Uganda’s mining sector is undergoing a significant transformation as the government implements key reforms to formalize the industry and capitalize on its abundant deposits of gold, cobalt, rare earth elements, and iron ore. With plans to boost the sector’s contribution to over 7% of GDP, Uganda is positioning itself for long-term economic growth and a vital role in supplying minerals essential for the global energy transition.
Despite Uganda’s rich mineral wealth, the mining industry has faced challenges due to political instability, underinvestment, and infrastructure issues, leading to a decline from its peak in the mid-20th century. However, with a renewed focus on regulatory reforms and rising global demand for critical minerals, the sector is set for a revival. The country has over 27 commercially viable minerals, including gold, copper, cobalt, and rare earth elements, found in regions like Karamoja, Busia, and Mubende.
Gold remains one of Uganda’s most valuable resources, with an estimated 31 million metric tonnes discovered in 2022. Despite the large discovery, further validation is required. The government has already granted licenses for part of the gold production to Wagagai Gold Mining Company, a Chinese firm investing in mining and refining operations. Gold exports surged tenfold in 2023, driven by new processors and tariff suspensions.
Beyond gold, the government aims to revive copper and cobalt mining at the Kilembe Mines, which hold substantial deposits but have remained dormant for decades. Iron ore and rare earth elements are also key to the country’s ambitions, with the Makuutu Rare Earths Project set to play a significant role in the global market.
While Uganda’s mining sector contributed 2.2% to GDP in the 2022/2023 fiscal year, its potential remains largely untapped. New legislation, such as the 2022 Mining and Mineral Act, aims to formalize artisanal and small-scale mining, increase revenue, and improve sector governance. However, challenges such as infrastructure deficits, regulatory enforcement, and illegal mining still need to be addressed for Uganda to fully realize its mining potential and drive sustainable economic growth.
