Uganda has officially launched its first large-scale gold mine, a $250 million project owned by a Chinese company. The project, located in the Busia district in eastern Uganda, is a significant milestone in Uganda’s plan to expand its mining industry and boost earnings from the industry.
The Wagagai Gold Mining Project, operated by Wagagai Mining (U) Limited, was commissioned on Saturday by President Yoweri Museveni.
The mine will refine the bullion to 99.9% purity, which aligns with the government’s push for value addition to its mineral resources instead of exporting them in raw form.
It is expected to process about 5,000 tons of gold ore daily, with an annual output of 1.2 metric tons of refined gold.
President Museveni noted the new facility marks a major shift in Uganda’s management of its vast mineral resources, noting that exporting raw materials results in substantial revenue losses for the nation.
“I commissioned the Wagagai gold mining project in Busia District today, celebrating a significant step towards processing minerals in Uganda. Under my leadership, we will not export unprocessed minerals, as this undermines our economy,” President Museveni noted in a statement on X
Uganda has vast natural resources, including lithium, iron, and gold. By adding value to these resources, the East African country can create jobs and industrialize.
According to President Museveni, the new facility will create over 5,000 jobs once fully operational. The President also noted that the project is projected to generate over $100 million annually for 21 years.
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