While gold is often seen as a rare asset, Uganda explained on Wednesday that recent exploration studies indicate there are around 31 million metric tonnes of gold ore waiting to be mined. In the region. Additionally, a spokesman for Uganda’s Ministry of Energy and Mining Development said there were approximately 320,158 tonnes of refined gold available.
Uganda claims the country has 31 million tonnes of gold ore – 320,158 metric tonnes of refined gold are up for discovery
Over the past five years, the value of an ounce of fine gold has increased by 48% against the US dollar. The spot market value of an ounce of gold hit an all-time high this year at $2,060 per unit.
Today, an ounce of gold is worth $1,840 per unit and the spot market price has risen approximately 0.48% over the past 30 days. Meanwhile, reports of Uganda show that the country has discovered quite a bit of gold ore and is seeking to attract miners and investors.
On Wednesday, Solomon Muyita, spokesperson for the Ministry of Energy and Mineral Development Told Reuters that the country has found 31 million tonnes of ore by conducting a number of exploration surveys across the country.
The spokesperson further noted that 320,158 tonnes of refined gold could be mined immediately and that a Chinese company called Wagagai Mining is already planning to mine in the area. Wagagai just got his gold production license in March 2022, and he set up a 21-year mining lease with officials in Busia District in the Eastern Region of Uganda.
Muyita said most of the ore was found in Karamoja, Busia district, as well as the central and western areas. Wagagai is settled in Mawero Parish, Butebo Sub-County, and it is estimated that there are 12.5 metric tons of refined gold minable there.
Chinese company Wagagai Mining to start production soon – Surprise deposits discovered every year
Muyita noted that Wagagai will start production this year and the company has invested $200 million so far in building the refining station. Now the scarcity of gold, however, also stems from the difficulty of extracting the ore, and although Muyita claims there are 320,158 metric tons of gold, there are only 2,500 at 3,000 mined every year.
Additionally, South Africa is the largest producer in the world and there are also significant gold mines in the United States, Canada, Australia, Russia and China. The precious metal’s rarity proposition is constantly being tested, however, by surprise ore deposits found around the world.
For example, in late October 2020, Bitcoin.com’s press office reported a surprise discovery of around 40 million troy ounces of gold in the Siberian region of Russia. In August 2020, a historical region in Central Europe, located in Poland and called Silesia, discovered massive gold deposits in the zone.
In March 2021, a Yemeni freelance journalist based in the capital Sanaa, Ahmad Algohbary, reported on a colossal mountain of gold discovered in the Congo. While reports noted that Congo’s gold mountain had no confirmed estimate of the amount of gold discovered, it was said that artisanal miners were smuggling the gold.
Gold smuggling is very important in Africa according to a United Nations (UN) report which indicates that production in the Congo region “continues to be systematically under-reported”. This means that even though statistics indicate that there are only 2,500 to 3,000 metric tons mined each year, a significant amount of mined gold can enter the market unreported.
What do you think of the 31 million tons of gold found in Uganda? Let us know what you think about this topic in the comments section below.
Image credits: Shutterstock, Pixabay, Wiki Commons, NTV Uganda, The Independent,
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