The recent privatization of Kilembe Mines in Uganda has officially transferred operations to Sarai Holdings, as confirmed by Mr. Sanjay Tanna, the Chairman of the Board of Directors.
During a session with the Committee on Commissions, Statutory Authorities, and State Enterprises (COSASE), Tanna explained that the government, acting through the Uganda National Mining Company, conducted a bidding process that led to Sarai Holdings being awarded the contract.
Despite this transition, Tanna voiced concerns regarding the mining sector’s overall performance, primarily highlighting a lack of adequate funding.
Additionally, he reported issues with the Kilembe power plant, which has ceased operations.
The plant, initially capable of producing 10 megawatts, saw its output diminish to 4 megawatts before the complete breakdown occurred.
This collapse was attributed to severe flooding that damaged essential equipment and resulted in vandalism of transmission infrastructure by local residents.
These developments point to significant challenges ahead for both the privatized Kilembe Mines and the associated power infrastructure, raising questions about the future productivity and sustainability of mining operations in the region.
By Francis Lubega
24th April 2025
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