Once a cornerstone of Uganda’s economy in the 1960s and 70s, Kilembe Mine fell into decline in the late 1970s and eventually shut down in the early 1980s. Political instability, insecurity, and successive armed conflicts led to its collapse in 1982. The mine had been significant enough to justify the extension of the Uganda Railway from Mombasa, Kenya to Kasese in Western Uganda.
Now, the government has secured a new investor to revive the mine, which is estimated to host at least 4 million tons of copper deposits, along with an undetermined number of cobalt ore. Furthermore, over 1,100 hectares of the area remain unexplored, suggesting significant untapped potential.
The new investor is a consortium comprising the Sarrai Group, Nile Fibreboard, and the Uganda National Mining Company Limited (UNMC). This consortium will be responsible not only for mining and processing but also for exploring new deposits. The government has officially handed over the site, with its interests represented by UNMC, which holds a 15% stake in the venture.
Located in Kilembe, a suburb of Kasese town in the foothills of the Rwenzori Mountains, the mine is approximately 380 kilometers from Kampala. Sarrai Group and Nile Fibreboard are both owned by Sarbjit Singh Rai, a Ugandan investor of Asian origin.
The revival of Kilembe Mines is expected to be transformative for the region, which once thrived on mining, tourism, trade, and related economic activities. During its heyday in the 1960s and 70s, Kilembe attracted people from across the country seeking employment and business opportunities.
There is renewed hope that the mine’s resurgence will restore the region’s lost glory, especially alongside other development initiatives such as the construction of the Kasese Wildlife Research and Training Institute and the planned upgrade of the local airfield into an international airport.
History of Kilembe Mines
In July 1950, two Canadian mining companies—Frobisher Limited and Ventures Limited—formed a joint venture named Kilembe Mines Limited (KML) to mine copper beneath the Rwenzori Mountains near Kasese. KML built and operated a copper smelter in Jinja and maintained offices in Kampala. Additional assets included a housing estate for staff in Kasese and the 5-megawatt Mubuku I Power Station.
In 1962, Falconbridge of Africa acquired the company. It was later sold to the Government of Uganda in 1975. However, operations ceased in 1982 due to aging equipment, high inflation, and widespread insecurity.
A revival attempts in 2013 led to the mine being awarded to a consortium led by Tibet-Hima Mining Company Limited under a 25-year concession expected to last until 2038. However, this agreement was terminated following a dispute in which the Chinese investor sought to export 30,000 tonnes of copper, cobalt, and gold—allegedly for testing purposes. This prompted intervention from the government, as confirmed by State Minister of Finance, Planning and Economic Development, Evelyn Anite.
Last year, the government initiated the process of selecting a new investor. During the official handover of the project, Minister of Energy and Mineral Development, Ruth Nankabirwa, stated:
“This flagship project will produce copper cathodes and cobalt metal, critical for the transition to clean energy technologies, and drive Uganda’s industrialization
The redevelopment also includes an assessment and potential upgrade of the Mubuku I Hydropower Station to boost electricity supply in the region.
Strategic Importance of Copper and Cobalt
Copper is one of the world’s most essential metals due to its excellent electrical and thermal conductivity, corrosion resistance, and ductility. It is widely used in electronics, building construction, industrial machinery, and transportation—sectors that are expanding rapidly with the rise of electric vehicles.
Cobalt, likewise, plays a crucial role in modern technology. It is a key component in lithium-ion batteries that power everything from smartphones and laptops to electric cars. Its high resistance to heat and corrosion also makes it vital in aerospace, defense (e.g., jet engines, spacecraft), and renewable energy technologies such as wind turbines and electric motors.
Cobalt is additionally used in medical devices, chemical processing, ceramics, and glass, making it a highly versatile and strategic resource.