By Namukose Livia
Last week, Uganda signed its first ever Production Signing Agreement (PSA) which aims at redeveloping the dormant Kilembe Coper and Cobalt mine in the western region of the country close to the border with the Democratic Republic of Congo.
Located at the foot of the Rwenzori mountains, the mine is estimated to contain about 4 million metric tonnes of ore, the content of copper being 1.98% and cobalt 0.17%. These minerals are at a high demand, being crucial components in the global transition to renewable energy technologies and electric vehicle production.
Uganda firms Sarrai Group limited together with its subsidiary Nile Fibreboard Limited were awarded the contract to develop the Kilembe copper and cobalt mine as announced by the Development Minister Hon Ruth Nankabirwa. However the details on the financial investment required for the project were not disclosed.
Hon Nankabirwa went ahead and stated how the agreement is such a huge milestone for the country’s mining sector. “The redevelopment of Kilembe will not only supply key minerals for clean energy technologies but also accelerate the country’s industrialization sector.”
Kilembe has a long history when it comes to the country’s mining sector. It started operations back then in the 1956 and was a key producer of copper where it reached its peak of 18,000 tons of copper cathode annually in the early 1970s. Unfortunately when Falconbridge, a Canadian company ran the mine, it ceased operations due to falling copper prices and the political instabilities in the country then.
According to the Ministry of Energy, the project will include areas of exploration, an old copper mine, a processing plant for cobalt rich in tailings.
