Uganda targets higher exports with first large-scale gold mine

KAMPALA, Aug 17 (Reuters): Uganda has inaugurated its first large-scale gold mine, a $250 million Chinese-owned project in the country's east that will also refine the bullion to 99.9 per cent purity, according to a statement from the president's office.

The landlocked east African country, which has a variety of minerals including copper, cobalt and iron ore, wants to expand its mining industry and position itself as a major gold producer and exporter.

Last year Uganda raised $3.4 billion from gold exports, according to central bank data, about 37 per cent of the country's total export revenue. The figure includes the re-export of gold brought into the country, with nearly all its domestic production from small-scale artisanal miners.

While its gold export earnings have increased in recent years, it is still far behind Africa's largest bullion producer Ghana, which raised $11.6 billion from shipments of the metal last year.