A new gold mining project in Yumbe District is targeting production of up to 20 kilogrammes of gold per week as the government pushes for formalisation and responsible mineral exploitation.
Last year, according to Bank of Uganda, gold exports alone contributed $5.8 billion (Shs21.1 trillion), up 44 per cent from the previous year, while coffee exports earned $2.4 billion (Shs8.7 trillion), a 40 per cent increase.
Euro Gold Refinery, which launched its small-scale mining operations in Yumbe, says it will initially operate two processing units, each with a capacity to produce about 10 kilogrammes of gold per week, with the target of increasing export earnings.
The project follows more than two years of prospecting, exploration, geological surveys and drilling to establish the area’s mineral potential.
Speaking at the launch of the mine yesterday, Ms Phiona Nyamutoro, the State Minister for Energy and Mineral Development, said the mine is expected to boost mineral production, create jobs and contribute to the socio-economic development of the West Nile sub-region.
‘Our presence here is evidence of the government’s commitment to supporting miners across the country to formalise mineral exploitation. This is to call upon all miners across the country to collaborate and abide by the mining laws. We shall stand and support them,’ Ms Nyamutoro said.
She said the project provides an example of responsible and sustainable mining, noting that the facility operates without mercury and has the capacity to crush up to 60,000 tonnes of ore.
The minister said the project has the potential to create employment opportunities for people in the area while contributing to development through corporate social responsibility initiatives.
‘Mining companies are required to enter into community development agreements, which are monitored and supervised by the ministry to ensure that host communities benefit from mineral activities,’ Ms Nyamutoro said.
The ministry urged miners to comply with mining laws, saying the government is willing to provide support to operators who choose to work within the legal framework.
On protecting formal mining enterprises from illegal miners, the minister said operators and other stakeholders must follow the provisions of the mining laws.
‘We call upon them to formalise and do the right thing because at ministerial level we have tried to reach out a helpful hand to see that the miners get all the support they can from government,’ she said.
Ms Nyamutoro also raised concerns about the health risks faced by small-scale miners, particularly respiratory diseases caused by prolonged exposure to dust, urging miners to use personal protective equipment (PPE) as required by law to reduce occupational health risks.
Mr Ben Mungu Feni, the director of Euro Gold Refinery Uganda, said the project was only the beginning of a larger mining operation covering about 79.8 square kilometres, stretching from Yumbe into neighbouring Terego District.
‘We have been on this ground for over two years. We undertook geochemical and geophysical surveys, among other studies, before establishing its current processing capacity,’ Mr Mungu Feni said.
He said the company chose Yumbe as its pioneer mining site because of the presence of several small-scale miners in the area.
Instead of operating separately, Mr Mungu Feni said the company plans to bring miners operating under its licence into a more organised system, with processing conducted at a central facility to improve accountability and traceability.
The move is expected to bring informal miners closer to government regulations and create a more structured gold supply chain in the region.
The company said more than 70 per cent of its workers had been recruited locally, describing local employment as one of its priorities.
‘We said as we come to you, we shall be able to have the licence, equipment and machines, but we want to work with you together,’ Mr Mungu Feni said.
The project is also expected to provide a market for gold produced by local miners while supplying raw materials to the refinery.
Uganda remains one of Africa’s fastest-rising gold exporters. Statistics from the Bank of Uganda indicate that gold exports increased by 76 per cent to $5.8 billion (about Shs20.5 trillion), from $3.3 billion (about Shs11.7 trillion) the previous year.
The increase has been attributed to higher production and rising global gold prices, which averaged $2,709 per ounce in 2025