Gold worth over US$12 trillion discovered in Uganda

Jun 19, 2022 News

– investor to cash in on windfall, as country to collect under US$700M in royalty

Kaieteur News – The African continent has been known for its rich soil being blessed with bountiful natural resources. In fact, just recently, the President of Uganda announced that approximately 31 million tonnes of gold ore, with an extractable pure gold estimated to gross 320,000 tonnes, were discovered.

President of Uganda Yoweri Museveni.

According to Uganda media reports, President Yoweri Museveni broke news of the find in his State-of-the-Nation Address on June 7, 2022, but only provided little detail.
However, he did point out that the discovery would fetch the country more than US$12 trillion.
It was reported that technocrats in the Ministry of Energy and Mineral Development, Mr. Museveni noted, had informed Cabinet that the country was positioned to get slightly under US$700 million in royalty payments, with the investors poised to cash in on the windfall.
According to a Daily Monitor report, President Museveni, cited six local gold refineries, among them Africa Gold Refinery in Entebbe that the United States sanctioned in March over illicit source of its gold, and declared that the time for Uganda to ship unprocessed exports is over.
The entity also reported that the Ministry of Energy and Mineral Development spokesperson Solomon Muyita related that the gold-endowed parts of Uganda include Alupe in Busia and Karamoja, both in eastern Uganda; Kameleng, Kisita, and Ngugo in Kassanda District in central region; and, Bushenyi’s Tiira area in western Uganda.
It was stated that the volume of the reserves is estimated at 31 million tonnes of gold ore, or net 320,158 tonnes of gold, valued at US$12.8 trillion.
Muyita told the media entity that 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 kilogrammes of gold a day in Busia by year end.
Uganda’s gold exports have been on the rise since opening the Africa Gold Refinery in Entebbe, according to official records.
In fact, in 2019 and 2020, the country exported gold worth US$1.9B to the United Arab Emirates, US$1.4B to South Korea, and US$28.7M to Hong Kong.
In contrast, Uganda imported nearly US$2B worth of gold, making it the 18th largest gold importer in the world.