Energy Law — Mining & Minerals · Major Transactions
K&K Advocates acts as legal counsel to Sarrai Group Limited and Nile Fibreboard Limited on Uganda's inaugural MPSA under the Mining and Minerals Act — a landmark transaction that ends four decades of dormancy at Uganda's largest copper mine and sets the template for all future state-participation mining agreements.
Kilembe Mines, located at the foothills of the Rwenzori Mountains in Kasese District, was once East Africa's largest copper producer, with estimated reserves exceeding 6.5 million tonnes of copper ore and significant cobalt deposits. Operations ceased in 1982. For over four decades multiple efforts to attract a viable investor failed. Sarrai Group and Nile Fibreboard, selected from 14 competing firms through a competitive Government evaluation process, were awarded the right to redevelop the mine in partnership with Uganda National Mining Company (UNMC), which retains a 15% equity stake. The transaction required advising on Uganda's first-ever Mineral Production Sharing Agreement (MPSA) under the newly enacted Mining and Minerals Act Cap. 159 - a legislative framework with no prior MPSA precedent.
K&K Advocates provided comprehensive legal counsel across the full arc of the transaction. The Firm subjected the Government-prepared MPSA to rigorous review against international best practices and comparable mining regimes across Africa, made extensive amendments, and engaged in detailed negotiations with the Government of Uganda and UNMC on behalf of the clients. The Firm advised on the allocation of exploration, development, production, and processing rights, the revenue-sharing framework with the state, and the regulatory approvals required across multiple Government agencies. The Agreement was signed on 3 March 2025 by the Ministers of Energy and Finance on behalf of the Government. Assets were formally handed over in May 2025, marking the end of the 43-year mining hiatus.
Lead Partners: Edwin Karugire · Peter Kauma
Team: Richard Bibangambah · Cara Kyasimiire · Tendo Lubwama
K&K Advocates acted as Ugandan counsel to Uganda Railways Corporation alongside the Attorney General's Chambers and international co-counsel Curtis, Mallet-Prevost, Colt & Mosle LLP. The London tribunal dismissed all claims and awarded Uganda costs in excess of USD 3.6 million and GBP 200,000.
K&K Advocates acted as counsel for Diamond Trust Bank Uganda and Diamond Trust Bank Kenya throughout all three levels of court, securing dismissal of a claim seeking UGX 34 billion and USD 23 Million, and the unconditional release of all security.
K&K Advocates successfully represented Absa Bank Uganda Limited before the Constitutional Court, defending the validity of Regulation 13 of the Mortgage Regulations in a challenge brought by a defaulting borrower seeking to frustrate security enforcement.
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