Mining forum launched in industry growth plan

Cabinet Secretary for Mining Dan Kazungu, addresses the press during the official handing over of the mining Ministry by Balala to him. He  opened the first ever Kenya Mining Forum in Nairobi yesterday. (PHOTO: PIUS CHERUIYOT/ STANDARD)

Mining Cabinet Secretary Dan Kazungu opened the first ever Kenya Mining Forum in Nairobi yesterday. The forum, which will run for two days, will discuss how to grow sector investment in line with the country’s recently updated Mining Act.

According to Mr Kazungu, the Government, having recognised the mining industry as a key pillar for economic transformation, was preparing the country for the next big wave of industry activity.

“With just a handful of companies operating in the country, Kenya is an attractive mining destination that offers mining companies and investors vast opportunities to discover and tap into new green field projects,” he said.

The CS added that tapping into potential mineral wealth could lead to the establishment of a new mining frontier.

Mineral mapping

He, however, acknowledged that the country is yet to complete the mineral mapping announced earlier this year.

Plans to conduct an aerial geophysical survey kicked off in June after the project was allocated Sh3 billion in the current financial year. Kazungu, however, had said the survey would require Sh9 billion and would be done in phases due to budgetary constraints.

The industry has already received support from the Government and sponsors like Afex, Conco, MTL, Socabelec and Vision Scientific Africa. The Kenya Chamber of Mines is also an industry partner, but its top sponsor is Base Titanium. Base Titanium is a subsidiary of Australia and UK-listed Resources Company that is licensed to explore the area around Kwale.

According to Kazungu, Base Titanium has pumped in more than Sh50 billion in Kwale, as well as created over 3,000 jobs.

“Base’s key message is to show the world what it is possible to achieve in Kenya, and to demonstrate to potential investors the efforts being undertaken by the Government to facilitate growth of the mining sector,” said Joe Schwarz, Base Titanium’s general manager for external affairs and development.

The forum comes just months after the implementation of the Mining Act 2016, which guides mining activity in the country. Kazungu said this law would put the country on the path to being the most attractive destination for mineral investment in Africa.