By Macharia Kamau
Kenya is set to start exploiting high value mineral used in the production of steel products. This follows the issuance of a mining licence to a local subsidiary of a Canadian firm.
The Department of Mines and Pacific Wildcat Resources Geology last week issued Cortec Mining Kenya – a subsidiary of with a licence to mine high grade niobium at Mrima Hill in Kwale County.
Niobium is a high value metal used to strengthen high performance steels and production of steel products such as aircraft turbine blades and vehicles. Cortec Mining said it would start small-scale mining by end of this year and set up a processing plant by end of next year.
David Anderson, Cortec Mining managing director, said the licence cleared way for the firm to start commercial exploration on the 142-hectare site on Mrima Hill. The firm was in 2007 issued with a licence to prospect and explore for the metal.
The 21-year licence would see Kenya tap into the fifth largest Niobium deposit globally. Kenya will be one of largest producers of niobium in Africa.
“We expect to begin small scale mining by the end of this year with the main mining commencing for the pilot plant, subject to financing, by the end of 2014,” said Anderson.
“Initially, we aim to produce 50 per cent niobium pentoxide concentrate. This concentrate itself can be sold as it is.”
He added that Cortec Mining plans to put up a niobium concentrate plant to process the resources, both in the Kwale district as well as in the area of Mombasa in the future.
The firm has already commissioned preliminary designs for a ferro-niobium, a product with a huge global market.
The firm’s initial plan is to process 750,000 tonnes of ore. This will produce high-grade Niobium concentrate for the next 15-16 years.
The resource in Kwale County is estimated to be worth about Sh250 billion but has remained untapped mostly owing to political interference as well as dissent with the local community.
Cortec Kenya is expected to pay the Government a three per cent royalty on the gross sales of niobium and five per cent for rare earth as per its obtained permit.
