Gov’t begins journey to revamp Kilembe Mines

KAMPALA, March 9, 2025 – Government through the Uganda National Mining Company (UNMC) has officially commenced efforts to fully revive Kilembe Mines, which once produced Uganda’s copper before being closed in 1982. The closure was due to a combination of factors, including low copper prices, outdated equipment, high inflation, and insecurity.

The UNMC has partnered with Sarrai Group Limited in a bid to extract copper and cobalt from the mines, which are located in Kasese district, bordering the Democratic Republic of Congo. The two companies signed mineral production-sharing agreements earlier this week, marking a significant step towards revitalising the industry, generating employment, and fostering economic development in the region.

The agreement was signed by Finance Minister Matia Kasaija and Energy and Mineral Development Minister Ruth Nankabirwa on behalf of the Government of Uganda, with Sarrai Group Ltd and Nile Fibreboard Ltd selected as the primary investors.

This milestone followed a comprehensive assessment of the facility by UNMC, which evaluated its current state and outlined strategies for revitalising the former mining giant.

James Byagaba, Vice Chairperson of the UNMC Board, confirmed to The Cooperator that the process was initiated after key officials in the Ministry of Energy and Mineral Development and the Ministry of Finance, Planning and Economic Development signed the agreement with the investors from Sarrai Group Limited. Byagaba also affirmed that the site remains a viable investment, with significant assets, including the machinery, extensive land resources, and the Kilembe Mines Hospital, all of which have endured over the years.

With the investment on the horizon, the surrounding communities in Kasese stand to benefit greatly, with opportunities for employment in the mines, as well as jobs in services and food supply.

“The revival of Kilembe Mines is a game-changer for employment in this region,” said Byagaba. “It will not only create mining jobs but will also stimulate local businesses that support the industry.”

The agreement highlights the need to prioritise several redevelopment efforts, including the improvement of Kilembe Mines Hospital to provide better healthcare services, the restoration and reconstruction of the banks of River Nyamwamba, which have been eroded by annual flooding, and the enhancement of electricity infrastructure to support mining activities. Additionally, the agreement underscores the introduction of modern mining technologies that will focus on environmental sustainability and the protection of the natural ecosystem.

At present, the site still contains outdated mining technologies, originally procured by the colonial government and used until the late 1970s and 1980s.

Kilembe Mines was established in the 1950s at the foot of Mountain Rwenzori in Kasese District. The colonial government introduced technology for the extraction of copper and cobalt, and the mines thrived, making Kasese one of the fastest-developing towns in Uganda. Mining provided significant employment opportunities, high-quality roads were built, and the railway line was extended to Kilembe, running from Mombasa Port. The mines became a key source of revenue for the country.

However, political and economic instability during the 1970s and 1980s led to a decline in mining operations, and the facility was eventually closed due to increased insurgencies in the region. Efforts to revive the mines have been hampered by outdated technology, legal disputes, and environmental challenges. Industry experts estimate that Kilembe Mines hold around four million tonnes of ore, with 1.98 percent copper and 0.17 percent cobalt content.

In 2013, a Chinese company, Tibet Hima, won a 25-year concession to rehabilitate and operate the mines. However, the government terminated the concession due to slow progress and unmet targets.

Under the new agreement, the investors are set to restart the production of copper cathodes and cobalt metals, both of which are essential for clean energy technologies. Global demand for these minerals has surged as countries transition from fossil fuels to green energy solutions.

Officials state that the mining project aligns with the government’s focus on value addition, ensuring that minerals are processed locally rather than exported in their raw form.

Minister Ruth Nankabirwa lauded the agreement as a significant milestone for Uganda’s mineral sector, highlighting its potential to drive industrialisation, create jobs, and boost local mining operations.

https://thecooperator.news/govt-explains-cancellation-of-tibet-hima-contract/

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