The government has instructed all players in the mining sector to give an update of their records and operations in Kenya, as it moves to clean-up the mining registry.
This is to deal with tax and royalty cheats, speculators, illegal dealers and firms which have over the years infiltrated the industry.
This is part of ongoing reforms that come with the October 3 partial lifting of the 46-month long moratorium on the issuance of prospecting and mining licenses in the country, which was effected in December 2019.
This was to among others, allow for a national-wide airborne geophysical survey and production of a preliminary report, that identified 970 mineral occurrences across the country.
The government is currently conducting field work on the identified mineral deposit occurrences to confirm their existence, quality and quantity in 16 counties.
It has put in place a Mining Cadaster System for online applications of new licenses and renewals.
However, all applicants with pending applications for new and renewal of mineral rights in the system, for all categories of mineral rights (prospecting and mining licenses and permits), have 14 days from Tuesday, to update their records including company registration certificate.
The State Department for Mining also requires applicants to give company ownership details and proof of funds for operations which includes bank statements, bank guarantee or audited financial statements for the last three years.
They are also required to share tax compliance certificates and programme of work.
Mining work programme is a detailed document showing the plan and mining operations and corresponding expenditures during a given period of time, including the plan and expenditures for development of host and neighbouring communities.
This is now seen as a move to deal away with individuals or companies that have previously applied for licenses in speculation of re-selling, or using the permits to onboard investors.
There have been cases of companies securing licenses but fail to make any investments, locking out potential investors.
Last week, the Mining, Blue Economy and Maritime Affairs Ministry announced a comprehensive audit of all mineral right holders, with a view to rooting out non-compliant rights.
The government has so far revoked 1, 546 licences that do not meet the conditions of licensing.
Over 3,000 illegal operations have been issued with stop orders.
“The Ministry has profiled illegal miners and mineral dealers in view of closing all their operations. Enforcement has been beefed up through the regional mining offices,” CS Salim Mvurya said.
He said the ministry is setting up an enforcement team in collaboration with other government agencies in fighting the vice, including formation of a special police unit.
Cabinet in its sitting held on October 3, agreed to a phased lifting of the moratorium which started with construction and industrial minerals, where 56 mineral types among them soda-ash , limestone and marble, gemstone and gypsum were cleared.
About 14 have been declared “strategic minerals” which include rare earth minerals being mined by Base Titanium in Kwale, radio-active minerals – uranium and thorium, cobalt, tantalum, lithium, coltan, niobium and copper.
Base Titanium has since welcomed the progress being made towards the resumption of normal licensing.
The company has two pending prospecting licenses for Kwale and Lamu regions, which were affected by the moratorium.
“It is a great step as it now gives hope for the issuance which will allow exploration programmes,” general manager external affairs, Simon Wall, told the Star.
Base accounts for 65 per cent of Kenya's mineral exports.
The government is keen to grow the sectors contribution to at least 10 per cent by 2030, from
Total earnings from mineral production increased by 16.6 per cent to Sh35.2 billion in 2022, the Economic Survey 2023 indicates.
The value of titanium ore minerals (Ilmenite, Rutile and Zircon) increased from Sh25.6 billion in 2021, to Sh28.3 billion in 2022.
Kenya also reaped from gold whose value more than doubled to Sh3.4 billion up from Sh1.4 billion in 2021.
The value of Soda Ash produced increased from Sh1.8 billion to Sh2 billion in 2022.
Other key minerals were crushed refined soda (Sh657.2 million), gemstones (rough) Sh402.5 million and cut gemstone (Sh182.2 million).
Meanwhile, the government is also moving to tame illegal mining activities and trading where all dealers must be licensed.
“It is notified to the general public that dealing in minerals without a valid mineral dealership licence or processing licence is contrary to the Mining Act and is an offence punishable as an economic crime,” PS Elijah Mwangi said in the notice issued on October 10.
Mineral transporters are also required to obtain a mineral road transport permit, with a designated officer witnessing loading and sealing of consignments.
