Kilembe Mines handed over to developer as Uganda returns to copper smelting after 43 years

After more than four decades of dormancy, Uganda is set to resume copper production following the formal handover of Kilembe Mines assets to the Uganda National Mining Company (UNMC) Ltd. The milestone sets the stage for the redevelopment of one of the country’s most iconic mineral assets—and the eventual return of copper smelting to Ugandan soil.

Kilembe Mines Ltd, which ceased operations in 1982 due to a global slump in copper prices and economic instability, has now been dissolved, with all its assets and business interests officially transferred to the UNMC Ltd. This development unlocks a new chapter for Uganda’s mining industry, with the state-owned UNMC tasked with overseeing the transformation.

“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 Ltd now assumes custodianship of Kilembe’s vast mineral wealth—including an estimated 3.5 million tonnes of cobalt-rich material—and will oversee its redevelopment in partnership with Sarrai Group Ltd and Nile Fibreboard Ltd. The companies were selected through a competitive bidding process under a Mineral Production Sharing Agreement (MPSA) signed earlier this year.

Dr. Gerald Banaga-Baingi, CEO of UNMC Ltd, described the transfer as “a foundation upon which the redevelopment of Kilembe Mines will be built.”

“This is not just about reviving mining operations,” he said. “It’s about adding value through smelting and refining, creating jobs, and ensuring the people of Uganda benefit meaningfully from their mineral resources.”

The incoming development consortium is expected to carry out extensive mineral exploration to extend the life of the mine, and to establish a smelter and refinery for local value addition—an initiative that will reduce Uganda’s dependency on exporting raw minerals and help integrate the country into the global value chain for critical minerals.

Minister of State for Mineral Development, Phiona Nyamutoro, called the redevelopment “a strategic move to position Uganda as a key player in the global transition to cleaner, technology-driven economies.”

She emphasized that the venture would not only catalyze industrial growth and job creation in the region, but also ensure responsible mining practices and environmental stewardship.

While the project brings promise, it also inherits a complex web of liabilities. Dr. Sengonzi confirmed that outstanding staff emoluments, unresolved tax obligations, and legal claims remain on the books. These will need to be addressed separately from the asset transfer, which UNMC Ltd says was done “without liabilities.”

The physical audit and verification of assets is scheduled to be completed by April 25. The assets include underground copper ore reserves, mining and support infrastructure, forest bio-assets, and miscellaneous equipment left behind by Tibet Hima Mining Company Ltd, a former concessionaire that managed the site between 2014 and 2018.

With River Nyamwamba’s increasing erosion threatening some of the unmined ore, the new team faces both opportunity and urgency. The hope is that, with modern technology and stronger institutional oversight, Kilembe can return to its former glory—only this time, with more sustainable and inclusive benefits.