Uganda has signed its first-ever mining production sharing agreement (PSA) to restart operations at the Kilembe copper and cobalt mine in the country’s western region, near the Democratic Republic of Congo (DRC) border. The deal, announced on Monday, marks a major step in revitalizing the long-dormant mine.
Energy and Mineral Development Minister Ruth Nankabirwa Ssentamu revealed that Ugandan firms Sarrai Group Limited and Nile Fibreboard Limited will jointly oversee the redevelopment. While she did not disclose the investment amount, she emphasized the project’s significance in advancing Uganda’s industrial sector and supporting the global transition to clean energy.
Government geologists estimate that the Kilembe mine holds approximately 4 million metric tons of ore with 1.98% copper and 0.17% cobalt—key minerals for renewable energy technologies.
Production at Kilembe originally started in 1956, peaking in the 1970s with an annual output of 18,000 tons of copper cathode. However, operations ceased later that decade due to falling copper prices and political instability.
The mine includes both greenfield exploration zones and a brownfield site with existing infrastructure, a processing plant, and cobalt-rich tailings. Uganda’s government selected Sarrai Group, a major East African industrial firm, and its subsidiary, Nile Fibreboard Limited, from over a dozen interested companies, though it remains unclear if either company has prior mining experience.
Minister Nankabirwa described the agreement as a “significant milestone” for Uganda’s mineral sector, positioning the country as a key player in the supply of critical minerals for the clean energy transition.