The government of Uganda has, through the Ministry of Energy and Mineral Development, resolved to revive the production of copper at Kilembe mines in Kasese District.
This signing of the Mineral Production Sharing Agreement with Sarrai Group Limited from India marks a significant milestone in this endeavor.
According to Hon. Evelyn Anite, the agreement, which was signed in the presence of among others, Energy Minister Ruth Nankabirwa, Finance Minister Matia Kasaija, state minister for Energy and Mineral Development Phiona Nyamutoro and a team from Sarrai Group Limited, follows an extensive evaluation of proposals from 14 firms, with Sarrai Group Limited and Nile Fibreboard Limited emerging as the best bidders.
Located in the foothills of the Rwenzori Mountains, Kilembe Mines has the potential to grow Uganda’s copper ore reserves and return the country to the copper mining fold.
The mines boast proven ore reserves estimated at 4.5 million tons, with an average grade of 1.77% pure copper and 0.17% cobalt.
Job Creation
The revival of Kilembe Mines is expected to create thousands of jobs for Ugandans, both directly and indirectly, which is in line with the government’s objective of fighting poverty through job creation. During its peak in the 1970s, the mine employed thousands of people, and its reopening is anticipated to have a similar impact. Besides job creation, however, the project will also stimulate economic growth, increase business opportunities, and support local mining operations.
Some notable statistics that highlight the significance of the revival of Kilembe Mines:
4.5 million tons: Estimated ore reserves at Kilembe Mines
1.77%: Average grade of pure copper in the ore reserves
0.17%: Average grade of cobalt in the ore reserves
30%: Contribution of Kilembe Mines to Uganda’s foreign export earnings during its peak in the 1970s
3,000: Estimated number of jobs to be created by the revival of Kilembe Mines
1.5 million: Estimated number of tourists visiting the Rwenzori Mountains each year, with potential for growth with the reopening of the mines.
The government’s efforts to revive Kilembe Mines align with its broader strategy to promote value addition by processing minerals locally rather than exporting raw materials. This initiative is expected to position Uganda as a key player in the global mining sector while contributing to the global transition toward clean energy.
It is important to note therefore that reviving Kilembe Mines is a crucial step towards Uganda’s economic transformation.
This is because the project has the potential to create jobs, stimulate economic growth, and increase business opportunities, ultimately improving the livelihoods of people in Kasese and contributing to Uganda’s economic development.
Copper production at Kilembe mines started in 1956 but stopped in 1982 due to political turmoil, and the mines have been in a state of care and maintenance since then.
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