Global mining firms urged to procure goods, services locally

Nairobi; Kenya: International mining companies operating in the region have been urged to procure goods and services, including skills and technology locally. This is to enable the nascent mining sector in Kenya and East Africa to grow a pool of expertise and local content.

"We need to legislate for local content in the mining industry. At the moment, we do not have a pipeline of skills meaning that we are totally reliant on the goodwill of mining firms. We also have no mechanism for monitoring that local content is developed," said Melba Wasunna- an expert adviser on Extractives and Human Rights at Katiba Institute. Dr Wasunna who spoke at the fourth Mining Business and Investment Conference in East Africa yesterday noted that already, mining countries such as Malaysia, Nigeria and Ghana have local content law in their mining legislation.

The two-day event, organised by the Ministry of Mining and the Kenya Chamber of Mines, which brought together over 600 delegates from around Africa including investors, miners, explorers, service provider, governments and mining equipment suppliers, ends today.

Managing Director and Head of Energy and Natural Resources at Standard & Mutual Limited Cliff Otega acknowledged that the region has capacity challenges such as shortage of technical staff, which cannot be delivered at the moment.

"This is why we need to be careful not to have a restrictive law that will force mining companies to accept sub-standard local content," he added. The conference is taking place when conflicts between local communities and mining companies are being witnessed in several areas, including Kwale and Turkana counties.

Local community

"There is no legislation on how a mining company should engage with the local community. In order for one to obtain a social licence, there is need to stakeholder consultation with the community. Otherwise failure to consult opens up the mining company to activists and conservationists," said Stephen Mallowah- senior partner at MMC Africa Law.

"The community must know what they want in terms of benefits and a clear statement of their expectations," added Patrick Obath, a strategic adviser at Adam Smith International Africa. Kenya's nascent mining industry is deemed one of the least explored in Africa. Data from Kenya National Bureau of Statistics shows Kenya produced Sh18.3 billion worth of minerals in 2012.

A survey of exploration in Kenya reveals very little activity, particularly after sudden introduction of 35 per cent local equity participation regulation.