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Karamoja Geophysical Survey to Boost Uganda’s Gold Industry

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The much-anticipated geophysical airbone survey for the Karamoja region has entered its final three months, with the results expected by March 2022.

Mineral-rich Karamoja region has been under explored partly because there has not been a survey that bigger mining firms can base on to make heavy investments.

According to a statement from the ministry of Energy, Karamoja region has potential for economic minerals such as gold, copper, iron ore, Rare Earth Elements, gemstones and Marble.

The statement adds that the airborne geophysical and geological mapping of Karamoja is planned to cover 10 districts. The survey will indicate how mineral-rich Karamoja is.

Karamoja is largely known for its gold deposits. The survey is expected to attract mining companies into the region, but most importantly offer the country more leverage to protect the mining industry from external pressures.

Uganda has come under unfair criticism from external players, such as international Non Government Organisations, for being a conduit for smuggled gold. Some of this criticism, found in biased reports, has denied Uganda the much needed revenue.

However, the emergence of places like Karamoja as a gold mining hub should offer government more impetus to protect the mining industry from any biased information.

Already, Uganda’s government is putting in place legislation that will protect its industry and investors.

The Ministry of Energy said the new regulations that government is putting in place will “promote value addition by attracting factories and processing plants in the region.”   

Gold refineries have had a huge impact on the industry by creating a strong value chain for the product. Partly as a result of gold refineries, gold is Uganda’s largest export at the moment, fetching about $2.2 billion in revenue as at the financial 2020/2021.

Also, companies such as African Gold Refinery have noted in the past that they plan to open up new branches all over the country to launch collection points for gold and also transfer the skills of value addition to the local population. The company said that such initiatives could turn Uganda into a gold hub for the region, such as Dubai, and attract more capital into the country.

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