Uganda has launched its first large-scale gold mining project, a $250 million investment by Chinese-owned Wagagai Mining (U) Limited in the eastern district of Busia.
The facility, covering over nine square kilometres, includes a refinery capable of producing gold at 99.9% purity.
The plant began operations on Saturday and is designed to process 5,000 tons of ore daily, with an annual output of around 1.2 metric tons of refined gold.
This marks a dramatic increase compared to Uganda’s 2023 domestic output of only 0.0042 tons, which came mainly from artisanal miners.
Gold has become Uganda’s most valuable export commodity. In 2023, the country earned $3.4 billion from gold exports—about 37% of its total export revenue—though most of that came from re-exports.
By comparison, Africa’s top producer Ghana generated $11.6 billion from gold shipments during the same year.
President Yoweri Museveni said Uganda’s goal is to expand value addition across minerals such as gold, lithium, and tin.
He stressed that mining revenue will be directed toward national infrastructure, including power projects and the construction of a €2.7 billion ($3.16 billion) standard gauge railway aimed at lowering transport costs for trade through Kenya.
The new mine positions Uganda to shift from small-scale mining to becoming a more competitive player in Africa’s bullion industry.