Gov’t Halts New Mineral Licences for One Month, Orders Sweeping Review of Mining Sector

Government has ordered an immediate one-month suspension of new mineral licensing, directing the Ministry of Energy and Mineral Development to overhaul the country’s licensing system and tighten control over the rapidly expanding mining sector.

The directive, announced by Energy and Mineral Development Minister Dr Monica Musenero Masanza on Friday, takes effect immediately and covers new mineral rights, licences, permits and other related authorisations.

The Government is effectively pressing pause on new entrants into the mineral sector as it reassesses who is operating, how licences are being used and whether mining activities are delivering the economic transformation expected under its Tenfold Growth Strategy.

The review comes after a sharp increase in investor interest following the introduction of Uganda’s online mineral licensing regime, known as the Cadastre Online System. The system has helped de-risk the sector and triggered a significant rise in applications for mineral rights, licences and permits.

As of June 30, 2026, the Ministry had granted 212 prospecting licences, 497 exploration licences, five large-scale mining licences, 38 medium-scale licences and 18 small-scale mining licences.

It had also issued three artisanal mining licences, three mineral smelting licences, six refining licences, five processing licences and 205 mineral dealer licences, alongside other permits and authorisations.

But the Government now wants to look beyond the numbers.

The Ministry has directed the review towards the performance of existing licences, their alignment with national targets and the broader strategic direction of the sector. It will also use the one-month window to confront illegal mining, particularly cases involving companies allegedly conducting mining activities under exploration licences.

The message is clear: holding a licence will no longer be enough.

Government says the licensing framework must attract credible and capable investors, promote responsible exploitation of mineral resources and force greater value addition before minerals leave the country.

The review will also examine licences currently contested by different parties and establish clearer targets and expectations for mineral rights holders.

The freeze, however, is not a shutdown of Uganda’s mining industry.

Existing operators remain subject to inspection, monitoring, supervision and enforcement, with the Ministry continuing to regulate mineral activities during the deferment period.

The Ministry has also carved out limited exceptions from the suspension.

It will continue processing mineral export permits for minerals that have already been processed and meet prescribed purity levels. It will also allow the export of mineral samples for testing in support of exploration activities and renew existing licences where applicants meet the requirements of the law and regulations.

The intervention is tied directly to President Museveni’s Tenfold Growth Strategy, which seeks to expand Uganda’s economy from nearly $50 billion to $500 billion by 2040. Mineral development, including oil and gas, is one of the four priority sectors identified to drive that transformation.

For the Ministry, the objective is therefore larger than cleaning up a licensing system.

It is about turning Uganda’s mineral wealth into a more powerful engine of economic growth.

Government says the licensing review is intended to strengthen transparency and compliance, attract credible investment, promote responsible mineral development and value addition, and ensure the sector makes a substantially greater contribution to Uganda’s socio-economic transformation.

For the next month, the Ministry’s instruction is unambiguous: no new mineral rights, licences or permits will be granted unless they fall within the specified exceptions.

The pause is designed to give Government room to reset the rules before opening the door to another wave of mineral investment.

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