Minister of State for Mineral Development Phiona Nyamutoro (centre) joins Uganda National Mining Company CEO Dr Gerald Banaga-Baingi (right) during the handover of Kilembe Mines’ assets at the Ministry of Energy and Mineral Development in Kampala on April 17, 2025. PHOTO/PHILLIP WAFULA
Uganda has inched closer to restarting copper production after Kilembe Mines Ltd officially handed over its assets to the Uganda National Mining Company (UNMC), ending a 43-year halt in operations.
The handover, which took place in Kampala, follows the dissolution of Kilembe Mines Ltd, which ceased production in 1982 due to a global slump in copper prices, inflation, and supply chain constraints.
“This is a formal transfer of all assets and liabilities. Kilembe Mining has been dissolved and its business incorporated under UNMC,” said Dr Ruth Sengonzi, a member of Kilembe Mines Ltd.
UNMC, which holds a 15 percent stake in the redevelopment project, is expected to transfer the assets to the appointed contractors, Sarrai Group Ltd and Nile Fibreboard Ltd, as part of a Mineral Production Sharing Agreement (MPSA).
Between 2014 and 2018, the mines were operated under concession by Tibet Hima Mining Company, which left behind various assets and unverified mineral quantities.
In ruins. A section of the dilapidated Kilembe Mines in Kasese District. PHOTO/FILE
Dr Sengonzi said the mine still holds an estimated 3.5 million tonnes of cobalt-rich material, with grades of 0.12% cobalt and 0.18% copper.
“However, River Nyamwamba has eroded some of the tonnage, which will need verification,” she added.
The asset list includes copper ore underground, mining equipment, bio-assets like forests used to support mining shafts, a treatment plant, real estate, and “grey area” assets left by previous concessionaires and the National Enterprise Corporation (NEC).
Kilembe Mines Ltd also leaves behind liabilities such as unpaid staff benefits, tax arrears, legal fees, and unsettled court cases.
UNMC Board Chair James Mukasa Sebugenyi confirmed receipt of the assets.
“Between April 17 and 25, we shall complete the audit, verification, and full physical handover—excluding liabilities,” he told Monitor.
UNMC CEO Dr Gerald Banaga-Baingi hailed Kilembe as “one of Uganda’s most outstanding mining assets.”
He added: “This asset handover is not just a legal formality but the foundation for redevelopment. It reflects the government’s trust in UNMC to safeguard public interest.”
Banaga-Baingi said the project promises to unlock economic potential, create jobs, and drive regional development.
“We envision a mining operation that is commercially viable, socially responsible, and environmentally sustainable.”
State Minister for Mineral Development Phiona Nyamutoro said a joint verification exercise would confirm the handover in line with the MPSA.
“The project will not only restart mining but also establish a value-added processing industry, positioning Uganda more competitively in the global minerals market,” she noted.
Kilembe Mines, a copper producer which began operating in 1950, had an estimated 3.5 million tonnes of copper ore when operations stopped. PHOTO/COURTESY
According to Nyamutoro, UNMC and Sarrai Group will invest in exploration to extend the mine’s life, establish a smelter and refinery, and develop local skills.
The handover follows a March 3 agreement signed by the government, Sarrai Group Ltd, Nile Fibreboard Ltd, and UNMC, formalizing the plan to redevelop Uganda’s largest copper mine.
