Uganda’s President Yoweri Museveni and the Ministry of Energy and Mineral Development made global headlines by announcing a massive gold discovery.
According to official reports, over 31 million metric tonnes of gold ore had been discovered, primarily in the Karamoja region, a historically poor and underdeveloped area in northeastern Uganda.
*Claimed Gold Value and Extraction*
The gold ore reportedly contains an estimated 320,158 metric tonnes of refined gold.
Using gold prices at the time (around $1,800–$2,000 per ounce), the Ugandan government valued the find at around $12 trillion.
The government stated that a Chinese company, Wagagai Mining, had already secured a license and was building a gold refinery in Busia, Uganda.
*Skepticism and Expert Reactions*
Despite the excitement, industry experts, economists, and geologists expressed doubts:
1. Size Discrepancy:
The claim of 320,000+ tonnes of refined gold would mean Uganda has discovered more gold than all known reserves worldwide.
According to the World Gold Council, all the gold ever mined in history is estimated to be around 200,000 tonnes. Uganda’s claim would almost double that number—from a single find.
2. Early-stage Data:
The estimates are likely based on preliminary surveys or aerial magnetic data. These are useful for identifying areas for exploration but not reliable for final valuation.
Proper valuation requires detailed geological drilling, core sampling, feasibility studies, and environmental assessments, none of which were publicly shared.
3. Valuation Fallacy:
The $12 trillion figure assumes 100% recovery of all gold, zero extraction cost, stable gold prices, and no logistical barriers.
In reality, only a small percentage of ore can be economically recovered due to depth, purity, equipment cost, political risk, and infrastructure limitations.
Uganda’s President Yoweri Museveni and the Ministry of Energy and Mineral Development made global headlines by announcing a massive gold discovery.
According to official reports, over 31 million metric tonnes of gold ore had been discovered, primarily in the Karamoja region, a historically poor and underdeveloped area in northeastern Uganda.
*Claimed Gold Value and Extraction*
The gold ore reportedly contains an estimated 320,158 metric tonnes of refined gold.
Using gold prices at the time (around $1,800–$2,000 per ounce), the Ugandan government valued the find at around $12 trillion.
The government stated that a Chinese company, Wagagai Mining, had already secured a license and was building a gold refinery in Busia, Uganda.
*Skepticism and Expert Reactions*
Despite the excitement, industry experts, economists, and geologists expressed doubts:
1. Size Discrepancy:
The claim of 320,000+ tonnes of refined gold would mean Uganda has discovered more gold than all known reserves worldwide.
According to the World Gold Council, all the gold ever mined in history is estimated to be around 200,000 tonnes. Uganda’s claim would almost double that number—from a single find.
2. Early-stage Data:
The estimates are likely based on preliminary surveys or aerial magnetic data. These are useful for identifying areas for exploration but not reliable for final valuation.
Proper valuation requires detailed geological drilling, core sampling, feasibility studies, and environmental assessments, none of which were publicly shared.
3. Valuation Fallacy:
The $12 trillion figure assumes 100% recovery of all gold, zero extraction cost, stable gold prices, and no logistical barriers.
In reality, only a small percentage of ore can be economically recovered due to depth, purity, equipment cost, political risk, and infrastructure limitations.
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