Uganda Launches First Large-Scale Gold Mine to Boost Export Revenue

Wagagai Gold Project Marks Major Shift in Uganda’s Mining Sector

Uganda has officially launched its first large-scale gold mine, a $250 million project owned by Chinese-backed Wagagai Mining (U) Limited. The mine, located in the Busia district, signals a major milestone for Uganda’s ambitions to become a competitive player in Africa’s gold export market. The facility will refine gold to 99.9% purity—elevating Uganda’s value-added exports and decreasing its reliance on artisanal mining.

The Wagagai Gold Mining Project covers over nine square kilometers and aims to process 5,000 tons of ore per day. The expected annual output is 1.2 metric tons of refined gold—an exponential leap from Uganda’s 2023 domestic production of just 0.0042 tons. The move aligns with President Yoweri Museveni’s call for full value addition across strategic minerals such as gold, lithium, and tin.

In 2023, Uganda earned $3.4 billion from gold exports, which accounted for 37% of total export revenue. However, much of that figure came from re-exported gold. With this new large-scale project, Uganda plans to significantly increase domestic gold output, bringing it closer to African heavyweights like Ghana, which earned $11.6 billion in gold exports last year.

Large-Scale Gold Mine in Uganda to Support Infrastructure and Trade

Uganda’s first large-scale gold mine will serve more than just the mining sector—it will fuel national infrastructure projects. President Museveni stated that gold export revenue will help fund key development assets such as power stations and a $3.16 billion standard gauge railway. This railway will cut transport costs for exports moving through Kenya’s ports.

The refinery’s 99.9% purity standard positions Uganda as a premium supplier in global gold markets. Meanwhile, its increased local processing capacity reduces dependence on foreign refineries, boosting the country’s mining self-sufficiency. Museveni emphasized that value addition is the key to unlocking the sector’s full economic potential.

Moreover, the strategic location of the Wagagai project in the mineral-rich east complements Uganda’s broader goals. The nation also holds reserves of copper, cobalt, and iron ore, which remain underdeveloped. With the successful launch of the gold plant, confidence in Uganda’s mining governance and industrial vision will likely grow among international investors.

SuperMetalPrice Commentary:

Uganda’s entry into large-scale gold mining marks a strategic shift from artisanal operations to industrial-scale production. The Wagagai project enhances national value addition, infrastructure development, and export diversification. While the country still lags behind gold giants like Ghana, this launch is a critical first step. As global gold demand remains high—especially for safe-haven assets and electronics—Uganda’s move may attract further foreign investment in battery materials and precious metals. For metals markets, it signals a new player rising on the African map.