All you need to know about Gold Mining in Uganda

Explore gold mining in Uganda, from the rich deposits in Mubende to the booming market for gold. Learn about Uganda gold production, gold prices, exports, and key gold mining companies like Wagagai and Vangold. Discover the industry’s challenges, opportunities, and the Nile River’s role in this thriving sector.

Gold mining in Uganda has emerged as a significant economic driver, transforming the country into a notable player in Africa’s mineral sector.

With rich gold deposits spread across regions like Mubende, Karamoja, Busia, and Buhweju, Uganda’s gold industry is attracting both local and international investors.

Overview of Gold Mining in Uganda

Gold mining in Uganda has a rich history dating back to pre-colonial times when local communities practiced artisanal mining along riverbeds. The industry gained prominence in the 1920s, with small-scale mining operations in regions like the Buhweju basin.

By the 1950s and 1960s, mining contributed up to 30% of Uganda’s export revenue, though political instability and underinvestment caused a decline until the early 2000s.

Today, gold is a cornerstone of Uganda’s economy, accounting for approximately 30% of the country’s export revenue, with exports reaching $2.3 billion in 2023.

Uganda’s gold deposits are found in several regions, including Mubende, Karamoja, Busia, Buhweju, and Kigezi. These areas host both artisanal and small-scale mining (ASM) and large-scale commercial operations.

The country’s geological surveys, supported by the World Bank, have identified significant gold reserves, with estimates suggesting up to 31 million tonnes of gold ore, potentially yielding 320,158 tonnes of refined gold.

However, these figures are debated due to the need for further geophysical and geochemical validation.

The Nile River, particularly in regions like Mubende and Busia, plays a role in gold mining, as placer deposits (gold found in riverbeds) are common.

Artisanal miners often use panning techniques along the Nile’s tributaries, while larger operations employ mechanized methods.

The government’s efforts to formalize the sector, combined with growing global demand for gold, have positioned Uganda as an emerging gold hub in East Africa.

Gold Mining in Mubende

Gold mining in Mubende, located in central Uganda, is a cornerstone of the country’s gold industry. Mubende is renowned for its rich gold reserves, particularly in areas like Bukuya and Kisita.

The region hosts a mix of artisanal and semi-industrial mining, with an estimated 40,000–60,000 miners active before a significant eviction in 2017.

These evictions, ordered by President Yoweri Museveni, aimed to curb illegal mining and environmental damage, displacing thousands of artisanal miners in favor of licensed companies like AUC Mining.

Artisanal Mining in Mubende

Artisanal mining dominates in Mubende, with miners using rudimentary tools like pans, sluices, and shovels to extract gold from riverbeds and shallow deposits.

The Bukuya prospect, covering 202 square kilometers, is particularly active, with 60–80 artisanal workers mining over 600 meters of prospective strike.

However, artisanal miners face challenges, including lack of proper equipment, safety hazards, and limited access to licensed land.

For instance, miners like Jalia Namatovu, displaced in 2017, struggle to find viable mining sites due to restricted access and high costs for geological surveys.

Large-Scale Mining in Mubende

Large-scale mining in Mubende is growing, with companies like eMetals Limited acquiring exploration licenses, such as EL00379, to develop the Mubende Gold Project.

This project targets metasediments and deformation zones hosting gold veins, indicating significant untapped potential.

Mubende Gold Miners, a registered local company, is another key player, focusing on ethical and sustainable mining practices while collaborating with artisanal miners to improve livelihoods.

Challenges in Mubende

Mubende’s gold mining sector faces several challenges:

Environmental Degradation: Artisanal mining, often unregulated, leads to deforestation, water pollution, and land degradation. Mercury use, common in gold extraction, poses health and environmental risks.
Evictions and Conflicts: The 2017 evictions displaced thousands, creating tensions between artisanal miners and licensed companies. Miners reported losing livelihoods, with some alleging that companies like AUC Mining restricted access to water sources.
Smuggling: Mubende is a hub for illicit gold trade, with gold smuggled from neighboring countries like the Democratic Republic of Congo (DRC) passing through the region.

Despite these challenges, Mubende remains a hotspot for investment, with its rich deposits attracting companies like Simba Gold, which holds exploration permits in Kitumbi and Bukuya.

