Economy

Ministry licenses Chinese firm to explore and mine diatomite in Baringo

china-diatomite-kenya

Mining secretary Dan Kazungu (left) and Shangdong Provincial Bureau of Geology and Mineral Resources (SDGM) director-general Zhao Zhiyuan in Nairobi, February 22, 2017. Kenya has licensed a Chinese firm to mine diatomite in Marigat, Baringo County. PHOTO | SALATON NJAU | NMG

The Ministry of Mining has licensed a Chinese firm to explore and mine diatomite in Marigat, Baringo County.

The 21-year licence allows the firm, Chuanshan International Mining Limited, to commence its Sh4 billion investment in the project, which it has been seeking since 2013.

Diatomite, a white sedimentary rock occurring from sedimentary deposits, has multiple uses including being a filter for beverages (due to its unique honeycomb structure), filler in paints and cement, an absorbent for industrial spills as well as an abrasive in toothpaste.

The government is expected to earn five per cent royalties from the mine, even though this could change in the ongoing review of the country’s mining laws which determine the royalty payments structure.

Pending licences

The country has frozen issuance of fresh licences pending the constitution of the minerals board — with 70 fresh applications said to be held up in pipeline.

Mining Secretary Dan Kazungu Wednesday said the new investors have set a target to mine about 300,000 tonnes of the mineral per year.

“The investors from China have been persistent in their quest to start this mining and we hope they will start as soon as possible now that we have given them the green light.

"They have told us they want a simple, accountable and transparent process and we can assure them everything is in order.

"I urge the host community to embrace them and raise any issues with us for amicable resolutions so that we remain attractive to more investors,” said Mr Kazungu at a press briefing in Nairobi.

The firm, which started the regulatory compliance processes in 2013, will have its licence reviewed every three years to revise its terms should they fail to meet the terms according to Mining Principal Secretary Dr Ibrahim Mohamed.

Quantity of minerals

Chuanshan International will collaborate with Shadong Lunan Geology and Mineral Prospecting Institution to determine the quantity of the minerals available before opening the mine.

The geology partner’s President Zao Shuquan said the evaluation will commence immediately to enable a clear work plan, which will then inform the production calendar.

“We expect to mine diatomite with our key target markets being China, Canada, USA and Denmark.

"The decision where we will build a plant will depend on the ease with which we can sell the products. We will create a lot of jobs in the mining operations alone which is our priority for now targeting the local community,” said Mr Shuquan.

The venture that is set to start on a 150-kilometre square piece of land situated near the border of Tiaty and Baringo North sub-counties was facilitated by the county government, which has leased out the land for the 21 years starting from 2016.

The county government has been holding the land said to be rich in diatomite and non-metallic gem minerals in trust for the community.

County leaders led by Speaker William Kamket lauded the investment as a key alternative source of livelihood for the largely pastoralist community living in the area.

He called for a speedy resolution of the ongoing skirmishes in the area following the murder of two politicians in the county that has sparked violence.