State eyes gold revenue with Kakamega refinery

Gold miners at work in Rosterman, Kakamega. FILE PHOTO | NMG

Kakamega County looks set to host a gold refinery plant as the State intensifies efforts to boost revenues from minerals.

On Friday, Petroleum and Mining ministry announced it was looking for consultants for a feasibility study that will pave the way for a gold refinery to be established in Kakamega.

The ministry said the refinery would provide services to vulnerable artisanal and small-scale miners and other local gold producers so that they can benefit more from the mineral.

“The aim of the project is to improve the livelihoods of the beneficiary community, regional economy and that of Kenya as a whole and creation of direct and indirect jobs for wealth creation through refining of gold to international standards,” said the ministry.

If completed, the refinery will help eliminate the black market through which miners sell their gold at lower prices to middlemen, condemning locals to a vicious circle of thin margins.

Consultants who will win the tender are expected to review the information about the location of mineral, the level of production, kind of trade and use of gold in the region.

They will then be expected to analyse production potential as well as the commercial, economic and social viability of the expected refinery. Potential consultants have until November 8 to show interest. Successful consultant will be given 90 days to finish the study and deliver the report.

The government also wants to establish a granite processing plant in Vihiga as well as soapstone value-addition centre in Kisii. Both tenders have also been advertised.

During the second quarter, mining and quarrying contributed 13.29 billion to the gross domestic product, being the lowest performance since the fourth quarter of 2015, according to official data.

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