Warning: Trying to access array offset on value of type bool in /usr/www/users/urnnet/a/story.php on line 43
Africa Gold Refinery Threatens To Quit :: Uganda Radionetwork
Breaking

Africa Gold Refinery Threatens To Quit

Top story
Alain Goetz, the proprietor of Africa Gold Refinery told Uganda Radio Network the company is unhappy with the recent decision by government to license two new gold refineries.
03 Oct 2018 19:24
Alain Goetz (L) speaking to a participant at the just concluded Mineral Wealth Conference in Kampala

Audio 3

Uganda's pioneer gold refinery is threatening to quit the country citing what it terms unfair competition on the market.

Alain Goetz, the proprietor of Africa Gold Refinery told Uganda Radio Network the company is unhappy with the recent decision by government to license two new gold refineries.

Africa Gold Refinery entered an agreement with government to import and refine gold on Manufacture Under Bond (MUB) as per the laws of Uganda and the East African Community Customs protocol. Manufacture Under Bond is one of the investment packages that government has been issuing to selected investors.

It among others provides generous capital allowance for medium- and long-term investors in priority areas whose projects involve significant investment in plant machinery and other costs.  Africa Gold Refinery has reportedly enjoyed VAT deferments, deductions, exemptions and capital depreciation allowances since it was launched by President Museveni in February last year.

Goetz is now up in arms against Uganda Revenue Authority and the Directorate of Geological surveys and mines claiming there are two companies operated by Indians and Kenyans that have been awarded licenses to export non-refined gold from Uganda.  

The latest players according to Goetz are one Sameer Binji from Kenya and Simba Gold Refinery. URN could not trace its managers or physical address for comment about the allegations by Africa Gold Refinery.

Goetz says the new players seem to be like hawkers operating outside an established shop but selling the same product.

// Cue in "For us you know…. 

Cue Out…… who has no cost"// 

He says his company continues to foot monthly operating costs of over Shillings 35 million under the stiff competition. 

Sharon Tem, the Secretary, Africa Gold Refinery Company told URN that the decision to allow more players operating under Manufacturer Under Bond in gold refinery is contradictory. 

// Cue in" The smugglers are…. 

Cue Out…. competing with such"// 

She claims there could be a ploy by some official in the Minerals Directorate to help what she called smugglers to undermine an established refinery. 

// Cue in "Because with a refinery…  

Cue Out….. Without paying any tax,"// 

Government has been out on a campaign to attract more investors to the mining sector following surveys that established the existence of minerals including gold, base metals, uranium, rare earths, iron, titanium, vermiculite, diamond and cobalt among others in various locations across the country. 

Africa Gold Refinery had last year promised to have an initial output capacity of 300 kilograms of pure gold per week. It had promised to increase production to 500 kilograms.

Efforts to reach the Minerals State Ministers, Peter Lokeris were futile. Zachary Baguma, the acting Director at Directorate of Geological Surveys and Mines declined to comment on the matter when contacted at the just concluded Mines conference at Kampala Serana Hotel.