GOVERNMENT PAUSES NEW MINING LICENCES TO CLEAN UP SECTOR

By Serina Nagujja

The government has suspended the issue of new mining licences, permits, and authorisations for one month to address regulatory gaps and weed out illegal operators. The Ministry of Energy and Mineral Development has announced an immediate one-month halt. This pause enables officials to review active licenses, coordinate the sector with national economic objectives, and prevent illegal mining.

Addressing journalists at the Uganda Media Centre, Dr Monica Musenero, the Minister for Energy and Mineral Development, said the pause will ensure only credible, capable investors get rights to exploit Uganda’s mineral wealth.

This cleanup supports the government's Tenfold Growth Strategy, an ambitious plan to expand Uganda's economy from nearly $50 billion to $500 billion by 2040. The strategy relies on four key sectors: Agriculture, Tourism, Minerals (including Oil and Gas), and Science, Technology, and Innovation.

Currently, Uganda’s extractive sector, which covers mining, quarrying, oil, and gas, contributes between 1.28% and 2.2% of national Gross Domestic Product (GDP). Gold dominates this share, accounting for 73% of mining GDP, while the country's 53 other minerals collectively contribute just 0.6%. The sector also generates 2.18% of government revenue, but accounts for less than 0.1% of formal jobs, largely because between 200,000 and 600,000 Ugandans work in informal artisanal mining.

While the introduction of an online licensing system, the Mining Cadaster and Registry System (MCRS), boosted investor interest and transparency, it also triggered a rush of applications. As of June 30, 2026, the government had granted hundreds of approvals, including 497 exploration licences, 212 prospecting licences, 205 mineral dealers' licences, 61 mining licences of various scales, and 14 processing, refining, and smelting licences.

This surge highlighted growing challenges, including environmental destruction, health risks, illicit financial flows, and lost tax revenue. The pause gives the ministry time to plug these leakages and enforce strict standards across the board.

During this one-month freeze, the ministry will not process new applications, though it will make exceptions for export permits covering fully processed minerals, sample exports for laboratory testing, and renewals for compliant existing holders. Routine inspections, monitoring, and enforcement against non-compliant operators will continue uninterrupted throughout the review period.