Firm to fork out Sh6bn for minerals survey bid

A Chinese bank will fund an aerial survey of minerals at a cost of Sh6 billion.

Mining Cabinet Secretary Najib Balala said this would help the ministry to gather accurate information on resources available and their value.

“We are now in the final stage of negotiation of $70 million (Sh6 billion) funding from the Chinese firm, Exim Bank, for the project,” Mr Balala told the Nation at the weekend in Mombasa.

He went on: “We do not have enough data in mining. A survey will start soon for us to establish the value of our resources and what is going to the investors.”

Mr Balala said the study will determine the quantity of the minerals that can be explored.

The Cabinet Secretary said the new Mining Bill will also help the ministry put in place stringent regulations to curb illegal practices.

“We are reviewing the law to curb illegal mining. The Bill is in the third reading in the National Assembly. In a month’s time, we expect the Bill to become law.
“This is a very sensitive sector; we have to regulate it well, otherwise it will be a curse for us,” Mr Balala said.

He put on notice unscrupulous Kenyan and foreign miners, saying, their dubious trade will be brought to an end once an online transactional licensing system is in place.

The minister said that under the new system, applicants will be required to show their financial, technical know-how and expertise before being granted mining licences.

“The duration for the online licence application will be between 60 to 120 days. It is going to be transparent. Revenue will be shared out with the counties,” Mr Balala said.

The country has been losing billions of shillings to illegal mining, he said, adding that the ongoing reforms in the ministry will eradicate corruption.

“The revenue in royalties in the year 2012 was Sh21 million. Our estimated collection for 2013/2014 is about Sh1 billion,” Mr Balala said.