MINISTRY OF ENERGY AND MINERAL DEVELOPMENT COMMISSIONING OF VICTORIA GOLD STAR LIMITED GOLD REFINERY

Address by: Honourable Hillary Onek, Minister of Energy and Mineral Development, 4th May, 2010

On behalf of the Government of the Republic of Uganda, I would like to express my deep appreciation to the proprietors of Victoria Gold Star Limited for their timely decision to invest in Uganda.

Mining in Uganda started in 1930, and it was characterized by use of rudimentary methods to recover mineral commodities such as gold, tin, beryl, wolfram and tantalite among others. Due to improper mining methods and lack of policy guidance as well as use of old and non-competitive laws, the sector's performance continued to decline. The situation worsened after 1971 and persisted until, when Uganda was liberated by the National Resistant Army in January 1986.

In 1999, Government commissioned a study to review mining sector performance with a view of revamping the sector. The review identified several constrains, that needed to be addressed in order to revamp the sector. These were lack of: a) mineral policy, b) modern internationally competitive law and regulation to steer the industry, and c) adequate geo-information to attract significant mining investment.

The starting point was in 2001, when Government of Uganda put in place a Mineral Policy, whose objectives include among others, to stimulate mining sector development, by promoting private sector participation and also to add value to mineral ores and increase mineral trade. This was followed by enactment of the Mining Act, 2003 and the Mining Regulations in 2004. To effectively address these sectoral constrains Government obtained funds from the W orId Bank, African Development Bank and Nordic Development Fund and invested in a Mineral Sector Development Programme, referred to as the Sustainable Management of Mineral Resources Project (SMMRP). Through SMMRP the Ministry of Energy and Mineral Development carried out airborne geophysical surveys of 800/0 of Uganda land mass and currently undertaking geological mapping and geochemical surveys to produce new geological and occurrence maps. Under the same project, establishment a modem documentation centre, geological and mineral information system and computerized mining cadastre system are on course. The cadastre system in particular, will electronically enforce transparency in licensing regime. Under the same programme the small-scale and artisanal miners are being assisted to regularize their operations and also improve productivity.

With the above reforms taking shape, I wish to commend management of Victoria Gold Star Limited for establishing a gold refinery in Uganda. I am sure you are all aware that His Excellency, the President of the Republic of Uganda is on the fore front advocating value addition on all commodities produced.

Therefore I want to reaffirm the commitment of Government in supporting Victoria Gold Star Limited. In turn expect similar support from stakeholders (miners, mineral dealers and goldsmiths) in Uganda and the region to use the facility to add value to gold mined so as to earn better income by exporting 99.9999% processed gold. In addition, the refinery will offer good employment to Citizens of Uganda. Therefore, the refinery will make an important contribution to support the development of the mining sector and the national economy.
I am therefore more than delighted to have been given the opportunity to commission this gold refinery. I wish to declare the GOLD REFINERY FACILITY OFFICIALLY COMMISSIONED.

For God and my Country.
Thank you for listening.