UK firm Blencowe Resources is making a second attempt at a nickle-copper project in northern Uganda, with the company hoping that its previous experience in the area will spring good tidings this time round.
The government of Uganda has awarded Consolidated African Resources – the trading name that Blencowe Resources Ltd uses for its Uganda mining projects – a four-year exploration license to explore for copper and nickel in Pader district in northern Uganda.
The license, which was issued on March 17, 2025, runs over a surface area of 248 square kilometers.
The following day on March 18, the government issued Consolidated African Resources another four-year license to explore for copper and nickel in the neighbouring district of Lamwo. The license area stretches for 242.1 square kilometers.
Blencowe Resources submitted its application for both licenses on February 22, 2022, according to information published on the mining cadastre – the official online mining registry for Uganda’s government.
The two new exploration licenses brings to three the number of mining projects that Blencowe Resources Limited is undertaking in Uganda, reinforcing its profile as one of the top mining companies in the country. Blencowe already holds a 20-year mining lease – up to the year 2040 – for its flagship Orom-Cross graphite project in Kitgum district, which borders the districts of the new licenses.
Blencowe has not yet issued a public statement over the acquisition of the two new exploration licenses.
However, this is not the first time that the company has made an attempt at snapping up these nickel- copper projects.
One of the projects Blencowe has acquired previously belonged to Australia’s junior mining firm Sipa Resources. Blencowe was attracted to this project due to some of the prospects it offered, with Sipa saying that its Akelikongo nickel-copper discovery in northern Uganda has a similar geotectonic setting to other world class deposits such as Nova in Australia, Raglan and Voiseys Bay in Canada. Add the earlier partnership that Sipa had with the well-known global mining company, Rio Tinto, on this project and Blencowe was sold on the idea.
On the day Blencowe submitted its applications for the two licenses on February 22, 2022, is the day the company announced that it had signed the right to earn into Sipa’s Akelikongo nickel sulphide and copper project.
In that agreement with Sipa Resources, Blencowe agreed to offer just $1.5 million in deferred share consideration for the project should the results be positive.
Immediately, Blencowe embarked on conducting an airborne electromagnetic survey, which it concluded.
However, just over six months later, on September 6, 2022 to be precise, Blencowe wrote to Sipa notifying the company that it had decided to terminate the partnership. The UK company said its decision was informed by the need to focus on its Orom-Cross graphite project.
For two years, Sipa looked for a partner for the project but failed to attract any. The licenses expired last year, and reverted to government.
Now, attention shifts to Blencowe as the market awaits to see whether the company can succeed where Sipa failed.
Current nickel prices on the international market point to a rebound, hovering around $15,500 per tonne – a jump from the $14,100 after the United States of America decided to put on hold the aggressive tariffs it had announced on some of these base metals.
From the company perspective, questions will be asked of Blencowe’s financial ability to set aside a budget for its exploration activities. The company has a grant of $5 million from International Development Finance Corporation of the US as it progresses its Definitive Feasibility Study for the Orom Cross.
Blencowe is also discussing with African Finance Corporation for more financing for the graphite project.
The company will determine how much money it will need in exploration expenses after undertaking more surveys.
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