Kilembe Mines seek investor
Jul 09, 2007
THE Government wants an investor for Kilembe Mines, which stopped production in the late 1970s during Idi Amin’s presidential regime. Amin appointed military personnel to manage the mines. Vital spare parts for the machines were lacking and the price of copper fell to $150 (sh240,000) per tonne on
By Mikaili Sseppuya
THE Government wants an investor for Kilembe Mines, which stopped production in the late 1970s during Idi Amin’s presidential regime. Amin appointed military personnel to manage the mines. Vital spare parts for the machines were lacking and the price of copper fell to $150 (sh240,000) per tonne on the world market.
“The price of copper has gone up to $6,000 (sh9.6m) per tonne fuelled by world demand especially in China. Prospects are good for a suitable investor to take over,†Jim Mugunga, the Privatisation Unit’s spokesman, said.
The Privatisation Unit oversees Kilembe Mines Limited (KML), which looks after the mines to ensure that they do not flood or their tunnel walls collapse.
“Only 400 acres of the 3,000 leased acres have been used. There are copper reserves worth $1.2b (sh1,920,000b) as well gold, cobalt and nickel. The studies show need for further exploration,†KML’s general manager Fred Kyakonye explained.
Kyakonye said since 1992, Kilembe Mines Limited had been financing itself from other assets. “These include Mubuku Power Plant, Hima Lime Works, a timber treatment plant, a foundry, machine workshop, Kilembe Hospital and several social infrastructure assets,†he said.
According to Kyakonye, the social infrastructure assets include 2,280 housing units, four primary schools and two secondary schools.
THE Government wants an investor for Kilembe Mines, which stopped production in the late 1970s during Idi Amin’s presidential regime. Amin appointed military personnel to manage the mines. Vital spare parts for the machines were lacking and the price of copper fell to $150 (sh240,000) per tonne on the world market.
“The price of copper has gone up to $6,000 (sh9.6m) per tonne fuelled by world demand especially in China. Prospects are good for a suitable investor to take over,†Jim Mugunga, the Privatisation Unit’s spokesman, said.
The Privatisation Unit oversees Kilembe Mines Limited (KML), which looks after the mines to ensure that they do not flood or their tunnel walls collapse.
“Only 400 acres of the 3,000 leased acres have been used. There are copper reserves worth $1.2b (sh1,920,000b) as well gold, cobalt and nickel. The studies show need for further exploration,†KML’s general manager Fred Kyakonye explained.
Kyakonye said since 1992, Kilembe Mines Limited had been financing itself from other assets. “These include Mubuku Power Plant, Hima Lime Works, a timber treatment plant, a foundry, machine workshop, Kilembe Hospital and several social infrastructure assets,†he said.
According to Kyakonye, the social infrastructure assets include 2,280 housing units, four primary schools and two secondary schools.