The first large-scale gold mine in Uganda has opened, marking a significant step towards the country’s goal of becoming a key gold producer and exporter.
The $250m Chinese-owned project, located in the east of Uganda, is set to refine gold to 99.9% purity, as per the announcement from the president’s office, reported Reuters.
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President Yoweri Museveni emphasised the importance of value addition, stating: “In order to wake up in the minerals sector, we must have full value addition for all minerals like gold, lithium, tin, among others.”
The Wagagai Gold mining project, owned by Wagagai Mining (U), spans more than 9km² in the Busia district and was recently inaugurated by Museveni.
The plant, which has commenced operations, is set to process 5,000 tonnes (t) of gold ore per day and produce approximately 1.2t of refined gold annually.
This output starkly contrasts with Uganda’s total domestic production of just 0.0042t in 2023.
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By GlobalDataMuseveni also outlined plans to utilise the revenue from gold exports to develop national assets including power stations and the country’s railway infrastructure.
Uganda is currently constructing a $3.1bn (Ush11.03trn) standard gauge railway to facilitate cheaper transport of exports and imports via Kenya.
The landlocked East African nation is already rich in minerals such as copper, cobalt and iron ore.
According to central bank data, gold exports brought in $3.4bn for the nation last year, accounting for around 37% of Uganda’s total export revenue.
This figure includes the re-export of gold imported into the country as domestic production has been primarily from small-scale artisanal miners.
Despite the rise in gold export earnings, Uganda still trails behind Africa’s top gold producer, Ghana, which earned $11.6bn (125.8bn cedis) from gold exports last year.
In October 2024, Uganda’s Minister for Energy and Mineral Development, Ruth Nankabirwa, announced the formation of a state-owned mining company to manage equity interests in mining operations.
Furthermore, a new mining law enacted in 2022 allows the Ugandan Government to take a mandatory 15% free carry stake in all mining operations within the country.
The establishment of the state-owned mining company is part of Uganda’s strategy to harness its mineral wealth, following in the footsteps of its neighbour Tanzania.
