What Uganda's Unearthing Of 31 million Tonnes of Gold Ore Could Imply for The World Gold Market
The global gold mining market is expected to grow at a yearly CAGR of 3.1%. Historically, the London OTC market has been the focal point of the gold trade and at present it holds nearly 70% of the global speculative trading volume as per the estimation. The London market appeals participants from across the globe and sets the global position standard for gold two times a day (the LBMA Gold Price).
Uganda, an African country, is back in the spotlight, and this time it is gleaming gold. The government recently announced the finding of a 31 million-tonne gold ore deposit, with extractable pure gold expected to total 320,000 tonnes.
Aerial exploration has been conducted around the country during the previous two years, followed by geophysical and geochemical surveys and analysis, according to Solomon Muyita, a spokesperson for the Ministry of Energy and Mineral Development. The government has stated its goal to recruit large investors to grow the sector, which has previously been controlled by small wildcat miners.
In its finest form, gold is a bright, somewhat reddish yellow metal that is dense, soft, malleable, and ductile. It is one of the least volatile chemical elements and, under common conditions, is durable. Gold is resistant to corrosion and most acids, and it has qualities that set it apart from other metals. Another reason gold works well as a store of value is that it does not rust easily. As a result, it maintains a consistent weight. Other metals, such as iron and copper, rust and oxidise. Gold is scarce in this region, has a very steady volume, and does not rust.
Gold's primary features of corrosion resistance and ease of work make it very desirable for a variety of applications, including ornamentation. The outstanding thermal and electrical properties of gold drive industrial demand, particularly in the electrical sector. Most of the gold produced nowadays is used to make jewellery. Nonetheless, gold is an important industrial metal that is used in computers, communications equipment, spacecraft, jet aircraft engines, and a variety of other items.
Furthermore, a large proportion is used in dentistry and medicine. Gold has found new applications as a catalyst and in nanotechnology because of ongoing research.
Gold is frequently found in free elemental (native) form in rocks, veins, and alluvial deposits as nuggets or grains. Gold, on the other hand, is not a rare metal. However, finding and extracting the same in significant quantities is difficult and expensive - it is rarely discovered in concentrations that make extraction commercially viable. Geological surveys are conducted by gold explorers to support a lucrative mining project that aims for concentration levels 1,000 times higher than average. A gold mine is normally ready to generate material that can be processed into bullion between 10 and 20 years after a deposit is discovered.
The world's total gold supply is derived through mining and recycling above-ground gold stockpiles. Mine production accounts for most of the gold supply (75% each year). China, Australia, Russia, the United States, and Canada were the top five gold-producing countries. Currently, around 90 countries mine gold, with only seven significant producers. China has been the world's top gold producer, accounting for approximately 11% of total annual production.