Euro Gold Refinery secures Yumbe mining licence in Push for local gold value addition

Tue Mar 31 2026

Euro Gold Refinery (U) SMC Ltd has secured a gold mining licence in Yumbe District, expanding its footprint in Uganda’s mineral sector as government pushes for increased domestic value addition and tighter regulation of the country’s gold trade. The licence was granted by the Ministry of Energy and Mineral Development under the Mining and Minerals Act, 2022, according to Okaasai Sidronius Opolot, who said the approval followed provisions under Sections 87 and 90 of the law.

The Yumbe project strengthens Euro Gold’s role in Uganda’s formal gold economy, where authorities have increasingly encouraged local processing as part of wider efforts to retain more value from mineral exports. Benard Feni, Director of Euro Gold Uganda, said the new operation forms part of the company’s broader strategy to support a more transparent and sustainable gold industry.

“With the right partnerships and knowledge, Uganda’s gold industry offers a pathway into one of the world’s most valuable sectors,” Feni said. He said early assessments in Yumbe indicate high-grade deposits, with gold purity levels estimated at between 96 and 97 per cent, creating strong potential for local refining and downstream processing.

The project is expected to produce up to 10 kilograms of gold per day, with projected output valued at about $500 million over an estimated 50-year life span. Euro Gold was officially launched in Kampala in 2025 by Ruth Nankabirwa as Uganda’s first fully Ugandan-owned gold refinery, entering a sector long dominated by foreign-owned refiners and exporters.

At full capacity, the refinery aims to process gold to 99.9% purity, aligning with international standards and supporting government programmes such as Uganda’s domestic gold purchase strategy led by Bank of Uganda. During its launch, Nankabirwa described the refinery as a strategic investment expected to contribute to Uganda’s long-term industrialisation ambitions and mineral-led economic growth.

The Yumbe licence adds to Euro Gold’s growing national portfolio. The company already has mining interests in Abim District, where it works with artisanal miners under supply agreements, and also holds prospecting rights in Busia District, one of Uganda’s most active gold trading corridors. Euro Gold has also signed a memorandum of understanding with the United Miners Association to support formal supply chains and refine gold locally to export quality.

Beyond production, the company says it intends to formalise artisanal mining, invest in refining technology and expand employment opportunities in host communities. The move comes as Uganda continues to tighten oversight of gold exports while encouraging domestic refining to reduce illicit trade and increase mineral revenues retained within the country

Source: https://www.independent.co.ug/