Uganda has taken a major step toward industrializing its mineral sector with the commissioning of the Wagagai Gold Mining Project in Busia District.
The state-of-the-art refinery is capable of producing 99.99% pure gold, a milestone that government leaders say will reduce the wasteful export of raw minerals and maximize local value addition.
President Yoweri Kaguta Museveni described the project as transformative, noting that for decades Uganda exported raw minerals like copper and gold without significant local processing.
“When you export unprocessed minerals, you are cheating Uganda, now, Uganda will get more money because we are refining our resources locally,” he said.
The President applauded Wagagai Mining (U) Co., Ltd. for fully processing gold and called on artisanal miners to collaborate with the refinery. Refined gold, he noted, can be used in industries such as jewellery, electronics, and technology, creating higher economic value and employment.
“This mineral money must give us permanent and durable assets,” President Museveni emphasized, urging that profits from non-renewable resources, including minerals and oil, be invested in infrastructure such as power stations and railways.
The government’s approach aligns with a broader strategy to ensure full value addition for all minerals, including gold, lithium, and tin. According to the President, this approach not only increases revenue but also creates jobs and stimulates energy consumption, further supporting industrial growth.
Chinese Support and Investment
H.E. Zhang Lizhong, Ambassador of China to Uganda, highlighted the project as a symbol of China–Uganda cooperation and a driver of industrial progress. He commended the conducive investment environment that has allowed Chinese companies to thrive in Uganda.
Hon. Ruth Nankabirwa, Minister of Energy and Mineral Development, said the Wagagai Gold Mining Project reflects government objectives of promoting local value addition and employment creation. She emphasized that the refinery’s capacity to produce 99.99% pure gold was made possible by recent regulatory reforms supported by Parliament.
Investment, Jobs, and Local Impact
The General Manager of Wagagai Gold Mining, Tan Jiuchang, described the USD 150 million Phase I investment as the foundation for a larger USD 250 million project aimed at creating Uganda’s largest and most technologically advanced gold mine. Phase I alone has created over 2,000 jobs and sets a benchmark for industrial development in the country.
“Busia, long known as the cradle of artisanal miners, now has a refinery that can improve livelihoods and provide training for hundreds of Ugandans,” Juichang said. He encouraged artisanal miners to register and collaborate with the refinery to access income and technical skills.
Project Scope and Economic Contribution
Located in Alupe, Busia District, the Wagagai Gold Mine spans 9.224 square kilometers with proven reserves of 30 million tons of gold ore averaging 0.8–1 gram per ton, supporting 20 years of continuous production.
Once fully operational, the mine will process 5,000 tons of ore daily, or 1.5 million tons annually, producing approximately 1.2 tons of refined gold each year at 99.99% purity.
The refinery is projected to contribute around USD 10 million in annual tax revenue, create more than 5,000 jobs, and train over 500 skilled Ugandans, positioning Uganda as a key player in gold value addition in the region.
Looking Ahead
The Wagagai Gold Mining Project marks a significant milestone for Uganda’s mineral sector, showcasing the potential of local processing to generate wealth, employment, and industrial growth. By linking artisanal miners with state-of-the-art refining capacity, the project sets a precedent for sustainable resource management and industrialization that can benefit Uganda for decades to come.