential to be developed commercially. A 2011 survey found that the region contains over 50 minerals including gold, limestone, uranium, marble, graphite, gypsum, iron, wolfram, nickel, copper, cobalt, lithium, and tin. With 61% of Karamoja’s 1.2 million people living in poverty, the region’s mineral potential holds the promise of economic development.

Karamoja Mining At A Glance

The Constitution of Uganda 1995, vests all mineral resources in the hands of government but article 244 provides that minerals shall be exploited taking into account the interests of landowners and local governments and further states that land will not be deprived of a person without prompt payment of fair and adequate compensation. Under articles 39 and 41, every Ugandan has a right to a clean and healthy environment and as such can bring an action for any pollution or improper disposal of wastes.

The Mining Act, 2003 is the principal law that governs mining in Uganda. Under Section 4 of the act, a person may acquire the right to search for and mine any mineral by acquiring a license issued by the commissioner. Section 15 provides for payment of compensation to owners of private land for damage done to the surface of the land or to any crops, trees, buildings, or for livestock injured or killed by the negligence of the holder of the license or an agent. Section 43 provides that a mining license shall not be granted unless the proposed mining program takes into proper account environmental impact assessment and safety factors.

Section 110 further makes it mandatory for every license holder to submit a costed environmental restoration plan which requires approval by the National Environment Management Authority. The Act however does not clearly address the regulation of mining activities by different government agencies and how they can follow up with the investors regarding royalties. This is worsened by the limited role local government plays in the regulation of mining activities due to resource constraints.

Rights Of Indigenous Groups In Uganda

According to Minority rights group international, Karamojong pastoralists, are some of the most marginalized minorities in Uganda, isolated economically and politically. Commonly stereotyped by their compatriots as violent and backward, other Ugandans refer to them as warriors. The African Commission’s International Work Group for Indigenous Affairs also recognizes the Karamojong people as indigenous minority groups in Uganda. However, Uganda does not officially recognize Indigenous minority groups. This lack of formal recognition by the state further disenfranchises Karamojong.

Uganda is a signatory to various international instruments that reiterate the rights of indigenous people. These include; the UN Declaration of the Rights of Indigenous People 2007, the Universal Declaration of Human Rights, the International Covenant on Economic, Social and Cultural Rights, and the UN Guiding Principles on Business and Human Rights. However, the country is still lagging behind in terms of protecting the rights of indigenous people.

An artisan gold miner mines for gold in Rupa sub-county
A Karamojong woman digs a hole as she mines for gold in Rupa-sub-county. Such holes dot the area and have become death traps for both children and livestock. Credit: Diana Taremwa Karakire

“We are empowering communities by educating them about their land and property rights so that they are able to hold mining companies accountable,” says Abaho Herbert a program officer at Resource Rights Africa a local charity organization operating in the region. “We also work with local leaders to put in place by-laws that enable fair wages for miners to avoid being exploited by the mining companies”

Since Belgium-based Africa gold refinery set up a $20 million gold plant in Uganda, the country has become a magnet for gold mining activities, notably in Karamoja. Gold exports fetch $1 billion every year and have overtaken coffee as Uganda’s leading export commodity.

For many local leaders, this rush is the reason for increased insecurity, displacement of locals, and inter-communal clashes. Gold miners are routinely attacked by assailants looking for the highly sought-after metal, bringing back memories of the insecurity that plagued the region at the height of cattle rustling in the 1990s and 2000s. Illegal miners continue to flock to the 7 districts of Karamoja, driving up displacements, clashes over land ownership and shared water bodies.

Food insecurity is also a challenge in the region and reliance on natural resources has rendered livelihoods sensitive to climate change, already a reality manifested inform of recurring droughts, flash floods, and prolonged dry spells.

In June 2021, Uganda’s cabinet approved a draft mining law (Mining and minerals Bill 2019) that imposes steep penalties for violations in the sector, including fines of 1 billion shillings ($278,164.12) and prison terms of up to seven years for those found guilty of environmental degradation, illegal mining among other violations.

The new law will replace the old mining legislation that has been in place since 2003, when the region hadn’t discovered vast minerals, according to Vicent Kedi the commissioner licensing at the Ministry of Energy and Mineral Development.

“The new law will solve issues of non-compliance by mining companies to social and environmental safeguards, ” he says. “We are working with local leaders in the region to continuously monitor mining company operations.

This story was produced with the support of Internews’ Earth Journalism Network’s Indigenous Story Grants

An ‘Illegal’ Economy Fortified With Blessings Of Ruling Elite

On April 18, Zimbabwe celebrated its 41st independence anniversary from British colonial rule amid a presidential promise that the country’s mining sector will contribute US$12 billion dollars in revenue by 2023.

