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Uganda targets increased exports with its first large-scale Gold Mine

Uganda targets increased exports with its first large-scale Gold Mine

Uganda's first large-scale mine for gold has been inaugurated. The project, which is owned by China and costs $250 million, will refine the gold to 99.9% purity.

The east African landlocked country has copper, cobalt, and iron ore among other minerals. It wants to expand the mining industry, and become a major gold exporter and producer.

According to data from the central bank, Uganda's gold exports accounted for $3.4 billion in revenue last year, or 37% of its total export revenues. This figure includes gold that was brought into the country and is re-exported. Nearly all of the domestic production comes from small-scale, artisanal mines.

Although its gold export earnings increased in recent times, it still lags behind Africa's biggest bullion producer Ghana which earned $11.6 billion last year from the shipment of metal.

In a late-Saturday statement, President Yoweri Mueveni stated that "to wake up the minerals sector we must have full added value for all minerals, like gold, lithium and tin, among others."

Museveni inaugurated the Wagagai Gold Mining Project on Saturday. The project, which is owned by Wagagai Mining (U) Limited, covers just over nine square kilometers in Busia District.

According to a statement, the plant has begun operations and is expected to process about 5,000 tons gold ore each day, producing 1.2 metric tonnes of refined gold per year. Uganda's domestic production in 2023 will be just 0.0042 tonnes.

Museveni stated that Uganda will use revenue generated from gold exports to develop assets like power stations and its railway.

The landlocked country of Uganda is building a standard gauge rail system worth 2.7 billion euros ($3.16 billion), to reduce costs associated with transporting exports and imported goods via Kenya. ($1 = 0.8549 euro) (Reporting and editing by Wendell Roelf, Kirby Donovan).

(source: Reuters)