Uganda’s Kilembe Copper and Cobalt Mine Targets 2027 Restart

Sarrai group

Uganda’s Kilembe copper and cobalt mine is set to resume production by 2027 following a new redevelopment initiative led by the Africa-based Sarrai Group. The mine, which contains over 4 million tonnes of copper and an undisclosed quantity of cobalt, has been inactive since 1982 due to outdated infrastructure and economic pressures. Its restart is part of Uganda’s broader strategy to harness critical mineral assets for industrial growth and export competitiveness. The Kilembe copper and cobalt mine is strategically located in western Uganda and is connected by rail to a smelter in Jinja, enhancing its logistical potential once operations begin.

Sarrai Group Steps In After Failed Chinese Bid

The Ugandan government recently signed a production-sharing agreement with the Sarrai Group and local firm Nile Fibreboard to redevelop the mine after the previous operator, China’s Tibet Hima Mining, failed to deliver on its concession. The former operator’s delays, including an unsuccessful attempt to export 30,000 tonnes of copper to China for testing, led to the termination of their contract in 2023. In contrast, Sarrai Group has pledged to complete the project by 2027 and has already begun preliminary activities, including site assessment, asset rehabilitation, and community engagement. The full 2,800-acre site—much of it still unexplored—has been reclaimed by the government and allocated to Sarrai to expand the resource base of the Kilembe copper and cobalt mine.

A New Chapter for Uganda’s Critical Mineral Strategy

Although the exact investment amount has not been disclosed, previous plans by Tibet Hima included a $135 million commitment, a smelter construction, and a hydropower upgrade at Mubuku I from 5MW to 12MW—targets that may still shape Sarrai’s approach. As global demand for copper and cobalt accelerates in response to the clean energy transition, Kilembe’s redevelopment could position Uganda as a regional supplier of essential battery metals. The revival of the Kilembe copper and cobalt mine also reflects a growing trend among African governments to reclaim and reactivate dormant but strategic mineral assets in alignment with national industrial goals.

The Metalnomist Commentary

Kilembe’s restart signals Uganda’s entry into the global race for battery minerals. If Sarrai Group delivers on its timeline and investment, the site could emerge as a crucial copper and cobalt source in East Africa’s mining ecosystem.

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.