Uganda is stepping up efforts to retain more value from its mineral resources after Euro Gold Refinery (U) SMC Ltd secured a gold mining licence in Yumbe District, expanding its operations within the country’s formal gold sector.
The licence, issued by the Ministry of Energy and Mineral Development under the Mining and Minerals Act, 2022, is part of a wider government strategy to strengthen domestic processing and reduce reliance on raw mineral exports. Authorities say the move is intended to increase transparency in the gold trade and improve revenue retention within the country.
Euro Gold Refinery, which was launched in Kampala in 2025 as Uganda’s first fully locally owned gold refinery, has been positioning itself as a key player in the country’s push toward mineral value addition. The company is expected to play a growing role in transforming Uganda’s gold industry from a largely export driven sector into one that supports local refining and industrial development.
The newly secured Yumbe licence strengthens the company’s footprint in northern Uganda, where early geological assessments reportedly indicate high grade gold deposits. According to company officials, estimated purity levels in the area range between 96 and 97 percent, suggesting strong potential for both extraction and downstream processing.
The project is projected to produce up to 10 kilograms of gold per day, with long term output estimates valued at approximately 500 million dollars over a 50 year lifespan. If realised, this would make it a significant contributor to Uganda’s expanding mining sector.
Euro Gold Refinery Director Benard Feni said the development reflects confidence in Uganda’s broader mineral potential and the importance of building local capacity in refining and processing. He emphasised that structured partnerships and improved technical capacity could help position Uganda more competitively in the global gold market.
At full operational capacity, the refinery aims to process gold to 99.9 percent purity, aligning with international export standards. This is expected to support Uganda’s domestic gold purchasing programme, which is being led by the Bank of Uganda as part of efforts to stabilise foreign exchange inflows and formalise the sector.
The company already holds mining and prospecting interests in other parts of the country, including Abim and Busia districts, where it collaborates with artisanal miners and trading networks. These operations are designed to integrate informal mining communities into structured supply chains, reducing illicit trade and improving traceability.
Uganda’s gold sector has grown rapidly in recent years, becoming one of the country’s most important export earners. However, much of this growth has been driven by raw exports, with limited local processing capacity. Government policy has increasingly focused on reversing this trend by encouraging domestic refining and tighter regulation of exports.
The Yumbe project is also expected to create employment opportunities in host communities and support skills development in mining and mineral processing. Officials say formalising artisanal mining activities remains a key priority, as it is expected to improve safety, increase tax compliance and enhance overall sector productivity.
Despite the optimism, challenges remain. Uganda’s mining sector continues to face issues such as informal extraction, environmental concerns and infrastructure gaps in remote mining regions. Sustaining long term investment will depend on regulatory stability, technological capacity and effective community engagement.
Still, the approval of the Yumbe licence signals continued momentum in Uganda’s mineral strategy. By expanding local refining capacity and integrating mining operations into formal systems, the government aims to retain more value from its natural resources and strengthen its position in the regional gold market.
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