Uganda Opens First Large-Scale Gold Mine

Uganda has inaugurated its first large-scale gold mine in Busia, a $250 million Chinese-owned project expected to significantly boost refined gold production and fund national infrastructure projects.

Uganda has inaugurated its first large-scale gold mine, a $250 million Chinese-owned project in the country’s eastern Busia district, marking a significant step towards increasing value addition in its mineral sector. The Wagagai Gold Mining Project, officially opened by President Yoweri Museveni, will also refine the gold to 99.9 per cent purity, enhancing its competitiveness in the global market.

The plant is expected to process 5,000 tonnes of gold ore daily and produce around 1.2 metric tonnes of refined gold each year—far exceeding Uganda’s total domestic production of just 0.0042 tonnes in 2023. Gold has already emerged as the country’s leading export, generating $3.4 billion in 2023, though this figure includes re-exports of gold brought into the country, mostly from small-scale artisanal miners.

President Museveni emphasised that revenue generated from the mine will be reinvested in national infrastructure projects, including power generation initiatives and a $3.1 billion standard gauge railway connecting Uganda to Kenya. The railway is intended to reduce transportation costs for both imports and exports, further supporting economic growth and regional trade.

The government and project officials believe the Wagagai Gold Mining Project will strengthen Uganda’s position in Africa’s gold market. While the country still lags behind Ghana, the continent’s largest gold producer, the mine represents a major step in modernising Uganda’s mineral sector and boosting domestic revenue through value-added production.

Museveni said, “In order to awaken our minerals sector, we must have full value addition for all minerals, including gold, lithium, tin, and others. This project is a vital milestone in achieving that goal and ensuring that our natural resources benefit our people.”