Artisanal mining means rudimentary mineral extraction and processing that is continous or seasonal, carried out by individuals or groups of individuals, primarily and exclusively using mannual labour and mannual tools, carried out in a single site or multiple sites and focused on producing mineral products that are primarily delivered or sold to traders in those mineral products, local artists and craftsmen or builders acting within the national economy.

According to the Act, artisanal mining areas are to be established by the minister. The Act empowers the minister in consultation with the Directorate and the relevant local government to establish an artisanal mining area, within the limits of a set geographic area where, due to the features of certain deposits of gold, diamonds or any other mineral substance, technical and economic factors do not allow for large scale, medium scale or small scale mining operations, but do allow for artisanal operations. Such areas must be exclusive of any mining area with a valid mineral right.

Additionally, in locations where associations or entities of artisanal miners have been formed and are operational, artisanal mining by individuals who are not registered or are not members of an association or entity is illegal and prohibited.

The following are eligible to apply for an artisanal mining licence under this Act- an individual who is a citizen of Uganda; a cooperative society, trustee or association registered or incorporated under the laws of Uganda comprising of Ugandan citizens exclusively and whose membership shall include women and marginalised groups, where applicable; a joint venture or partnership registered in accordance with the Partnership Act, 2010 comprising of Ugandan citizens exclusively; a business registered under the Business Names

Registration Act and exclusively owned by Ugandan citizens; or a company registered or incorporated under the Companies Act, 2012 and having one hundred percent of its shares held by Ugandan citizens.

A person who intends to carry on artisanal mining operations must apply to the Minister for an artisanal mining licence in a manner prescribed by regulations and pay the prescribed fees. An application for an artisanal mining licence must state the full name of the applicant and, in the case of a partnership or other association of persons, the full names and nationalities of all such persons; and in the case of a body corporate, the registered name of the body corporate and particulars of its shareholders, if any;  the application must be accompanied, in case of a body corporate, with a certified copy of a certificate of registration or incorporation, memorandum and articles of association and board resolution; identify the mineral and provide proof of occurrence of the mineral in respect of which the mining licence is sought.

The application must also indicate the area in respect of which the mining licence is sought; be accompanied by a statement of particulars of the nature of the mining operations proposed to be carried out, the capital and technical experience available to the applicant to conduct exploration and mining operations of the mineral efficiently and effectively; be accompanied by a plan of the area over which the licence is sought;  documentary evidence that consent to use the land for mining purposes has been given to the applicant by the registered owner, customary owner, lawful occupant or bonafide occupant of the land for mining purposes; be accompanied by a certificate of approval of environmental and social impact assessment; state the period applied for; give or be accompanied by a statement of particulars of the programme of proposed mining operations, including a statement of the likely effects of the proposed mining operations on the environment and on the local population and proposals for mitigation and compensation measures; any particular health and other risks that are likely to be involved in the mining operations, particularly radioactive minerals, and proposals for their control or elimination;  the proposed production schedule and marketing arrangements for the sale of the mineral produced.

The application is forwarded to the Mining Cadastre Department for review and verification to ensure that the application meets the requirements of the law and that the applicant has secured the surface rights or documentary evidence of consent of the mining area applied for. The Mining Cadastre Department after reviewing will make recommendations to the Minister on whether to grant or reject the application and may be granted on such terms and conditions as the Minister may determine and where the Minister refuses to grant the artisanal mining licence he or she shall inform the applicant, in writing, giving reasons for the refusal. The Minister may, in granting an artisanal mining licence include a condition that the Minister may withdraw or cause to be relinquished portions of the licence area covering land that has been earmarked by Government for a public infrastructure project, at no cost to Government.

The size of area covered by artisanal mining licence has not been set out in the Act but the minister is empowered to subsequently prescribe such area in subsequent regulations yet to be made under the Act.

An artisanal mining licence is given for validity a period not exceeding three years, renewable on application made to the Minister for periods not exceeding two years at a time and is subject to cancellation where the licence holder has not carried on mining operations in accordance with the terms and conditions of the licence; or where within a period of one year from the date the licence was granted or renewed, no mining operations have commenced

under the licence; or the artisanal mining activities are not being undertaken in compliance with this Act, the National Environment Act, 2019 and the conditions of the licence.

Just like other mineral rights holders, the  the holder of an artisanal mining licence has the exclusive right to carry on exploration and mining operations in the area that is subject of the licence and  may, in the exercise of the right enter the licenced area, remove minerals from the area and dispose of the mineral in respect of which the licence was issued.

The holder of an artisanal mining licence has a legal obligation to carry on prospecting, exploration and mining operations in the licence area in good faith in accordance with the conditions of the licence; before beginning any mining operations, subject to the provisions of any law relating to the acquisition of land, obtain a land lease or other rights to use the land subject of the artisanal mining licence; furnish the Minister with such information relating to the operations under the licence as the Minister may reasonably require; carry out promptly any directives relating to his or her prospecting, exploration or mining operations which may be given to him or her by the Minister or an authorised officer for the purpose of ensuring safety or good mining practices; before beginning or ceasing any prospecting, exploration or mining operations, notify the appropriate local authority and an authorised officer of his or her intention to begin or cease any such prospecting or mining operations; take the necessary precaution not to cause harm to human health and the environment during exploration and mining operations;  carry out rehabilitation, reclamation and restoration of mined out areas; submit to the Minister monthly returns of his or her operations in a manner prescribed by regulations; sell the minerals obtained in the artisanal mining licence areain a manner prescribed by regulations; and keep accurate records of winnings from the artisanal mining licence area and such records shall be produced for inspection on demand by authorised officers.

An artisanal mining licence does not confer on the holder any particular right to obtain a subsequent mineral right.