CS Najib Balala revoked Cortec's mining licence illegally, court hears

NAIROBI, KENYA: Cortec Mining Kenya Limited was not issued with the mandatory 21-day notice stipulated by law before its mining rights in Mrima Hills, Kwale were revoked, the court heard.

Cortec through its lawyer Nelson Havi told the court the Mining Act stipulates that the Commissioner of Mines is the only person empowered to revoke mining licences and not Cabinet Secretary Najib Balala. Havi argued that Balala had breached the law.

Havi added that the CS did not have powers to revoke prospecting and mining rights as the company had complied with the stipulated requirements by the National Environmental Management Authority and Kenya Forest Service requirements as outlined by the Mining Act.

The company, the counsel submitted had invested heavily in the mining activities in Kwale. He added that the decision by Balala to arbitrary revoke the firm's licence was illegal as he did not follow the stipulated procedure and also failed to heed the law.

Havi added that claims by Basu Mining Company that they had been licenced to prospect for minerals in the 280 acre Mrima Hills land were incorrect. He explained that Cortec had met all the stipulated requirements, adding that it had been issued with licence by the commissioner.

The company submitted that it had by late last year completed exploration and identified commercially viable niobium and rare earth elements at a cost of over Sh45 million.

But Balala's lawyer Fred Ngati who agreed with Cortec over the money the company had utilised in the mineral prospecting said the licence had been issued without following the stipulated procedures.

"Before starting mining, Cortec should have sought to fulfil the other required pieces of legislation," said Ngatia. He added that according to the Mining Act, being issued with a licence by the commissioner was not the final step as there were other provisions stipulated in the Act that must be met before mining can commence.

Cortec also wants to bar the Attorney General and Balala from taking any action that may be detrimental to its interests.

Basu Limited was also enjoined in the suits as it sought to block Cortec from prospecting the minerals in the South Coast.