On the 3rd of March 2025, the Government of Uganda signed its first mineral production sharing agreement between government of Uganda and Sarrai Group Limited along with Nile Fibreboard Limited, the best bidder for redevelopment of Kilembe Mines.
The agreement was signed by Hon. Can. Dr. Ruth Nankabira, Cabinet Minister of Energy and Mineral Development, Hon. Matia Kasaija, Minister of Finance, Planning and Economic Development, Hon. Phiona Nyamutoro, Minister of State for Energy and Mineral Development (Minerals) and Hon. Evelyn Anite, Minister of State for Finance, Planning and Economic Development (Privatization and Investment) on behalf of government and Sarrai Group Limited as the investor awarded the license to redevelop the mines along with government.
Hon. Can. Dr. Ruth Nankabirwa anticipates that the revival of Kilembe Mines will play a pivotal production of Copper cathodes and cobalt metals which are critical mineral in the clean energy transition. She added that the revival of Kilembe will create jobs and also boost the economy by supporting local service providers.
Sarrai Group Limited and Nile Fibreboard Limited emerged as the best bidders out of the 14 companies that bidded.
The ministry has put in place measures to ensure the company works closely with the government to promote the country’s economy.
Kilembe Mines is located in Kasese District. The mine was Uganda’s largest copper mine, with estimated deposits of copper in excess of 6.5M tonnes of ore grade 1.77% copper and 5.5M tonnes of 0.17% grade of Cobalt.
On the London Metal Exchange, Copper prices are at $9613 per kg while Cobalt.
In attendance were senior officials from the Ministry of Energy and Mineral Development, Uganda National Mining Company Board and Kilembe Mines Board of Directors.