The country’s over sixty mineral resources ranging from diamonds, platinum and gold remain under-explored. According to the country’s minister of Mines and Mining Development Mr. Winston Chitando, “Zimbabwe does not know the estimated value of its mineral wealth.”

Despite the huge wealth in mineral deposits, the lives of many Zimbabweans have not improved. In his independence speech, Zimbabwe’s President Emmerson Mnangagwa reiterated his government’s plan to have the mining sector contribute hugely to the economy and improve the lives of citizens. By 2030, Zimbabwe seeks to achieve an upper-middle-income economic status.

“The mining industry is projected to rebound by eleven percent this year. Guided by the strategy to achieve a US$12 billion industry by 2023, programs that include increased exploration, expansion of existing mining projects, resuscitation of closed mines, opening of new mines, mineral beneficiation and value addition are being prioritized,” said President Mnangagwa in his independence speech.

Zimbabwe's leader since November 2017
Zimbabwe’s President Mnangagwa addresses the nation in his Independence Day speech revealing that the country’s mining sector will be a US$12 billion dollar industry by 2023 despite Zimbabwe losing over one billion dollars through gold smuggling and illegal trade of the mineral. Credit: Gibson Nyikadzino / Ubuntu Times

Zimbabwe’s goldfields and other mineral fields are today a contested terrain where even the elite and state institutions including the country’s Defence Forces are scrambling for a slice of the cake. In 2008, Mr. Farai Maguwu, the director of Center for Natural Resource Governance was arrested for bringing to attention the abuses committed by Zimbabwe’s security forces in the Marange diamond fields.

The gold sector has not been spared. According to a 2020 report by the International Crisis Group (ICG) gold buyers linked to President Mnangagwa buy the precious mineral on a premium, deterring the gold panners from selling the gold to Fidelity Printers and Refiners, the sole authorized gold buyer.

Resources Plunder By An Intemperate, Predatory Elite

After his dismissal then as Vice President in November 2017, Mnangagwa was accused of amassing wealth by grabbing mines belonging to small-scale miners. “Mnangagwa also grabbed many mines which belong to small-scale miners. He was abusing his authority as the Vice President to grab whatever he wants. We say Mnangagwa must be arrested because he is corrupt, he must face the music,” said then party official Mr. Dickson Mafios at a rally.

In 2018 former Higher Education Minister in Zimbabwe Prof. Jonathan Moyo also revealed that President Mnangagwa’s activities and those of his close circle are despicable that even the United Nations (UN) had to publish a report about their activities in the Democratic Republic of Congo’s (DRC) second civil war.

“The person who led the plunder of resources in the DRC leading to the United Nations (UN) investigating and coming with a report that is still there is Emmerson Mnangagwa along with the military cabal of General Chiwenga and SB Moyo. The person who brought the Chinese to plunder Chiadzwa Diamond Fields up to a point to which we had at the very least from 2007 to 2014 some US$12 to US$15 billion in diamond revenue that remain unaccounted for that went into the pockets of individuals is Mnangagwa,” Prof. Moyo said.

The report titled Plundering of DR Congo Natural Resources: Final Report of the Panel of Experts (S/2002/1146) was published in October 2002.

Chief beneficiary
President Mnangagwa’s name has been implicated in a scandal of six kilograms of gold that were recovered by the police destined for Dubai, allegedly involving his wife Auxillia, son Collins and close relative Ms. Henrietta Rushwaya. Credit: Gibson Nyikadzino / Ubuntu Times

Today President Mnangagwa and his family’s name continue to ring in illegal gold deals. Illegal gold mining or artisanal small-scale mining in Zimbabwe has been a launchpad for many illicit financial flows and gold smuggling out of the country. Home Affairs minister Mr. Kazembe Kazembe in February this year admitted that smuggling and illegal gold deals are costing the country between US$1.2 billion to US$1.5 billion dollars annually.

In October last year, Zimbabwe Miners Federation (ZMF) president Ms. Henrietta Rushwaya, a “close Mnangagwa relative” implicated Mnangagwa’s wife Auxillia and their son Collins after she was arrested at the Robert Gabriel Mugabe International Airport attempting to smuggle six kilograms of gold worth over US$360,000 to Dubai.

The First Lady distanced herself from Ms. Rushwaya’s arrest. “I have no dealings nor involvement with Ms. Rushwaya of any illegal kind,” she said. The gold sector in Zimbabwe has become a vital cog in foreign currency earning with many entrants using President Mnangagwa’s name to make inroads.

