Uganda counts on new gold refinery to eliminate illicit exports

Uganda has officially opened its first high-capacity gold refinery in Kampala, a landmark development aimed at streamlining the country’s gold trade, formalizing artisanal mining, and cracking down on fraud and illicit exports.

The Euro Gold Refinery, located along Katego Road in Kamwokya, was commissioned on Tuesday, July 29, 2025, by the Minister of Energy and Mineral Development, Dr. Ruth Nankabirwa Ssentamu, who described it as “the first facility officially recognized by the government.” The launch comes at a time when gold has become Uganda’s leading export, accounting for nearly half of all non-coffee earnings and 37% of total export revenues over the past year.

The refinery is owned by Feni Benard and backed by investors from the United Kingdom, United Arab Emirates, and India. It will source gold directly from artisanal miners across Uganda—including regions like Busia, Karamoja, Buhweju, Kassanda, and West Nile—and from neighboring Democratic Republic of Congo (DRC). The company holds licenses for refining, trading, and mining, including a 79.8 square kilometer concession in Yumbe District.

Approved by the London Bullion Market Association (LBMA), the facility provides services such as smelting, assaying, and refining, and offers a secure and transparent platform for trade in precious metals.

Artisanal miners, long plagued by exploitation and scams, have welcomed the refinery’s opening as a turning point. Joseph Dave Mwebesa, a small-scale miner from Busia and Mubende, said the new facility provides a “safe and regulated market” for miners who have historically been defrauded by fake buyers posing as legitimate dealers.

“I have been in the gold business for 12 years. Most times, you are cheated—someone picks your gold and disappears. Here, you bring it, and they pay you.”

According to government figures, over 400,000 Ugandans are directly employed in artisanal and small-scale mining (ASM), with up to 2 million more indirectly supported. Despite increasing mechanization, most still rely on rudimentary extraction methods, often outside of formal regulatory frameworks.

Minister Nankabirwa urged the refinery to work closely with the Bank of Uganda, which is finalizing plans to begin purchasing refined gold as part of its Domestic Gold Purchase Programme, aimed at strengthening the country’s foreign reserves.

The new refinery is expected to address longstanding concerns around tax evasion and illegal gold exports. In 2024, the Auditor General reported that over $3 billion worth of gold had been smuggled out of the country without permits. Meanwhile, the Criminal Investigations Directorate has identified gold-related fraud as a key area of organized crime, with more than 24 security personnel arrested in recent syndicate busts.

The refinery also aligns with President Yoweri Museveni’s 2021 policy directive banning the export of unprocessed minerals. The president has previously said Uganda holds up to 31 million metric tonnes of gold, with extractable reserves valued at $12.8 trillion.

Refinery Director Feni Benard emphasized that the project is not just a commercial venture but a step toward sustainable and transparent mineral trade. He noted the facility’s eco-friendly practices and its role in employment creation and trade consultancy.

“Whether North or South, East or West, our goal is to partner with miners and support them in their ventures.”

With the Euro Gold Refinery now operational, Uganda is taking a significant step toward tightening control over its lucrative gold sector and securing the economic potential of one of its most critical natural resources.