Uganda launches state-owned mining company
Uganda’s President Yoweri Museveni has officially launched the Uganda National Mining Company (UNMC). This state-owned enterprise will now hold up to a 15% equity stake in all medium and large-scale strategic mining operations across the country. The policy was unveiled during the State of the Nation Address in Kampala.
The primary goal of UNMC is to ensure Ugandans gain direct returns from the mining industry while continuing to welcome foreign investment. The government plans to inject UGX 500 billion (about $130 million) into the company over five years, aiming to enhance state oversight, increase revenue, and facilitate technology transfer.
Unlocking mineral value for national development
Uganda is rich in valuable minerals such as gold, iron ore, lithium, graphite, rare earths, and limestone. Despite this, most of these resources have historically been exported in raw form—limiting the country’s potential for value addition, job creation, and local industrialization.
President Museveni emphasized that recent strides in gold refining and domestic steel production mark the beginning of a shift. Uganda now has 10 operational gold refineries and is producing gold of up to 99.9% purity. Chinese company Wagagai Gold is among the major players currently active in Busia, while local efforts continue to formalize artisanal mining communities.
To support better sector governance, Uganda is finalizing a modern mineral testing laboratory in Entebbe. This facility will ensure that all mineral exports meet international quality standards. Meanwhile, downstream progress includes: Three cement factories (Tororo, Hima, Simba), a new tin smelter in Mbarara, planned cement plants in Karamoja, home to major limestone reserves.
The formation of UNMC follows a model similar to that of the Uganda National Oil Company (UNOC) in the petroleum sector. It reflects a deliberate government strategy to retain a meaningful stake in natural resource exploitation, especially as global demand for critical minerals (like lithium and rare earth elements) accelerates with the energy transition. Experts view this development as a turning point that could enhance Uganda’s position in global supply chains for clean energy technologies and help drive sustainable economic growth.
