Russian company Victoria Gold Star has opened the first gold refinery in Uganda, hoping to tap into processing the metal from producing countries in the East African region.

Reuters reports the refinery has a capacity to process 1.2 t/m of raw gold.

Victoria gold says Uganda is at the centre of gold producers the DRC, Tanzania, Rwanda and Kenya; and has favourable investment policies and political stability.

Uganda’s mineral industry is composed of small scale miners involved in gold and cobalt, the leading mineral exports. Earnings from the resources reached a high of $88-million in 2007 before slumping to $52-million in 2008.

Foreign investment inflows to Uganda have increased lately following the discovery of hydrocarbon deposits.