Economy

Kenya launches search for minerals to stay on mining map

The Government has started a survey to determine the quantity of Kenya’s underground minerals.

The Ministry of Mining today invited consultants to help it develop a proposal for the planned countrywide geophysical survey.

The consultant will lay the ground rules for the survey by working with ministry officials to develop the survey’s specifications.

The experts are also expected to supervise and monitor implementation of the survey and ensure it is executed cost effectively.

“The main objective is to obtain geophysical data that will form the basis for a review of the country’s geology and mineral resources and their distribution,” said Mining Principal Secretary Mohammed Mahmud in a notice.

“The ultimate goal is to gain knowledge on quantity and distribution of the country’s mineral resources so as to ensure their sustainable exploitation and utilisation in future,” added Mr Mahmud.

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A tender for the survey will subsequently be issued. Private companies have been forced to conduct their own expensive mini-surveys in their areas of interest as there is no public database of what minerals the country has.

Enormous mineral resources

Kenya is reported to be sitting on enormous mineral resources that could transform the economy. Geologists and mining firms however say it is hard to tell exactly the potential of the mining industry since mapping and quantification has not been done.

In recent years the country has attracted huge interest from both local and foreign firms seeking to exploit what is speculated to be vast mineral potential across the country including possible large deposits of gold, copper, mineral sands, and coal in various parts of the country.

Tanzania conducted similar studies back in 1970s while Uganda did hers between 2007 and 2010.

The Government has said Kenya’s recently adopted mining policy which replaced the 75 year old code from 1940 in addition to other initiatives is expected to help the country raise the mining sector’s contribution to Gross Domestic Product to 10 per cent from the current 0.9 per cent in the next ten years.

The overall value of mineral output rose by 14.7 per cent to Sh24.2 billion in 2015 up from Sh21 billion in 2014.

In the 2016/17 financial year the Treasury Secretary Henry Rotich allocated Sh3 billion for the phased implementation of the survey.

A past attempt at such a survey failed over lack of funds three years ago.

Kenya had signed a memorandum of understanding with China’s Geological Exploration Technology Institute to undertake the exercise with a grant from the Chinese Government but the project failed to take off due to lack of funds.

GETI was to undertake an aerial survey for 24 to 36 months at an estimated cost of $70 million (Sh7.1 billion).