Firms reap from rising demand for Kenyan minerals

China has been a dominant soda ash supplier, accounting for 17 million tonnes per annum or 35 per cent of global supply with the European Union and USA being the other major producers.

Export quotas

With China imposing export quotas on its mineral exports at the time the world economy is looking up, Magadi company is seeing better times ahead.

“It is possible for us to put the capacity that we expanded at a cost of Sh7.8 billion to full use since the global economic crisis hit us just weeks after commissioning it last year,” Mr Odera said.

Soda ash is used in making glasses and the company sees steady demand as the motor vehicle, building and construction industries pick up.

Central Bank of Kenya notes that production of soda ash increased by 65.6 per cent in the first quarter of this year, from 64,006 tonnes over a similar period last year to 105,977 tonnes.

To stay afloat, company managers say they are maintaining tight control on operation costs to cut high fuel and electricity prices.

Rising fluorspar prices have led Kenya Fluorspar to reopen its premises after a 15-month lull. Rock bottom prices forced the company to suspend operations early last year, just weeks after its management completed upgrading of its extraction facilities at Sh120 million.

“We remain optimistic that the global economy will continue its recovery and specialist manufacturing companies, who are the major users of fluorspar, will increase production,” said Kenya Fluorspar company’s managing director Nico Spangeberg on phone.