Author: Paul Ploumis08 Jul 2014 Last updated at 05:18:21 GMT
BEIJING (Scrap Monster): Tibet Hima Company Limited, the new Chinese owner of Kilembe Mines Company Limited, in terms of its 25 year contract will dig out five million tonnes of copper.
Tibet Hima Company acquired the Kilembe Mines this year beginning. The Kilembe copper mines are located in Kasese municipality and were discovered in the year 1908. The mining and exploration started in 1956 and at that time about 16 million tonnes of copper were explored. However, due to the capital limitations from investor’s side, more zones were not explored.
Godfrey Kabbyanga, the mayor of Kasese municipality said that the copper exploited in 196 was more than 4.1 million tons and mining business required more money and persistence. He added that the mining business accounted about 30 pct to the national economy before 1980.
He added that the Uganda Investment Authority had given approval for 500 mining companies in 2010 and Tibet Hima was the major project registered in that year. Tibet Hima needs to dig out five million tonnes of copper from the site so as to get the value on their investment in the 25 year contract they made. Tibet Hima will also generate 12 MW of power from River Mubuku.
Alex Kwatampora, a consultant for Tibet Hima said, “We are still in the exploration process and after that we shall do the renovation of the assets which Tibet inherited from the government and the dam is also going to be upgraded because it cannot generate enough electricity for the mines and copper processing.”