GOVERNMENT PUSHES SMALL MINERS TOWARD LEGAL OPERATIONS

Min. Phiona Nyamutoro, Bernard Mungu Feni CEO Euro Gold Refinery (standing at table) during the launch of Euro gold small scale mine in Yumbe on Thursday. Photo by Derrick Passy

By Morish Dramadri

Arua city

The Minister of State for Mineral Development, Hon. Phiona Nyamutoro, has cautioned small-scale miners across Uganda against operating outside the law, urging them to formalise their activities and collaborate with government as the country moves to strengthen regulation and value addition in the mineral sector.

Minister Nyamutoro made the call on Thursday while launching Euro Gold Refinery’s first small-scale mining project in Yumbe District, describing the investment as an example of how Ugandan firms can participate in the exploitation and value addition of the country’s mineral resources.

She challenged miners to strictly comply with the Mining and Minerals Act, 2022, which replaced the Mining Act of 2003 and introduced a stronger framework for licensing, mineral rights, environmental protection, community participation and formalization of artisanal and small-scale mining.

“All miners across the country, collaborate and abide by the mining laws. We are very strong on illegal mining. We encourage people to go by the rules as they are written in black and white in the Mining and Minerals Act of 2022,” Hon. Nyamutoro warned.

Min. Nyamutoro, other mineral development ministry officials and staff of Euro gold inspecting a gold grain at Yumbe small scale mine. Photo by Derrick Passy

Under Section 9 of the Mining and Minerals Act, 2022, all minerals in, on or under Uganda’s land and waters are vested in the Government on behalf of the people of Uganda with Section 10 prohibiting prospecting, exploration, mining, processing or refining without the required authorization, license, lease, permit or approval under the mining and environmental laws.

The law also provides for different mineral rights and licenses, including artisanal and small-scale mining rights, while requiring operators to comply with environmental, health and safety obligations.

Despite the legal framework, illegal and informal mining remains a major challenge in Uganda.

In December 2022, four artisanal miners were killed when an illegal gold mine collapsed in Bihanga Sub-county, Buhweju District. Authorities said the miners were operating illegally and subsequently announced a crackdown on unlicensed mining activities.

In 2024, Minister Nyamutoro was reportedly confronted by private security guards while inspecting an illegal mining site in Rubanda District. Five guards were arrested after allegedly threatening the minister and her team during the inspection of an exploration area.

Min. Nyamutoro, and other officials inspecting the small scale mine facility. Photo by Derrick Passy

Police also reported 135 mineral-related cases in 2025 through its Mineral Protection Unit.

Against this background, the launch of Euro Gold Refinery’s Yumbe project comes as government seeks to shift mineral extraction from informal and illegal operations towards a more regulated value chain.

The Euro Gold’s Yumbe project follows about two years of groundwork and exploration and comes amid efforts to formalise mineral activities in the district, where authorities have previously raised concerns over unregulated mining.

Yumbe District Local Council Five Chairperson, Hon. Asiku Abdulmutwalib Mahamoud, tasked Euro Gold Refinery management to prioritise local employment, particularly for young people, and honour its corporate social responsibility commitments to the surrounding communities.

“As we look at mining gold here, the question of employing the young people and the fact that we have Euro Gold here, the young people should be employed as a priority and also the question of corporate social responsibility,” Asiku appealed.

The new mining project is expected to operate over an area of about 79 square kilometers, extending into neighboring areas including Terego District, with the company projecting production of up to 20 kilograms of gold per week.

Bernard Feni, the Chief Executive Officer of Euro Gold Refinery, says the company intends to work closely with local communities while complying with government regulations.

“Euro Gold Refinery believes in working together with the community. We need the raw material that can sustain our refinery. As we come to you, we shall have the licence, equipment, machinery and everything, but we want to work with you together to make sure that Uganda becomes the hub of minerals in the world,” Feni pledged.

Euro Gold Refinery was officially launched in Kampala in July 2025 by the Minister of Energy and Mineral Development, Ruth Nankabirwa describing it as a Ugandan-owned gold refinery specializing in high-purity gold refining and has positioned itself as part of government’s effort to formalize the gold value chain with artisanal and small-scale mining communities in several parts of Uganda, including Yumbe, Abim, Kaabong, Moroto, and Kotido among others.

Written by newsroom-radiopacis