Uganda
Sector
Mining & Metals
Investment opportunity: Invitation to tender for Kilembe Mines limited (KML).
Current assets include;
- Copper mine in Kilembe in South Western Uganda
- Hydropower generation plant on River Mobuku, which generates 5MW of electricity and earns US$101,522 per month
- Lime factory
- Workshop
- Forest
- Timber treatment plant
Potential investor will manage, review and operate all assets and businesses of KML, undertake a feasibility study on viability of re-opening the copper mine, carry out further exploration, carry out a comprehensive market research and produce a bankable business, provide finances for requisite investment, research modern methods of copper and cobalt processing as well as in the technological innovations of the mine support units.
Justification
• Market prices of cooper and cobalt are now attractive
• There is increasing
demand especially in China, India and Japan
• There is confirmed 4 million tonnes of copper ore at Kilembe, and strong geophysical anomalies on the un-exploited 2 800 acres under the mining lease, as well as a further 600km square of surrounding area. of more than 600km squared.
Investment structure: Joint venture, with a progressive buy out of all government shares.
Shareholding percentage will be determined by level of investment, but in no case less than 51% on the first stage of take over. Divestiture of the government shares to the investor will be gradual and linked to successful execution of the phased activities. Interested investors may however partner with other firms for purposes of execution of terms of the joint venture.
Kilembe Mines Limited
Government owns 99.9% of the mine and the rest by Tooro Kingdom. The company, which is under care and maintenance, is currently generating power, processing lime, foundry castings, fabrications, and treatment of timber. KML derives its raw materials from the estimated 4 million tonnes of proven copper reserves, limestone deposits and wood plantation. Other resources include 5MW power, foundry furnaces, fully equipped mechanical workshop, infrastructure, up-to-date requisite licences and staff with over 20
years experience.
Expectations of the promoter
• The mine should reopen three years from the date of signing the agreement
• The core team for the execution of the venture should comprise of experienced mining engineers and geologists knowledgeable in remote sensing, geological surveys and mapping; data management, metallic minerals and rock assessment; digital GIS modelling, and electrical engineers specialised in power generation and distribution.
• Guarantee of the availability of the core team staff for the duration up to the realisation of the joint venture
Incentives: Mining lease and tax concessions
For supporting documentation and further information contact the Uganda Investment Authority (UIA)
Uganda Investment Authority
Contact: Issa Mukasa, Investment Promotion
Division
Email: mukasa@ugandainvest.com
