Prime
Government told to terminate copper mining contract
Kilembe mines in Kasese District. FILE PHOTO
Kampala- The Winding-Up Commission that was set up by the government three months ago to investigate the conduct of Tibet Hima Mining Company Limited (THMCOL) has recommended that the concession agreement on Kilembe Copper Mines be terminated.
The concession had been terminated by the government on September 5, as the Commission was carrying out the investigations.
The Winding-Up Commission chaired by a Kampala-based lawyer, Mr Noah Mwesigwa was appointed by the State Minister for Investment, Ms Evelyn Anite after President Museveni in June stopped the Shs600b project.
The Chinese Consortium had in 2013 won the concession to mine copper from the Kilembe Mines for 25 years.
On Tuesday, the Winding-Up Commission delivered its findings to Finance Minister Matia Kasaija in Kampala.
“The Winding-Up Commission notes that the concession agreement stands terminated and that Kilembe Mines and all assets in particular, be handed back to government of Uganda in accordance with the applicable provisions of the Concession Agreement” Mr Mwesigwa said in the report.
The commission said that the THMCOL has caused financial loss to government by collecting a payment of about Shs7 billion from the Uganda Electricity Transmission Company Limited for power supplied from the Mubuku I hydro project in Kasese.
Mr Kasaija said that the economy has lost a lot of money because of the failure by THMCOL to fulfill its contractual obligations.
Mr Kasaija said: “It is unfortunate this has happened. We would have loved to see you being with us to do the work. The country has lost a lot of money.”
He said that the government is already looking for other investors to take over the mines because the Chinese are leaving at a time when the world copper prices are good.
