Uganda has officially opened its first large-scale gold mine, a $250 million project backed by a Chinese company, marking a big step for the country’s mining industry. The new mine is located in the eastern part of the country and has facilities to refine gold to 99.9% purity.
This is a major development because gold is already Uganda’s biggest source of foreign income. Last year, gold exports brought in about $3.4 billion, which made up nearly 37% of the country’s total export earnings.
However, most of that gold was re-exported, as local production was very small and mostly done by artisanal miners. In 2023, Uganda’s total gold output was only 0.0042 tons.
The new plant changes that. It can process 5,000 tons of ore every day and is expected to produce 1.2 metric tons of refined gold every year. This means Uganda will move from being a small player to a serious gold producer in Africa.
President Yoweri Museveni said the government wants to stop exporting raw minerals and instead add value within the country. This will create more jobs, boost the economy, and ensure Uganda benefits fully from its natural resources.
Museveni also announced that money from gold exports will help fund major infrastructure projects like new power plants and the $3.16 billion Standard Gauge Railway, which will reduce transport costs for goods going in and out of Uganda through Kenya.
The project shows Uganda’s determination to grow its mining sector and compete with Africa’s top gold producers like Ghana, which earned $11.6 billion from gold in 2023.
