Mining & Extractives: “Mineral Wealth should benefit communities where minerals are mined”, says Kenya’s Deputy President William Ruto at the 2nd Mining Forum 2017.

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Kenya’s Deputy President William Ruto (C), Mining Cabinet Secretary Dan Kazungu (2nd left), Nigeria Minister of Mines & Steel Dev’t Fayemi Kayode (2nd Right), Mining Principal Secretary Dr. Ibrahim Mohamed (Right) and General Manager Base Titanium Joe Shwartz (left) at the Kenya Mining Forum 2017

 Tuesday, 5th December 2017, Nairobi, KenyaThe Kenyan government will over the next few years focus on ensuring its mineral wealth benefits the communities under a mineral royalty sharing scheme that will see ten percent of total revenue from mining going to communities where the minerals are extracted. By signing of community development agreements, mining firms will be required to play a role in social development and thus improving lives of Kenyans.

Speaking at the Kenya Mining Forum, Deputy President William Ruto said,“We have a very rich inheritance. It’s incumbent upon us to manage it well, if only because we will transform our lives, and our children’s lives, if we do so. That’s the opportunity before us. We can be a country whose natural riches are widely and fairly shared, with enough left for our posterity — and all while respecting our environment. If ever there was an opportunity that had to be seized, this is it. Let us take it.”

The Ministry of Mining has presented a proposal to the National Treasury for the establishment of the Mineral Royalty Fund to channel royalty payment using a revenue sharing formula that will see 70% of revenue go to the national government, 20% to the County government and 10% to the local communities.“Parliament has approved the community development regulation to ensure mining firms sign community development agreements in order for these communities to benefit from mineral wealth”, added Mining Cabinet Secretary Dan Kazungu

This was reiterated by Nigeria’s Mining Minister Dr. Fayemi Kayode who said, “Nigeria had learned from its experience in the oil and gas sector where the community was largely left out. With Mining we do not approve licenses if the company has not signed community agreements

With the Mineral Rights Board in place, the Ministry of Mining has now began the process of issuing mining licenses to investors and is working on having the nationwide airborne geophysical survey launched in March of 2018 following joint support from the national treasury and office of state law who have concluded engagement with China’s Exim bank and chinese contractor GETI. Mining Cabinet Secretary said the project will increase provision of geo data to investors thereby increasing revenue generation for the country through further exploration and minining of minerals.

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Mining Cabinet Secretary, Dan Kazungu making a presentation on Mineral investment in Kenya at the Kenya Mining Forum 2017

Nigeria having been in the Mining Sector longer than Kenya Dr. Fayemi Kayode, Nigeria’s Minister of Mining and Steel Development extoled the need to support local mining investors as this would lead to increased job creation and improved livelihoods for all. He said, “Nigeria used to be a net importer of cement for a longtime. As of 2016, Nigeria is self sufficient. This has been done by setting up local processing plants”

Going forward the Ministry of Mining plans to zero rate mineral imports at points of entry especially for precious metals and gemstones and establish mineral processing in special economic zones for value addition while encouraging the set up of mineral trading companies to ttake advantage of the abundant, predictable supply of minerals.

The two day Mining Forum held from 4th to 5th December 2017 at Safari Park Hotel based on the theme,“Harambee: Establishing a world class mining hub in East Africa”, attracted over 600 delegates from more than 16 countries around the world. Kenya Will host the next Mining Forum in November of 2018.

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2 thoughts on “Mining & Extractives: “Mineral Wealth should benefit communities where minerals are mined”, says Kenya’s Deputy President William Ruto at the 2nd Mining Forum 2017.

  1. Great read Doreen Learning a lot about Africa’s mining vision.Though Ruto or this government is not one that can be trusted as far as local communities are concerned.

    I learned a lot from Turkana and how so much politics is playing part in revenue sharing. I am also reading Ken Saro Wiwa’s A Month and A day where he writes about his struggle for the Ogoni people and the MOSOP.10% is too little to give back to local communities who have to give up their livelihood,their land and ecological disasters.

    Regards Dorcas

    This is definitely one to keep following up on.

    Liked by 1 person

  2. Investor protection and assurance of a stable environment to operate in will come from having this law and the mineral boards in place. Communities should also be educated on realistic expectations about mining so they don’t believe that a desert will become Dubai overnight.

    Liked by 1 person

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