Too many minerals, too many uncertainties

The scramble for the mineral wealth in Kitui County has begun in earnest as the region shapes up to be Kenya’s mining hub.

The potential wealth underground has seen the county become the centre of attraction for exploration for various minerals with foreign and local investors knocking on doors to claim a piece of the action.

Huge mineral deposits, including limestone, iron ore, coal, graphite, gypsum, quartz, granite and copper, dot the vast county. With riches almost guaranteed, locals are uncertain on whether to celebrate or mourn.

Athi Ward representative Peter Kilonzo says everything should be done to ensure that the curse of mineral wealth common to many African countries doesn’t befall the community.

Mr Kilonzo, whose ward has huge iron ore deposits, says residents are concerned by the lack of strong legal and policy guidelines to regulate the industry as current laws favour the government and investors.

“For 10 years now, the Mutomo limestone dispute has dragged on in court as owners of land wallow in poverty. These cement firms should be forced to settle their quarrels out of court to open up the area for serious investors” said the MCA.

Mrs Kasyoka Mulei, a resident of Mui who runs a shop, hopes they won’t be rendered homeless and squatters as the big mining plans may not translate to real benefits to the community.

“We hope we won’t be rendered homeless and squatters by the projects” she said.

AMBITIOUS PLANS

In 2005, both Athi River Mining and Bamburi Cement moved to Mutomo with ambitious plans to create thousands of direct jobs if allowed to establish cement factories in the area.

Almost 10 years down the line, the two cement firms remain mired in a long-standing conflict for control of the limestone deposits, and the dispute is still pending in the Court of Appeal.

Controversies have dogged the coal project since the concession was awarded two years ago with numerous court cases filed by the local community as they demand to be involved in negotiations.

Kitui Governor Dr Julius Malombe has assured residents that his government will take a lead role in facilitating dialogue among all players to ensure they get the best deals while safeguarding the environment.

During a county stakeholders’ forum he had convened to dialogue on mining issues, Dr Malombe appointed a task force headed by Nairobi lawyer Nyamu Mati to help his government set up the best legal structures.

INDUSTRIAL REVOLUTION

People are worried that the various mining activities will trigger an industrial revolution with complex economic, social and safety dynamics for which existing weak legislation may not be sufficient.

As residents hope it all goes well Chinese investors Fenxi Mining Industry Limited, who were awarded concessions two years ago to mine coal in Mui basin, are at an advanced stage to begin exploiting the resource.

Mr Yao Chen, the managing director of Mwingi Gypsum Boards Company, the pioneer manufacturer to set up shop in Mwingi in anticipation of coal mining, said he obtains raw gypsum locally and makes his products cheaper than imported ones.

The county government has endorsed plans by Nigerian billionaire Aliko Dangote to establish a Sh35 billion ultra-modern cement plant in Mutomo sub-county, and the investor is already negotiating ,with the local community.

Mr Pradeep Paunrana, the managing director of Athi River Mining, also confirmed his firm will start building a clinker and cement factory by early next year after getting the necessary approvals. It would be the first clinker plant in the country.

“We intend to spend Sh25 billion in setting up a clinker and cement plant with an annual production capacity of 2 million tonnes of cement, and we’ll require 1,000 tonnes of coal everyday” Mr Paunrana told Sunday Nation.

According to Mr George Mulatya, the County Executive for Energy, Environment and Mineral Investments, his office is in discussions with several investors who want to mine different minerals.