The first gold refinery plant in Uganda yesterday opened to business at a function presided over by the State Minister for Energy and Minerals, Mr Peter Lokeris.

Officials said the $1.5 million (about Shs3 billion) plant, which was set up by Victoria Gold Star Ltd, will process gold from eastern Congo and other parts of the region.

Mr Lokeris, however, said Uganda's gold deposits in the Karamoja region, where he hails from, will remain untapped until the right callibre of investors are found.

"We have enough gold here but we need serious investors who will exploit it and have it refined," Mr Lokeris said at the commissioning of the refinery in Kampala's Industrial Area.

The Managing Director of Victoria Gold Star, Mr Yuri Bogorodistkiy, said the plant will produce "100 per cent refined gold for export to international markets."

The two processing units at the plant have the capacity to process at least 60 kilogrammes of gold per day. The Assistant Chemist, Mr Martin Mpanga, said; "The initial investment license was for a small plant but we have applied for another licence and we want to invest more capital to expand the refinery."

Mr Lokeris said smuggling of the minerals will not be tolerated as the country has a mineral processing protocol with the Congolese government. He also said smuggling will hurt genuine investors already in the business.