Uganda Revives Kilembe Copper and Cobalt Mine with Local Partnership

Sarrai Group

Kilembe redevelopment to support copper cathode and cobalt metal output amid evolving global supply outlook.

Uganda is taking a strategic step to revive domestic copper and cobalt production by redeveloping the long-dormant Kilembe Mines. The government signed a production-sharing agreement with Sarrai Group and Nile Fibreboard, two regional manufacturers, to bring the historic site back into operation.

The project will focus on producing copper cathodes and cobalt metal, according to energy and mineral development minister Ruth Nankabirwa Ssentamu. Located in western Uganda, the Kilembe deposit holds over 4 million tonnes of copper, alongside undefined cobalt reserves. The mine benefits from a rail link to a copper smelter in Jinja, situated in eastern Uganda.

Kilembe's History and New Strategic Role

First opened in 1950, Kilembe Mines ceased production in 1982 due to obsolete equipment and high inflation. Now, with improved regional infrastructure and global demand for battery metals, Uganda is poised to become a competitive supplier of refined copper and cobalt.

The redevelopment aligns with a broader trend of African nations seeking resource independence and value-added production. By partnering with domestic firms, Uganda aims to capture more downstream value and reduce dependence on raw material exports.

Global Copper Outlook Adds Context to Uganda’s Move

The International Copper Study Group forecasts a refined copper surplus of 194,000 tonnes in 2025, down from 301,000 tonnes in 2024. Increased output from China and the Democratic Republic of Congo drove last year’s surplus. Uganda’s entry into refined metal markets will slightly increase African contribution to the global copper and cobalt trade.

However, long-term demand for energy transition metals, particularly from the EV battery and renewable energy sectors, is expected to support prices. Kilembe’s restart could position Uganda as a strategic player in the clean energy supply chain, especially for cobalt, which remains crucial for lithium-ion batteries.