In a bid to boost the country’s economy, the Ugandan government has licensed Wagagai gold mining company, a Chinese firm to start producing gold products in the Busia district.
Uganda announced that it had discovered 31 million metric tons of gold waiting to be mined in the country after several surveys were conducted. A spokesperson from the Ministry of Energy and Mineral Development in Uganda, Solomon Muyita, said that these reports are aimed at attracting gold miners and investors in the crypto sector.
The company has invested $200M towards constructing a refining facility. Despite all the gold discovered in the country, the mining difficulty is notably high, and this impacts the amount of gold that is actually mined. Around 2500 to 3000 metric tonnes are mined every year. Technocrats in the Ministry of Energy and Mineral Development, Mr. Museveni noted, had informed Cabinet that the country was positioned to get slightly under $700m in royalty payments, with the investors poised to cash in on the windfall.
In a bid to boost the country’s economy, the Ugandan government has licensed Wagagai gold mining company, a Chinese firm to start producing gold products in the Busia district. The company embarked on the construction of its gold refinery valued at USD200m in phases in the district in 2016. Muyita said that the discovered gold could start being mined immediately, reports NASDAQ
The volume of the reserves is estimated at 31 million tonnes of gold ore, or net 320,158 tonnes of gold, valued at $12.8 trillion, according to a document prepared by the line ministry.
