UK firm wins Sh180bn Migori gold mine licence

The government has approved the granting of a mining licence to London-based Red Rock Resources, which plans to produce gold in Migori at a site with deposits of the precious metal valued at more than Sh180 billion.

The approval of Red Rock’s application by the Mining Rights Board (MRB) has been uploaded on the Ministry of Petroleum and Mining’s website.

The multinational says that upon receipt of official confirmation of the intended grant, it will be invited to fulfill fee payment and registration requirements.

Red Rock, however, noted that grant of the licences remains subject to the approval of the Mining Cabinet Secretary (John Munyes).

The move comes after the company last year settled a court case with the government which had terminated its mining licence in May, 2015.

"We are entering the last stage of what has been a lengthy process, and thank all involved,” Red Rock’s chairman Andrew Bell said in a trading update.

“We look forward to the confirmation of grant, and to renewing progress towards our aim, which is to have a producing gold mine."

A previous resource estimate placed gold deposits at the South West Kenya site at 1.2 million ounces that would have a market value of Sh187.7 billion based on the current bullion price of about $1,528 (Sh157,000) per ounce.

Red Rock did not say why the Ministry of Mining had cancelled its initial mining licences. The company’s licences that were cancelled, SPL122 and SPL202, were issued under the former Mining Act.

The multinational wants to resume exploration and production of gold in the Migori belt area covering 243 square kilometres.