Uganda Seeks Shs2.6bn Tax Waiver as Kilembe Mines Winds Up

State Minister for Minerals Sidronius Okaasai presented the request to Parliament’s Committee on Finance, Planning and Economic Development on 12 August 2026.

Uganda's Ministry of Energy and Mineral Development is seeking approval to write off Shs2.6 billion in unpaid mineral rent owed by Kilembe Mines Limited as the state-owned company winds up and the historic copper operation prepares to move under a new mining arrangement.

State Minister for Minerals Sidronius Okaasai presented the request to Parliament's Committee on Finance, Planning and Economic Development on 12 August 2026. The arrears accumulated from annual mineral rent that Kilembe Mines was required to pay while holding its licences.

Unpaid Mineral Rent Remains on Kilembe's Books

Uganda's Mining and Minerals Act requires companies to pay mineral rent before receiving a mineral right and then annually until that right ends. Kilembe's exploration licences expired in 2022, yet the unpaid charges remain an obligation of the company. The Auditor General flagged the outstanding amount for the year ending December 2024 and advised officials to consider whether the receivable should be written off.

Agnes Alaba, Commissioner for Geological Survey and Minerals, told lawmakers that clearing the arrears would support the process of transferring the licence to the new contractor as Kilembe Mines is wound up. Some committee members questioned the timing, with Kassanda County North MP Patrick Nsamba Oshabe asking why the waiver was being sought before the winding-up process had been completed.

MPs Raise Environmental and Employment Concerns

Lawmakers also sought assurances that problems affecting previous attempts to revive Kilembe would not follow the incoming operator.

Sheema Municipality MP Dicksons Kateshumbwa called for clear plans to address environmental risks, including flooding that affected operations involving Tibet-Hima and Kilembe Mines, arguing that these challenges need attention before large-scale production resumes.

Madi-Okollo District Woman MP Joanne Okia raised concerns about what the winding-up process could mean for Ugandan employees, putting jobs and workforce arrangements among the issues surrounding the transition.

Kilembe Mines, which is 99% government-owned, took over the mining licence after Tibet-Hima Limited's concession was cancelled in 2017 following its failure to redevelop the operation.

New Operator Expected to Produce Copper by 2029

Uganda opened another chapter for the mine in 2025 by signing a mineral production sharing agreement with a joint company involving Sarrai Group Ltd, Nile Fibreboard Ltd and Uganda National Mining Company Ltd. The new arrangement covers exploration, development, production and mineral processing at Kilembe, with copper production expected to begin by 2029.

The Shs2.6 billion waiver request now forms part of the wider transition from the existing state company to the new structure, while lawmakers consider the financial, environmental and employment issues that need to be addressed as Uganda works to revive one of its best-known mining assets.