Wedoany.com Report-Aug. 19, Uganda has inaugurated its first major gold mine, a significant milestone in its ambition to become a prominent gold producer and exporter. The $250 million project, located in the Busia district in eastern Uganda, is owned by Wagagai Mining (U) and spans over 9 square kilometers. The facility, recently opened by President Yoweri Museveni, is designed to refine gold to 99.9% purity.

With this new mine, Uganda aims to elevate its position in the global gold market.

The Wagagai Gold Mining Project has begun operations, processing 5,000 tonnes of gold ore daily and producing approximately 1.2 tonnes of refined gold annually. This output significantly surpasses Uganda’s 2023 domestic production of 0.0042 tonnes, which relied heavily on small-scale artisanal mining. President Museveni emphasized the importance of local processing, 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.”

Revenue from gold exports, which reached $3.4 billion last year and accounted for 37% of Uganda’s total export earnings, will support the development of national infrastructure, including power stations and a $3.1 billion standard gauge railway to enhance export and import transport through Kenya. Although this figure includes re-exported gold, it reflects the growing significance of the mineral sector in Uganda, a country rich in resources like copper, cobalt, and iron ore. In comparison, Ghana, Africa’s leading gold producer, earned $11.6 billion from gold exports last year.

Ruth Nankabirwa, Uganda’s Minister for Energy and Mineral Development, announced in October 2024 the establishment of a state-owned mining company to manage equity interests in mining operations. A 2022 mining law further supports this strategy by mandating a 15% government stake in all mining projects, aligning with regional models like Tanzania’s to maximize the benefits of mineral wealth.

The Wagagai project marks a shift toward large-scale, high-value mineral processing, reducing reliance on artisanal methods and enhancing economic contributions. By prioritizing local refining and infrastructure investment, Uganda aims to strengthen its position in the global gold market while fostering sustainable economic growth in the Busia region and beyond.