Introduction: Uganda's Golden Potential
Gold has been mined in Uganda for over a century, yet the country's full gold potential remains largely untapped. From the artisanal prospectors who first panned alluvial gold in the streams of eastern Uganda in the 1920s to the commissioning of the Wagagai Gold Mine in Busia — the country's first large-scale gold processing facility — Uganda's gold story is one of gradual awakening to an extraordinary geological endowment.
Today, gold dominates Uganda's mineral exports, generating billions of dollars in revenue and attracting the attention of international mining companies, investors, and governments alike. The discovery of an estimated 31 million tonnes of gold ore across multiple regions has catapulted Uganda into the global spotlight as one of Africa's most promising gold frontiers. Yet the sector remains at an early stage of industrial development, with the vast majority of gold production still coming from artisanal and small-scale operations.
This article traces the history of gold mining in Uganda, examines the current state of the industry, profiles the key gold-bearing regions, and assesses the future outlook for gold investment in one of East Africa's most geologically diverse countries.
A Brief History of Gold Mining in Uganda
The Early Years: 1920s-1960s
Gold mining in Uganda dates back to the colonial era. In the 1920s and 1930s, British prospectors and local miners began extracting alluvial gold from riverbeds and stream channels in the Busia and Buhweju districts. These early operations were rudimentary — relying on panning, sluicing, and simple gravity separation methods — but they confirmed the presence of significant gold mineralisation in Uganda's geological formations.
During the 1930s and 1940s, more systematic exploration began, led by the colonial Geological Survey Department. Small-scale hard rock mining operations were established at several locations, including the Tira and Mashonga mines in Busia district and workings in the Buhweju area of western Uganda. Annual gold production during this period was modest by global standards, typically ranging from a few hundred to a few thousand ounces per year, but it established the geological knowledge base that would inform future exploration.
The period immediately following Uganda's independence in 1962 saw a continuation of small-scale gold mining, primarily by artisanal operators. However, the political instability and economic disruption of the 1970s and 1980s — particularly during the Idi Amin era — severely curtailed formal mining activity across all mineral commodities, including gold.
Revival and Reform: 1990s-2010s
The restoration of political stability under the National Resistance Movement government in the late 1980s set the stage for a gradual revival of Uganda's mining sector. The enactment of the Mining Act 2003 provided a modern legal framework for mineral rights administration, and the establishment of the Directorate of Geological Survey and Mines (DGSM) as the principal regulatory body brought renewed institutional capacity to the sector.
During the 2000s and 2010s, a growing number of exploration companies — both local and international — began acquiring mineral rights and conducting systematic exploration across Uganda's gold-bearing regions. Modern exploration techniques including geochemical sampling, airborne and ground geophysical surveys, and diamond drilling were deployed for the first time in many areas, revealing gold mineralisation far more extensive than previously recognised.
This period also saw a dramatic expansion of artisanal gold mining, driven by rising global gold prices and limited formal employment opportunities in rural areas. Tens of thousands of Ugandans entered artisanal mining, particularly in Karamoja, Mubende, Busia, and Kassanda districts. While this activity brought economic benefits to impoverished communities, it also raised serious concerns about environmental degradation, mercury use, child labour, and revenue loss to the state.
The Modern Era: 2020s and Beyond
The 2020s have marked a turning point for Uganda's gold sector. Several developments have converged to transform the country from an artisanal gold producer into an emerging industrial gold mining jurisdiction:
- The discovery of an estimated 31 million tonnes of gold ore across multiple regions, announced by the DGSM following extensive geological surveys
- The commissioning of the Wagagai Gold Mine in Busia — Uganda's first modern, large-scale gold processing plant — marking the beginning of industrial gold production
- The enactment of the Mining and Minerals Act 2022, which provides a comprehensive regulatory framework for responsible gold mining development
- Significant growth in gold export revenue, reaching an estimated $3.4 billion in 2024 — making gold Uganda's most valuable mineral export by a wide margin
- Increased interest from international mining companies and investors attracted by Uganda's geological potential and improving regulatory environment
Key Gold-Bearing Regions
Uganda's gold mineralisation is distributed across several distinct geological belts and regions, each with its own geological characteristics, mineralisation styles, and development potential.
Karamoja Region (Northeastern Uganda)
The Karamoja region, encompassing the districts of Moroto, Kaabong, Kotido, Abim, and Napak, is one of Uganda's most mineralised areas and holds significant gold potential. The region's geology is dominated by Precambrian rocks of the Mozambique Belt, which host a variety of gold mineralisation styles including orogenic gold in shear zones, quartz vein-hosted gold, and alluvial deposits in river systems.
