Uganda Launches First Industrial Gold Mine as Wagagai Project Goes Live
Uganda Inaugurates Wagagai Gold Mine, Marks Entry into Large-Scale Mining
Uganda has officially launched its first industrial gold mine with the inauguration of the Wagagai project, marking a major milestone for the country’s mining sector.
Until now, Uganda had no large-scale mining operations, despite gold being a key export. Wagagai Mining (U) Limited, a wholly owned Chinese subsidiary of China Liaoning Hongda, invested $250 million to develop the mine.
The Presidency confirmed the launch on August 16, signaling Uganda’s entry into large-scale gold production.
The timing coincides with a sharp rise in global gold prices, creating a favorable market environment.
Gold prices have surged about 30% since January, reflecting last year’s overall growth, and recently traded near $3,300 per ounce.
Analysts anticipate further increases, with Goldman Sachs projecting that gold could reach $3,700 per ounce by the end of 2025.
While rising prices are expected to boost Wagagai’s revenues, the project primarily expands Uganda’s modest production base.
According to Reuters, Uganda produced only 0.0042 tonnes (135 ounces) of gold in 2023. In contrast, Wagagai aims to produce approximately 1.2 tonnes (38,500 ounces) annually. The mine is planned to operate for 21 years and is expected to create up to 5,000 local jobs.
Uganda has not yet released production forecasts for the remainder of 2025. Industry observers will closely monitor future updates to assess Wagagai’s operational performance and its impact on the country’s gold sector.
