The government has signed a Sh4.8 mining contract with a mining investment company in a move that has paved the way for the historic revival of fluorspar mining operations in Elgeyo Marakwet.
The signing, done on Friday between the state and Soy-Fujax joint Venture, is being hailed as the most deliberate move towards the fulfillment of the pledge by the government to revive the fluorspar mining operations.
Speaking after signing of the contract, the Cabinet Secretary for Mining, Blue Economy and Maritime Affairs Salim Mvurya said that mining remained at the heart of Kenya’s economic transformation.
He hailed the signing of the contract terming it as the key ingredient that would activate and resumption of fluorspar mining activities in Kerio Valley after years of production hiatus.
‘Today we have signed this contract that will unlock the job opportunities for hundreds in addition to generating revenue for residents, the county, and the government,’ Mvurya said.
The joint venture is a tripartite arrangeme
nt that brings together Soy Flouspar (K) Limited, Fujax UK, and Fujax East Africa.
The CS was accompanied by the Principal Secretary for Mining Elijah Mwangi and senior officials from the mining department.
Other officials present include Fujax UK Regional Director Hendrick Ryst and Fujax East Africa Regional Director John Masanda amongst other officials.
Geological studies on the fluorspar resource in Kimwarer in Elgeyo Marakwet show significant deposits of the mineral that can last for over 20 years. The mining company is estimated to have a production capacity of 80,000 tons in the first five years of operation before gradually increasing the production capacity to 100,000 tons within 15 to 20 years of operations.
Mr. Hendrick Ryst, Fujax UK Regional Director, stated that they were excited by the opportunity to work with the government and promote mining investment in Kenya.
He added that the joint venture remained committed to ensuring the mining operations were beneficial to the government and the p
eople.
‘We are delighted to have signed this contract and we look forward to starting the mining operations,’ he said.
The CS further directed all mineral investors to ensure they have complied with the law on critical mining aspects of licensing, employment, and management of local resources.
He pointed out that the government was determined to safeguard the commercial interests of the country and communities.
With the looming reopening of the fluorspar plant, the State Department for Mining has also disclosed engaging a strategic investor to establish a gold refinery in Kakamega County and a Graphite Plant in Vihiga County to promote value addition of local minerals.
The aggressive reforms in the mining sector and the active quest for strategic investors are geared towards accelerating growth in the sector and pushing the sector to contribute 10 percent of the country’s GDP.
Source: Kenya News Agency