State, UK firm sign Sh5bn deal to revive fluorspar mining in Elgeyo Marakwet
Mining, Blue Economy and Maritime Affairs Cabinet Secretary Salim Mvurya (second left) addresses journalists during a presser at his office in Nairobi on February 16, 2024.
The United Kingdom-based Soy-Fujax Mining Company on Friday signed a Sh4 billion deal with Kenya to revive fluorspar mining in Elgeyo Marakwet County.
The deal was signed by Mining and Blue Economy Cabinet Secretary Salim Mvurya, who was accompanied by his Principal Secretary Elijah Mwangi and Fujax UK Regional Director Hendrick Ryst.
Under the terms of the agreement, the government will own a 15 per cent stake in the mining operations, a strategic move to secure Kenya's interest in the sector.
"I have overseen the signing of an agreement between the Government of Kenya and Soy-Fujax Mining Company for the revival of fluorspar mining in Elgeyo Marakwet County. This is a Sh4.8 billion investment where the government will have a 15 per cent stake in the mining activities as per the Mining Act 2016. I urge all mining investors to follow the law in acquiring licences," said CS Mvurya.
The deal will inject Sh4.8 billion into the local economy, paving the way for job creation and regional development.
According to the government, the licensing process has been going smoothly and so far it has received 1006 applications for various licences submitted by investors during the entire Mineral Board licensing process in December and January.
"MRB processed 214 applications and by April all 1,206 applications were submitted through online cadastre two of them were present, mineral dealer to also submit Processed 140 mineral dealer/trading applications Identified where investors have not been able to comply, tax compliance, idle for many years and to remove 106 applications because they are obsolete and doesn't meet the requirements of the law Inspire mineral investment in the country value addition points, Elgeyo Marakwet, fluorspar has been done for so many years," the CS added.
The State Department of Ministry said it was also working on attracting a strategic investor to set up a gold refinery in Kakamega and a granite plant in Vihiga County.
"Senior officials from the mining department were also present. The major reforms being undertaken by the State Department for Mining are primarily geared towards making the sector highly attractive to local, regional and international investors," it said.
Last year, the cabinet decided to lift the moratorium on mining licences in the country.
"We gave them until 30 November 2023 to update their records in this regard, and we've been involved in the process, and we've urged investors to comply with the laws," he added.
