COAST SITTING ON HUGE UNTAPPED MINERAL WEALTH

A titanium mining base in Kwale. Coast counties have mineral deposits capable of improving their fortunes drastically, according to investors. PHOTO | LABAN WALLOGA | NATION MEDIA GROUP 

By BOZO JENJE 

Mineral resources worth trillions of shillings are unexploited in Coast counties, according to estimates by mining companies.

If fully tapped, the minerals could spur economic growth in the region and lead to increased employment in the area.

Mrima Hills in Kwale County has yet-to-be-explored rare earth deposits potentially worth Sh5.4 trillion, according to estimates by Cortec Mining, whose licence to operate in the area was revoked.

From the same county, Base Titanium Ltd has started shipping ilmenite, zircon and rutile.

It is expected that the firm will export approximately 330,000 tonnes of ilmenite, 80,000 tonnes of rutile and 30,000 tonnes of zircon annually for 13 years.

The company has 2,200 workers and its contribution to the economy in direct tax and royalties is expected to be  about  Sh20 billion ($225 million).

In Lamu County, Australian firm Pancontinental alongside BG Group (UK) is undertaking the exploration of oil and gas, offshore.

At the Lamu basin, the company has estimated that there are up to 3.7 billion barrels of oil and 10.2 trillion cubic feet of gas.

In Kilifi County, a US-based oil and gas exploration company, Camac Energy, has started a seismic survey of Arabuko-Sokoke forest.

However, residents, politicians and environmentalists have opposed the survey, accusing the company of failing to consult affected groups.

While the mining industry is still developing, at the Coast, it has encountered challenges regarding community compensation, sharing of royalties and environmental degradation, among others.

VOICED THEIR CONCERNS

From Kwale to Kilifi, Taita  Taveta  and Lamu, leaders and environment activists have aggressively voiced their concerns to ensure the sector, with an annual Gross Domestic Product of one per cent, benefits the National Government, county government and communities.

As the National Government establishes policies and structures to enable it to generate revenue from the extractive industry, oil and gas experts believe that the Mining Bill should include provisions that would ensure communities benefit from mineral revenue.

Dr Maarifa Mwakumanya, a senior lecturer at Pwani University’s department of environmental sciences, said mining in the Coast region contributed two per cent of the economic development in the region.

He said investors had not made benefit sharing a priority as demanded by the affected communities.

“We need a regime that will dictate a proper benefit sharing mechanism to prevent communities fighting with the mining companies,” he said.

THE RELEVANT LAWS

Kenya Chamber of Mines chief executive officer Stephen Mwakesi said the administration of the sector was nascent but mining companies operating in Kenya should observe the relevant laws for their businesses to thrive.

“The Mining Bill ensures that compliance is key element by both the small-scale and large- scale miners for development,” he said.

Nominated Senator Agnes Zani said mineral sector strategies must be well thought out to include policies on environmental conservation.

The politician and scholars made the comments mid this month during the launch of a report on mining and environment at the second anniversary of Human Rights Agenda, a lobby group, in Nyali.

CREDIT SOURCE: NMG