The State Minister for Minerals, Phiona Nyamutooro, over the weekend presided over the handover ceremony of assets of Kilembe Mines Limited to Uganda National Mining Company ( UNMC), Sarai Group and Nile Fireboard Limited, the three entities that are set to revive copper production at the mines.
This follows the signing of a Mineral Production sharing Agreement between the Ministry of Energy and Mineral, UNMC, Sarai Group and Nile Fireboard Limited on March 3rd,2025.
The handing over of the assets, according to Minister Nyamutoro, marked a significant resumption journey since 1982 when Kilembe Mines stopped production due to a fall in copper prices worldwide.
Nyamturo revealed that the resumption of copper production at Kilembe mines will boost metal industrialisation and ensure that Uganda benefits from its natural resources.
Resumption of Kilembe Mines: A New Era for Uganda’s Industrial Sector
The resumption of Kilembe Mines marks a significant milestone in Uganda’s industrial development.
After a 43-year hiatus, the mines are set to revive copper production, driven by a new partnership between the Uganda National Mining Company (UNMC), Sarai Group, and Nile Fireboard Limited.
The handover ceremony of assets, presided over by State Minister for Minerals Phiona Nyamutoro over the weekend, signals a new era for Uganda’s mining sector.
New Chapter for Kilembe Mines
The Mineral Production Sharing Agreement signed on March 3rd, 2025, between the Ministry of Energy and Mineral Development, UNMC, Sarai Group and Nile Fireboard Limited, paves the way for the revival of copper production at Kilembe Mines.
This agreement is a testament to the government’s commitment to harnessing the country’s natural resources to drive economic growth and development. Minister Nyamutoro emphasised that the resumption of copper production will boost metal industrialisation and ensure that Uganda benefits from its natural resources.
Boosting Metal Industrialisation
The resumption of Kilembe Mines is expected to have a significant impact on Uganda’s industrial sector. Copper production will provide a vital source of raw materials for various industries, including manufacturing, construction, and electronics.
This will not only create new opportunities for industrial growth but also contribute to the country’s economic diversification.
Benefits for Uganda’s Economy
The revival of Kilembe Mines will have far-reaching benefits for Uganda’s economy, including:
Job Creation
The mine’s operations will create employment opportunities for thousands of Ugandans, both directly and indirectly.
Increased Government Revenue
The mine’s production will generate significant revenue for the government through taxes, royalties, and other forms of revenue streams.
Economic Growth
The resumption of copper production will contribute to Uganda’s economic growth, reducing dependence on imports and increasing the country’s foreign exchange earnings.
The resumption of Kilembe Mines, therefore, marks a new chapter in Uganda’s industrial development. With the revival of copper production, the country is poised to harness its natural resources to drive economic growth and development.
As the mines begin to produce copper once again, Uganda’s industrial sector is set to receive a significant boost, paving the way for a brighter economic future.