The Parliamentary Committee on Environment and Natural Resources has begun investigations into the termination of a contract to revamp and develop the $22 million (about Shs81 billion) Kilembe Mines project.
The contract for the Kasese District-based mine had been awarded to Tibet Hima Ltd.
Chaired by Soroti City East MP Herbert Ariko, the committee is reviewing the government’s decision to end the 25-year lease granted to the Chinese company in 2013.
Tibet Hima had been awarded approximately 1,550 square kilometres of land, which extended to the border with the Democratic Republic of Congo, for the revival of copper and cobalt mining operations.
However, in June 2017, the government terminated the contract, prompting the firm to challenge the decision by petitioning various authorities, including seeking a temporary court injunction.
During the hearing, the committee adjourned proceedings after demanding that State Minister for Privatization and Investment, Evelyn Anite, produce the president’s directive on the contract termination.
The committee is inquiring about the due process followed in the government’s decision to terminate the agreement and is also seeking information on the new company selected to replace Tibet Hima Ltd.
Chairperson Herbert Ariko stressed the importance of transparency, stating, “We have directed the state minister for investment to provide us with documents of the president’s directive to terminate the contract and to also avail us with details of the new company replacing Tibet Hima Ltd.”
Minister Anite, however, requested additional time to prepare her submissions on the matter.
Tibet Hima Ltd’s petition to Parliament seeks the reinstatement of their contract, arguing that the termination process was unfair.
The investigation by the Natural Resources Committee aims to clarify whether proper procedures were followed and to assess the legitimacy of the company’s claims.
