Minister urges illegal miners to embrace the law as Government courts financiers for Uganda’s mineral transformation
By Brian Mugenyi
mugenyijj@gmail.com
Kampala: Beneath Uganda’s soil lies a geological treasure that Government now wants to move from maps and mining pits into factories, processing plants and new businesses.
But as the country looks towards a bigger mineral economy, State Minister for Mineral Development Phiona Nyamutoro says one part of the sector must first change: miners operating outside the law must enter the formal system.
Speaking at the Uganda Media Centre on Wednesday, September 16, 2026, Ms Nyamutoro urged artisanal and small-scale miners involved in illegal operations to comply with Uganda’s mineral laws, arguing that legalisation is necessary if the country is to build an organised and productive mining industry.
Her message came against the backdrop of a wider Government effort to transform Uganda from a country that extracts minerals into one that also processes them and participates more deeply in global mineral value chains.
“We must translate the mineral potential into productive development. Our objective is to develop mineral potential into productive development,” Ms Nyamutoro said.
She added:
“We shall remove all illegal mining to embrace legal mining.”
The remarks put the spotlight on one of the central tensions facing Uganda’s mining industry: how to bring thousands of informal miners into a regulated system while ensuring that the country’s mineral resources generate wider economic value.
A COUNTRY RICH IN MINERAL POTENTIAL
Uganda’s mineral story is not new.
For decades, minerals have been extracted from different parts of the country, supporting livelihoods and local economies.
What is changing is the Government’s emphasis on moving beyond extraction.
Nyamutoro said Uganda has identified a wide range of mineral resources, including rare earth elements, iron ore, graphite, cobalt and marble, alongside minerals with potential applications in fertiliser manufacturing.
The challenge, she said, is to develop the capital, technology, skills and infrastructure required to turn those resources into productive industries.
“Uganda must pursue a productive path of industrialisation and manufacturing, and this calls for investment,” she said.
That vision places mineral development within the larger industrialisation agenda — linking mining to manufacturing, construction, energy, technology, transport and employment.
THE INFORMAL MINER AT THE CENTRE
For many Ugandans, mining begins with a simple reality: the need to earn a living.
Artisanal and small-scale miners often work with limited equipment and financing, extracting gold and other minerals using labour-intensive methods.
But operating outside the formal regulatory framework can create problems involving licensing, environmental protection, worker safety, taxation, resource ownership and accountability.
Nyamutoro said the Government is considering ways of strengthening artisanal and small-scale mining participation while ensuring that operators work within the law.
The intention is to create a mining sector in which small-scale operators can participate legally while gaining access to information, finance, technology and markets.
Formalisation, therefore, is not simply about closing illegal mining sites.
It is also about creating a pathway through which informal miners can become legitimate economic actors.
WHY INVESTORS AND FINANCIERS MATTER
The minister also used the engagement to call for greater participation by investors and financiers.
Her argument is that Uganda cannot build a modern mineral industry through extraction alone.
The country needs investment in exploration, mining equipment, processing, refining, mineral beneficiation, manufacturing, logistics and technology.
That is where financiers and private investors come in.
Nyamutoro said the Ministry has continued engaging investors and stakeholders, with about 1,000 delegates annually participating in ministry-related mineral-sector engagements, according to the information presented at the briefing.
She urged investors to work with Government to develop an integrated mineral industry connected to international markets.
The objective is to retain more value within Uganda rather than exporting minerals with limited processing.
FROM GOLD PITS TO VALUE CHAINS
The economic argument behind mineral beneficiation is straightforward.
A mineral extracted from the ground has one value.
The same mineral processed, refined and incorporated into a manufactured product can generate additional economic activity.
That process can create demand for engineers, geologists, technicians, transport companies, financial institutions, manufacturers and other service providers.
It can also expand opportunities for young people entering the labour market.
For Nyamutoro, this is why mineral development must be connected to industrialisation.
Uganda’s mineral sector, in this vision, is not an isolated industry.
It becomes part of a wider economic chain.
THE YOUTH OPPORTUNITY
Nyamutoro also linked the mineral sector to Uganda’s young population.
She said Government wants to create opportunities for young people through mining-related businesses, skills development, processing and associated industries.
The potential employment opportunities extend beyond miners.
Young Ugandans can participate as technicians, machine operators, environmental specialists, transporters, engineers, entrepreneurs and service providers.
But unlocking those opportunities requires a formal and properly regulated sector.
THE MINERAL WEALTH CONFERENCE
The minister’s remarks came ahead of the Mineral Wealth Conference scheduled for September 29–30, 2026, at Speke Resort Munyonyo.
The conference is expected to bring together Government officials, investors, financiers, mining companies, technical experts and other industry stakeholders.
The gathering will provide a platform to discuss mineral investment, value addition, artisanal and small-scale mining, financing, technology and Uganda’s place in the global mineral economy.
The September conference therefore arrives at a critical moment.
Uganda has the mineral resources.
The question is whether the country can build the institutions, infrastructure and investment ecosystem required to turn those resources into sustainable economic value.
THE REGULATORY TEST
For illegal miners, the Government’s position is increasingly clear: mineral development must operate within the law.
But the success of formalisation will depend partly on whether legitimate mining becomes accessible to small operators.
Licensing procedures, affordable financing, technical assistance, access to geological information and reliable markets will determine whether informal miners can make the transition.
The Government must therefore balance enforcement with practical incentives for compliance.
That balance could determine whether formalisation becomes a pathway into the economy or simply another barrier for vulnerable miners.
A NEW CHAPTER UNDER THE SURFACE
Uganda’s mineral future is ultimately about more than what lies underground.
It is about what the country can build above ground.
A mine can employ workers.
A processing plant can create another layer of employment.
A manufacturing facility can create an entire supply chain.
A properly regulated sector can generate government revenue while improving safety and environmental oversight.
And a connected mineral industry can give Ugandan businesses a larger role in regional and global markets.
That is the transformation Nyamutoro is calling for.
For the miners working today’s pits, the message is to go legal.
For investors and financiers, the invitation is to look beneath the surface and see the industrial possibilities.
And for Uganda, the challenge is perhaps the biggest of all:
to ensure that the wealth beneath the ground does not remain buried in its economic potential.