By Spy Uganda
Uganda’s ambitious plan to transform its mineral wealth into a major driver of economic growth is facing a critical test in Kasese, where Government is working to revive the once-mighty Kilembe copper mines.
A joint parliamentary and Government oversight mission to the historic mine in September has exposed both the enormous potential of the project and the infrastructure, environmental and financial challenges that must be resolved before Kilembe can return to large-scale production.
The visit by Parliament’s Committee on Finance, Planning and Economic Development followed a request by the Ministry of Energy and Mineral Development for the write-off of Shs2.938 billion in accumulated mineral rents and other licence-related debts owed by Kilembe Mines Limited.
But beyond the financial liability, the inspection provided Parliament with an opportunity to assess whether the redevelopment of one of Uganda’s most important mining assets is gaining the momentum required to support the country’s wider industrialisation ambitions.
Kilembe Mines, located at the foothills of the Rwenzori Mountains, was once East Africa’s largest copper producer. At its peak, it produced about 18,000 tonnes of copper cathode annually and played a major role in Uganda’s economy during the 1960s and 1970s.
Operations stopped in 1982 following falling global copper prices, ageing equipment and insecurity, leaving behind a major industrial asset that has remained largely dormant for decades.
The latest revival effort is being undertaken through a Mineral Production Sharing Agreement involving Government, Uganda National Mining Company (UNMC), Sarrai Group Limited and Nile Fibreboard Limited.
UNMC, which holds a 15 per cent free carried interest in medium and large-scale mining licences under the Mining and Minerals Act, Cap. 159, considers Kilembe one of its flagship investments under the National Development Plan IV.
During the parliamentary inspection, the developer reported progress in exploration and preparatory works, including development of an ore body model, reopening of mine haulage systems, work on a tailings reclamation plant and refurbishment planning for the processing plant.
Geophysical and geochemical surveys have also been undertaken, with samples sent to SGS Laboratory in China for metallurgical studies.
The project has already received some mining equipment, including railway tracks, mine dump carts, drilling equipment and a backup generator, while a bridge has been constructed across Nyamusegi Stream to improve access.
However, the inspection also revealed a major obstacle that could determine the pace of the mine’s revival: electricity.
Kilembe currently has access to only about 1MW of power, against an estimated requirement of 10MW for full operations.
Although a power plan was approved by the Electricity Regulatory Authority in December 2025, engagements with Uganda Electricity Distribution Company Limited have yet to provide a conclusive solution.
The Ministry has now called for urgent intervention to secure reliable power for the project, alongside efforts to fast-track redevelopment of the Mubuku power plant.
Local leaders, meanwhile, want the mine’s revival to translate into tangible benefits for communities that have lived with the legacy of the abandoned operation for decades.
Members of Parliament raised concerns over unpaid wages owed to former workers and domestic workers, local employment, procurement opportunities, mine water management and the impact of River Nyamwamba flooding.
Environmental management has also emerged as a key priority, particularly concerning historical tailings, mine water discharge and flooding.
An inspection of underground water effluent reportedly found no evidence of Acid Mine Drainage through litmus testing, although officials stressed the need for continued monitoring and proper management of mine water.
The Ministry has also raised concern over encroachment on mine land, which poses safety and operational risks and could complicate future redevelopment.
It has recommended humane and orderly resettlement in coordination with Kasese authorities, alongside a comprehensive Environmental and Social Impact Assessment.
On the financial side, Government argues that the Shs2.938 billion debt accumulated during the mine’s care and maintenance period, when it was not generating revenue, should be written off to provide the new project with a clean start.
The proposed waiver would, however, be accompanied by strict expectations for compliance with future mineral rent and work obligations.
Government wants the mineral sector’s contribution to GDP to rise from about 1.9 per cent to 10 per cent within the next decade.
For that target to be achieved, projects such as Kilembe will have to move beyond plans and inspections into sustained production, employment, value addition and revenue generation.