Gold exploration in Karamoja has historically been limited by the region's remoteness, challenging terrain, and security concerns. However, improved security conditions and infrastructure development in recent years have opened the region to more systematic exploration. Several companies now hold exploration licenses in Karamoja, and early results suggest the presence of substantial gold resources waiting to be defined through modern exploration programmes.
The Karamoja region also hosts significant deposits of other minerals, including marble, limestone, chromite, and gemstones, creating opportunities for diversified mineral development.
Mubende and Kassanda Districts (Central Uganda)
The Mubende-Kassanda gold belt in central Uganda has attracted widespread attention due to the scale of artisanal gold mining activity in the area. Thousands of artisanal miners operate across multiple sites, extracting gold from weathered rock and alluvial deposits using basic tools and rudimentary processing methods.
Geologically, the gold mineralisation in Mubende and Kassanda is associated with the Buganda-Toro Supergroup, a Palaeoproterozoic metasedimentary and metavolcanic sequence that hosts gold in quartz veins, shear zones, and disseminated sulphide mineralisation. The area's geology shares characteristics with some of Africa's most prolific gold belts, suggesting potential for discovery of large-scale deposits beneath the weathered surface layer exploited by artisanal miners.
Several exploration companies are active in the Mubende-Kassanda area, conducting drilling programmes to test the depth and grade continuity of the near-surface gold occurrences. ALOM Mining & Geohydro Services has been involved in gold exploration work in the Kassanda area, supporting clients with geological mapping, geochemical sampling, and mineral exploration services to define gold targets for further investigation.
Busia District (Eastern Uganda)
Busia district, located along the Kenyan border in eastern Uganda, is the country's oldest and best-known gold mining area. Gold has been mined here since the 1920s, and the district remains the centre of Uganda's most developed gold mining infrastructure.
The gold mineralisation in Busia is hosted within the Busia-Kakamega greenstone belt, a Neoarchaean to Palaeoproterozoic volcanic-sedimentary sequence that extends across the Uganda-Kenya border. Gold occurs in banded iron formations (BIF), quartz veins, and shear zone-hosted deposits. The geological setting is analogous to the greenstone belts of West Africa and the Witwatersrand Basin of South Africa, which host some of the world's largest gold deposits.
The Wagagai Gold Mine, operated by a Chinese-Ugandan joint venture, was commissioned in Busia district and represents Uganda's first step toward industrial-scale gold production. The mine employs modern processing technology including crushing, milling, gravity separation, and carbon-in-leach (CIL) circuits to extract gold from both hard rock and tailings material.
ALOM has supported gold exploration clients in the Busia area, including work with Acuration Gold, providing mining services and technical expertise to advance gold projects through the exploration and evaluation stages.
Buhweju District (Western Uganda)
Buhweju district in western Uganda hosts some of the most geologically promising gold occurrences in the country. The area's gold mineralisation is associated with Proterozoic metasedimentary rocks of the Karagwe-Ankole Belt, which extends across western Uganda into Rwanda, Burundi, and the eastern Democratic Republic of Congo.
Gold in Buhweju occurs in quartz-vein systems, shear zones, and alluvial deposits derived from the erosion of primary gold-bearing rocks. Historical artisanal mining in the area has been extensive, and geological surveys have identified multiple prospective targets for systematic exploration. The mineralisation style is consistent with orogenic gold deposits — a deposit type that accounts for a significant proportion of global gold production and includes many world-class mines.
Kitgum and Acholi Region (Northern Uganda)
The Acholi sub-region, particularly Kitgum district in northern Uganda, has emerged as a new gold exploration frontier. The region's geology includes Archaean and Palaeoproterozoic rocks with known gold occurrences that have received limited modern exploration attention.
ALOM Mining & Geohydro Services has been involved in gold exploration work in the Kitgum area through our engagement with Acholi Resources, providing geological mapping, geophysical surveys, and mineral exploration technical services to identify and evaluate gold targets. The results of this work have confirmed the presence of gold mineralisation and identified priority areas for follow-up drilling.
The Acholi region represents one of Uganda's least explored gold provinces, and the application of modern exploration techniques is expected to reveal new gold occurrences and potentially significant deposits.
Current Production and Export Revenue
Uganda's gold sector has experienced remarkable growth in recent years, driven by both increased artisanal production and the emergence of semi-industrial and industrial operations.
Production Statistics
Gold production in Uganda comes from three primary sources:
- Artisanal and small-scale mining (ASM) — estimated to account for the majority of Uganda's domestic gold production, with tens of thousands of miners active across the country's gold-bearing regions
- Semi-industrial operations — a growing number of small to medium-sized companies using mechanised equipment and basic processing facilities to extract and concentrate gold ore
- Industrial mining — the Wagagai Gold Mine and a small number of other emerging industrial operations applying modern mining and processing technology
Precise production figures for Uganda's gold sector are difficult to determine due to the dominance of informal artisanal mining and the challenges of tracking gold flows through informal channels. However, government and industry estimates indicate that Uganda's total annual gold production has increased significantly over the past decade.
