A consortium of Chinese companies has been awarded the concession to manage and operate Kilembe Mines Limited (KML) which is estimated to have 4.5 million tonnes of copper.
The consortium is to pay a signature fee of US$4.3million (about Ush11billion) and an annual concession fee of US$1million (about Ush2.5billion) to the Government annually.
The Government will also benefit from statutory payments, including income tax and mining royalties, according to a statement issued by Jim Mugunga, the finance ministry and Privatisation Unit spokesman.
According to Mugunga, the Tibet Hima Industry Company Limited-led consortium emerged winner of an international open tender process to find an investor in KML.
The consortium is to commit over US$135m towards the rehabilitation of the mine and upgrading Mobuku power plant to 12MW.