KANUNGU – The State Minister for Energy and Mineral Development, Hon. Phiona Nyamutoro, has issued a 21-day ultimatum to Shiye Small Scale Mining Company to comply with all mining guidelines at the Kayungwe gold mining site in Kanungu District, as the company awaits formal reopening.
Thank you for reading this post, don't forget to subscribe!The directive was issued during the Minister’s visit to the site in Kayungwe Sub County on Thursday, September 10, 2026, to assess progress following its closure on July 2, 2026, over an illegal licence and an influx of people into the area.
During the visit, Minister Nyamutoro acknowledged that several meetings had been held to discuss the site’s formal reopening, and proceeded to issue directives aimed at regularizing operations and improving safety and hygiene.
The Minister ordered the removal of all ores within the small-scale mining area, the demolition of all temporary structures, and the construction of twenty pit latrines to improve sanitation.
Additionally, she stressed that only two processing units will be permitted to operate: one within the mining site owned by Shiye Company, and another operated by Pearl Refineries.
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Nyamutoro guided the miners to separate mining pits by at least 100 metres to avoid the risk of accidents, and affirmed that the licence holder will hire private security to help enforce the directives, in partnership with the Mineral Police.
She further ordered the immediate closure of the Kanungu District United Artisanal and Small Scale Miners Cooperative Society, citing failure to adhere to Ministry guidelines.
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The Chairperson of the Kanungu District United Artisanal and Small Scale Miners Cooperative Society, Col. Samson Mande, dismissed the information, insisting that the cooperative is legal and approved by the National Commercial Officer.
The Chairperson further challenged the Minister to strictly follow the law and due process before banning a cooperative that is owned and fully supported by the local people.
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The Kanungu District Chairperson, Francis Byamukama, expressed dissatisfaction with Minister Nyamutoro for issuing the directives without consulting district authorities, despite her invitation to the district council.
He affirmed that the council has resolved to write to the President’s Office to intervene and resolve the issues, citing conflict of interest by some leaders and security personnel.
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The developments follow locals raising concerns over illegal mining allegedly backed by the Mineral Protection Unit, which was directed to protect the mining site, alongside other insecurity concerns in the area.
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