AMN - New Kenya Mining Act launches country to projected growth - comment by Yolanda Torrisi

Mining Review Africa was recently granted an exclusive interview with Kenya’s Mining Cabinet Secretary/Minister of Mines Dan Kazungu. He has a passion and vision to see the country’s mining sector grow substantially in the next 10 years.

This is possible following the introduction of a new Mining Act in May this year which aims to give investor confidence through transparent regulatory processes that embrace new mining development.

Dan Kazungu said in the interview: “With just a handful of companies operating in the country, Kenya is an attractive mining destination which offers mining companies and investors vast opportunities to discover and tap into new greenfield projects.

“Tapping into potential untapped mineral wealth could lead to the establishment of a ‘new mining frontier’. The government has recognised that the mining industry is a key pillar for growth and economic transformation and so we are preparing the country for the next big wave of mining activity.”

Dan Kazunga believes that Kenya has been unable to attract any major investment because of its colonial mining act which was passed in 1940 during World War II.

“We have been relying on this historic and outdated act for 76 years. Fortunately, this is now an era past following the introduction of a new Mining Act which I spent my first five months in office pushing to finalise.” It was signed by President Uhuru Kenyatta on 6 May 2016 and came into effect on 27 May.

The new act has been made possible due to a two year engagement with the Kenyan Chamber of Mines, international specialists and input from British, Canadian and Australian high commissions, governments and communities.

The policy is an open and transparent legal framework to bring maximum benefits to Kenya.

“We have now positioned ourselves for a significant upturn in mining investment which will see this country become a world-class mining jurisdiction and contributor to widespread economic transformation in Kenya and even possibly the new mining hub for the entire East African region.”

Dan Kazungu points to a few key areas of focus, namely the inclusion of small-scale and artisanal Kenyan miners as one of numerous legal, mainstream sub-sectors in the country.

“As government we have an obligation to the Kenyan population and this forms a major part of our policy.”

Further sub-sectors include large-scale miners, exploration companies, gem stones and precious minerals and mining services (financial, legal, logistics, insurance, training, and consultants.

Further key areas within the new Act include land rights protection, fair distribution of revenue and royalties (national government 20%; county government 20%; and local communities 10%), and finally the enforcement of environmental, safety and governance compliance.

Yolanda Torrisi is Chairperson of The African Mining Network and comments on African mining issues and the growing global interest in the African continent. Contact:yolanda@yolandatorrisi.com