A US$12 Billion Election Campaign Promise For 2023?

Mr. Maguwu doubts the sincerity of the Mnangagwa administration in reaching the US$12 billion mining sector contribution to the economy by 2023. He further notes “Zimbabwe has far surpassed that mark.” Late Zimbabwe’s president Robert Mugabe in 2015 claimed the country had not received much from its diamond industry and lost about US$15 billion in the sector.

“We have not received much from the diamond industry at all. Not much by the way of earnings. I don’t think we have exceeded US$2 billion or so and yet we think that well over US$15 billion dollars have been earned in that area,” President Mugabe claimed then.

Zimbabwe is scheduled for general elections in 2023 and according to Mr. Maguwu, the government initiative in the mining sector is a campaign tool similar to the 2013 elections.

In 2010, Zimbabwe had an Employee and Community Share Ownership Scheme (ECSOS) in which foreign-owned companies were expected to cede some of their investments towards employee and community empowerment. After the 2013 elections, the scheme has been dumped.

“To me, it sounds like a political statement targeting the 2023 election, similar to the 2010 community share ownership scheme that was going to empower communities, and it led to the 2013 elections. After that election the whole thing died a natural death, now they are talking about a US$12 billion dollar economy by 2023, which is another election year. There is no feasibility study as to what is wrong with our mining sector. You cannot fix what you do not know. So there is no research carried out to say what is wrong and how do we correct it.”

“This government is silent on mining corruption. They are not talking about it and that is where the money is. It is not about making big statements and making promises to the nation,” Mr. Maguwu said.

Meeting target
Mines Minister Mr. Chitando dismissed critics for insinuating the US$12 billion dollar mining industry sector target by 2023 is a political campaign strategy. In his admission, he said Zimbabwe does not know the cumulative value of its mineral wealth. Credit: Gibson Nyikadzino / Ubuntu Times

Minister Chitando dismissed Mr. Maguwu’s assertion. He says the expected US$12 billion dollar contribution by the mining sector will be revenue streamed into the national fiscas.

“The US$12 billion dollars is the revenue that will be coming to the fiscas from the mining sector. There are projects happening now in the platinum sector, we have three new projects taking place. We have expansion projects taking place and all projects are taking place in reality. The fact that we took a five-year window is because that is the target we are working on,” explained Minister Chitando.

Uphold Rule Of Law To Plug Leakages, Illegality

Mr. Wellington Takavarasha, the chief executive officer of the Zimbabwe Miners Federation (ZMF), an organization owned by President Mnangagwa’s close relative Ms. Rushwaya, highlighted that artisanal small-scale miners contribution to the US$12 billion contribution is dwindling as some miners are being arrested.

Between 2017 and 2020, artisanal small-scale miners contributed a total of sixty tonnes of gold to the sanctioned government buyer, Fidelity Printers and Refiners. Because of arrests of the artisanal small-scale miners, gold output has declined from 60 percent to 47 percent. In 2019, small-scale miners contributed 17 tonnes as opposed to 9.8 tonnes in 2020.

“This year’s first quarter, our output has declined but we have the potential to contribute to the US$12 billion target. Our strategies include having our ventures formalized, mechanized, and have government resuscitate the mining industry loan fund,” said Mr. Takavarasha.

ZMF estimates that a tonne of gold is traded illicitly outside the formal market, which is fuelled by more than 1.3 million unregistered artisanal small-scale miners against its membership of 40,000.

Zimbabwe’s Gold Trade Act prohibits people without licenses to trade in the precious material. “Illegal mining is a livelihood activity that needs to be formalized. As it is, government is not benefiting but the middlemen and police are benefiting,” added Mr. Takavarasha.

Illegal gold dealings and smuggling is no new phenomenon in Zimbabwe. Successive ministers have raised the issue but their principals have turned a blind eye to their calls. Economist Mr. Nyasha Muchichwa says for government to stop the leakages, it needs to “uphold the rule of law and offer a competitive price to stop arbitrage.”

Government sanctioned buyer Fidelity Printers and Refiners is currently buying gold at US$45 per gram while on the illegal market it is US$54 per gram.

“The fact that we can quantify the money we are losing means we know that it is happening and when it has happened. The law should take its course and to those caught on the wrong side to be used as an example on what not to do.”

“When paying for those mining or selling gold, let us pay competitive rates so there is no arbitrage. As long as we have different prices this is when you find people making other means to get more money from the mineral they are holding. We need to address the price, laws that govern the selling, and the issue of our porous borders,” said Mr. Muchichwa.

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