=DJ Uganda Ready To Issue Kilembe Copper Mine Sale Tender

   By Nicholas Bariyo
   Special to DOW JONES NEWSWIRES

KAMPALA, Uganda (Dow Jones)--Uganda's privatization unit has finalized bid documents and is ready to issue an international tender for Kilembe Copper Mines, a spokesman said Friday, with 45 companies expressing an interest.

The privatization unit is now waiting for the approval of the Ministry of Finance and Economic Planning to issue the tenders, Jim Mugunga told Dow Jones Newswires. He couldn't state when the approval is expected but people close to the situation said the ministry is expected to clear the tenders before the end of April.

"We are ready and so far, 45 companies have expressed interest in Kilembe, we expect more interest when we invite bids," he said. He couldn't reveal the identities of the interested companies.

The sale of the mine is expected to be completed before the end of the year. The tenders were expected to be issued last year, but the process was delayed after Uganda Gold Mining Ltd. obtained a court injunction claiming interest in the mine. The injunction has since been lifted.

Kilembe Copper Mines closed in the early 1980s amid low global metal prices and political instability in Uganda. The former owners, Canada-based Falconbridge Ltd. (FAL), exploited only 20% of the mine's reserves, according to Joshua Tuhumwire, commissioner in charge of mines.

Kilembe used to produce at least 18,000 metric tons of copper cathode a year which was being treated at a multipurpose smelting plant, located in Jinja, around 80 kilometers east of Kampala.

In 2008, Austrian industrial group A-Tec Industries AG (ATEC.VI) signed a lease to operate Jinja smelting plant for ten years. A-Tec also expressed interest in Kilembe Copper Mines.

-By Nicholas Bariyo, contributing to Dow Jones Newswires; 256-75-2624615 bariyonic@yahoo.co.uk

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(END) Dow Jones Newswires

March 12, 2010 05:27 ET (10:27 GMT)

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