Uganda begins refining gold
May 04, 2010
RUSSIAN investors have installed a $1.5m gold refinery, the first of its kind in the Great Lakes region, underscoring the Government’s efforts to ensure valued-addition on all commodities produced.
By Ibrahim Kasita
Uganda begins refining gold
RUSSIAN investors have installed a $1.5m gold refinery, the first of its kind in the Great Lakes region, underscoring the Government’s efforts to ensure valued-addition on all commodities produced.
Victoria Gold Star, based in Fifth Industrial area in Kampala, can refine 60 kilogrammes of gold daily.
“When the supply of gold that requires refining increases, we shall also increase the plant processing facility,†Bogoroditskiy Yuri, the boss, said at the launch yesterday.
“We shall be able to buy raw gold, refine it here and export it as a finished product made in Uganda, which in return will fetch more money.â€
The new plant comes at a time when gold deposits have been confirmed in Busia, Bushenyi, Mubende and Karamoja, according to a geophysical survey conducted last year.
Occurrences of gold have also been found in West Nile, Kitgum, Mbale, Jinja, Hoima, Rukungiri, Kisoro, Kabale, Kibaale and Kabarole.
A mineral deposit means that extensive exploration has been done and the quantities determined, whereas a mineral occurrence means the mineral has been seen but not quantified.
Uganda has only two gold mines in Busia and Mubende, leaving huge potential for investors to venture into mineral development and production.
Asked if there was enough gold to sustain the operations of the refinery, Yuri replied: “We shall also refine gold from Uganda and neighbouring countries like the Democratic Republic of Congo.â€
He added: “What we are trying to do is to legalise trade in gold. We shall require import and export licence for the gold that we shall refine.â€
Peter Lokeris, the state minister for mineral development, urged miners, mineral dealers and goldsmiths in Uganda and the region to use the facility to add value to gold so as to earn better income.
“President Yoweri Museveni is on the forefront, advocating value-addition on all commodities produced,†Lokeris said.
“The refinery will make an important contribution to support the development of the mining sector and national economy.â€
Lokeris explained that the Government put in place a mineral policy aimed at boosting the mining sector through promoting private sector participation, adding value to mineral ores and increasing mineral trade.
Uganda, Kenya, Tanzania, Burundi, Rwanda and the Democratic Republic of Congo take the raw gold to South Africa for refining, which has made them lose huge amounts of money.
The improving global economy and historically low central bank sales have boosted gold prices. Gold sales rose to $480 from $431 per ounce last year.
The Tira Gold Mine has been operating in Busia district since 1994, producing about 3kgs of gold a month.
The second mine is being developed in Kamulenge in Mubende by AUC Mines.
Experts say Busia has huge potential because it is part of the vast gold field belt stretching from Mwanza in Tanzania to Karamoja.
Tanzania has opened six world class mines in the area since 1998, producing over a million ounces of gold a year.
Last year’s survey that covered 80% of the country showed that Uganda is also endowed with rich and diverse mineral wealth, ranging from copper, uranium, cobalt to limestone and phosphate.
Uganda begins refining gold
RUSSIAN investors have installed a $1.5m gold refinery, the first of its kind in the Great Lakes region, underscoring the Government’s efforts to ensure valued-addition on all commodities produced.
Victoria Gold Star, based in Fifth Industrial area in Kampala, can refine 60 kilogrammes of gold daily.
“When the supply of gold that requires refining increases, we shall also increase the plant processing facility,†Bogoroditskiy Yuri, the boss, said at the launch yesterday.
“We shall be able to buy raw gold, refine it here and export it as a finished product made in Uganda, which in return will fetch more money.â€
The new plant comes at a time when gold deposits have been confirmed in Busia, Bushenyi, Mubende and Karamoja, according to a geophysical survey conducted last year.
Occurrences of gold have also been found in West Nile, Kitgum, Mbale, Jinja, Hoima, Rukungiri, Kisoro, Kabale, Kibaale and Kabarole.
A mineral deposit means that extensive exploration has been done and the quantities determined, whereas a mineral occurrence means the mineral has been seen but not quantified.
Uganda has only two gold mines in Busia and Mubende, leaving huge potential for investors to venture into mineral development and production.
Asked if there was enough gold to sustain the operations of the refinery, Yuri replied: “We shall also refine gold from Uganda and neighbouring countries like the Democratic Republic of Congo.â€
He added: “What we are trying to do is to legalise trade in gold. We shall require import and export licence for the gold that we shall refine.â€
Peter Lokeris, the state minister for mineral development, urged miners, mineral dealers and goldsmiths in Uganda and the region to use the facility to add value to gold so as to earn better income.
“President Yoweri Museveni is on the forefront, advocating value-addition on all commodities produced,†Lokeris said.
“The refinery will make an important contribution to support the development of the mining sector and national economy.â€
Lokeris explained that the Government put in place a mineral policy aimed at boosting the mining sector through promoting private sector participation, adding value to mineral ores and increasing mineral trade.
Uganda, Kenya, Tanzania, Burundi, Rwanda and the Democratic Republic of Congo take the raw gold to South Africa for refining, which has made them lose huge amounts of money.
The improving global economy and historically low central bank sales have boosted gold prices. Gold sales rose to $480 from $431 per ounce last year.
The Tira Gold Mine has been operating in Busia district since 1994, producing about 3kgs of gold a month.
The second mine is being developed in Kamulenge in Mubende by AUC Mines.
Experts say Busia has huge potential because it is part of the vast gold field belt stretching from Mwanza in Tanzania to Karamoja.
Tanzania has opened six world class mines in the area since 1998, producing over a million ounces of gold a year.
Last year’s survey that covered 80% of the country showed that Uganda is also endowed with rich and diverse mineral wealth, ranging from copper, uranium, cobalt to limestone and phosphate.