Export Revenue
Gold export revenue has become a major component of Uganda's trade balance. In 2024, Uganda's gold exports were estimated at approximately $3.4 billion, making gold the country's most valuable mineral export by a substantial margin. This figure reflects both domestically produced gold and gold transiting through Uganda from neighbouring countries, as Kampala has emerged as a regional gold trading hub.
The scale of Uganda's gold exports has attracted both positive attention and scrutiny. On the positive side, gold revenues contribute significantly to the national economy, government revenue, and employment. On the other hand, concerns about the traceability and sourcing of exported gold — particularly material originating from artisanal and conflict-affected supply chains in the region — have prompted calls for enhanced due diligence and supply chain transparency measures.
Artisanal vs Industrial Gold Mining
The tension between artisanal and industrial gold mining is a defining feature of Uganda's gold sector and a challenge that must be addressed for the industry to reach its full potential.
The Artisanal Sector
Artisanal gold mining provides livelihoods for hundreds of thousands of Ugandans and their families, particularly in rural areas with limited alternative employment opportunities. However, the informal nature of most artisanal mining activity brings significant challenges:
- Environmental degradation — deforestation, soil erosion, and water pollution from uncontrolled excavation and the use of mercury in gold processing
- Health and safety risks — unengineered mine workings, exposure to toxic chemicals, and lack of protective equipment
- Revenue leakage — gold produced and sold through informal channels escapes taxation and royalty collection
- Child labour — a persistent concern in some artisanal mining areas
- Conflict with large-scale operators — artisanal miners sometimes encroach on licensed exploration and mining areas, leading to tensions and disputes
The Path to Formalization
The Mining and Minerals Act 2022 addresses these challenges through a dedicated legal framework for artisanal mining, including the Artisanal Mining License and provisions for designated ASM areas. The formalization of artisanal mining is expected to improve environmental and safety practices, bring production into the formal economy, and reduce conflict between artisanal and industrial operators.
For a detailed discussion of the ASM provisions in the 2022 Act, see our article on Uganda's mining sector investment opportunities.
The Industrial Opportunity
The transition from artisanal to industrial gold mining represents one of Uganda's greatest economic opportunities. Industrial operations can extract gold more efficiently, recover a higher proportion of the contained metal, employ safer and more environmentally responsible methods, and generate substantially greater government revenue per ounce of gold produced.
However, industrial development requires significant upfront investment in exploration, feasibility studies, mine development, and processing infrastructure. Investors considering industrial gold projects in Uganda must be prepared for multi-year development timelines and must navigate the regulatory, environmental, and social requirements of the Mining and Minerals Act 2022.
The 31 Million Tonne Gold Ore Discovery
The announcement by the DGSM of an estimated 31 million tonnes of gold ore across multiple regions of Uganda generated significant international interest and media attention. This estimate, based on geological surveys conducted by the DGSM and other organisations, represents the total tonnage of rock containing gold mineralisation identified through surface sampling, geophysical surveys, and limited drilling.
Understanding the Estimate
It is important to place this figure in proper context. The 31 million tonne estimate represents geological potential rather than a bankable ore reserve. Converting geological potential into confirmed ore reserves requires extensive additional work, including:
- Systematic mineral exploration including detailed geological mapping, geochemical sampling, and ground geophysical surveys
- Multi-phase drilling programmes to determine the depth, thickness, grade, and continuity of the gold mineralisation
- Laboratory analysis and quality assurance/quality control (QA/QC) procedures to verify gold grades
- Ore reserve estimation using internationally recognised standards such as JORC or NI 43-101
- Feasibility studies to determine whether the gold can be extracted profitably given prevailing gold prices, mining costs, and processing requirements
The path from geological potential to a producing mine is long and capital-intensive, but Uganda's gold endowment is undeniably significant. For investors willing to commit to the exploration and evaluation process, the opportunity to discover and develop new gold deposits in a country with proven geological potential is compelling. For a detailed explanation of the exploration process, see our guide to mineral exploration.
ALOM's Gold Exploration Experience
ALOM Mining & Geohydro Services has been actively involved in gold exploration work across multiple regions of Uganda, providing technical services to exploration companies and investors seeking to advance their gold projects.
Acholi Resources — Kitgum District
ALOM provided mineral exploration services to Acholi Resources in the Kitgum district of northern Uganda, including geological mapping, geophysical surveys, and target identification. Our work contributed to the identification of gold-bearing structures and priority drilling targets in a previously underexplored area.
Acuration Gold — Busia and Kassanda
ALOM has supported Acuration Gold with exploration and mining services across project areas in Busia and Kassanda districts. Our technical team provided geological interpretation, geochemical sampling programmes, and resource evaluation support to advance the company's gold assets through the exploration pipeline.
