Gold Mining in Uganda: Locations, Companies & Laws

Discover gold mining in Uganda, major gold deposits, mining areas, companies, regulations, and investment opportunities.

Gold mining in Uganda plays a growing role in the country’s mineral sector, with commercial and artisanal operations spread across several regions.

From historic goldfields in Busia to modern exploration projects in Karamoja and Mubende, Uganda is steadily positioning itself as a key gold producer in East Africa.

As global gold prices continue to rise—reaching over $3,500 per ounce in late 2025—Uganda’s gold deposits are attracting increased attention from investors and buyers.

This industry not only contributes significantly to the national economy through exports but also supports livelihoods for thousands in rural areas. However, it faces challenges like environmental concerns and regulatory hurdles.

In this comprehensive guide, we explore the history, key locations, methods, companies, regulations, and future prospects of gold mining in Uganda, providing valuable insights for investors, buyers, and those interested in the sector’s development.

History of Gold Mining in Uganda

The history of gold mining in Uganda dates back to the colonial era, when British explorers and administrators first identified mineral potential in the region. Artisanal mining began in earnest during the 1920s, with the discovery and establishment of several colonial gold and tin mines across southwestern Uganda.

These early operations were small-scale, relying on basic tools and local labor, and focused on areas like Kigezi and Buhweju. Gold was extracted alongside other minerals, but production remained limited due to rudimentary technology and infrastructure.

Following Uganda’s independence in 1962, the sector experienced a decline. Political instability, including the turbulent years under Idi Amin in the 1970s, led to the abandonment of many mines.

Widespread extralegal gold mining persisted until 1986, when the National Resistance Movement (NRM) under President Yoweri Museveni came to power.

Museveni introduced licensing reforms to formalize the industry, marking the beginning of a revival. However, large-scale mining remained absent, with most activities dominated by artisanal and small-scale miners (ASGM).

The early 2000s saw renewed interest through modern exploration techniques, driven by rising global gold prices. In 2012, a mapping study highlighted potential in areas like Mubende, where informal mining had thrived.

A major turning point came in 2022 with the announcement of approximately 31 million metric tonnes of gold ore deposits, primarily in Karamoja, sparking international interest—though estimates of their value, sometimes inflated to $12 trillion, have been debated for feasibility.

By 2025, Uganda inaugurated its first large-scale gold mine, the Wagagai project in Busia, signaling a shift toward industrialized operations and greater economic integration.

This evolution from colonial-era discoveries to contemporary revival underscores gold’s enduring importance in Uganda’s mineral history.

Major Gold Mining Areas in Uganda

Uganda’s gold deposits are scattered across the country, with concentrations in the east, central, and southwest regions. These areas form part of the broader East African gold belt, characterized by ancient geological formations rich in minerals. Below is a table summarizing key gold mining districts, their locations, and notable features:

District/Region	Key Sites	Notable Features
Busia District	Tiira, Amonikakinei, Wagagai	Home to Uganda’s first large-scale mine; high-grade deposits; artisanal and industrial operations.
Mubende District	Kamalenge, Kisita, Mubende Gold Belt	Historic artisanal sites; recent formalization efforts; significant ore reserves.
Karamoja Region	Moroto, Nakapiripirit, Amudat	Vast untapped reserves; remote, arid terrain; community-based mining.
Buhweju District	Buhweju Goldfields	Southwestern hub; alluvial and hard-rock mining; long history of small-scale extraction.
Kassanda District	Kayonza, Kitumbi	Artisanal cooperatives; mercury-free initiatives; environmental rehabilitation projects.
Kigezi Region	Kigezi Mines	Colonial-era sites; tin-gold associations; emerging exploration.
Kitgum & Lamwo	Northern Sites	Emerging areas; conflict-affected past; potential for large deposits.
Ibanda District	Southwestern Fields	Small-scale operations; health and environmental impacts noted.

Gold Mining Methods in Uganda

Gold mining in Uganda encompasses a range of techniques, from traditional artisanal methods to modern industrial processes. Artisanal and small-scale gold mining (ASGM) dominates, involving manual labor with tools like picks, shovels, and pans.

In ASGM, miners often use sluicing boxes to separate gold from sediment in rivers or dig shallow pits in alluvial deposits. Mercury amalgamation has been common for binding gold particles, though efforts to phase it out by 2030 are underway due to health risks.

Small-scale mining in Uganda also includes semi-mechanized operations, such as using crushers and ball mills for hard-rock extraction. Open-pit mining is prevalent in areas like Busia, where large excavators remove overburden to access ore veins. Underground mining, though less common, occurs in deeper deposits in Mubende, involving shafts and tunnels for vein tracking.

Modern exploration techniques, introduced in recent years, include geophysical surveys, drilling, and satellite imagery to identify reserves.

The Wagagai mine exemplifies large-scale methods, employing heap leaching and carbon-in-leach processing for efficient gold recovery.

These advancements aim to boost yields while reducing environmental impact, aligning with global standards for sustainable mining.

Gold Production & Export in Uganda

Uganda’s gold production has surged in recent years, driven by both domestic mining and regional trade dynamics. Official production stood at around 3,200 kilograms in 2023, but this figure underrepresents the sector due to informal activities.

