The Kilembe mines, SW Uganda
Uganda is looking for investors from industrial nations to revive old mines
Uganda intends to reopen disused mines with an estimated volume of 4 million tonnes of ore, and invites international companies to submit offers for a production share.
Formerly a major copper and cobalt producer, in the 1970 years, the Kilembe copper mine was shut down by Canadian firm Falconbridge as the East African nation's economy slowed under the leadership of dictator Idi Amin Dada.
It is not the first time that Uganda has tried to get the mine back up near the border with the Democratic Republic of the Congo. However, earlier efforts were thwarted by a slump in commodity prices and a failed 2013 deal with a group led by Chinese company Tibet Hima Mining, which had pledged to invest 175 million dollars in the project.
The government has withdrawn 25's 2013 license on the grounds that Tibet did not fulfill Hima's mandate given under the permit. The Chinese company has sued the government and demands compensation of at least 33 million dollars in damages.
The country decided to try again to bring Kilembe back to life in April this year. At the time, the authorities said that 28 companies expressed interest in the project.
Bloomberg / ISE - September 2019
