Kenya’s Strategic Minerals: The Implications in the Mining Sector

In October 2023, Kenya’s mining sector experienced a significant turning point as the government lifted the moratorium that had stagnated the industry for over four years. While this move aimed to “put the house in order” through regulatory reforms, it excluded strategic minerals, leaving the mining community with a sense of anticipation.

CS Mvurya during a past event

Understanding Strategic Minerals in Kenya

These refer to minerals and elements that are considered crucial for the economic and strategic interests of a country or region due to their importance in various industries, national defense, and technological applications. These minerals differ from country to country. However, some common minerals such as rare earth elements (REEs), lithium, cobalt, and platinum group metals remain constant in many countries’ strategic minerals.

Mining site
An example of a mining site in Kenya

In the communication, Hon Salim Mvurya, EGH, the Cabinet Secretary, brought clarity to the categorization of minerals in Kenya. The list of strategic minerals unveiled included:

  1. Radio-active minerals – Uranium, Thorium
  2. Cobalt
  3. Tantalum
  4. Lithium
  5. Coltan
  6. Niobium
  7. Copper
  8. Nickel
  9. Graphite
  10. Tin
  11. Tsavorite
  12. Chromite
  13. Rare Earths

Tsavorite as a Strategic Mineral

The addition of Tsavorite, a precious gemstone, stirred apprehension among miners, sparking widespread discussions about its potential impact on their operations. Amidst the buzz, misinformation took center stage, creating uncertainty. In this context, it becomes crucial to shed light on the Mining Act of 2016 and its provisions regarding Kenya’s strategic minerals.

i. Section 16: The Cabinet Secretary, with the advice of the Mineral Rights Board, can prescribe the manner of dealing with the discovery, exploration, mining, processing, and export of strategic mineral and deposits.

ii. Section 16: The Cabinet Secretary must seek Cabinet approval to declare certain minerals or mineral deposits as strategic.

iii. Article 48: The State acquires a ten percent free carried interest in the share capital, without a financial contribution, as per the right.

iv. Section 8: The State has a right of pre-emption over all minerals extracted within Kenya’s territory before they are sold. The Cabinet Secretary can also make regulations for the exploration, mining, processing, and export of strategic minerals and deposits.

Conclusion

In conclusion, understanding that the Cabinet Secretary holds the authority to classify minerals as strategic is key to shaping Kenya’s mining future. As we look ahead, the government must provide clear instructions on how existing licenses for Tsavorite mining will be handled, ensuring fairness and transparency. Moreover, the ongoing efforts to improve the mining sector should actively involve all stakeholders, creating a collaborative path towards a more inclusive and sustainable industry growth

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