SMM: the Ugandan government has said it will invite international mining investors to bid for a sharing agreement for the country's Kilembe copper and cobalt mine.
The Kilembe copper mine is located in western Uganda near the Congolese gold border. The mine, originally owned by Eagle Bridge (Falconbridge), a Canadian mining company, was originally founded in 1950 and peaked in the 1970s. The mine handles 1 million tons of copper a year and produces 18000 tons of copper a year. During the reign of President Idi Amin, the Ugandan economy deteriorated seriously, Eagle Bridge relinquished the mining right, and the mine has been maintained and maintained since 1982.
In 2013, a Chinese consortium of Tibetan Hima Industries, which is also understood to include Baosteel, Chinalco Luoyang Copper, Yunnan Copper and Dongfang Electric, bid for the rights and pledged to invest $175 million to restart production. However, it did not go well after that, the mining rights were reclaimed by the government, and the two sides went to court.
Adjacent to the copper-cobalt belt in Central Africa, Uganda has a certain resource endowment, but the fragile economic environment also hinders the development of mining activities. The development of the African mining industry has fallen into a strange circle. If the government wants to develop the economy, it will naturally use the mining industry as a bargaining chip. However, driven by interests and political considerations, it is often developed into a chicken-and-egg behavior, and it is difficult to produce a really lasting winner.
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