The Busia gold mine is said to have about 12.5 million ounces of mineable gold, according to Uganda Investment Authority (UIA).
The Authority gave a license to Wagagai Mining to extract this gold after promising to invest US$ 50 million.
The state minister for Mineral Development Peter Lokeris on October 5 officially launched commencement of mining activities at the mine, which is said to have about $16 billion in gold reserves, matching Uganda’s oil discoveries in the Lake Albert Basin.
According to UIA, the Busia gold mine will be producing about 1000 kilograms of gold annually, offering 3000 job direct and indirect jobs, with a projected tax base of about 30 billion shillings.
The mining company was offered zero tax import rates on mining equipment, competitive labor, good governance and guaranteed security.
“Wagagai Mining provides an opportunity to eliminate challenges that have hindered the gold mining industry in the past, like export of gold in raw form, export of illegal gold, loss of tax revenues due to tax evasion, and use of child labor, amongst others,” UIA said.