In a historic move for Uganda’s mining sector, the government has officially handed over Kilembe Mines’ assets to the Uganda National Mining Company (UNMC) Ltd, marking the return of copper smelting after more than four decades.
The transition, announced on April 18, paves the way for the redevelopment of the iconic Kilembe Mines, which last operated in 1982 before global copper prices crashed. Since then, the mines have remained dormant—until now.
The state-owned UNMC Ltd will now spearhead the revival of operations in partnership with Sarrai Group Ltd and Nile Fibreboard Ltd.
The two companies were selected through a competitive bidding process and are bound by a Mineral Production Sharing Agreement (MPSA) signed earlier this year.
Dr. Ruth Sengonzi, a board member of the now-dissolved Kilembe Mines Ltd, confirmed the transfer of all assets—ranging from copper ore deposits to industrial machinery and real estate.
“We’ve officially handed over the assets and liabilities list to UNMC,” she said. “The handover includes equipment and infrastructure previously left behind by former concessionaires.”
The newly appointed consortium will oversee mineral exploration, construct a modern smelter and refinery, and implement local value addition processes.
With an estimated 3.5 million tonnes of cobalt-rich ore on site, the redevelopment signals Uganda’s intent to reduce raw mineral exports and integrate itself into the global critical minerals supply chain.
UNMC CEO Dr. Gerald Banaga-Baingi described the transfer as a vital building block.
“This is more than restarting mining. We’re talking about value addition, job creation, and ensuring Ugandans benefit from their resources,” he said.
Minister of State for Mineral Development Phiona Nyamutoro echoed that sentiment, calling the project “strategic and transformative.”
“This is a pivotal step in Uganda’s journey toward industrial growth and global relevance in green technologies,” Nyamutoro noted. “But we must ensure responsible mining and environmental protection every step of the way.”
Despite the optimism, challenges remain. Dr. Sengonzi admitted that the transfer was conducted without liabilities, meaning unresolved staff payments, tax arrears, and legal claims still loom large.
Additionally, the physical audit of assets—scheduled to conclude by April 25—must assess potential threats like River Nyamwamba’s aggressive erosion, which risks undermining unmined ore zones.
The redevelopment team faces both urgency and opportunity. With modern technology and a commitment to sustainability, many hope that Kilembe’s second act will be more impactful than its first—transforming Kasese and reestablishing Uganda as a player in the global copper market.
