Uganda Discovers Over 31 Million Metric Tonnes Of Gold Ore Valued At $12 Trillion

Uganda has announced a monumental discovery of over 31 million metric tonnes of gold ore, with an estimated value of $12 trillion, setting the stage for a potential economic transformation. The find was confirmed following extensive geological surveys conducted across the country. In response, the government has granted a gold production license to Wagagai Gold Mining Company, a Chinese-owned firm, to begin mining operations in the Busia district.

Construction of the company’s gold refinery, which began in phases in 2016, has already seen an investment of $60 million and is projected to reach $200 million. With a newly secured 21-year mining lease, Wagagai expects to begin full-scale production by July 2023. The firm had faced delays due to the absence of crucial licenses, but those regulatory hurdles have now been cleared.

Solomon Muyita, spokesperson for Uganda’s Ministry of Energy and Mineral Development, noted that the discovery is aimed not only at attracting gold investors but also those in the crypto industry, suggesting that the government is looking to tap into digital assets linked to gold.

President Yoweri Museveni has strongly advocated for refining the gold locally rather than exporting raw materials, calling such exports a loss of potential value. "It is criminal for anybody to argue for the continued exports of raw materials in Africa, when there is 90% more value in that product that you are giving to the outsiders," he stated.

Local gold refining is expected to create jobs and improve public services in mining regions. However, despite the vast discovery, gold extraction remains challenging. Globally, only about 2,500 to 3,000 metric tonnes are mined annually, reflecting the complexity of turning reserves into usable gold.

Winnie Ngabirwe, a mineral development expert, called the discovery a turning point. "If this is indeed the volume that we have, it is time to clean our house and do business-developing ourselves and our country, by going to the middle-income status and beyond," she said.