Uganda’s mineral sector reached a historic milestone today with the signing of the first-ever Mineral Production Sharing Agreement (MPSA) for the redevelopment of Kilembe Mines.
The agreement was finalised after a rigorous evaluation process involving 14 firms, with Sarrai Group Limited and Nile Fibreboard Limited emerging as the winning bidders.
The redevelopment project is set to breathe new life into the Kilembe Mines, one of Uganda’s most significant copper and cobalt reserves. This partnership will focus on the production of copper cathodes and cobalt metal, both of which are crucial for the global transition to clean energy technologies.
Speaking at the signing ceremony, Ruth Nankabirwa Ssentamu, Uganda’s Minister of Energy and Mineral Development, expressed optimism about the project’s potential to drive industrialisation in the country.
“This flagship project will produce copper cathodes and cobalt metal, critical for the transition to clean energy technologies, and drive Uganda’s industrialisation, creating jobs and supporting local mining operations,” she said.
Nankabirwa also extended special thanks to the winning partners, Sarrai Group and Nile Fibreboard Limited, for their commitment to the project.
The redevelopment of Kilembe Mines is expected to create thousands of jobs, contributing to the local economy and providing significant opportunities for Ugandans in the mining and industrial sectors.
The copper and cobalt extracted from the mines will play a key role in supporting global industries transitioning towards cleaner energy sources, including electric vehicles and renewable energy technologies.
With the signing of this MPSA, Uganda has taken a major step towards harnessing its mineral wealth, setting the stage for growth, innovation, and a more sustainable future.
About Kilembe Mines
Kilembe Mines is a historic copper and cobalt mining site located in the southwestern region of Uganda, near the foothills of the Rwenzori Mountains. The mines were first developed by the Belgian colonial administration in the 1950s and later operated by the government of Uganda. Over the years, Kilembe Mines became one of the largest and most important sources of copper and cobalt in the country.
At its peak, Kilembe Mines produced significant quantities of copper and cobalt, which were crucial for both domestic industrial use and export. Copper was primarily used in manufacturing, while cobalt, a key component in the production of batteries and other electronic materials, was also highly valued. The mines were a major source of revenue and jobs for the local community.
However, operations at Kilembe Mines began to decline in the 1980s due to a combination of factors, including poor management, low commodity prices, and ageing infrastructure. In the late 1970s and early 1980s, the mines faced challenges from political instability, which further disrupted production. By the 1990s, the mines had ceased large-scale operations, and many of the assets were left dormant.
In recent years, there has been growing interest in revitalizing the Kilembe Mines as part of Uganda’s broader strategy to harness its mineral resources and boost industrialisation. The potential for extracting copper and cobalt in large quantities has renewed hopes of bringing the mines back into full production, with a focus on meeting the increasing global demand for these minerals, particularly for clean energy technologies like electric vehicle batteries.
