The government has officially handed over the assets of Kilembe Mines in Kasese District to Sarrai Group Ltd and Nile Fibreboard Ltd, marking a major step toward the long-awaited revival of one of Uganda’s most iconic mining operations.
Energy Minister Ruth Nankabirwa presided over the handover, describing the redevelopment as a milestone in the implementation of Uganda’s strategy to harness its mineral wealth for national development.
The move follows the conclusion of a competitive selection process and the signing of a Mineral Production Sharing Agreement involving the government and the Uganda National Mining Company (UNMC), which retains a 15 percent stake in the project.
“The project aligns with our national strategy to add value to minerals, create jobs, boost local industry, and contribute to Uganda’s socio-economic transformation under NDP IV and the African Union’s Agenda for Transformation,” Nankabirwa said during the ceremony.
Sarrai Group, a diversified conglomerate with interests in agribusiness and manufacturing, and Nile Fibreboard Ltd are expected to lead the redevelopment efforts, which include restoring copper extraction and exploring downstream processing opportunities.
The companies are also expected to assess Mubuku I Hydro Power Station to support operational energy needs, with interim power supply facilitated by the Uganda Electricity Distribution Company Ltd (UEDCL).
Once a symbol of industrial potential, Kilembe Mines has lain dormant for years after a series of failed rehabilitation efforts and investor pull-outs.
Its revival is anticipated to breathe new life into the local economy of Kasese, create employment, and enhance Uganda’s mineral value chain.
The government is banking on partnerships like this one to position mining as a key growth sector, especially in the context of the country's ambitions to transition into a middle-income economy.
While the exact timeline and financial commitments for the redevelopment were not disclosed at the handover, officials say preliminary work is expected to begin immediately, focusing on site assessment, asset rehabilitation, and community engagement.
For many in the Rwenzori region, the return of activity to Kilembe offers a glimmer of economic hope. As one local leader at the event remarked,
“If this revival is real, then asese will rise again.”