Technical Capabilities
ALOM's gold exploration capabilities include:
- Regional and detailed geological mapping
- Geochemical soil, rock chip, and stream sediment sampling programmes
- Ground geophysical surveys (magnetics, IP, EM, VES)
- Exploration drilling supervision and core logging
- Ore reserve estimation using geostatistical methods
- GIS data management and geological modelling
Our team combines local geological knowledge with international best practices in mineral exploration, providing clients with the technical foundation they need to make confident investment decisions.
Future Outlook for Gold Mining in Uganda
The outlook for gold mining in Uganda is strongly positive, driven by several converging factors.
Favourable Geological Setting
Uganda's geological diversity and the presence of multiple gold-bearing belts — from the greenstone belts of Busia to the orogenic gold systems of Buhweju and Karamoja — provide a broad canvas for exploration and discovery. Much of the country remains underexplored by modern standards, and the application of advanced exploration techniques is likely to reveal new gold occurrences and deposits.
Rising Global Gold Prices
Global gold prices have trended upward in recent years, driven by macroeconomic uncertainty, central bank buying, and sustained demand from the jewellery and technology sectors. Higher gold prices improve the economics of marginal deposits, making projects that were previously sub-economic potentially viable and increasing the incentive for exploration investment.
Improving Regulatory Environment
The Mining and Minerals Act 2022, despite its more demanding requirements for investors, provides the regulatory clarity and stability that serious mining companies need to commit long-term capital. The formalization of artisanal mining, the structured royalty framework, and the transparent cadastre system all contribute to a more predictable operating environment.
Infrastructure Development
Uganda's ongoing investment in road, rail, and power infrastructure is gradually reducing the logistical barriers that have historically constrained mining development, particularly in remote regions like Karamoja and Kitgum. Improved infrastructure lowers operating costs, enhances access to mineral-bearing areas, and makes previously isolated deposits more commercially attractive.
Regional Gold Hub
Kampala's emergence as a regional gold trading hub — handling gold from Uganda, the DRC, South Sudan, and other neighbouring countries — adds a further dimension to the country's gold sector. The development of refining and processing capacity within Uganda, rather than exporting raw gold, is a government priority that could add significant value to the gold supply chain and create additional employment and revenue.
Conclusion
Gold mining in Uganda is at an inflection point. A century of artisanal mining has confirmed the country's geological gold endowment, and the past decade has seen the first steps toward industrial-scale production. With an estimated 31 million tonnes of gold ore identified, a modernised regulatory framework in place, and growing international investor interest, Uganda is poised to become a significant player in Africa's gold mining landscape.
The journey from geological potential to producing mines requires patience, capital, technical expertise, and a deep understanding of the local operating environment. For investors willing to take a long-term view and commit to responsible exploration and development, Uganda's gold sector offers compelling opportunities that are still in their early stages.
ALOM Mining & Geohydro Services is proud to be part of this unfolding story, providing the mineral exploration and mining services that help our clients navigate the path from discovery to development.
Frequently Asked Questions
How much gold does Uganda produce per year?
Precise production figures are difficult to determine due to the predominance of artisanal mining and informal gold flows. However, Uganda's gold exports reached an estimated $3.4 billion in 2024, reflecting both domestic production and gold transiting through Uganda from neighbouring countries.
Where are the main gold mining areas in Uganda?
The key gold-bearing regions include Busia (eastern Uganda), Mubende and Kassanda (central Uganda), Buhweju (western Uganda), Karamoja (northeastern Uganda), and Kitgum in the Acholi sub-region (northern Uganda). Each region has distinct geological characteristics and mineralisation styles.
Is Uganda's gold industry dominated by artisanal mining?
Yes, artisanal and small-scale mining currently accounts for the majority of domestic gold production. However, the sector is transitioning toward increased industrial involvement, with the Wagagai Gold Mine in Busia representing the first major industrial operation and several other projects in development.
What is the 31 million tonne gold ore discovery?
This estimate, announced by the DGSM, represents the total tonnage of gold-bearing rock identified through geological surveys across multiple regions. It reflects geological potential rather than proven reserves and requires extensive additional exploration and evaluation work to convert into bankable ore reserves.
Can foreign companies invest in gold mining in Uganda?
Yes, foreign companies can acquire Exploration Licenses and Mining Leases, subject to the provisions of the Mining and Minerals Act 2022, including local company registration, local content requirements, and the 15% free carried interest for the state at the mining lease stage.
How can ALOM help with gold exploration in Uganda?
ALOM Mining & Geohydro Services provides comprehensive mineral exploration services for gold projects, including geological mapping, geochemical sampling, geophysical surveys, drilling supervision, and ore reserve estimation. Contact us to discuss your gold exploration project.