Government seeks parliamentary nod to waive Shs2.3 billion Kilembe Mines debt

The Ugandan government is seeking parliamentary approval to write off a significant debt amounting to Shs2.297 billion, owed by Kilembe Mines Limited. State Minister for Finance (Planning), Amos Lugoloobi, presented the request to the Parliamentary Committee on Finance, citing a recommendation from the Auditor General.

The arrears, accumulated between 2018 and 2024, pertain to unpaid annual mineral rent. The Ministry of Finance has formally requested Parliament’s consent to abandon this claim, as required by the Public Finance Management Act for the remission or write-off of public revenue.

Lugoloobi emphasized that parliamentary approval is necessary because the proposed action involves foregoing public funds. The request comes at a time when the government is actively working to revive Kilembe Mines, a once-prominent copper producer located in Kasese District that has been largely dormant since the early 1980s.

Past attempts to revive the mine have faced significant challenges. A concession awarded in 2013 was terminated in 2017, leading to the rights reverting to the government-owned Kilembe Mines Limited. This led to the accumulation of the current debt.

The proposed debt write-off is a component of a larger strategy to address the mine’s complex history and facilitate its potential resurgence. A new mineral production sharing agreement was signed in 2025 with a joint venture, signaling renewed efforts to restart commercial copper production.

The Auditor General’s recommendation and the subsequent request to Parliament represent a formal step in resolving the outstanding financial matters associated with Kilembe Mines, paving the way for potential future operations.

Source: Nile Post