President Yoweri Museveni of Uganda has officially inaugurated the Uganda National Mining Company (UNMC), a state-owned enterprise designed to take a significant stake—up to 15%—in all medium and large-scale mining projects nationwide. This initiative was announced during the recent State of the Nation Address in Kampala.
The primary aim of UNMC is to ensure Ugandans benefit directly from the country’s mineral wealth while still attracting foreign investment. The Ugandan government plans to invest UGX 500 billion (approximately $130 million) into the company over the next five years, to improve oversight, enhance revenue generation, and promote technology transfer.
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Harnessing Uganda’s Mineral Wealth for National Growth
Uganda is rich in valuable minerals, including gold, iron ore, lithium, graphite, rare earth elements, and limestone. Despite this abundance, most minerals have traditionally been exported in raw form, which has limited the country’s ability to benefit from value addition, job creation, and industrial growth.
President Museveni highlighted recent progress in gold refining and steel production, signaling a shift towards more processing domestically. Currently, Uganda has ten operational gold refineries producing high-purity gold (up to 99.9%), with Chinese company Wagagai Gold playing a major role in Busia. The government is also working to formalize artisanal mining communities.
To improve sector governance, Uganda is completing a modern mineral testing laboratory in Entebbe, which will ensure exports meet international quality standards. Downstream developments include the operation of three cement factories (in Tororo, Hima, and Simba), the construction of a new tin smelter in Mbarara, and plans for additional cement plants in Karamoja, home to large limestone deposits.
The creation of UNMC mirrors the model of the Uganda National Oil Company (UNOC), reflecting a strategic move by the government to retain a significant stake in resource exploitation. As global demand for critical minerals like lithium and rare earths grows—driven by the shift toward clean energy—Uganda’s efforts position the country to participate more actively in international supply chains and foster sustainable economic development.
