Court bars Balala from revoking gold prospecting licences

The High Court has barred Mining Cabinet Secretary Najib Balala from gazetting a decision that would have seen two gold mining firms lose their licences.

Justice George Odunga in a ruling yesterday temporarily stopped Mr Balala’s decision until the case by Mid Migori Mining Company and Red Rock Resources PLC is heard and determined.

In the case, the two firms claimed they were never given an opportunity to respond to why their licences ought not to be revoked. According to their lawyer Njoroge Regeru, the basis of the contested decision was that they had not done a feasibility study and that they did not have a mining licence. The two companies had been issued with a special licence to prospect for gold in Migori. They claimed they had been in the area for the last seven years and had invested close to Sh1.5 billion.

“Gazettement of the impugned decision and actions taken as a consequence thereof lay to waste the very substantial investment that the applicants have made,” said Mr Regeru.

Mid Migori Mining Company and Red Rock Resources were issued with two special licences, one on April 26, 1988, and another on October 18, 1995. They were given the green light to prospect for gold in Migori in 2009.

However, the CS notified them that he was withdrawing their licences following advice by the Ministerial Licensing and Advisory Committee. The lawyer argued that the internal committee had no authority to advise the minister as it comprised his juniors. He further argued that it lacked independence from Balala’s control.

According to court documents filed before the court, the committee had allegedly found that the company had never done any exploration since it was given the licence. Further, it was said that it did not have enough money to complete the venture. But the company claims the allegations were not justified.

In its findings, the committee claimed the company had not addressed complaints of strained relationships between it and land owners.

The companies defended themselves, saying the project had stalled between August 2012 and 2013 because of campaigns and subsequent elections.