Economic crisis won’t stop Kilembe mines sale
Feb 04, 2009
The global credit crunch will not affect the impending privatisation of Kilembe Mines in Kasese, an official from the Privatisation Unit has said.
By Mikaili Sseppuya
The global credit crunch will not affect the impending privatisation of Kilembe Mines in Kasese, an official from the Privatisation Unit has said.
Jim Mugunga, the Privatisation Unit spokesperson, said the non-productive copper mines would be sold off this year, adding that the Government had already contracted John T. Boyd Company, a mining and geological consultancy firm, to advise it on the sell.
“The global economic freefall will not affect our plans to sell off the mines because the raw minerals market has been slightly affected.
“It is fluactuating within manageable range. In any case, copper prices are still above the zero price it was at when the mines closed.
“The process will be finalised this year,†he said.
Mugunga was commenting on how the Government plans to privatise the mines when the biggest economies are crumbling due the credit crunch.
Kilembe Mines, the largest copper mine in the country, was closed in the mid 1980s due to mismanagement and a fall in the world copper prices.
In the last decade, however, copper prices have gone up steadily driven by demand in China, the world’s largest economy.
However, China’s industrial sector has been hard-hit by the economic crisis, leading to many closures.
The global credit crunch will not affect the impending privatisation of Kilembe Mines in Kasese, an official from the Privatisation Unit has said.
Jim Mugunga, the Privatisation Unit spokesperson, said the non-productive copper mines would be sold off this year, adding that the Government had already contracted John T. Boyd Company, a mining and geological consultancy firm, to advise it on the sell.
“The global economic freefall will not affect our plans to sell off the mines because the raw minerals market has been slightly affected.
“It is fluactuating within manageable range. In any case, copper prices are still above the zero price it was at when the mines closed.
“The process will be finalised this year,†he said.
Mugunga was commenting on how the Government plans to privatise the mines when the biggest economies are crumbling due the credit crunch.
Kilembe Mines, the largest copper mine in the country, was closed in the mid 1980s due to mismanagement and a fall in the world copper prices.
In the last decade, however, copper prices have gone up steadily driven by demand in China, the world’s largest economy.
However, China’s industrial sector has been hard-hit by the economic crisis, leading to many closures.