The government of Uganda has signed its first-ever Mineral Production Sharing Agreement (MPSA) to redevelop Kilembe Mines, the country’s largest copper deposit.
The agreement was finalized during a closed-door session on Monday, March 3, 2025, attended by key officials, including Ruth Nankabirwa, Minister of Energy and Mineral Development; Matia Kasaija, Finance Minister; Phiona Nyamutoro, State Minister for Minerals; and Eveline Anite, among others, at Petroleum House in Entebbe.
According to the Minister of Energy and Mineral Development, Ruth Nankabirwa, the revival of Kilembe Mines will play a pivotal role in creating employment opportunities for the people of Rwenzori and other Ugandans.
“We marked a significant milestone in Uganda’s mineral sector by signing the first-ever Mineral Production Sharing Agreement for the redevelopment of Kilembe Mines,” Nankabirwa stated.
Nankabirwa mentioned that the agreement follows an extensive evaluation of proposals from 14 firms, with Sarrai Group Limited and Nile Fibreboard Limited emerging as the best bidders.
“This flagship project will produce copper cathodes and cobalt metal, critical for the transition to clean energy technologies, and drive Uganda’s industrialization, creating jobs and supporting local mining operations,” she said.
Kilembe Mines, located in western Uganda near the Rwenzori Mountains, contains over 4 million tons of copper deposits but has been dormant for more than three decades.
Sarrai Group is one of East Africa’s largest industrial firms specializing in wood products, while Nile Fibreboard is a subsidiary focused on agro-manufacturing. The partnership aims to ensure close collaboration between the company and the government to boost Uganda’s economy.
Under this new agreement, mining operations are set to resume with production focusing on copper cathodes and cobalt metal, key components in clean energy technologies. However, production will only begin after an assessment of site readiness.
This development follows the termination of a 25-year concession previously granted to Tibet Hima Mining Company in 2013 due to slow progress and unmet targets.
The government’s renewed efforts to revive Kilembe Mines align with its broader strategy to promote value addition by processing minerals locally rather than exporting raw materials.
Officials believe this initiative will not only stimulate economic growth but also position Uganda as a key player in the global mining sector while contributing to the global transition toward clean energy.
