Gold in Mubende, Arua, Jinja, Kitgum

Jul 15, 2009

GOLD deposits have been confirmed in Busia, Bushenyi, Mubende and Karamoja, according to the just concluded airborne geophysical survey, which will be released today.

By Ibrahim Kasita

GOLD deposits have been confirmed in Busia, Bushenyi, Mubende and Karamoja, according to the just concluded airborne geophysical survey, which will be released today.

Occurrences of gold have also been found in West Nile, Kitgum, Mbale, Jinja, Hoima, Rukungiri, Kisoro, Kabale, Kibale and Kabarole.

A mineral deposit means that extensive exploration has been done and the quantities have been determined, whereas a mineral occurrence means that the mineral has been seen but not yet quantified.

Only two gold mines, in Busia and Mubende, have been established, leaving huge potential for investors to venture into mineral development and production.

The Tira Gold Mine has been operating in Busia since 1994, producing about 3kg of gold a month. The second mine is being developed in Kamulenge in Mubende by AUC Mines.

Busia area, particularly, has huge potential because it is part of the vast gold field belt stretching from Mwanza in Tanzania up to Karamoja, experts say. Tanzania has opened six world class mines in the area since 1998, producing over a million ounces of gold a year.

Gold is not the only precious metal unearthed by the survey, which covered about 80% of the country.
Uganda, it has emerged, is endowed with rich and diverse mineral wealth, ranging from copper, uranium, cobalt to limestone and phosphate.

Uranium, used for nuclear power and treatment of cancer, is widespread in Uganda, especially in Kibaale, Mubende and Busia.
Copper too is available in large quantities, particularly in Kasese.

Besides four million tones of copper ore in proved reserves, the Kilembe mine has a high probability of an additional two million tones.
However, only 20% of the presumed copper belt in the Kasese area has been explored. Karamoja also has good potential for copper.

Large deposits of phosphates, used for fertilisers, were found in Sukuru Hills in Tororo. The deposits are about 300 million tonnes, say experts.

These deposits were exploited between 1963 and 1978 by the now defunct Uganda Development Corporation to make fertilisers before it collapsed during the Amin regime (1971-1979).

However, a new private firm, NILEFOS Minerals, wants to revive the plant. According to statistics, when the plant is fully operational, it could supply the whole of eastern and southern region with fertilisers.

According to the survey, which will be presented to stakeholders and investors at a workshop at the Grand Imperial Hotel in Kampala today and tomorrow, Uganda’s soil also harbours large quantities of limestone, used for cement, and vermiculate, used for horticulture as well as brake linings and insulation.
The most blessed areas in Uganda are southwestern and eastern.

Besides the minerals already mentioned, the eastern parts also have iron ore, used for making steel, coltan, used in mobile phones, and marble. The districts of Kisoro, Rukungiri and Kabale also have tin and beryl (used for nuclear power and X-ray detection).

The only three diamonds ever discovered in Uganda were in Buhweju, part of which is in Ibanda and part in Bushenyi, although it is believed that the country has a potential for diamonds.

The survey is part of the Sustainable Management of Mineral Resources Project, aimed at collecting and mapping geo-scientific data to attract potential investors who will revamp the mineral sector.

According to the Ministry of Energy and Mineral Development, the $43m project began in 2004 and was funded by the World Bank, the Nordic Development Fund, the African Development Bank (AfDB) and the Uganda Government.
Over 500 mining licences have been issued since the 2003 Mining Law was established.

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