By: OrePulse

Uganda's Ministry of Energy and Mineral Development has extended its suspension of new mineral licensing by three months, effective October 27, 2026, as the government works to complete a new framework tying mining rights to domestic processing requirements.

The ministry said in a statement that the extension gives it time to finalize what it calls the "Strategic Mineral Licensing by Design" framework, a planned overhaul of how mineral rights are granted in the country. The latest suspension follows an initial one-month freeze that took effect August 28, 2026, during which the ministry reviewed the existing licensing system. Uganda's mining sector, which the ministry's statement described as covered sector-wide by the freeze, includes gold, tin, tungsten and tantalum among the minerals typically licensed under the regime now under review.

"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.

Under the planned framework, mineral licenses would be tied to national development strategies specific to each mineral, with greater emphasis on processing minerals domestically rather than exporting them raw. The ministry said exports would be required at the highest level of value addition realistically achievable within Uganda, with processing requirements rising as the country's industrial capacity grows.

Investor commitments on processing, local content and industrial development would become binding conditions of any license issued under the new system, backed by financial guarantees, according to the ministry. License holders would be monitored for compliance, with sanctions available against those who persistently fail to meet their commitments.

The ministry also outlined institutional changes planned alongside the new licensing system. Responsibility for licensing administration, technical evaluation, integrity reviews and final licensing decisions would be divided among separate units, a restructuring intended to add checks within the process. A new Minerals Industrialisation Scientific and Economic Committee is proposed to advise on licensing decisions, and the ministry said it would add administrative review and dispute-resolution mechanisms that do not currently exist.

The ministry said the planned framework is designed to align with Uganda's Mining and Minerals Act of 2022, its 2018 Mining and Mineral Policy, the country's Fourth National Development Plan and its Tenfold Growth Strategy, a national economic program aimed at expanding Uganda's economy over the coming decade.

During the latest three-month extension, the ministry said it plans to hold stakeholder consultations and complete the operational procedures, institutional safeguards and legal and regulatory work needed to put the new system in place. Companies seeking new mineral licenses in Uganda will need to wait for further guidance from the ministry while the suspension remains in effect.

The ministry also said the success of the new approach will depend on factors outside its direct control, including the availability of reliable electricity, affordable financing, technology and supporting infrastructure for mineral processing.