31 million tons of gold deposits found in Uganda. Could more than double global gold supply once refined.

Muyita said an estimated 320,158 tonnes of refined gold could be extracted from the 31 million tonnes of ore. Most of the deposits were discovered in Karamoja, a parched sprawling area in the country’s northeastern corner on the border with Kenya. Large reserves were also found in eastern, central, and western areas of the East African country. Muyita said Wagagai, a Chinese company, had set up a mine in Busia in eastern Uganda and was expected to start production this year. Wagagai had invested $200 million, he said, and its mine will have a refining unit. President Yoweri Museveni’s government has been seeking to ramp up investment in mining to develop resources like copper, iron ore, gold, cobalt, and phosphates. Parliament early this year enacted a new mining law that, once signed by the president, will pave way for the creation of a state mining company. The company will compulsorily acquire a 15% stake in every mining operation and investors will be required to sign a production-sharing agreement with the government. Previously investors were given mining production licenses on a first-come, first-served basis. (By Elias Biryabarema; Editing by George Obulutsa and Mark Porter)