Investment in Ugandan mining
KAMPALA: A Chinese consortium has won a concession to revive production at Uganda’s Kilembe copper mines in the west near the border with the Democratic Republic of Congo (DRC), an official said.
The mine was abandoned in the early 1980s owing to political turmoil and a fall in copper prices, but in recent years the government has been seeking an investor to resume production, encouraged by attractive world copper prices.
Uganda’s Department of Geological Survey and Mines said Kilembe has an estimated 4 million tons of ore.
Jim Mugunga, spokesman for the finance ministry, said five companies from China, Zambia and Australia had expressed interest in the mine, but the Chinese consortium led by Tibet Hima Industry Co had been selected.
In recent years China has emerged as one of the leading sources of investment and infrastructure financing for the prospective crude oil producer. – Reuters