Uganda has signed its first mining production sharing agreement (PSA) to revitalize the Kilembe copper and cobalt mine, a significant step towards tapping into its mineral wealth.
The mine, situated near the Democratic Republic of Congo border, is estimated to hold approximately 4 million metric tons of ore, rich in copper and cobalt, crucial components for clean energy technologies.
The PSA grants Ugandan firms Sarrai Group Limited and Nile Fibreboard Limited the rights to redevelop the mine.
Energy and Mineral Development Minister Ruth Nankabirwa announced the deal on X, highlighting its importance for Uganda’s industrialization.
The Kilembe mine, which previously produced copper cathode, ceased operations due to low copper prices and political instability in the late 1970s.
Sarrai Group, a major East African industrial conglomerate, and its subsidiary Nile Fibreboard, specializing in wood products, were selected from over a dozen interested companies.
The agreement aims to produce copper cathodes and cobalt metal, driving Uganda’s contribution to the global energy transition.
While the investment amount remains undisclosed, the deal marks a pivotal moment for Uganda’s mining sector.