Uganda government gives 484 mining licence holders 14 days to clear Shs10.74 billion arrears

KAMPALA – The government has given 484 mining companies and individual mineral rights holders 14 days to pay Shs10.74 billion in outstanding mineral rents, royalties and late lodgment charges, or risk losing their licences.

The Ministry of Energy and Mineral Development published the names of the defaulters on Monday in a public notice signed by the permanent secretary, Eng Irene Batebe.

According to the notice, the arrears accumulated between July 2023 and July 2026. They comprise Shs6.44 billion in annual mineral rent fees owed by 369 defaulters, Shs1.6 billion in royalties owed by 80 entities and Shs2.7 billion in late lodgment charges owed by another 35.

Annual mineral rent fees are statutory payments made by holders of mineral rights for the areas covered by their licences. Royalties are payments tied to mineral production, while late lodgment charges arise from delays in meeting lodgment requirements.

Dr Patricia Litho, the ministry’s spokesperson, said the decision to publish the names followed repeated attempts to secure payment from the licence holders, with little response.

“We have written to them and talked to them, but there has been no action. That is why we are naming and shaming them,” she said.

Dr Litho warned that those who fail to pay risk having their licences revoked.

“They will lose their licences, meaning they will not be allowed to participate in those various activities. If they continue operating, it will be illegal, and they will be liable for arrest and penalties,” she said.

The ministry said the defaulters’ failure to meet their payment obligations contravenes Regulations 85 and 86 of the Mining and Minerals Regulations and Sections 190 and 191 of the Mining and Minerals Act.

“It is a big issue because the government loses revenue. We are looking for money as the government, so this is definitely a problem,” Dr Litho said.

She said the fees payable vary according to the category of licence, the nature of the activity and the scale of the operation.

Among the largest defaulters on the list are Kilembe Mines, Li Kuang Mining, Kapex, Kandopix and Mate, which together account for about Shs5 billion in outstanding obligations.

Other entities named include Pellegrino Oil and Gas (U) Limited, which owes Shs9.4 million; Nationwide Constructions Services Limited, Shs3.4 million; Medicare Health Professionals College Limited, Shs2.2 million; Moto Geothermal Project Limited, Shs1.4 million; and Mubende Gold Traders and Mineral Cooperative Society, Shs1 million. Mubende Kitumbi Gold Land Owners and Miners Association Limited is also listed as owing Shs1 million.

The list also names Maj Gen Kahinda Otafiire, who has served as the minister of water and environment since May 2026, with an outstanding liability of Shs20 million. Maj Gen Otafiire had not responded to requests for comment by press time. The ministry said the listed liability does not in itself establish deliberate wrongdoing.

Siraji Magara Luyima, an extractives governance expert at Oxfam, said persistent non-payment of mineral rents and royalties points to weaknesses in the government’s monitoring and enforcement systems.

He argued that inadequate inspections and poor verification of mineral production allow some operators to evade their financial obligations, particularly where the ministry relies on companies to declare their own production.

“The problem is mainly one of governance. The people who are supposed to do the job may not be doing enough to follow up with these companies, monitor their activities and inspect their operations,” Luyima said.

“We are not generating the revenue that we should be generating because those responsible for monitoring and enforcing compliance are not doing their part effectively,” he added.

Luyima singled out gold production as a particular challenge.

“Gold is a pocket mineral. Someone can pick it up and disappear with it. If you are not there to establish how much has been produced and where it is taken, you cannot know the actual quantities involved,” he said.

He also alleged that some operators exploit regulatory gaps by extracting and selling minerals under exploration licences, which only authorise the search for mineral deposits, not commercial mining.

“This is a major source of revenue leakage,” he said.

Luyima also cited difficulties in verifying the quantities of bulk minerals such as marble and limestone, particularly in Karamoja, where he said inadequate weighing infrastructure could enable operators to under-declare production.

“When you are dealing with bulky minerals, you need a reliable way of establishing the actual quantities being transported. Without weighbridges, a company could declare less than what it has extracted and transported, thereby reducing its tax obligations,” he said.

He called for stricter enforcement of licensing conditions, more inspections at mining sites and better production records to help the government establish the quantities extracted and calculate the corresponding statutory payments.

He also urged the government to install weighbridges in mineral-producing areas, strengthen central government inspections and give local governments adequate funding and authority to monitor mining operations.

“The mining sector is too centralised. Local governments are on the ground, but their role in mineral governance is limited, partly because they lack the budgets and powers to follow up on many of these issues,” he said.