Uganda has extended a suspension on new mineral licences by three months as the government prepares rules to tie mining rights more closely to domestic processing, industrial development and investor commitments.
The extension, effective October 27, gives the Ministry of Energy and Mineral Development more time to develop a proposed Strategic Mineral Licensing by Design framework, according to a statement issued by the ministry on October 27.
The government initially suspended new licensing for one month on August 28 to review how mineral rights could contribute more directly to industrialisation and economic growth.
The proposed framework would replace an application-driven system with one that assesses mineral projects against national development priorities, with greater emphasis on processing minerals within Uganda before export.
“The review established the need to shift from an application-driven licensing system to a strategic approach in which mineral rights are granted based on their contribution to Uganda’s industrialisation and economic transformation,” the ministry said.
Government ties licences to local processing
The changes could reshape investment decisions in a sector where the government wants to capture more value from its mineral resources rather than rely primarily on exports of raw or minimally processed materials.
Under the proposed approach, processing requirements would increase as Uganda develops the technology, infrastructure and industrial capacity needed to support mineral beneficiation. The policy could create opportunities for manufacturers, processors, logistics companies and suppliers of industrial equipment and energy.
However, expanding domestic processing will require reliable electricity, affordable financing, suitable technology and infrastructure to make projects commercially viable.
The proposed framework contains 10 guiding principles covering strategic planning, scientific assessment, accountability and predictable licensing decisions. The ministry plans to publish licensing decisions and their supporting reasons, subject to applicable legal protections, to improve transparency and reduce discretionary decision-making.
Investors would also face enforceable licence conditions covering local processing, value addition, local content and industrial development. Financial assurances would support those commitments, while mineral rights holders would be monitored against approved development plans. Persistent non-compliance could attract sanctions.
The framework envisages different licensing requirements depending on the scale and strategic importance of mining operations, including arrangements suited to artisanal and small-scale miners.
New oversight rules planned
To strengthen oversight, the proposed system would separate licensing administration, technical evaluation, integrity reviews and final decisions. A proposed Minerals Industrialisation Scientific and Economic Committee would provide technical advice based on scientific and economic evidence.
The ministry also plans to establish administrative review and dispute-resolution mechanisms to address concerns arising from licensing decisions.
During the three-month extension, officials will consult stakeholders, develop operating procedures, strengthen institutional safeguards and pursue the legal and regulatory changes needed to implement the system.
The reforms are aligned with the Mining and Minerals Act, 2022, the Mining and Mineral Policy, 2018, the Fourth National Development Plan and the government's Tenfold Growth Strategy.
For mining companies, the proposed system could provide clearer expectations about investment, processing and compliance. But the licensing suspension means prospective applicants must wait for further guidance from the ministry before obtaining new mineral rights.
The government says the broader objective is to attract responsible investment while increasing the contribution of mining to employment, technology transfer and local enterprise development.
