AGR to add value to gold by producing coins, jewelry

PIC: President Museveni, flanked by AGR CEO Alain Goetz, is shown gold flakes at the African Gold Refinery (AGR ltd) in Entebbe on February 20 this year

BUSINESS | GOLD

Entebbe-based African Gold Refinery (AGR) has started producing gold coins - a first in the market. The company will also begin producing minted bars and jewelry by mid-2018.

"We recently made our first set of gold coins through artisanal methods. We are soon mechanising the process and we will produce gold bars and jewelry as well. Essentially, these can be customised to the client's demand," Alain Goetz, AGR's chief executive, told delegates at the sixth Mineral Wealth Conference this month.

Organised by the Uganda Chamber of Mines and Petroleum with support from the Ministry of Energy and Mineral Development, the two-day conference brought together over 500 delegates from across the world. 

AGR's production of finished products goes to the very heart of Uganda's drive to add value to its minerals and will position it as an influencer in a virgin market, where such products are largely imported.

President Yoweri Museveni has constantly reminded mining investors to add value to Uganda's minerals, arguing that their exportation in raw form denies the country lots in revenue and investments.

Each stage in the mineral and metal processing sector stimulates production and employment through its linkages to other industries in the economy, which generates further employment in those companies.

Launched on February 20 this year, AGR is the first high-capacity gold refinery in sub-Saharan Africa.

President Museveni and energy minister Muloni at the launch of AGR earlier this year

Specialising in melting gold and silver through a high performance electric induction furnace, the company uses the proven Aqua Regia method, a chemical process that removes the impurities from the precious metals by dissolving them.

The processed gold stands at a fineness of 999.9 parts per 1000 grams of fine gold. This is extremely pure bullion which can be casted in finished line bars or jewels.

In his address, Goetz said AGR was experiencing large demand for its processing services and more inquiries for jewelry were being registered.

The company processed over nine tonnes of gold in 2016, and currently refines 250kg a week or one tonne per month. The processing capacity can be increased two-fold, depending on supplies, Goetz noted.

He highlighted AGR's contribution to the fight against smuggled gold in the Great Lakes Region, with the refinery increasing the level of transparency in the industry while availing statisticians a better opportunity to track the amounts of product traded and the revenues collected.

AGR says with the refinery in place, the gold is now mapped, reducing the amount that is being smuggled.

"All the gold dealers are subjected to strong due diligence procedures at AGR before we touch their product. Lessons drawn from this due diligence process can help Uganda easily move towards mineral certification," he said.

Goetz added that AGR is working with Government authorities to put in place a legal framework for gold refining.