Business 14 October 2026 Daily Monitor (Uganda)
Uganda Mining Firms Face License Revocation Over Unpaid Royalties
The Ugandan government has issued a strict two-week ultimatum to mining companies, including the state-owned Uganda National Mining Company, demanding the settlement of billions in outstanding royalties. Failure to comply will result in the revocation of their operating licenses. Source: https://www.monitor.co.ug/uganda/business/markets/govt-gives-mining-firms-two-weeks-to-clear-billions-or-lose-license--5632052
The Ministry of Energy and Mineral Development has set a firm deadline of 14 days for all mining entities to clear substantial arrears in mineral royalties. This move signals a strong governmental stance against non-compliance within the extractive sector.
Sources indicate that the total outstanding amount runs into billions of Ugandan Shillings, accumulated over an unspecified period. The government has emphasized that this directive applies to all licensed mining companies, regardless of their ownership structure or scale of operation.
The ministry has warned that non-adherence to this ultimatum will lead to severe consequences, chief among them being the immediate cancellation of mining licenses. This measure is intended to ensure that the government collects its rightful share of revenue from the country’s mineral wealth and to promote responsible resource management.
While the specific companies and the exact total sum owed were not immediately disclosed, the Ministry of Energy and Mineral Development has indicated that it is prepared to take decisive action. The directive underscores the government’s commitment to maximizing revenue collection from the mining sector, which is seen as a significant contributor to Uganda’s economic development.
This crackdown is expected to prompt a swift response from the affected companies, who will now be under pressure to settle their financial obligations to avoid losing their lucrative mining concessions. The government is keen on enforcing fiscal discipline and ensuring that all stakeholders contribute fairly to national development. The ministry has urged companies to engage proactively if they face challenges in meeting the deadline.