Uganda to revive copper industry

Kilembe Mines Ltd (KML), the Ugandan state-owned copper mining company, has reported interest from a number of international companies that are exploring the idea of reviving the country’s copper industry.

The approaches are no surprise, given the current surge in copper prices on the world market and KML is currently in the process of preparing tender documents for international competitive bidding.

The government of Uganda expects to generate significant revenue from the industry, which could be operational once again by 2008.

When production was at its height in the 1960s, the copper mining and smelting industry formed an important part of Uganda’s economy. At that time, KML employed over 6,000 workers.

Ten years ago, the government began the process of putting KML into private ownership but its policy has since changed and the government now views the mineral industry as being strategic in the development of the country.

Copper prices on the world market have doubled from $3,500 per tonne in 2004 to over $7,000 per tonne in 2007 and it is understood that companies from Ukraine, China, Canada and Russia are interested in a stake in the Ugandan reserves.

Uganda has around 4.1 million tonnes of known reserves of copper ore, containing about 1.77 per cent copper.