Euro Gold Refinery Opens in Kampala as Uganda Cracks Down on Mineral Sector Fraud
Euro Gold Refinery Opens in Kampala as Uganda Cracks Down on Mineral Sector Fraud
Uganda has taken a decisive step toward restoring integrity in its gold industry with the launch of Euro Gold Refinery, a modern facility aimed at curbing illegal trade, increasing revenue collection, and giving artisanal miners access to a fair and formalized market.
Commissioned in Kamwokya, Kampala, the facility is the first government-recognized gold refinery and is expected to play a pivotal role in transforming Uganda’s mineral sector into a key engine of economic growth.
Owned by Ugandan entrepreneur Feni Benard, and supported by international investors from the UK, UAE, and India, Euro Gold Refinery will source gold directly from small-scale miners in regions such as Karamoja, Busia, Buhweju, Kassanda, and West Nile cutting out middlemen and boosting transparency in the trade chain.
“This facility provides an opportunity to formalize the gold sector, curb fraud, and ensure Uganda earns what it deserves from its mineral wealth,” said Dr. Ruth Nankabirwa Ssentamu, the Minister of Energy and Mineral Development, while officiating at the launch.
She urged the refinery’s management to develop a robust human capital strategy and collaborate with the Bank of Uganda under its 2024 Domestic Gold Purchase Programme, which seeks to strengthen national reserves by purchasing locally refined gold.
The refinery arrives at a time when Uganda’s gold industry has been rocked by controversy. A 2024 report by the Auditor General revealed that gold worth over $3 billion (Shs 11 trillion) was exported without licenses from the Ministry of Energy and Mineral Development, flouting Section 149 of the Mining and Minerals Act.
In February 2025, the Criminal Investigations Directorate exposed widespread gold-related scams, with Deputy Director Beata Chelimo confirming that 24 security personnel were arrested over their links to sophisticated fraud rings targeting investors.
Many of the scams lured victims with fake gold deals and promises of fast returns.
To prevent such practices, Uganda is shifting from raw mineral exports to refined output a policy cemented in 2021 when President Yoweri Museveni signed the Mining and Minerals Bill into law, outlawing the export of unprocessed minerals.
During his 2022 State of the Nation Address, Museveni revealed staggering gold reserves 31 million metric tonnes discovered in Uganda, with an estimated 320,000 metric tonnes of pure extractable gold valued at $12.8 trillion.
Benard, the refinery’s director, emphasized the facility’s commitment to international best practices and inclusion of local miners.
“Our refinery is approved by the London Bullion Market Association (LBMA), meaning we meet international standards for refining and trading gold and silver bars,” he said.
“We want to empower small-scale miners by giving them fair value for their gold while promoting sustainable and environmentally friendly practices.”
Besides refining, the facility offers smelting, assaying, and consultancy services in mineral trade and maintains active partnerships with miners from Uganda and the Democratic Republic of Congo.
Euro Gold Refinery is also a licensed mineral dealer and holds a 79.8 square kilometer mining concession in Yumbe District. The company has secured exploration rights in parts of Karamoja, positioning it as a major player across the gold value chain.
The significance of the refinery is further amplified by recent export figures. Between June 2023 and June 2024, gold exports reached $3.09 billion (Shs 11.7 trillion), accounting for nearly 50% of all non-coffee exports. By early 2025, gold had emerged as Uganda’s top foreign exchange earner, contributing 37% of total export revenues.
“Gold has the potential to change Uganda’s economic fortunes if managed well,” added Dr. Nankabirwa.
“This refinery will ensure that the days of unscrupulous dealers and illegal exports are behind us.”
