The government has suspended all gold mining activities in Kayungwe Sub-county, Kanungu District, after finding that miners were operating without licences in an area already covered by a mineral exploration permit.
The decision was announced on Thursday after the Minister of State for Minerals, Phiona Nyamutoro, led a team from the Ministry of Energy and Mineral Development to inspect the site in Kanoni Village, where hundreds of people have been mining gold for the past two months.
Officials said the land falls under Exploration Licence EL00135, which was issued to Shiye Miners Company, making all mining activities by unlicensed miners illegal under Uganda’s Mining and Minerals Act.
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Nyamutoro said the ministry had ordered an immediate halt to mining because those involved did not possess the licences required by law.
“All mining activities within the licensed exploration area were illegal because the miners lacked the licences required under the Mining and Minerals Act.”
The minister also raised concerns about conditions at the mining camp, saying it lacked proper sanitation facilities, a health centre and first-aid services to respond to emergencies.
“The suspension is intended to restore order while enabling government to formalise artisanal mining in the area.”
She said the ministry would support miners to form a cooperative and obtain the licences needed to operate legally under Uganda’s artisanal and small-scale mining framework.
The mining site expanded rapidly after reports of gold deposits attracted hundreds of residents, who erected temporary tents, makeshift shelters and iron-sheet structures despite the absence of toilets and environmental protection measures.
Local leaders say the gold rush has affected livelihoods, with many residents abandoning farming for mining. They also reported that some children had dropped out of school to join their parents at the site.
Kanungu Resident District Commissioner Ambrose Amanyire urged residents to comply with the suspension, warning that anyone who enters the licensed exploration area or resumes illegal mining would face arrest.
The government’s action follows mounting complaints from neighbouring communities over environmental damage.
On 28 June 2026, residents of Rugyeyo Sub-county and Nyakabungo Town Council petitioned district authorities, accusing artisanal miners in Kayungwe of polluting water sources through poor waste disposal and the use of mercury during gold extraction.
The petition warned that the pollution posed a serious risk to public health and the environment and called on authorities to intervene before the situation worsened.
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