Yumbe, Uganda | ENTEBBENEWS.NET | Euro Gold Refinery has launched a new mining site in Yumbe District, marking the company’s entry into what it hopes will become a significant expansion of its gold operations in the West Nile region.
The project, officially launched by State Minister for Energy and Mineral Development Phiona Nyamutoro, comes as Uganda seeks to formalise artisanal and small-scale mining and increase value addition within its mineral sector.
Euro Gold says the Yumbe operation is expected to create more than 2,000 jobs as production expands. The company has set a target of producing at least 20 kilogrammes of gold per week and says the mine has the capacity to crush up to 16,000 tonnes of ore.
Nyamutoro said the project offered an opportunity to demonstrate how mining can deliver economic benefits to communities while complying with environmental and safety standards.
“As you can see, the gold mine here is mercury-free, and they have the potential of crushing 16,000 tonnes, which would help them have quite a number of products,” she said.
The launch was attended by the Commissioner for Mines, representatives of the Bank of Uganda, district leaders and other stakeholders.
Nyamutoro urged miners across the country to formalise their operations and comply with the Mining and Minerals Regulations of 2022. She also warned operators against employing children in mining activities.
“We call upon all those involved in mining to formalise and do the right thing because, at the ministerial level, we have tried to reach out a helpful hand to see that the miners get all the support they can,” she said.
Euro Gold Refinery CEO Benard Feni said the company had spent more than two years carrying out surveys and exploration before securing the mining ground in Yumbe.
He said the company estimates the value of its mining assets at $500 million and holds licences in several mineral- rich areas, including Yumbe, Abim, Busia, Kaabong, Kotido and Moroto.
The company’s exploration and mining interests cover approximately 79 square kilometres in the West Nile region, with Yumbe selected as its pioneer site.
Feni said the company plans to establish a processing plant at the site, a move it says will strengthen traceability and accountability in the gold value chain while allowing more value to be retained within Uganda.
The company also intends to work with local mining communities and artisanal miners as it expands.
Euro Gold has signed a Memorandum of Understanding with gold miners in Mubende to support value addition, an arrangement expected to benefit more than 3,000 artisanal miners. It also has a joint venture with Kakoka artisanal miners’ cooperatives and an agreement under which the miners will supply gold to the refinery.
The partnerships point to a business model increasingly being promoted within Uganda’s mining sector: linking small-scale producers to licensed processors and formal markets rather than leaving them outside the regulated value chain.
For Euro Gold, the Yumbe project is expected to extend that model into West Nile while creating jobs and new business opportunities around mining.
Feni said the company is committed to complying with licensing and regulatory requirements and to ensuring the safety of artisanal miners working within communities where it operates.
More than 70% of Euro Gold’s workforce is made up of Ugandans, according to the company, with employees receiving training aimed at meeting international standards.
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