Govt, Tata Chemicals strike deal to unlock Magadi mining standoff

Mining Cabinet Secretary Ali Hassan Joho. [Courtesy]

 

The Government has agreed with executives of Tata Chemicals Magadi Limited to set up a joint technical committee to resolve compliance issues that led to the suspension of the company's operations.

Mining Cabinet Secretary Hassan Joho announced the agreement on Tuesday, September 8, after hosting the firm's executives at his office to discuss concerns the ministry had raised.

The Ministry of Mining, Blue Economy and Maritime Affairs suspended Tata Chemicals Magadi's mining and export activities on July 28 under the Mining Act, citing gaps in mineral beneficiation, royalty reconciliation, community development agreements, local employment and environmental compliance.

The dispute escalated on September 3, when President William Ruto publicly directed the company to leave the site, arguing that communities around Lake Magadi have not gained enough from more than a century of mining despite hosting one of Africa's most valuable mineral operations.

Tata Chemicals has maintained it remains fully compliant, saying it submitted all requested documentation to the ministry on August 11 and continues to await the government's response.

The company also said it is engaging Kenyan authorities through legal and regulatory channels while seeking an amicable resolution.

The site has produced soda ash since 1911, with Tata Chemicals taking over the operation in 2005 through its acquisition of Brunner Mond.

Kenya ranks as the world's fourth-largest producer of natural soda ash, a compound used in glassmaking, cleaning products and electric-vehicle battery manufacturing.

About 500 employees and roughly 30,000 people in the Magadi community rely directly or indirectly on the company's operations, including water, healthcare and education support programmes.

The committee will bring together the Principal Secretary for Mining, representing the ministry, and the chief executive officer of Tata Chemicals Magadi, representing the company.

The team will carry out a technical review of the unresolved matters and submit a report  to Joho's office for further direction, according to a ministry statement.

The committee will tackle five key issues: mineral beneficiation and in-country value addition, outstanding community benefits and royalty obligations, unresolved land matters, opening up the area for multiple mineral extraction and outstanding matters with the Kajiado County Government.

"As Government we remain committed to constructive engagement with investors while firmly upholding Kenya's laws, regulations and the interests of its people," noted Joho.

He noted that the goal extends beyond settling the compliance dispute, aiming to build a lasting framework for responsible mining, value addition, community development and partnerships that benefit both sides.

The suspension remains in force. Tata Chemicals is also due in the High Court on November 18, in a case that will help determine the future of the Magadi operation.