The Kilembe copper mine revival is set to reshape Uganda’s mining sector, following a historic handover of assets from the defunct Kilembe Mines Ltd to the Uganda National Mining Company (UNMC) on April 17, 2025. This milestone marks the end of a 43-year mining hiatus and the beginning of a new era in mineral development aimed at boosting the national economy, creating jobs, and building local industry.
Located in the foothills of the Rwenzori Mountains, Kilembe once powered Uganda’s industrial backbone until operations ceased in 1982. The closure, driven by a global collapse in copper prices, inflation, and logistics constraints, left behind vast untapped reserves and idle infrastructure. Today, the mine is estimated to hold 3.5 million tonnes of cobalt-rich ore with grades of 0.12% cobalt and 0.18% copper—resources that could position Uganda as a key supplier in the global green economy.
Dr. Ruth Sengonzi, a member of the now-dissolved Kilembe Mines Ltd, confirmed that the company’s assets and liabilities have officially been handed over to UNMC. These include underground ore deposits, mining equipment, a treatment plant, forests supporting mine shafts, real estate, and other infrastructure. However, the site also carries unresolved liabilities such as staff benefits, tax debts, legal fees, and pending litigation.
UNMC, which holds a 15% stake in the new project, plans to transfer the assets to Sarrai Group Ltd and Nile Fibreboard Ltd under a Mineral Production Sharing Agreement (MPSA). Board Chair James Mukasa Sebugenyi indicated that a full audit and physical handover—excluding the liabilities—will be finalized by April 25. Meanwhile, CEO Dr. Gerald Banaga-Baingi hailed the Kilembe copper mine revival as a foundation for economic transformation through job creation, regional development, and industrialization.
As part of the revitalization efforts, the government has mapped out plans to establish a value-added processing chain. State Minister for Mineral Development Phiona Nyamutoro emphasized the need to move beyond raw exports by developing a smelter and refinery at the site. This approach is expected to not only increase Uganda’s competitiveness in global mineral markets but also to foster domestic skill development and attract further investment.
The Kilembe copper mine revival also comes with an environmental and technical caveat. Some of the cobalt and copper ore has reportedly been eroded by River Nyamwamba, necessitating fresh geological assessments to verify the remaining reserves. Exploration work will therefore be prioritized by Sarrai Group and UNMC to ensure sustainability and viability.
The current initiative follows a March 3, 2025 agreement between the government, Sarrai Group Ltd, Nile Fibreboard Ltd, and UNMC. The partnership aims to breathe life back into what was once Uganda’s largest mining operation, leveraging modern technologies and private capital to ensure success.
If fully realized, the Kilembe copper mine revival could serve as a blueprint for other dormant mining projects across the continent, positioning Uganda as a regional leader in mineral wealth and resource-based industrialization.