Kasese District leaders have voiced support for the government's termination of its agreement with Tibet Hima Limited, urging an out-of-court settlement to attract a capable investor to revive the struggling Kilembe Mines.
Leaders argue that the ongoing legal battles, which began in 2018, have impeded development in Kasese District.
The Parliamentary Natural Resources Committee recently concluded a field investigation into the terminated concession, gathering statements from both Tibet Hima Limited and Kilembe Mines representatives.
Kasese District's Chief Administrative Officer, Elias Byamungu, highlighted how the lengthy dispute over the concession termination in June 2017 has stalled the district's progress.
"I strongly argue for an out-of-court settlement through negotiations," Byamungu said.
"Even if we go through commercial courts, both parties will have faults. We need to find a resolution to revive economic opportunities for the region."
Kasese District Vice Chairperson Jenezious Bwambale also expressed frustration over the delays, saying, "This project was meant to provide jobs and boost the economy. But after seven years, nothing has happened, causing substantial losses to the community."
During the proceedings in Fort Portal, both parties accused each other of breaching the contract.
Kilembe Mines general manager Fred Kyakonye defended the decision to bring in Tibet Hima, citing their experience with mining machinery.
However, he alleged that Tibet Hima had sold off some spare parts, which undermined the agreement.
Meanwhile, Tibet Hima's country manager Bi Lei questioned the contract termination despite having paid $1.7 million to the government.
"We've lost nearly $980 million in investment, and they even stopped us from exporting minerals to China for testing," Bi Lei stated.
Natural Resources Committee Chairperson Herbert Ariko Edmond called for cooperation between the parties to produce a constructive report, emphasizing that prolonged legal disputes are stalling economic growth.
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"It's counterproductive to have ongoing legal battles and arbitration. For the sake of Uganda's development, this issue needs resolution," Ariko urged.
The committee underscored the importance of concluding the dispute to pave the way for a new investor capable of harnessing Kilembe Mines' potential and driving economic growth in Kasese.
