Tibet loses case against govt on Kilembe Mines

Engineers walk through the Kilembe Mines. [Photo/Daily Monitor]

(Daily Monitor)The application for a temporary injunction filed by Tibet Limited seeking to stop government from cancelling the company’s Kilembe Mines concession has been dismissed with costs.
In an application filed on February 21, Tibet had asked court to stop government from interfering with the operations of Kilembe Mines, which they (Tibet) where managing under a concession.
In a ruling delivered last Thursday in Kampala, court said that maintaining the status quo or not maintaining it had no threat to hearing of the main suit.
The Chinese firm had in 2013 awarded the concession to mine copper from Kilembe Mines for 25 years.
However, the concession was cancelled over alleged failure to fulfil its part of the bargain.
According to court documents, government claims that Tibet had been variously warned thus it was left with no option but to terminate the concession.
In October, government subsequently cancelled the concession and temporarily mandated Mr Fred Kyankonye to manage the mines.
“The concession was already terminated and the mines were taken over by the second respondent [Mr Fred Kyankonye] before the main suit and application was filed. The order sought in this application was overtaken by events. In the circumstances, this application fails and is dismissed with costs,” court ruled.
According to the main application filed on February 21, Tibet is seeking $33m in damages, on grounds that government irregularly terminated its concession.


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