What next for Kilembe Mines? Minister’s statement to Parliament

On 5 May 2017 the Government of Uganda served a Notice of Termination of Tibet Hima Mining Company’s 25-year concession at Kilembe Mines. In a statement to Parliament, the Ministry of Finance, Planning and Economic Development said the termination was caused by a range of breaches of contract including:

  • Failure to pay the annual concession fees of $1,005,000;
  • Failure to provide an exploration guarantee;
  • Failure to deposit a 15 percent performance guarantee on commencement of the concession;
  • Failure to pay annual concession fees even after a six-month grace period.


In his statement the Minister said that while Tibet Hima had received and accepted the Notice of Termination “the investor continues to asset strip and is vandalising the mines in addition to ferrying away several assets belonging to the Government.”

A five-person winding-up commission has been established to oversee the terms of the Notice of Termination. The Minister of Finance, Matia Kasaija, has also written to the Inspector General of of Government requesting an investigation into alleged corrupt practices in the awarding of the concession to Tibet Hima.

Read or download the full statement below.