By Aggrey Baba
[A well that has been abandoned for years may still quench the thirst of a new generation if revived]. For nearly half a century, the once-thriving Kilembe Copper Mines in Kasese have been left to decay, swallowed by rust, overgrown by weeds, and buried under layers of mismanagement and failed revival attempts.
But now, the government has taken a decisive step to breathe life back into this national treasure, signing a new agreement with Sarrai Group Limited to restart operations.
At a ceremony held at the Ministry of Energy offices in Entebbe, the government formally handed over the responsibility of redeveloping Kilembe Mines to Sarrai Group. The mineral-sharing agreement was signed by Finance Minister Matia Kasaija, Energy Minister Ruth Nankabirwa, and Sarrai Group’s Director Rajbir Singh Rai.
The event was witnessed by key gov’t officials, including State Minister for Investment Evelyn Anite, State Minister for Mineral Development Phiona Nyamutooro, and Energy Ministry Permanent Secretary Irene Pauline Batebe.
This marks a major milestone in the government’s long-standing efforts to revive the mine, which has remained dormant since the early 1980s. The deal comes after years of failed attempts, including a botched concession with Tibet-Hima Mining Company, a Chinese firm whose contract was canceled due to failure to fulfill its obligations.
Kilembe Mines, located in the foothills of the Rwenzori Mountains, was once the backbone of Uganda’s mining industry. Discovered in the 1920s, the site was later developed by Canadian investors in the 1950s, leading to the establishment of a fully-fledged copper and cobalt mining operation.
At its peak in the early 1970s, Kilembe Mines employed thousands of Ugandans and produced high-grade copper that was exported globally.
However, the tides turned in the late 1970s when economic instability, poor management, and deteriorating infrastructure forced production to slow down. By 1977, the mine could no longer sustain operations and was shut down.
The last nail in the coffin came in 1982 when all extraction activities ceased, leaving behind an abandoned mine, a struggling town, and a community that once thrived on mining jobs now plunged into economic despair.
For over 30 years, numerous attempts to revive the mine have hit a dead end. Several investors expressed interest, but their plans never materialized.
The most notable failure was the 2013 concession granted to Tibet-Hima, a Chinese company that was expected to conduct exploration, establish a refinery, and restart copper, cobalt, and gold production. However, the company’s progress stalled, and in 2023, the government finally canceled its contract.
According to Minister Evelyn Anite, the Chinese firm made unrealistic demands, including permission to export 30,000 metric tonnes of copper, cobalt, and gold to China as “samples” before committing to full-scale production.
Uganda rejected this request, arguing that it was illogical to allow such a large amount of Uganda’s natural resources to be taken out of the country without any guarantee of returns.
Furthermore, Tibet-Hima lacked the financial and technical capacity to carry out the required work. The company also attempted to renegotiate contract terms, citing flooding in Kasese as a challenge to operations.
Gov’t dismissed these concerns, arguing that while flooding occurs occasionally, it was not an excuse for inactivity.
After a rigorous selection process, Sarrai Group Limited was chosen from a pool of bidders to take over the mine’s redevelopment. The company, which has a strong presence in Uganda, Kenya, and Malawi, owns several manufacturing and agro-processing firms, including Kinyara Sugar Works, Hoima Sugar Limited, Nile Plywoods Limited, and Vitafoam Limited.
Minister Nankabirwa assured the public that this time, due diligence had been conducted to ensure Sarrai Group is capable of delivering on its promise. “The government appointed a strong team of negotiators who vetted all the bidders, and Sarrai Group emerged as the best candidate. We are confident that this project will finally take off,” she said.
As part of the new agreement, gov’t will retain a 15% stake in the project through the National Mining Company, ensuring that Uganda benefits from its own resources. Sarrai Group is also expected to invest in value addition, meaning that raw minerals will no longer be exported without processing.
The revival of Kilembe Mines is expected to transform Kasese’s economy and create thousands of jobs for Ugandans. “When Kilembe was fully operational in the past, people from as far as Kabale and Gulu came here to work. The mine created a ripple effect in business, housing, and agriculture,” Minister Kasaija recalled.
He emphasized that the project should be fast-tracked to provide employment for Uganda’s growing youth population. “There are too many young people on the streets without jobs. If we do not create employment, we are sitting on a time bomb,” he warned.
Minister Nankabirwa also pointed out that the local economy would benefit from increased business opportunities. “Even farmers will gain because they will supply food to the workers. Transport, housing, and small-scale businesses will all see a boom,” she said.
Despite the optimism, several challenges still lie ahead. The mines have been abandoned for decades, meaning a significant amount of work will be needed to make them operational again. Infrastructure, including access roads and electricity, will require major upgrades.
Additionally, the region is prone to heavy rains, which may slow down progress in the initial stages.
However, gov’t remains optimistic that Sarrai Group is up to the task. “We shall keep our doors open for discussions, but what we want is results. We have already wasted too much time,” Kasaija said.
The signing of this agreement marks a crucial step toward restoring Kilembe to its former glory. If successful, the project will not only revive the mining sector but also position Uganda as a key player in the global copper and cobalt market.
For the people of Kasese, who have waited decades for this moment, the hope is that this deal will not be another false start.
[A river that forgets its source will surely run dry]. And this time, Uganda is determined to ensure that its natural wealth serves its people, and not just foreign interests. (For comments on this story, get back to us on 0705579994 [WhatsApp line], 0779411734 & 041 4674611 or email us at mulengeranews@gmail.com).
