Fresh efforts to negotiate deal on Mui coal basin project

The government has re-started negotiations with Mui Basin residents to resolve disputes that have delayed commencement of operations by Chinese firm Fenxi, which was awarded the mining contract last year.

Area MP Joe Mutambu and chief geologist at the Ministry of Energy, John Omenge, on Monday held a consultative meeting with residents of Mwingi Central to seek ways of resolving the raging dispute.

Representatives of the Mui Coal basin community obtained court orders restraining the government from entering into any agreement with Fenxi Mining Industry Company, which had already been awarded the contract to extract the mineral from blocks C and D.

Machakos High Court Judge George Dulu granted the ex parte orders to Peter Makau Musyoka, Elijah Mutua Makanga, Jacob Mbaya Musyoka, Francis Kithome Kitheka, Andrew Kasee Mwinzi and Nicholas Munyoki Mwasa, on behalf of the Mui community.

The six are contesting the suitability and capability of the Chinese firm to undertake the mining project and demanding they be given a bigger stake in the concession.

READ: Mui Basin residents raise the alarm over compensation plan

Mr Omenge said the government was keen to address the community’s concerns and have the court cases withdrawn to stop further delays. “All of them have been brought on board and their concerns have been taken into account,” said Mr Omenge.

Mr Mutambu said the issuance of title deeds will be hastened before the residents are compensated and relocated. Mr Eric Mutua, the lawyer representing the community liaison committee for Mui Basin Block C and D, however said there were no negotiations towards withdrawing the cases.

No negotiations

“There has been no negotiations towards withdrawing the suit. The suit is not being withdrawn. The investors and ministry have been peddling that propaganda,” said Mr Mutua in response to queries by the Business Daily.

Attempts to resolve the matter raised by the community have been going on since 2011 when the tender was awarded to the Chinese firm.

George Kariithi, a partner with the Chinese mining firm Fenxi, said Tuesday that the company was ready to start prospecting but has to wait for the resolution and fleshing out of issues raised by the community and other stakeholders around the basin.

“We are ready to start prospecting, but we have to wait for the government to sort out what is remaining. An agreement was signed in July setting out the framework.

‘‘This is an agreement that has been under implementation for the past few months and is ongoing,” said Dr Kariithi.

He said the process had been left in the hands of the government and investors were not involved in actual negotiations on the pending issues.