(Busia) – Uganda’s gold mining industry is set for a significant boost following the groundbreaking ceremony of a major project in Busia district. The new venture, led by the Chinese company Wagagai, will tap into what is now considered Uganda’s largest quantified gold deposit, estimated at 12.5 tonnes of recoverable gold. The project, according to the Uganda Investment Authority (UIA), is expected to drive substantial economic growth, with an initial investment of USD 50 million.
This development is anticipated to have a transformative impact on the local economy, creating approximately 3,000 direct jobs for Ugandans. The UIA noted that the project has the potential to foster regional development, with an emphasis on providing job opportunities and technological skills to the local workforce.
As the largest gold deposit identified in Uganda to date, the Busia gold project marks a major milestone for the country’s mining sector. The substantial size of the deposit positions it as a critical player in Uganda’s broader economic strategy, aimed at diversifying its export base and increasing foreign exchange earnings.
The UIA, which promotes foreign investment in Uganda, has underscored the importance of compliance with local laws and regulations throughout the project’s development. It has also stressed the need for Wagagai and other stakeholders to prioritize community development and environmental sustainability as the project progresses.
Wagagai’s initial investment of USD 50 million will support the construction of mining infrastructure, including a beneficiation plant for processing gold. The company aims to extract gold in a way that minimizes environmental impact while maximizing the positive economic outcomes for Uganda.
Table: Key Highlights of Busia Gold Mine Project
| Project Aspect | Details |
|---|---|
| Total Gold Deposit | 12.5 tonnes |
| Initial Investment | USD 50 million |
| Direct Jobs Created | 3,000 |
| Investor | Wagagai |
| Expected Contribution | Job creation, economic growth |
