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Uganda National Mining Company: governance trouble at the new state miner
Uganda’s National Mining Company is now facing a governance audit
The Uganda National Mining Company (UNMC), established in 2024 to hold and manage the State’s commercial interests in mining, is facing a governance audit ordered by the Ministry of Finance after a reported rift between its board and executive management. Uganda Business News reports allegations of internal friction, procurement weaknesses and disputed staffing, while noting that the audit is still developing and some of the allegations come from insiders. The episode is significant because UNMC was created to be the Government’s commercial vehicle for turning mineral resources into public value, including through participation in mining projects and value addition.
The timing gives the story an added layer. In April 2025, Kilembe Mines’ assets and liabilities were formally transferred to UNMC following the dissolution of Kilembe Mines Ltd, with UNMC expected to work with Sarrai Group and Nile Fibreboard on the mine’s redevelopment. By May, the handover at Kilembe was being presented as a new chapter in reviving the historic copper-and-cobalt operation. The contrast is striking: the institution positioned to help lead Uganda’s mining revival is now having to deal with questions about its own internal governance before that revival has fully matured.
Why it matters: UNMC is not an ordinary company; it is the vehicle through which the State intends to participate commercially in a sector Uganda increasingly sees as an engine of industrialisation. Governance weaknesses at this stage therefore have implications well beyond the company itself, for Kilembe, for future mineral investments and for the credibility of Uganda’s state participation in mining.
Key takeaway: The real test for UNMC is no longer the ambition of its mandate but whether it can build the corporate discipline, technical capacity and governance systems required to execute it.
