Busia, Uganda – Prime Africa News | In a groundbreaking development poised to reshape Uganda’s economic landscape, the Ministry of Energy and Mineral Development has announced the discovery of an estimated 31 million metric tons of gold across the country. This revelation positions Uganda as a major future player in global gold markets.
Solomon Muyita, spokesperson for the Ministry, emphasized that the discovery is intended to draw attention from international investors and particularly those interested in the intersection between gold and the emerging cryptocurrency sector.
Chinese Firm to Lead Mining Effort
The Ugandan Government has licensed Chinese mining firm Wagagai Mining Company to spearhead the extraction and refining of gold in the Busia district. The company began construction of a $200 million gold refinery back in 2016, with current investments reaching $60 million. However, progress has been delayed due to the pending approval of two essential permits.
Tan Chun Chi, Managing Director of Wagagai, confirmed that the firm received a gold production permit in March 2023 and now holds a 21-year lease on the mine. Mining operations are projected to begin in July 2023.
Boosting Local Value Through Refining
President Yoweri Museveni has strongly advocated for local refining of the precious metal, arguing that the continued export of raw materials robs Uganda—and Africa—of substantial economic value.
“It is criminal for anyone to advocate the continued export of raw materials from Africa when there is 90 percent more value in that product than you are giving to foreigners,” said Museveni.
Local refining, he argues, will not only retain more value within the country but will also provide employment and enhance social services in communities surrounding mining sites.
Challenges Ahead
Despite the immense potential, the gold sector in Uganda is not without challenges. The country currently extracts only between 2,500 to 3,000 metric tons of ore annually, due to infrastructural and logistical limitations.
Still, government officials remain optimistic. “The discovery and upcoming mining activities represent a monumental opportunity to drive growth, attract investment, and uplift communities,” Muyita stated.
As Uganda prepares to enter the next chapter of its mining journey, all eyes will be on Busia, where the golden promise of prosperity begins to take shape.
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