Uganda has inaugurated its first large-scale gold mine, a $250 million Chinese-owned project in the eastern Busia district that will also refine bullion to 99.9% purity. The Wagagai Gold Mining Project, spanning just over nine square kilometres and owned by Wagagai Mining (U) Limited, is expected to process 5,000 tons of gold ore per day, producing roughly 1.2 metric tons of refined gold annually.

President Yoweri Museveni said the revenue generated from gold exports will be used to develop critical infrastructure, including power stations and the country’s ongoing railway projects. Uganda is currently constructing a €2.7 billion ($3.16 billion) standard gauge railway aimed at reducing the cost of transporting exports and imports through neighbouring Kenya.

Uganda, a landlocked East African country, has significant mineral resources including copper, cobalt, and iron ore, and is seeking to position itself as a major gold producer and exporter. Last year, gold exports raised $3.4 billion, equivalent to about 37% of the country’s total export revenue, though the majority of domestic output still comes from small-scale artisanal miners.

Despite the increase in export earnings, Uganda remains far behind Africa’s largest bullion producer, Ghana, which recorded $11.6 billion in gold shipments last year. The launch of the Wagagai project marks a key step in the country’s ambition to scale up mining operations and refine more of its production domestically.