Uganda Is Back In The Gold Mining Business

Posted by: Kyeyune Andrew Jonathan in Uganda news June 8, 2022

According to announcements, Uganda has struck a deposit of 31 million tonnes of gold ore. Extractable pure gold is estimated to gross 320,000 tonnes. This pushes Uganda a bit back into the gold mining business.

The news came by during President Museveni’s State-of-the-Nation Address yesterday. However, he provided close to no details in the findings. He however noted that the gemstones would fetch the country over $12 trillion.

Apparently, Technocrats in the Ministry of Energy and Mineral Development informed Cabinet that the country is in position to get slightly under $700m in royalty payments, with the investors poised to cash in on the windfall.

Six local gold refineries were cited, one of them being Africa Gold Refinery in Entebbe that the United States sanctioned in March over the illicit sources of its gold. The President then said that the time for Uganda to ship unprocessed exports is over.

The parts of Uganda rich in gold include Alupe in Busia and Karamoja, both in eastern Uganda. Kameleng, Kisita, and Ngugo in Kassanda District in the central region. Bushenyi’s Tiira area in western Uganda.

The volume of the reserves is estimated at 31 million tonnes of gold ore, or net 320,158 tonnes. Their value stands at a whopping $12.8 trillion, according to a document prepared by the line ministry.

Mr Muyita said a Chinese-run firm, Wagagai, which picked its name from the highest peak of Mt Elgon, expects to mine and start refining at least 5,000 kilograms a day in Busia by the close of this year.

There were no readily available figures on how many new jobs the huge gold find will create. However, it is still not clear what the immediate and long-term impact of the mineral windfall will be on the economy.

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