Fresh Gold Discovery in Uganda Sparks Government Crackdown on Illegal Mining as Authorities Move to Protect Environment and Formalise Sector
A fresh gold discovery in western Uganda has triggered a dramatic government crackdown on illegal mining activities, following a two-month gold rush that transformed a quiet rural community into a bustling informal mining settlement.
Authorities have suspended all mining operations in Kayungwe Sub-county in the Kanungu District, citing widespread unlicensed mining, severe environmental degradation, and growing public health concerns. The move marks Uganda’s latest effort to strengthen regulation of its rapidly expanding gold sector while ensuring that the country’s mineral wealth is exploited responsibly.
The gold rush began after reports emerged of newly discovered gold deposits in Kanoni Village, attracting hundreds of fortune seekers from surrounding communities. Within weeks, the once peaceful hillside had become a sprawling informal mining camp filled with tents, makeshift shelters and iron-sheet structures, most of which lacked proper sanitation, waste disposal systems and other basic amenities.
As mining activities intensified, concerns mounted over the social and economic impact on the local community. Local authorities reported that many residents abandoned farming in pursuit of quick earnings from gold mining, threatening food production in the area. Some school-aged children were also reportedly withdrawn from school to assist their families in mining activities, raising fears about child labour and interrupted education.
The situation prompted officials from Uganda’s Ministry of Energy and Mineral Development, led by State Minister for Minerals Phiona Nyamutoro, to inspect the mining site. During the visit, the minister revealed that the area falls within Exploration Licence EL00135, which had already been legally granted to Shiye Miners Company for mineral exploration.
According to the minister, individuals operating at the site had no legal authorisation to mine and were therefore in violation of Uganda’s Mining and Minerals Act. She subsequently ordered the immediate suspension of all mining operations to restore order and allow the government to formalise artisanal mining activities.
Despite the enforcement action, Nyamutoro stressed that the government is not opposed to artisanal mining but wants small-scale miners to operate within the legal framework.
She encouraged miners to organise themselves into registered cooperatives that would enable them to obtain official licences, receive technical support, improve accountability and access government assistance. The ministry also pledged to work closely with local leaders throughout the registration process to ensure miners understand the legal and technical requirements needed to operate lawfully.
The government’s intervention also comes amid increasing environmental and public health concerns raised by neighbouring communities. Residents of Rugyeyo Sub-county and Nyakabungo Town Council petitioned district authorities, accusing miners of contaminating water bodies through poor waste management practices and the use of mercury during gold extraction.
Environmental experts have long warned that mercury pollution poses serious risks to ecosystems and human health, particularly in communities that depend on local rivers and streams for drinking water and farming.
Officials further expressed concern over the poor living conditions within the mining camp, which reportedly lacked healthcare facilities, first-aid services and adequate sanitation infrastructure, increasing the risk of disease outbreaks.
Kanungu Resident District Commissioner Ambrose Amanyire has warned that anyone who ignores the suspension order, trespasses onto the licensed exploration site or resumes illegal mining activities will face arrest and prosecution.
The crackdown comes at a time when gold has become increasingly important to Uganda’s economy. Although Uganda is not among Africa’s largest gold producers by mining output, it has rapidly emerged as one of East Africa’s leading gold refining and trading hubs.
According to the Bank of Uganda, gold overtook coffee as the country’s largest export and source of foreign exchange earnings in 2025, with bullion exports reaching approximately $5.8 billion, a significant increase from $3.3 billion recorded in 2024.
Much of Uganda’s growing influence in the gold trade has been driven by domestic refining capacity and regional bullion trade, including gold imported from neighbouring countries for processing. The government has also identified the large-scale Wagagai Gold Mining Project as a key pillar of its broader industrialisation strategy.
The suspension of mining activities in Kayungwe therefore reflects Uganda’s determination to strike a balance between expanding its booming gold industry and enforcing laws designed to protect communities, preserve the environment and ensure that mineral resources contribute sustainably to national development.
