The government has temporarily suspended the issuance of new mineral licences and permits for one month to review the licensing system and tighten regulation of the mining sector.
The Ministry of Energy and Mineral Development said the deferment, which takes immediate effect, will allow it to assess the performance of existing licences, address illegal mining and align mineral licensing with the government’s economic transformation targets.
Energy and Mineral Development Minister Monica Musenero Masanza announced the decision on Friday at a media briefing at the Uganda Media Centre in Kampala.
The review will also examine mineral licences that are being contested by different parties and establish clear targets and expectations for companies seeking to participate in the sector.
The ministry said the review is necessary following a sharp increase in applications for mineral rights, licences and permits, partly attributed to the introduction of the online mineral licensing system, known as the Cadastre Online System.
As of June 30, the minister had granted 212 prospecting licences, 497 exploration licences, five large-scale mining licences, 38 medium-scale mining licences and 18 small-scale mining licences.
The ministry had also issued three artisanal mining licences, three mineral smelting licences, six mineral refining licences, five mineral processing licences and 205 mineral dealer licences, among other permits and authorisations.
During the one-month deferment, the ministry will not process or grant new mineral rights, licences, permits or related authorisations.
However, mineral export permits for processed minerals that meet the prescribed purity levels will continue to be issued. The ministry will also allow the export of mineral samples for testing in support of exploration activities.
Renewal of existing licences will also continue, provided applicants meet the requirements of the law and applicable regulations.
The ministry clarified that the suspension does not affect its other regulatory functions.
Inspections, monitoring, supervision and enforcement of compliance among holders of existing mineral rights, licences and permits will continue during the review period.
The ministry said the temporary measure is intended to strengthen Uganda’s mineral licensing framework, attract credible investors, promote responsible mining and value addition, and improve transparency and compliance in the sector.
The review is also intended to increase the contribution of mineral development to Uganda’s economy as the government pursues its Tenfold Growth Strategy, which seeks to grow the country’s gross domestic product from about $50 billion to $500 billion by 2040.
The government has identified mineral development, including oil and gas, alongside agriculture, tourism and science, technology and innovation as key sectors under the strategy.
