Late Jacob Juma firm ordered to pay Government Sh326m

The late Jacob Juma who owned Cortec Mining that sued the Government for cancelling its operating licence. [File, Standard]

A firm that was owned by the late Jacob Juma will pay the Government Sh326 million in legal costs.

Cortec Mining, which had sued the Government alongside Stirling Mining Ltd (SML), suffered a major setback in a Sh2 trillion claim against the Government after the International Centre for Settlement of Investment Disputes dismissed the case on grounds it was not legitimate.

The tribunal run by the World Bank ruled the firm had not presented a case to allow it to bill the Government for cancelling its mineral exploration licence.

“Because Masibo purported to exercise a discretion he did not have and ignored statutory requirements, the tribunal concludes that the Government has demonstrated SML is not a protected investment,” it ruled.

Moses Masibo, the then commissioner for mines, issued Cortec with the licence when only the minister had such powers.

The State was represented by Iseme, Makema & Kamau advocates, DLA Piper LLP, London and then Attorney General Githu Mugai's law office.

The case stemmed from a mining project at Mrima Hill in Kwale County. The hill has the world's largest undeveloped niobium and rare earth deposits. Niobium is used in the manufacture of specialised steel products.

Cortec and Stirling sued the State for cancelling its mining licence.