Uganda Hands Over Kilembe Mines in Landmark Redevelopment Deal

Kasese – The Government of Uganda has officially handed over the long-dormant Kilembe Mines assets to Sarrai Group Ltd and Nile Fibreboard Ltd, marking a significant milestone in the country’s mineral sector revitalisation.

The handover ceremony, presided over by Minister of Energy and Mineral Development Ruth Nankabirwa Ssentamu, follows the signing of Uganda’s first-ever Mineral Production Sharing Agreement (MPSA) in March this year.

The redevelopment project, jointly undertaken by Sarrai Group, Nile Fibreboard Ltd, and the Uganda National Mining Company (UNMC), which holds a 15% equity stake, is expected to breathe new life into one of Uganda’s most historic and resource-rich mining sites. The agreement followed a competitive selection process that evaluated 14 interested firms.

“This flagship project will produce copper cathodes and cobalt metal, which are critical for the global transition to clean energy technologies,” Minister Nankabirwa said during the handover event. “It will drive Uganda’s industrialisation, create thousands of jobs, and support the local mining economy as envisioned under NDP IV and the African Transition Minerals Strategy (ATMS).”

The project also includes a technical assessment of the Mubuku I Hydropower Station to potentially support the mine’s energy needs, with interim electricity supply support from the Uganda Electricity Distribution Company Limited (UEDCL).

Kilembe Mines, located in the shadow of the Rwenzori Mountains in western Uganda, was once a thriving hub for copper and cobalt production. First developed in the 1950s under Belgian colonial administration, the mines later became a vital contributor to Uganda’s economy before operations declined in the 1980s due to mismanagement, political instability, and ageing infrastructure.

Now, with rising global demand for copper and cobalt—key components in electric vehicle batteries and other clean energy technologies—the redevelopment signals a new era of opportunity.

Nankabirwa appealed to local leaders and communities to support the initiative. “Government has delivered the investment; it is now our collective duty to protect it,” she urged. “End encroachment, theft, and support peace to unlock the full potential of Kilembe Mines for our people.”

The revitalisation is expected to create thousands of jobs and foster growth in downstream industries, positioning Uganda as a strategic player in the global minerals value chain.

With this new chapter, Uganda is not only reclaiming its mining legacy but also aligning itself with global trends towards sustainable development and green technology.