List of Gold Mining Companies in Uganda

The list of gold mining companies in Uganda includes both local and international players, reflecting the sector’s diversity. Below is a compilation of key companies operating in 2025, based on available data:

Wagagai Mining Limited: Busia, Eastern Uganda

This a Chinese-owned company, Wagagai is a major player with a $60 million investment in a gold mine and refinery in Busia. It operates in a free-port zone, exempt from import and export taxes, and is expected to create 3,000 jobs. Wagagai has discovered 30 million tonnes of gold ore in Busia’s greenstone belt.

Mubende Gold Miners: Mubende and Karamoja

This is a registered Ugandan company under the National Mining Act, specializing in high-quality gold bars, nuggets, and dust. It emphasizes ethical sourcing and community support, collaborating with artisanal miners.

Vangold: West Nile Region, Mubende, and other areas

This is a Canadian company with interests in eight mineral properties, including Mubende, through subsidiaries like African Mineral Fields Ltd. Vangold operates in the Kilo Moto goldfields, with licenses covering 287 square kilometers.

Trade Panel International Limited: Kampala, with operations in Mubende and DRC

A gold and timber production company sourcing gold from Uganda and the DRC for export to the Middle East, America, and Asia. It supports local communities through charity initiatives.

Simba Gold: Mubende (Kitumbi and Bukuya)

This is a foreign investment company with exploration permits in Mubende, focusing on both artisanal and commercial mining.

Jan Mangal: Karamoja

This is an Indian-owned company engaged in early-stage gold exploration in Karamoja, with a focus on community engagement.

Kassanda Mines: Nationwide, including Mubende

This is a Ugandan-owned company involved in artisanal and small-scale mining, supplying gold to refiners and exporters in Uganda and Kenya.

Busia Gold Refinery: Busia

While primarily a refinery, it sources gold from mines across Uganda, supporting traceable gold trade.

Gold Sales Investment Uganda (GSI): Kampala

A minerals trading company specializing in gold mining, extraction, purification, and distribution. GSI emphasizes environmental responsibility and transparency.

Entebbe Gold Mining Pty: Entebbe

A lesser-known company involved in gold mining and trading, contributing to Uganda’s export market.

These companies represent a mix of artisanal, small-scale, and large-scale operations, with international firms like Wagagai and Vangold leading in investment and production capacity.

Market for Gold in Uganda

The market for gold in Uganda is vibrant, driven by both domestic and international demand. Gold is a significant export commodity, contributing 30% of Uganda’s export revenue. The market consists of:

Artisanal and Small-Scale Mining (ASM): Over 90% of Uganda’s gold production comes from ASM, employing an estimated 190,000 people. These miners use traditional methods like panning and sluicing, often in regions like Mubende and Buhweju.
Large-Scale Mining: Companies like Wagagai and Vangold employ mechanized methods, including underground mining, to extract gold from hard rock deposits.
Gold Trading and Export: Licensed dealers and refineries, such as African Gold Refinery (AGR) in Entebbe and Busia Gold Refinery, process and export gold to markets in the United Arab Emirates, Europe, and Asia.
Domestic Demand: There is growing demand for gold jewelry in Uganda, creating opportunities for goldsmith businesses.

Challenges in the Gold Market

Illegal Mining and Smuggling: Unregulated mining and smuggling, particularly from the DRC and South Sudan, result in significant revenue losses. Kampala and Entebbe are hubs for illicit gold trade, with gold often smuggled as jewelry or via cargo planes.
Environmental Impact: Deforestation, water pollution, and mercury use in ASM harm ecosystems, particularly near the Nile’s tributaries.
Market Volatility: Global gold prices influence local markets, creating uncertainty for miners and traders.
Child Labor and Safety: Many artisanal mines employ children and lack safety measures, raising ethical concerns.

Opportunities

Value Addition: Investments in refineries and jewelry production can enhance profitability.
Government Reforms: Policies like the Mining and Minerals Bill and Uganda’s membership in the Extractive Industries Transparency Initiative (EITI) promote transparency and attract investors.
Global Demand: Rising demand for gold as a safe-haven investment drives Uganda’s export market.

Uganda Gold Production

Uganda gold production has seen significant growth in recent decades. In 2022, the country produced 3,200 kilograms of gold, up from 2,900 kilograms in 2021.

This increase reflects both artisanal and large-scale contributions, with regions like Mubende, Busia, and Karamoja leading production.

