MINING REFINING

“The payment of royalties and taxes by the proponent will be converted to benefits to the community as these funds are filtered into social schemes and infrastructure within Kenya,” Shanta said.

“Furthermore, in compliance with the Mining (Community Development Agreement) Regulation, SGKL will be required to enter into a formal agreement with project-affected communities and share an additional one per cent of the value of gold produced. Similarly, capital and operating costs may benefit Kenyan businesses that supply goods and services required for the development and operation of the project” it added.

The Mining ministry has lowered the royalty charges for gold miners, hoping to attract bigger investments into the nascent industry.

New regulations by the ministry show that miners will now pay a three per cent royalty on gross value of extracted gold, down from five per cent previously. Gold mining has over the years largely featured artisanal and small-scale operations in a mainly informal process that involves risks such as the use of mercury, perilous working conditions, and child labour.

Kenya’s earnings from gold mining dipped to Sh3.17 billion last year down from Sh3.38 billion the previous year, according to the Economic Survey 2024.

The data shows that 410 kilogrammes of gold were realised during the period down from 563.6 kilogrammes in 2022.

Section 183 of the Mining Act, 2016 provides that any holder of a mineral right shall pay royalties to the State in respect of the various mineral classes won under the law. Revenues arising from mineral royalties would then be shared among the national government, beneficiary counties, and locals.

Source: https://nation.africa/