Kenya partners with Soy-Fujax to revive mining in Elgeyo Marakwet

The government has entered into a partnership with the UK-based firm Soy-Fujax Mining Company to restore fluorspar mining in Elgeyo Marakwet.

Salim Mvurya, the cabinet secretary for mining, signed the deal alongside Hendrick Ryst, the regional director of Fujax UK, and Elijah Mwangi, his principal secretary.

In a planned move to secure Kenya's interest in the mining industry, the agreement requires the government to own a 15 per cent stake in the operations.

As per the State Department of Mining, the deal is expected to generate Sh4.8 billion for the local economy, which will facilitate the creation of jobs and advance regional development.

“This marks a monumental milestone in the mining sector, which has opened the doors for the investor in this joint venture to pump in over Sh4.8 billion into the local economy, creating hundreds of jobs and promoting development in the region,” Mvurya stated.

Additionally, the State Department of Mining is trying to find a strategic investor to open a granite mill in Vihiga County and a gold refinery in Kakamega.

“Senior officials from the mining department were also present. The major reforms currently being undertaken by the State Department for Mining are primarily geared towards making this sector extremely attractive for local, regional, and international investors,” he said.

Mvurya previously stated that mining businesses plan to restart their delayed projects following the government's determined decision to restart the licencing process, which was suspended eight years ago by former Minister of Mining Najib Balala when he withdrew a series of permits.

This action required mining businesses to operate under licences obtained before the suspension, forcing them to work within limits. The goal was to allow the government to evaluate the licences.

Speaking in Mombasa County, the CS Mining and Blue Economy, Salim Mvurya, stated that negotiations have commenced within the cabinet to reinstate mining company licences following the conclusion of the National Geophysical Survey and the release of the preliminary report.

The CS added that a decision on this matter would be reached based on the significant findings of the geological survey and report.

"One of the key areas we were looking at is data, and we have completed a report that identified the existence of 970 minerals nationwide. We have initiated a fact-finding process in the 16 priority counties with important and strategic minerals," said Mvurya.

He stated that the nationwide licence suspension was primarily put in place to allow the government to address crucial areas for reform in the mining sector.

"It will also help us tackle the entire issue of illegal mining. We want the mining sector in Kenya to be highly profitable, and we are trying to create enabling environments that can encourage investment and ensure that the sector contributes to our economy," said Mvurya, adding that the government is considering increasing revenues from 1 per cent to 10 percent.

In 2015, Balala revoked 65 mining licences through a government gazette notice. This action saw companies like Base Titanium postpone their expansion plans.

In a previous interview, the General Manager of External Affairs at the company, Simon Wall, said they intend to expand up to the Lamu-Tana River County border.