The government’s 2022 announcement of 31 million tonnes of gold ore deposits, potentially yielding 320,158 tonnes of refined gold, has sparked optimism, though experts caution that these figures require further validation.

Artisanal miners produce about 90% of Uganda’s gold, often using mercury-based methods in riverbeds near the Nile.

Large-scale projects, such as Wagagai’s mine in Busia, are expected to boost production further, with commissioning planned for 2023.

However, informal mining and smuggling obscure accurate production data, as much of the gold is exported without proper documentation.

Uganda Gold Price

The Uganda gold price is closely tied to global market rates, with local prices influenced by demand, purity, and trading conditions.

In 2021, local prices in artisanal markets like Rupa in Karamoja were around 7,000 Ugandan shillings (approximately $2.50) for 0.1 grams, significantly lower than the international price of $47.45 per gram.

This discrepancy reflects transportation costs, intermediary margins, and informal trade practices.

In 2025, gold prices in Uganda fluctuate based on the London Bullion Market Association (LBMA) benchmark. In smuggling hubs like Arua, prices are lower due to illicit trade from the DRC, while Kampala and Entebbe command higher prices as export hubs.

For example, a gram of gold in Kampala may fetch closer to international rates, around $60–$80 per gram, depending on purity and market conditions.

Uganda Gold Exports

Uganda gold exports have surged dramatically, rising from $201 million in 2022 to $2.3 billion in 2023, a tenfold increase despite U.S. sanctions on processors like African Gold Refinery. The United Arab Emirates is the primary destination, followed by Europe and Asia. Key factors driving this growth include:

New Refineries: Facilities like Wagagai’s refinery in Busia and AGR in Entebbe have increased Uganda’s refining capacity.
Tariff Suspension: The 2023 suspension of export tariffs boosted shipments.
Smuggling: A significant portion of exported gold is smuggled from the DRC and South Sudan, with Uganda serving as a regional hub.

In 2016, gold exports were valued at $514 million, a 50-fold increase over a decade. By 2019, exports reached $1.6 billion, and in 2020, Uganda earned $1.819 billion from gold exports.

However, discrepancies between domestic production (3,200 kg in 2022) and export volumes suggest that much of the gold is sourced from neighboring countries, raising concerns about conflict minerals.

The Role of the Nile River in Gold Mining

The Nile River and its tributaries play a significant role in Uganda’s gold mining, particularly in regions like Mubende and Busia. Placer gold deposits, found in riverbeds and floodplains, are extracted using panning and sluicing techniques. In Mubende, artisanal miners work along streams feeding into the Nile basin, though access restrictions by companies have limited their operations.

The Nile’s proximity to gold-rich areas facilitates transportation and processing, but environmental concerns, such as mercury contamination, threaten water quality.

Challenges and Opportunities

Challenges

Environmental Impact: Mercury use and deforestation harm ecosystems, particularly near the Nile.
Smuggling and Illicit Trade: Uganda’s role as a hub for illicit gold from the DRC and South Sudan complicates regulation.
Artisanal Miner Displacement: Evictions and lack of access to licensed land marginalize small-scale miners.
Regulatory Gaps: Informal trade and tax evasion reduce government revenue.

Opportunities

Investment Potential: Uganda’s untapped reserves and favorable policies attract investors.
Formalization: The Mining and Minerals Bill and EITI membership aim to enhance transparency and sustainability.
Value Addition: Investments in refining and jewelry production can boost profits.
Job Creation: Projects like Wagagai’s mine promise thousands of jobs.

Conclusion

Gold mining in Uganda is a dynamic and rapidly growing industry, with Mubende as a key hub due to its rich deposits and active artisanal and large-scale operations.

The list of gold mining companies in Uganda, including Wagagai, Mubende Gold Miners, and Vangold, highlights the sector’s diversity.

The market for gold in Uganda is thriving, driven by global demand and local production, though challenges like smuggling and environmental degradation persist.

Uganda gold production is increasing, with 3,200 kg produced in 2022, while Uganda gold prices align with global trends but vary locally.

Uganda gold exports, reaching $2.3 billion in 2023, underscore the country’s role as a regional gold hub, despite concerns about illicit trade.

As Uganda continues to formalize its mining sector and attract investment, the industry holds immense potential to drive economic growth and development.

By addressing environmental and social challenges, Uganda can solidify its position as a leading gold producer in Africa, leveraging its rich resources and strategic location along the Nile River to create a sustainable and prosperous future.