Uganda Launches First Large-Scale Gold Mine with $250M Chinese Investment
Uganda Opens $250 Million Gold Mine to Boost Exports and Mining Industry
Uganda has officially inaugurated its first large-scale gold mine, a $250 million Chinese-owned project located in the eastern Busia district.
The Wagagai Gold Mining Project will also refine bullion to 99.9% purity, according to a statement from the president’s office.
The landlocked East African nation, endowed with minerals such as copper, cobalt, and iron ore, is seeking to expand its mining sector and establish itself as a leading gold producer and exporter.
In 2023, Uganda earned $3.4 billion from gold exports—about 37% of its total export revenue—according to central bank data.
Much of this revenue came from re-exports, as the country’s domestic production was largely limited to small-scale artisanal mining.
By comparison, Africa’s top gold producer, Ghana, earned $11.6 billion from gold shipments in the same year.
“In order to wake up in the minerals sector, we must have full value addition for all minerals like gold, lithium, and tin, among others,” President Yoweri Museveni said in a statement released Saturday.
Covering just over nine square kilometers, the Wagagai project is owned by Wagagai Mining (U) Limited.
The facility has already begun operations and is expected to process 5,000 tons of ore per day, producing around 1.2 metric tons of refined gold annually. This marks a major leap from Uganda’s 2023 domestic output of just 0.0042 tons.
President Museveni emphasized that revenue from gold exports will be channeled into strategic infrastructure projects, including power stations and railway development.
Uganda is currently building a €2.7 billion ($3.16 billion) standard gauge railway to reduce transport costs for exports and imports via neighboring Kenya.
