Uganda seeks investors to revive copper mine
Uganda said on Tuesday it was inviting expressions of interest from investors to restart a vast copper mine in the country's west that also holds significant cobalt deposits.
The Kilembe mine, which sits on the foothills of the ice-capped Rwenzori mountains on the border with Democratic Republic of the Congo, is estimated by government geologists to contain about four-million tonnes of ore that is 1.98% copper and 0.17% cobalt.
"We have invited companies to express their interest in partnering with the government through a mineral production sharing agreement," Uganda's finance and mining ministers said in a joint statement.
"The redevelopment of Kilembe Mines will have a catalytic effect of facilitating industrialisation, offer significant employment opportunities and increase revenue."
The statement did not specify when the government expects to have chosen an investor.
Production at the mine began in 1956 and peaked at 18,000 tonnes of copper cathode annually in the early 1970s before activity was halted later that decade by Canadian firm Falconbridge due to low copper prices and political instability.
The mine has since largely lain abandoned. The Kilembe project, the ministers said in the statement, currently comprises of a greenfield exploration area, a brownfield copper mine, a processing plant, a small hydropower plant and cobalt-rich tailings.
Previous attempts to revive the mine have fallen through, stymied by a downturn in the commodities market and a failed 2013 deal with a Chinese investor, eventually cancelled after years of slow progress and missed targets.
But with copper prices hitting all-time highs earlier this year due to supply concerns, investors are looking for new sources of the metal used in electric vehicles.
Ugandan President Yoweri Museveni is eager to expand exploitation of the country's mineral wealth - which includes gold, base metals, uranium, rare earths, iron, titanium, vermiculite, and diamonds - to help boost growth.
Comments
The
content
you are trying to access is only available to subscribers.
If you are already a subscriber, you can Login Here.
If you are not a subscriber, you can subscribe now, by selecting one of the below options.
For more information or assistance, please contact us at subscriptions@creamermedia.co.za.
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation