The State Minister for Energy and Mineral Development Phiona Nyamutoro has given Shiye Small Scale Mining Company 21 days to comply with mining regulations at the Kayungwe gold mining site in Kanungu District before the site can formally reopen.
The directive was issued during Nyamutoro's visit to the mining site in Kayungwe Sub-county, where she assessed progress following its closure on July 2, 2026. The site was closed over concerns about an allegedly illegal licence and an influx of people into the mining area.
Nyamutoro said several meetings had been held to discuss the formal reopening of the site and issued a number of directives aimed at regularising operations, improving safety and addressing sanitation concerns.
Among the measures, she ordered the removal of all ore from the small-scale mining area, the demolition of temporary structures and the construction of 20 pit latrines.
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She also directed that only two processing units be allowed to operate at the site--one owned by Shiye Small Scale Mining Company within the mining area and another operated by Pearl Refineries.
Nyamutoro further directed miners to maintain a distance of at least 100 metres between mining pits to reduce the risk of accidents.
She said the licence holder would be required to hire private security to enforce the directives in coordination with the Mineral Police.
Nyamutoro also ordered the immediate closure of the Kanungu District United Artisanal and Small Scale Miners Cooperative Society, citing what she described as the cooperative's failure to comply with Ministry guidelines.
However, the cooperative's chairperson, Col. Samson Mande, rejected the directive, insisting that the organisation is legally established and approved by the National Commercial Officer.
Mande challenged the minister to follow the law and due process before ordering the closure of the cooperative, which he said is owned and supported by local residents.
Kanungu District Chairperson Francis Byamukama also criticised the minister for issuing the directives without consulting district authorities, despite an invitation to the district council.
Byamukama said district leaders had resolved to write to the President's Office seeking intervention in the dispute. He cited what he described as possible conflicts of interest involving some leaders and security personnel.
The latest developments follow concerns raised by residents over alleged illegal mining at the site, including claims that some of the activities were being supported by the Mineral Protection Unit, which had been deployed to provide security at the mining area.
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Residents have also raised broader concerns about insecurity in the area.
The government's latest directives are expected to determine the conditions under which mining activities at Kayungwe can resume, with the company required to meet the stipulated regulatory, safety and sanitation requirements before reopening.
