Uganda Extends Suspension of New Mining Licences

Uganda has extended its suspension on new mineral licences for another three months as the government prepares a new framework that would tie mining rights more closely to local processing, industrial development and investor commitments.

Energy and Mineral Development Minister Monica Musenero announced the extension in a statement dated 27 October 2026. The additional period will allow the ministry to develop and operationalise its proposed Strategic Mineral Licensing by Design framework, following an initial one-month suspension announced on 28 August.

Government Wants More Local Mineral Processing

The proposed framework would move Uganda away from an application-driven licensing system towards an approach that assesses how mining projects contribute to national development priorities.

The government wants more minerals processed domestically before export, allowing Uganda to retain greater economic value from its resources. Processing requirements would increase as the country develops the industrial capacity, infrastructure and technology needed to support mineral beneficiation.

Under the proposed rules, investors would be assessed on their technical capacity, financing and plans for value addition, local content and industrial development. Commitments made in these areas could become enforceable licence conditions, supported by financial assurances. The government also proposes monitoring licence holders against approved development plans and imposing sanctions for persistent non-compliance.

New Oversight Measures Proposed

The ministry also wants to strengthen transparency in licensing decisions. Proposed measures include publishing licensing criteria, decisions and supporting reasons, subject to applicable legal protections.

The framework would separate licensing administration, technical evaluation, integrity reviews and final decision-making. A proposed Minerals Industrialisation Scientific and Economic Committee would provide technical advice to help ensure decisions are informed by scientific and economic evidence.

The ministry plans to use the extension to consult stakeholders, prepare operating procedures, strengthen institutional safeguards and pursue the legal and regulatory arrangements required to implement the framework. The final operating rules have not yet been published.

What It Means for Mining Investors

For exploration companies and prospective mine developers, the extension means a longer wait before new mineral rights become available. Investors may also face more demanding requirements to demonstrate how their projects will support domestic processing and economic development.

However, expanding mineral processing requires reliable electricity, suitable infrastructure, financing and technical expertise. The government’s proposed framework recognises that processing requirements would need to develop alongside Uganda’s industrial capacity.

The reforms align with Uganda’s Mining and Minerals Act, 2022, and its wider industrialisation agenda. During the suspension, the ministry will continue preparing the procedures and safeguards intended to govern how future mineral rights are awarded.