Copper mining is set to return to Uganda more than 40 years after operations at the historic Kilembe Mines were shut down.
The government has formally taken control of the mine’s assets, marking a major step toward redeveloping one of the country’s most significant mineral resources. The site, dormant since 1982, is now under the custodianship of the Uganda National Mining Company (UNMC) Ltd.
Kilembe Mines Ltd, the former operator, has been dissolved. Its assets—ranging from copper ore and real estate to ageing industrial machinery—have been handed over to the state-owned UNMC.
“We have formally handed over the list of assets and liabilities to UNMC Ltd,” said Dr Ruth Sengonzi, a board member of the now-defunct Kilembe Mines Ltd. “This includes everything from underground copper ore to real estate and industrial equipment, some of which was left behind by previous concessionaires.”
UNMC will now lead the redevelopment in partnership with Sarrai Group Ltd and Nile Fibreboard Ltd, both selected earlier this year through a competitive bidding process. The companies will work under a Mineral Production Sharing Agreement (MPSA).
The mine is believed to hold more than 3.5 million tonnes of cobalt-rich material, alongside significant copper deposits. Exploration work is expected to expand those estimates in the coming years.
“This is not just about reviving mining operations,” said Dr Gerald Banaga-Baingi, CEO of UNMC. “It’s about adding value through smelting and refining, creating jobs, and ensuring the people of Uganda benefit meaningfully from their mineral resources.”
Plans for a local smelter and refinery are central to the project. Officials say the infrastructure will reduce Uganda’s reliance on exporting raw minerals and position the country in the global supply chain for critical materials—especially as the world pivots to clean energy and digital technologies.
Minister of State for Mineral Development, Phiona Nyamutoro, called the move “a strategic effort to position Uganda as a key player in the global transition to cleaner, technology-driven economies.”
She said the project would bring industrial growth and job opportunities to the region, while stressing the need for responsible mining and environmental safeguards.
But the handover is not without complications. Dr Sengonzi confirmed that several legacy issues remain unresolved, including unpaid staff wages, tax arrears, and legal claims. These liabilities, she noted, fall outside the scope of the asset transfer, which UNMC says was completed “without liabilities.”
A full audit and verification of the assets is expected by 25 April. Among them are ore reserves, mining infrastructure, forest bio-assets and equipment left behind by Tibet Hima Mining Company Ltd, which operated the site between 2014 and 2018.
The new development team will also need to contend with ongoing environmental risks. Erosion from the nearby River Nyamwamba has threatened some of the unmined ore, adding urgency to the redevelopment plans.
Once a symbol of Uganda’s industrial promise, Kilembe now faces a second chance. With updated technology and tighter oversight, officials hope the mine can deliver sustainable growth—this time with broader benefits for local communities and the economy.
