Busia counts on new gold plant for development

The leadership of Busia is optimistic that completion of the construction of a beneficiation plant at Wagagai Gold Mining Uganda Limited in Alupe Village, Buteba Sub-county, will spur development in the district.

Beneficiation is the process of separation of gold from gold ore using ultra-modern means of floatation with a minimum production of 5kgs daily.Wagagai Gold Mining Uganda Limited, which has invested $200m in gold extraction and processing, is a wholly owned subsidiary of Liaoning Hongda Enterprise Group based in China. It is expected that once operating at full capacity, it will produce between one and 1.5 tons of pure gold annually.Ahead of its official commissioning next year in March, the company is already employing 1,500 Ugandans, but upon assuming full operations, it is estimated to create more 3,000 jobs, an annual foreign exchange of $100m and pay $10m in taxes to the Ugandan government.Busia District LC5 chairman, Mr Stephen Wasike Mugeni, said because the plant has started producing gold, he expects more jobs for youth, royalties and taxes from the company.“Currently, we have this company employing 1,500 youth and now that they are moving towards production, we have the numbers to more than double,” Mr Mugeni said on Sunday.According to him, Busia stands to benefit from the company in annual royalties of Shs3b and another Shs3b in Local Service Tax, which he says should change the face of the district.The Manager Wagagai Gold Mining Company, Mr Adam Wang, said: “The launch of the beneficiation plant paves way for the actual extraction of the precious metal from rock ores ahead of the official commissioning of the plant next year.”This, he added, means they are now able to process and extract gold from the rock ores, and will also enable them to extract gold up to 99 percent with capacity to handle about 5,000 tons of rock ore every day.“What we are now working on is to complete the construction of the dressing plant and gold smelter before March next year,” he said.Earlier, on Friday, Chinese Ambassador to Uganda, Zhang Lizhong, said the progress of works at the gold plant speaks a lot towards the economy of Uganda and the locals in Busia.He said: “We are looking at employment, revenue and improved infrastructure for the people of Busia District and the entire country. The gold-processing plant is one of the biggest foreign investments by the people of China, underscoring the good relationship between Kampala and Beijing.“Uganda is a very peaceful country with loving people; our President and your president enjoy a very cordial relationship, and that is why many Chinese investors are coming here.”