Uganda has inaugurated its first large-scale gold mine, a $250 million Chinese-owned project in the eastern Busia district, marking a pivotal moment for the country’s mining sector.
The Wagagai Gold Mining Project, operated by Wagagai Mining (U) Limited, spans just over nine square kilometers and includes a refinery capable of producing bullion with 99.9% purity. The facility has already begun operations, processing up to 5,000 tons of ore daily and expected to yield around 1.2 metric tons of refined gold per year—a dramatic leap from Uganda’s 2023 domestic output of just 0.0042 tons.
Gold is already Uganda’s leading export, generating $3.4 billion in 2023, or about 37% of total export earnings, according to central bank data. However, most of this came from re-exports rather than domestic production. By contrast, Africa’s largest gold exporter, Ghana, earned $11.6 billion in the same period.
President Yoweri Museveni said the new mine underscores the country’s push for value addition in minerals such as gold, lithium, and tin. He stressed that revenues from the sector would be directed toward strategic projects, including power plants and railway development.
Uganda is currently building a €2.7 billion ($3.16 billion) standard gauge railway to connect to Kenya’s network, aiming to lower the cost of both exports and imports.
