Uganda plans to initiate its third petroleum exploration licensing round in the fiscal year beginning July 2025, the government announced on Thursday. This move comes as part of efforts to expand oil and gas exploration in the country.
Energy and Mineral Development Minister Ruth Nankabirwa revealed that new areas have been identified for exploration, with licensing set to occur during the 2025/2026 fiscal year. The country first discovered crude oil nearly two decades ago in the Albertine Graben basin near the border with the Democratic Republic of Congo, with production expected to commence this year after multiple delays.
In August 2024, preliminary geological surveys for oil exploration began in two new basins located in northern and northeastern Uganda. However, it remains unclear if the upcoming licensing round will cover these regions or areas within the Albertine Graben.
Revamping Kilembe Copper Mine
Minister Nankabirwa also announced progress on a tender to redevelop the Kilembe copper mine, located near the DR Congo border. “We are in the final stages of negotiations and will announce the conclusion of this process very soon,” she said.
The Kilembe mine, situated at the base of the Ruwenzori mountains, holds an estimated 4 million tonnes of ore containing 1.98% copper and 0.17% cobalt. It has been dormant since the early 1970s when the Canadian firm Falconbridge abandoned operations due to low copper prices and political instability.
The developments signal Uganda’s growing focus on tapping into its mineral and hydrocarbon resources to drive economic growth.