The Ugandan government has officially granted Sarrai Group Limited the rights to revive operations at Kilembe Mines. This move, aimed at revitalizing mining in the Rwenzori region, was marked by the signing of Uganda’s first-ever Mineral Production Sharing Agreement.
The agreement, finalized in a private session at Petroleum House in Entebbe, was attended by high-ranking officials, including Energy Minister Ruth Nankabirwa, Finance Minister Matia Kasaija, State Minister for Minerals Phiona Nyamutoro, and Minister of State for Privatization and Investment Evelyne Anite, among others.
Minister Nankabirwa emphasized that reopening Kilembe Mines will provide much-needed employment for Ugandans and stimulate economic growth.
“This marks a major milestone in Uganda’s mining industry,” she said. “After evaluating proposals from 14 companies, Sarrai Group Limited, alongside Nile Fibreboard Limited, was selected as the best bidder. This project will focus on producing copper cathodes and cobalt metal key minerals for advancing clean energy technologies while also boosting industrialization and local mining activities.”
To ensure accountability and economic benefits, the government has set up measures for close collaboration with the investors. Mining operations are set to commence once the site’s readiness assessment is complete.
This initiative follows the government’s 2019 decision to terminate a 25-year contract with Tibet Hima, a Chinese firm, due to delays and failure to meet contractual obligations. The decision to relaunch mining activities is expected to bring economic transformation to the region and contribute to Uganda’s broader development goals.
