The government has suspended all ongoing gold mining activities in Kyayugwe Sub-county, Kanungu District, following a two-month influx of thousands of people engaging in illegal mining, State Minister for Energy and Mineral Development Phiona Nyamutoro has announced.
Nyamutoro made the announcement after leading a team to assess the situation in the area, which is covered by Exploration Licence EL00135 held by Shiye Miners Company for mineral exploration.
She said the suspension takes immediate effect and is intended to restore order, protect the rights of the licensed exploration company and bring artisanal miners into the formal mining sector.
"Considering the circumstances on the ground that the area is licensed under EL00135 to Shiye Miners Company for exploration, we have halted all ongoing operations with immediate effect to streamline activities and have the artisanal miners formalised," Nyamutoro said.
The Minister said the recent gold rush had created significant safety, environmental and legal concerns, making government intervention necessary.
"The Ministry will support the artisanal miners to form a cooperative and have them licensed in accordance with the artisanal mining regulations," she added.
Nyamutoro said formalising artisanal miners would protect their livelihoods while ensuring government collects revenue and the rights of the licence holder are respected.
"We continue to call upon all miners to cooperate and legalise their activities for the benefit of both government and the people," she said.
The gold rush in Kyayugwe has attracted thousands of miners from Kanungu and neighbouring districts over the past two months, leading to the emergence of makeshift mining pits and unregulated gold trading across the sub-county.
Officials said the planned cooperative and licensing process will enable artisanal miners to operate legally, improve safety standards, access technical support and mine within designated areas in line with Uganda's mining regulations.
The Ministry of Energy and Mineral Development has in recent years stepped up efforts to formalise artisanal and small-scale mining across the country as part of wider reforms aimed at improving safety, increasing government revenue and promoting responsible exploitation of mineral resources.
