East African Mining News Unearthing Mining Opportunities in East Africa
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Uganda’s Ministry of Energy and Mineral Development has ordered an immediate halt to all gold mining activities in the western district of Kanungu, cracking down on a massive, unlicensed gold rush that officials say has triggered severe environmental degradation, public health risks, and local economic disruption.
The suspension targets a rapidly growing, makeshift mining camp in Kanoni village, Kayungwe sub-county, where hundreds of residents have converged over the past two months following reports of rich alluvial gold deposits. The sudden influx transformed a rural hillside into a chaotic settlement of temporary tents and iron-sheet structures operating entirely outside the law and without basic infrastructure.
State Minister for Minerals Phiona Nyamutoro led an official delegation to inspect the site on Thursday, informing the gathered crowd that they were trespassing on corporate property. The land is legally registered under Exploration Licence EL00135, which belongs exclusively to Shiye Miners Company.
“All mining activities within this licensed exploration area are illegal because the miners lack the required authorizations under the Mining and Minerals Act,” Nyamutoro told the miners. “This suspension is intended to restore order while enabling the government to formalize artisanal mining in the area.”
Beyond the legal disputes over mineral rights, the government expressed deep alarm over the camp’s squalid conditions. The site possesses no toilets, running water, or medical facilities, raising fears of a severe disease outbreak.
The social and economic ripple effects have also unnerved Kanungu’s local leadership. Agriculture the backbone of the local economy has taken a heavy hit as farmers abandon their fields for the allure of quick gold wealth, raising concerns over impending food insecurity. Furthermore, local officials reported a worrying spike in school dropout rates, with children abandoning classrooms to join their parents in the pits.
Environmental contamination, however, proved to be the final straw for authorities. On June 28, 2026, neighboring communities in Rugyeyo sub-county and Nyakabungo Town Council filed a formal petition accusing the artisanal miners of poisoning shared water systems. The petition highlighted the unregulated disposal of mining waste and the highly toxic use of mercury to extract gold particles.
The suspension will remain in place while the government attempts to transition the informal miners into the regulated market. The ministry promised to assist the displaced miners in organizing themselves into a cooperative, allowing them to eventually apply for legal permits under Uganda’s artisanal and small-scale mining framework.
Local law enforcement plans to strictly enforce the shutdown. Kanungu Resident District Commissioner Ambrose Amanyire issued a stern warning to those tempted to return to the hillside.
“Anyone who trespasses onto the licensed exploration area or resumes illegal mining activities will be arrested,” Amanyire said.
