Uganda Steps Up Gold Production with New Mining Investments

Uganda has officially opened its first large-scale gold mining and refining operation, the operation is expected to increase the country’s mineral value addition and strengthen its role in the global gold markets.The Wagagai Gold Mining Project, located in Busia district is expected to shift the country’s small-scale artisanal mining operations to industrial-level gold production.

Advanced Facilities and Production Capacity

Owned by Wagagai Mining (U) Limited, the project spans just over nine square kilometers and includes advanced mining, processing, and refining facilities. The plant currently processes 5,000 tons of gold ore daily, producing up to 1.2 metric tons of refined gold annually at 99.9% purity a huge leap from Uganda’s official domestic gold output of just 0.0042 tons in 2023.

President Yoweri Museveni attended the inauguration and called the project a “new era” for Uganda’s mining industry.

“To unlock the full potential of our minerals sector, we must add value to all our minerals, including gold, lithium, and tin,” he said, stressing the government’s plan to generate more revenue through local refining and processing.

Economic Significance and Ghana Comparison

Gold has become Uganda’s leading export. In 2024, the country earned $3.4 billion from gold, nearly 37% of total export revenue, according to central bank data. Most of this came from re-exports, while domestic production remained dominated by small-scale miners.

The Wagagai project will increase direct gold exports, improve transparency, enforce environmental standards, and create formal jobs. Although Uganda’s projected output of 1.2 metric tons is modest compared with Ghana, Africa’s top gold producer, which produces around 158 metric tons annually, the project represents a major step for Uganda. Officials believe industrial projects like Wagagai could help the country narrow the gap with major producers over time.

Infrastructure and National Development

The project has delivered critical infrastructure, including access roads, electricity supply, and worker housing. Museveni also stated that revenue from gold exports will fund power generation and railway development, including the ongoing ($3.16 billion) standard gauge railway, which will lower transport costs for imports and exports via Kenya.

Industrialization and Regional Potential

Wagagai represents a turning point for industrialization. The project will raise national gold output 286-fold, moving the country from artisanal operations to structured industrial mining.

Analysts note the timing aligns with strong global demand and stable gold prices expected in 2025. Wagagai will generate jobs, build skills, and strengthen Uganda’s position as an emerging African gold producer. It could also serve as a blueprint for developing other critical minerals, including copper, cobalt, and lithium.