By 2025, the inauguration of the Wagagai mine is projected to add 1.2 tonnes annually, pushing total output higher. Estimates suggest artisanal mining contributes significantly, with total production potentially exceeding 5 tonnes when including unregulated sources.

Exports have been a major economic driver. In 2024, Uganda earned $3.4 billion from gold exports, accounting for about 37% of total export revenue. By October 2025, receipts had tripled year-over-year to nearly $964.6 million in a single month, fueled by global price rallies.

Over 11 months to October 2025, exports reached $5.21 billion, with volumes up to 180,000 kilograms. Key destinations include the United Arab Emirates, India, and Europe, positioning Uganda as a regional gold trading hub.

Much of this involves re-exported gold from neighboring countries like the Democratic Republic of Congo and South Sudan, refined in facilities like the new $250 million Wagagai refinery. Gold plays a crucial role in foreign exchange earnings, stabilizing the Ugandan shilling and funding infrastructure projects.

Gold Mining Companies in Uganda

Uganda’s gold mining landscape features a mix of local cooperatives, foreign investors, and emerging firms. Licensed companies must adhere to government requirements, distinguishing between miners (extraction-focused) and traders (export-oriented). Key players include:

• Wagagai Mining (U) Limited: A Chinese-owned entity operating the country’s first large-scale mine in Busia. With $250 million invested, it processes 5,000 tonnes of ore daily and employs over 3,000 people.
• Rwenzori Rare Metals: Focuses on exploration in southwestern regions, targeting gold and rare earths.
• Savanah Minerals: Involved in artisanal formalization and small-scale operations in Mubende.
• Kitumbi-Kayonza Miners Association: A cooperative in Kassanda, emphasizing mercury-free mining and community benefits.
• Mubende United Miners Assembly: Recently licensed for small-scale mining, representing artisanal groups.
• Vangold Resources Limited: A development-stage explorer with interests in oil-gas crossover.
• Other notables: Greatrock Ltd, Goldensacks Limited, Africa Goldmines, Oguttu Mining and Gold Export. Refineries like those in Entebbe handle processing, with government licensing ensuring compliance. Foreigners can invest via joint ventures, subject to approval from the Ministry of Energy and Mineral Development.

Legal Framework & Regulations

The legal backbone of Uganda’s gold mining is the Mining and Minerals Act of 2022, which replaced outdated laws to attract investment and promote sustainability.

Administered by the Ministry of Energy and Mineral Development, it categorizes licenses: exploration (up to 7 years), small-scale (5 years), and large-scale (21 years). Applicants must demonstrate environmental impact assessments (EIAs), community consultations, and financial capability.

Gold export requires permits from the Directorate of Geological Survey and Mines, including certificates of origin to combat smuggling. Recent 2025 directives restrict trading to licensed dealers, with the Bank of Uganda entering the market to formalize a UGX 20 trillion sector.

Environmental regulations mandate rehabilitation of sites, while value-addition policies ban unprocessed mineral exports. Challenges in enforcement persist, but reforms aim for transparency via the Mining Cadastre Portal.

Environmental & Social Impact

Gold mining in Uganda has profound environmental and social implications. Artisanal practices often involve mercury, contaminating water sources and soils in areas like Busia and Kassanda.

Abandoned pits breed mosquitoes, increasing malaria risks, while deforestation scars landscapes. In Ibanda, heavy metal pollution affects health, causing respiratory issues and birth defects.

Socially, mining provides livelihoods for over 200,000 people but exposes workers to hazards like cave-ins and child labor. Communities benefit from income but face land disputes and displacement.

Government and NGO interventions, such as planetGOLD’s mercury-free programs, promote safer practices and rehabilitation. Balancing growth with sustainability is key.

Challenges Facing Gold Mining in Uganda

The sector grapples with illegal mining and smuggling, which undermine revenues and fuel conflicts. Infrastructure deficits, like poor roads in Karamoja, hinder access. Artisanal miners face eviction by industrial firms, exacerbating poverty.

The 2030 mercury ban poses adaptation challenges, while corruption delays licensing. Environmental degradation and health risks further complicate operations.

Opportunities & Future of Gold Mining in Uganda

Despite challenges, opportunities abound. Untapped reserves in Karamoja offer investment potential, with the Wagagai mine creating 3,000 jobs and generating $100 million yearly. Government reforms, including value-addition, aim for a tenfold growth.

Global demand, especially in 2025’s high-price environment, favors exports. Events like African Mining Week 2025 highlight prospects. Future growth lies in sustainable tech and foreign partnerships.

FAQ about gold mining in Uganda

Is gold mining legal in Uganda? Yes, with proper licenses from the Ministry of Energy.

Where is most gold found in Uganda? Primarily in Busia, Mubende, and Karamoja.

How much gold does Uganda produce annually? Around 3-5 tonnes officially, with exports implying higher volumes.

Can foreigners invest in gold mining in Uganda? Yes, through joint ventures and approved licenses.

Is Uganda gold real and certified? Yes, certified exports meet international standards, though buyers should verify sources.