Why Uganda has imposed one-month freeze on new mineral licences

Kampala, Uganda | URN | Uganda has imposed an immediate one-month moratorium on the granting of new mineral licences and exploration rights as the government moves to tighten oversight, eliminate speculative claims and align the mining sector with its economic transformation agenda.

The temporary freeze was announced by Energy and Mineral Development Minister Dr Monica Musenero Masanza at the Uganda Media Centre on Friday, August 28, 2026, amid growing global competition for critical and industrial minerals.

Musenero described the suspension as a regulatory reset rather than a retreat from investment, saying the government wants to ensure that Uganda’s mineral wealth translates into greater domestic value, jobs and public revenue.

“The grant of a mineral right is the first step in participating in the minerals industry,” Musenero said. “It is therefore important that the licensing framework not only facilitates investment, but also ensures that credible and capable investors are attracted, mineral resources are developed responsibly, and value addition is promoted.”

The intervention places the mining sector at the centre of the government’s wider Tenfold Growth Strategy, which seeks to expand Uganda’s economy to about US$500 billion by 2040. Minerals, alongside agro-industrialisation, tourism and science, technology and innovation, are among the priority sectors identified to drive the transformation.

The Fourth National Development Plan (NDP IV), covering the 2025/26–2029/30 period, similarly identifies value addition, industrialisation, employment and private-sector growth as key drivers of economic development.

The National Planning Authority describes NDP IV as the first of three five-year plans intended to support the government’s tenfold economic growth agenda.

The moratorium follows a rapid expansion of mineral licensing in Uganda, particularly after the rollout of the digital Mining Cadastre and Registry System, which was introduced to improve transparency and administration in the management of mineral rights.

According to Agnes Alaba, the Commissioner of Mines, the ministry had, by June 30, 2026, granted 212 prospecting licences, 497 exploration licences, five large-scale mining licences, 38 medium-scale mining licences and 18 small-scale mining licences, among others.

The portfolio also included three artisanal mining licences, three mineral smelting licences, six mineral refining licences, five mineral processing licences and 205 mineral dealer licences, alongside other permits and authorisations.

The government’s Mining Cadastre Portal allows existing and prospective rights holders to submit applications, renewals, reports and other transactions electronically.

However, the Directorate of Geological Survey and Mines has acknowledged that data cleaning and system migration remain part of the transition to the digital system.

The ministry will use the 30-day suspension to review existing mineral rights, address contested and overlapping boundaries and assess whether licence holders are meeting their statutory work commitments.

Permanent Secretary Irene Bateebe said the review would also address concerns that some operators may be using exploration rights for activities beyond the scope of their licences. “An exploration licence is intended to establish the nature, extent and economic potential of a mineral deposit, not to become a substitute for a production licence,” Bateebe said.

The ministry’s licensing procedures distinguish between prospecting, exploration, retention and mining rights, with separate requirements and obligations attached to each stage of mineral development.

Companies found to be inactive or non-compliant could face enforcement action under the applicable legal framework, including possible loss of their rights where statutory conditions have not been met.

The government, however, says the moratorium is not intended to shut down the mining industry or disrupt legitimate operations. Existing licence holders will continue to be able to pursue renewals, while geological samples may still be exported for laboratory analysis and testing.

Routine inspections, monitoring and compliance activities will also continue during the suspension.

Mineral exports are likewise expected to continue under existing regulatory requirements, particularly where products meet prescribed conditions for processing, documentation and export authorisation.

Bateebe said Uganda was not closing its doors to mining investment but was seeking to ensure that investors who enter the sector contribute meaningfully to the country’s development.

“Uganda is not closing its door to mining investment,” she said. “It is raising the question of who gets through that door, and what they are prepared to leave behind for the country.”

The review is being undertaken against the backdrop of the Mining and Minerals Act, 2022, which replaced the previous mining law and introduced a broader framework for regulating mineral rights, strengthening the mining cadastre and increasing state participation in strategic mineral development.

The law established the Mining Cadastre Department and provides for a computerised Mining Cadastre and Registry System to process and maintain information on mineral rights and applications. It also provides for the Uganda National Mining Company to manage the state’s commercial and participating interests in mineral agreements.

The government’s development strategy increasingly links mineral exploitation to beneficiation, industrialisation, infrastructure development, technology transfer and employment, signalling a shift from simply extracting minerals towards using the sector as a broader driver of economic transformation