Evelyn Anite, Uganda’s Minister of State for Investment, announced on Thursday that the government has terminated its contract with Tibet-Hima, the company responsible for managing Kilembe Mines. The decision was made after the Chinese investor requested to export 30,000 metric tons of gold, copper, and cobalt to China for testing.
Anite spoke about the situation during a meeting with Parliament’s Committee on Natural Resources, where she was asked to explain the delays in reviving Kilembe Mines, located in Kasese District.
“This contractor demanded a huge amount of our natural resources for sampling, which is unreasonable,” Anite stated.
The minister listed three main reasons for canceling the contract: the excessive amount of resources requested, claims that the mine was flooded, and findings that indicated Tibet-Hima could not effectively manage the operation.
“The President stated that these resources belong to Ugandans. We would never allow such a large quantity of our resources to leave the country,” Anite explained.
The minister expressed confidence in her decision to terminate the contract, saying she is ready to face any consequences for her actions.
“I believe we made a mistake by contracting the wrong company, and I am proud to have taken responsibility. I cannot allow a company that lacks capacity to manage our valuable resources,” she said.
Norah Bigirwa, a member of the Committee from Buliisa, expressed concern about the process that led to awarding the contract. She emphasized the importance of holding those responsible accountable for giving such a significant contract to a company without proper documentation.
“I am disappointed not with Minister Anite, but with the technical team at the Ministry of Finance. Those responsible need to explain how they decided to work with Tibet-Hima,” Bigirwa said.
In response, Anite called for inquiries into the former and current officials from the Ministry of Finance who negotiated the contract, emphasizing that explanations are needed about the decision-making process.
Minister Anite also noted that Tibet-Hima had asked to modify the contract due to flooding in Kasese, a request that Uganda rejected.
“While they mentioned floods, they were not a daily occurrence. We could not agree with them on this issue,” Anite explained.
Parliamentary Investigation
This parliamentary inquiry was prompted by a petition from Solomon Silwany, who requested an investigation into the termination of Tibet-Hima’s contract to manage Kilembe Mines for 25 years. Silwany claimed the government failed to meet its obligations, resulting in losses for Tibet-Hima.
During the session, Silwany highlighted that the company had invested significantly in Uganda, including hiring 822 people and investing $183.5 million for future projects.
Tibet-Hima also raised complaints about the government’s failure to hand over the Kilembe Mines site as promised and the decision to shorten the concession period, which ultimately led to the contract’s end.
Silwany urged Parliament to investigate these allegations and called for a halt to any further actions regarding Kilembe Mines until a comprehensive review is conducted.