Uganda+Minerals

=Tibet Hima Industry Co's USD 100 Million Kilembe Mine Investment Shows Chinese Investors Likely Continued Interest in Uganda's Strategic Minerals Such As Copper and Gold Over The Next Five Years=

Executive Summary:
It is likely strategic mineral projects like Tibet Hima's Industry Co's USD 100 million Kilembe mine investment will continue in Uganda over the next five years. Chinese companies such as Shanghai Baosteel Group Crop and Zijin mining group are involved under the Tibet Hima deal. Kilembe has an estimated 4 million tons of core, 1.98 percent of that reserve estimated to be pure copper and 0.17 percent cobalt. The Kilembe mine has over 2000 acres of unexplored land on its mining lease, opening more opportunities for Chinese investment. China's accounted for 39 percent of global copper consumption in 2009 and that number is rising. Uganda held a Mineral Wealth Conference on 1 and 2 October 2013 to bring more future investments in Uganda's mineral sector.

Discussion:
While most of the attention and investment opportunities appear to involve petroleum and natural gas, Uganda has strategic minerals such as copper, cobalt, limestone, salt, and gold. These minerals lead to Tibet Hima Industry Co's USD 100 million bid to develop the Kilembe mine, which has an estimated 4 million tons of copper and cobalt according to Uganda's Department of Geological Survey and Mines, as well as 2,000 acres of unexploited land. China accounted for 39 percent of global copper consumption in 2009 and is continuing to rise, making investments such as Tibet Hima's Kilembe investment likely the first of many.

Many companies are part of the Kilembe Mine investment. Shanghai Baosteel Group Corp., which controls China's biggest listed steelmaker won a contract to develop Ugandan copper mines, pledging upgrades worth USD 175 million. Other Chinese companies such as Tebian Electric Apparatus, Zijin Mining Group, and Zongshen Industry Group all are present as part of the Tibet Hima Industry Co. agreement.

Uganda continues to show interest in developing its mining sector, holding a Mineral Wealth Conference on 1-2 October 2013 with the intention to bring together investments in its strategic minerals. Uganda's openness for investment in its mining sector also will largely contribute to China's continuing strategic mineral investments.