Blessed Riverstones Uganda Limited, a Kampala-based mineral trading company, has strongly refuted recent media reports labeling it a fraudulent gold business. The company argues that these allegations stem from a lack of industry knowledge and emphasizes its commitment to transparency and legitimacy.
Company Dismisses Allegations
Mr. Jailes Bahati Mumbere, a representative of Blessed Riverstones, described the allegations as “malicious and unfounded.” He defended the company’s credibility, pointing out that Uganda’s mineral industry operates under strict government regulations.
“The government does not deal with scammers,” Mumbere stated. “Every year, the government licenses mineral dealers, goldsmiths, and those handling core minerals. This involves a rigorous vetting process, including tax compliance.”
Blessed Riverstones has been licensed for four years by the Ministry of Energy and Mineral Development. Mumbere attributed the negative reports to individuals who have been denied business partnerships due to their “questionable activities.”
Challenges Facing the Company
Mumbere highlighted multiple challenges the company has faced, including:
- Blocked exports: He claimed that some individuals have attempted to hinder the company’s gold shipments to Dubai to create complications.
- Impersonation: There have been cases of individuals falsely presenting themselves as employees of Blessed Riverstones.
To protect its reputation, the company has removed its licenses from public view to prevent exploitation.
Commitment to Ethical Mining and Community Support
Despite these challenges, Blessed Riverstones remains committed to ethical business practices. Mumbere emphasized the company’s role in supporting artisanal miners in Namayingo and Mubende.
“We assist artisanal mining groups by marketing their products, providing protective gear, and offering medical support,” Mumbere noted. Additionally, the company conducts environmental sensitization programs to promote responsible mining practices.
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Concerns Over Government Policies
Mumbere also expressed concerns about the government’s approach to supporting local traders.
“The government focuses on refineries and large corporations but overlooks local traders, who are the direct link to small-scale miners,” he explained. He also criticized the value addition policy, arguing that Uganda’s refining process does not truly add value but merely involves primary processing.
Media and Sector Growth
The company urged the media to focus on positive reporting that accurately represents Uganda’s mineral sector. Mumbere stressed the importance of marketing Uganda’s mining industry properly to attract investors and build confidence.
Uganda’s Gold Export Boom and Challenges
Uganda’s gold sector has seen remarkable growth, contributing significantly to the economy.
According to the Bank of Uganda, the country’s total export earnings in the first quarter of the 2024/25 financial year reached $2.262 billion, reflecting a 21.8% increase compared to the previous year.
Gold played a major role in this growth:
- 46,263 kilograms of gold, valued at $2.98 billion, were exported by June 2024.
- Gold now accounts for 21% of Uganda’s total exports, making it the country’s leading export commodity.
However, the industry faces tax compliance issues. Only 9.74% of assessed taxes (Shs3.39 billion) have been paid, leaving a tax gap of Shs31.38 billion.
The government has pledged to address these challenges by enhancing gold processing to maximize revenue from Uganda’s estimated $620 billion mineral wealth.
Final Word
Blessed Riverstones Uganda Limited maintains that it operates within the law and remains committed to ethical business practices. Meanwhile, the Ministry of Energy and Mineral Development has assured the public that it takes all allegations of misconduct in the mining sector seriously and will investigate any claims accordingly.
