The government has officially handed over Kilembe Mines in Kasese District to Sarrai Group Ltd and Nile Fibreboard Ltd, marking a major turning point in efforts to revive one of Uganda’s most historic mining sites. Energy Minister Ruth Nankabirwa presided over the handover ceremony, calling the move a crucial step in Uganda’s plan to unlock its mineral wealth for national development. The long-dormant mine, once a symbol of Uganda’s industrial potential, is now set for a fresh start under new management, raising hopes for jobs, economic growth, and a stronger mining sector.

The handover follows a competitive selection process and the signing of a Mineral Production Sharing Agreement between the government and the Uganda National Mining Company (UNMC), which will retain a 15 percent stake in the project. Minister Nankabirwa emphasized that the revival of Kilembe Mines aligns with Uganda’s broader economic goals. “This project is part of our national strategy to add value to minerals, create jobs, boost local industry, and contribute to Uganda’s socio-economic transformation under the National Development Plan IV and the African Union’s Agenda for Transformation,” she said during the ceremony.

Sarrai Group, a diversified company with interests in agriculture and manufacturing, and Nile Fibreboard Ltd will now take the lead in restoring copper mining operations and exploring opportunities for processing minerals locally. The companies are also expected to assess the Mubuku I Hydro Power Station to ensure a stable energy supply for the mine’s operations. In the meantime, the Uganda Electricity Distribution Company Ltd (UEDCL) will provide interim power to support initial activities.

Kilembe Mines, once a thriving copper producer, has been inactive for decades following years of mismanagement, failed revival attempts, and investor withdrawals. Its closure left a gap in Kasese’s economy, with many residents losing jobs and businesses struggling. The mine’s revival is seen as a chance to breathe new life into the region, offering employment opportunities and boosting related industries. For the government, the partnership with Sarrai Group and Nile Fibreboard represents a strategic move to strengthen Uganda’s mining sector, which is considered key to the country’s goal of becoming a middle-income economy.

While the exact timeline and financial details of the redevelopment were not disclosed at the ceremony, officials confirmed that work will begin immediately. Initial efforts will focus on assessing the site’s condition, rehabilitating old infrastructure, and engaging with local communities to ensure the project benefits the people of Kasese. The government is keen to avoid past mistakes by ensuring transparency and accountability in the mine’s operations.

For residents of Kasese, the handover has sparked optimism. Many remember the days when Kilembe Mines was a major employer and a source of pride for the region. A local leader at the event expressed cautious hope, saying, “If this revival is real, then Kasese will rise again.” The sentiment was shared by many who attended the ceremony, with some recalling how the mine’s decline affected their families and businesses. Now, with new investors in place, there is fresh belief that better days lie ahead.

The revival of Kilembe Mines is not just about digging copper out of the ground—it is about rebuilding an entire ecosystem around the mining industry. Downstream opportunities, such as mineral processing and manufacturing, could create even more jobs and attract additional investments to the region. The government’s focus on value addition means that Uganda could eventually export finished copper products instead of raw materials, increasing profits and strengthening the economy.

Minister Nankabirwa’s presence at the handover underscored the importance the government places on the project. She urged the new investors to work closely with local leaders and communities to ensure that the benefits of the mine are shared widely. “This is not just about business; it is about transforming lives,” she said. The message was clear: the government expects this venture to deliver real, measurable improvements for the people of Kasese and Uganda as a whole.

As the first phase of work begins, all eyes will be on Kilembe Mines to see if this latest attempt at revival will succeed where others have failed. The involvement of experienced companies like Sarrai Group and Nile Fibreboard, combined with government oversight, provides reason for optimism. If all goes according to plan, Kilembe could once again become a hub of industrial activity, driving growth in Uganda’s mining sector and bringing new opportunities to the Rwenzori region.

For now, the people of Kasese are waiting—and hoping—that this time, the promise of Kilembe’s revival will be fulfilled. The handover marks the beginning of a new chapter, one that could reshape the future of mining in Uganda and restore a lost sense of pride in one of the country’s most storied industrial sites.