Uganda said Tuesday that it is looking for expressions of interest from investors to reopen a massive copper mine in the country’s western region, which also has large cobalt resources.
Government geologists believe that the Kilembe mine, located in the foothills of the ice-capped Rwenzori mountains on the border with the Democratic Republic of the Congo, has around 4 million tones of ore containing 1.98 percent copper and 0.17 percent cobalt.
Uganda’s finance and mining ministers said in a joint statement:
“We have invited companies to express their interest in partnering with the government through a mineral production sharing agreement.”
“The redevelopment of Kilembe Mines will have a catalytic effect of facilitating industrialization, offer significant employment opportunities and increase revenue.”
The administration did not disclose when it expected to have selected an investor in its announcement.
A mine began operation at the site in 1956, and production reached an all time high of 18 000 tones of copper cathode per year in the early 1970s before being closed by Canadian corporation Falconbridge after a decade of low copper prices and government recklessness in the country.
The project is to include an exploration area, a processing plant, a hydropower plant and cobalt-rich tailings. Previous attempts to revive the project have fallen through, but investors are looking for new sources of the metal used in electric vehicles.
Yoweri Museveni, the president of Uganda, is willing to expand exploitation of the country’s mineral wealth, including gold, base metals, uranium, rare earths, iron, titanium, vermiculite, and diamonds, to contribute to its economic development.
