The government has suspended the issuance of new mineral rights, licences and permits for one month as it undertakes a review of the country’s mineral licensing system and moves to address illegal mining.
Energy and Mineral Development minister Dr Monica Musenero Masanza announced the deferment at a press conference at the Uganda Media Centre on Friday.
The minister said the review will assess the performance of existing licences, address cases of illegal mining, particularly by companies operating under exploration licences, and examine contested licences.
She said the move is also intended to ensure that Uganda’s mineral licensing framework is aligned with the government’s strategic priorities and attracts credible investors capable of developing the country’s mineral resources responsibly.
“The Ministry of Energy and Mineral Development hereby notifies holders of mineral rights, licences and permits, applicants, stakeholders and the general public that the grant of new mineral rights, licences, permits and other relevant authorisations is temporarily deferred for a period of one month, with immediate effect,” Musenero said.
The deferment follows a surge in applications for mineral rights after the ministry introduced the online mineral licensing regime through the Cadastre Online System.
According to Musenero, the system has helped de-risk Uganda’s mineral sector and attracted increased investor interest.
As of June 30, the ministry had granted 212 prospecting licences, 497 exploration licences, five large-scale mining licences, 38 medium-scale mining licences and 18 small-scale mining licences.
It had also issued three artisanal mining licences, three mineral smelting licences, six mineral refining licences, five mineral processing licences and 205 mineral dealers’ licences, in addition to other permits and authorisations.
Musenero said the ministry will use the one-month period to establish clear targets and expectations for mineral licensing and ensure the sector contributes more significantly to the government’s Tenfold Growth Strategy.
The strategy seeks to grow Uganda’s economy from nearly $50 billion to $500 billion by 2040, with mineral development, including oil and gas, among the four priority sectors.
Illegal mining
The minister said the review will pay particular attention to companies allegedly undertaking mining activities under exploration licences.
The ministry will also evaluate licences that are currently contested by different parties and assess whether existing licence holders are meeting the targets and obligations attached to their rights.
Despite the deferment, the ministry will continue carrying out inspections, monitoring, supervision and enforcement of compliance among existing licence holders.
The suspension will also not affect the renewal of existing licences, provided applicants meet the requirements of the law and applicable regulations.
Mineral export permits for minerals that have already been processed and value-added to the prescribed purity levels will continue to be issued.
The ministry will also continue granting permission to export mineral samples for testing in support of exploration activities.
Musenero said the temporary measure is aimed at strengthening Uganda’s licensing framework, improving transparency and compliance, promoting value addition and ensuring that mineral development makes a greater contribution to the country’s socio-economic transformation.
