Mining dream remains elusive as projects delay

A resident of Mui Basin, Kitui County, on September 14, 2012 shows the area where coal will be mined. The work is yet to begin. PHOTO | SALATON NJAU | NATION MEDIA GROUP

What you need to know:

  • The coal deposits in Kitui are billed as the best alternative source of cheap energy to drive Vision 2030.
  • Dangote Cement announced that it has pushed forward its entry into Kenya to 2021.

Mining firms licensed by the government to exploit various minerals in Kitui County are on the spot over their never-ending delays in starting operations.

From coal mining to steel and cement manufacturing, residents have had to wait for more than 10 years despite some firms having obtained the necessary licences to establish plants due to numerous court disputes.

For instance, Chinese investor Fenxi Mining Industry Ltd was awarded a concession in 2013 to mine coal in the county’s Mui Basin, but are yet to begin exploiting the resource because land owners have not been resettled.

JOBS
The coal deposits in Kitui are billed as the best alternative source of cheap energy to drive Vision 2030.

According to the project roadmap, for which the country is way behind schedule, the ground-breaking ceremony was supposed to be done by President Uhuru Kenyatta in June 2014.

On cement manufacturing, two firms – Athi River Mining and Bamburi Cement – moved to Kitui South in 2005, promising to create thousands of jobs if allowed to establish factories in the area.

However, 13 years down the line, the firms have been involved in a long-running conflict for control of the limestone deposits and the dispute is still pending in the Court of Appeal.

STEEL PLANT
Recently, Dangote Cement abandoned plans to establish a Sh35 billion ultra-modern cement plant in Mutomo without giving reasons for the change of mind.

In its latest annual report, the conglomerate, owned by Africa’s richest man Aliko Dangote, announced that it has pushed forward its entry into Kenya to 2021.

Another investor, Devki Steel Mills, has also gone quiet on much-hyped plans to put up a Sh50 billion steel plant in Ikutha, which has huge iron ore deposits.

The proposed plant was to be the biggest in East and Central Africa.

COMPENSATION
This gloomy state of affairs has prompted Kitui Governor Charity Ngilu to convene a major stakeholders’ forum today to deliberate on ways of unlocking the county’s mineral potential and attracting foreign investors.

The meeting, to be held at Kenya Forestry Research Institute Centre, will seek explanations from the investors and relevant national government ministries on the causes of the delays.

However, Mining Principal Secretary John Omenge said the coal mining project is on course and that the investors are waiting for the government to complete the process of compensating and relocating the affected households.