MARKET NEWS
Euro Gold mining site in Yumbe, company targets 80kg of gold monthly
HON.PHIONA NYAMUTORO launched Euro Gold mining site today in Yumbe, company targets 80kg of gold monthly More than 1,000 jobs are expected to be created in West Nile following the launch of a Euro Gold mining and processing operation in Yumbe District by Minister of State for Mineral Development Phiona Nyamutoro.
The project, located in Komo Village, is expected to create employment across different stages of the mining value chain, including mineral extraction, processing and value addition.
Nyamutoro described the investment as a significant milestone in the development of Yumbe’s mineral resources and Uganda’s wider mining sector.
Upon her arrival at the site, machinery was switched on, marking the commencement of operations.
“I am so pleased that today we have shown the communities in West Nile and across the country evidence of responsible and sustainable mining because the Euro Gold mineral here is mercury free and they have the potential of crushing 60 tons which would enable them have quite a number of products at the end,” Nyamutoro said.
Euro Gold proprietor Bernard Mungu Feni said the company expects to employ more than 1,000 people across the different stages of the mining operation.
He said the company is targeting production of about 80 kilograms of gold per month once the operation reaches its projected capacity.
“There have been so many artisanal miners, but what Euro Gold has done is to bring them together so that we can work according to government guidelines,” he said.
The company’s mining concession covers about 79.8 square kilometers in Yumbe District, according to information previously provided by Euro Gold. The company has also said it intends to expand its mining operations to other parts of Uganda.
The mining operation is linked to Euro Gold Refinery Uganda Limited, which operates a licensed gold refinery in Kampala. Government records show the company holds a mineral refining license valid from June 19, 2024, to June 18, 2034.
The investment is expected to contribute to the local economy through employment, mineral processing and corporate social responsibility programmes.
Yumbe District LC5 Chairperson Abdulmutwalib Asiku Muhamoud urged the company to prioritize local youth when recruiting workers.
The project is also expected to support infrastructure development in the area through the company’s corporate social responsibility initiatives.
However, Nyamutoro cautioned the company and other stakeholders against employing children in mining activities, stressing the need to comply with labor and mining regulations.
“We encourage people to go by the rules as written in black and white in the mining laws of 2022 and we call upon them to formalize and do the right thing because at ministerial level we have tried to reach out a helping hand to see that the miners get all the support they can from the government,” Nyamutoro said.
The minister’s remarks are in line with the government’s push to formalize artisanal and small-scale mining and promote local value addition under the Mining and Minerals Act, 2022.
Euro Gold’s Kampala refinery was commissioned in 2025 as one of Uganda’s licensed gold refineries, with the company positioning itself as part of the country’s drive to formalize the gold trade and increase domestic mineral value addition.
Feni, who has expanded Euro Gold’s operations to several mining sites across the country, said the company is committed to making mining a profitable and organized business while working within government regulations.
The Yumbe project now becomes another component of the company’s strategy to participate directly in gold extraction, processing and value addition in Uganda.
What This Means for Uganda’s Economy and Investment Sector
1. Employment and local economic activity
The project could provide a meaningful employment and income boost to Yumbe and the wider West Nile region, with more than 1,000 jobs expected across extraction, processing and related activities. Increased household incomes can support local businesses, while corporate social responsibility initiatives could improve community infrastructure. For Uganda’s economy, this points to mining becoming a stronger driver of regional economic activity beyond the traditional urban centers.
2. Stronger domestic value addition and formalization
The combination of mining, processing and an established refinery highlight a shift toward keeping more stages of the gold value chain within Uganda. If successfully implemented, greater domestic processing can increase the economic value captured locally and strengthen the formalization of artisanal mining. This is important for the investment sector because it creates opportunities across the wider mining ecosystem, including logistics, processing, services and infrastructure.
3. A positive signal for investment and the broader mining sector
The launch signals continued private-sector appetite for Uganda’s mineral resources and could improve investor interest in the country’s mining value chain. The targeted production of 80 kilograms of gold per month, together with the planned expansion to other sites, indicates the potential for a larger commercial footprint. For investors, the development reinforces the importance of monitoring Uganda’s mining sector as a potential source of growth, employment, domestic value addition and long-term investment opportunities, while recognizing that actual returns will depend on production performance, regulation, infrastructure and responsible mining practices.
Investor Takeaway
The Yumbe gold project is more than a mining development; it is a signal of Uganda’s broader push toward formalization, local value addition and private investment in the mineral sector. If the project achieves its targeted production and employment levels, it could strengthen regional economic activity while creating wider opportunities across Uganda’s mining and investment value chain.
Disclaimer: This newsletter is for information purposes only and does not constitute investment advice. Past performance does not guarantee future results
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