“The
international bid to be placed is part of the value addition resolution that we
have made. We want to make the Western region a centre of excellence for gold
refineries, benefiting neighbouring counties like Vihiga, Siaya,” said Mr
Mvurya.
The plant is
expected to receive gold from across the country, purify, grade and brand the
commodity before it is exported, boosting earnings to the miners.
The CS said an
attempt by the government to identify an investor flopped in 2021after the
ministry was advised that the process did not meet the threshold prescribed
under Section 121 of the Public Procurement and Disposal Act, 2015.
The county
government subsequently signed a memorandum of understanding with a private
firm, Ms Huno Kenya Company Limited, in July last year but it later emerged
that the company lacked a valid contract.
The ministry,
he nevertheless pointed out, has started consultation with the county
government regarding a new partnership with the private investor.
“Upon conclusion of these consultations, the project will take off,”
he said. According to government data, Kakamega County has at least 1.31
million ounces of gold deposits along the Lirhanda corridor valued at Sh171
billion.
The corridor
stretches from Shinyalu to Ikolomani, with part of it being in neighbouring
Vihiga County.
An exploration
firm, Shanta Gold, identified deposits at seven different intersections in the
county in 2021, putting the gold deposits at 1.31 million ounces valued at
Sh164 billion and expects the mining period to last approximately 10 years.
In 2015, Acacia
Mining Company, which was also exploring the mineral in the Lihranda corridor,
announced the discovery of 1.31 million ounces at 12.1 grammes per tonne.
News that the
government is seeking an investor to put up a refinery has elated Kakamega
Senator Boni Khalwale.
“Could the
cabinet secretary confirm that this bid will also involve an attempt to bring
in an investor to carry out gold mining?” posed the Senate Majority Whip.
Mr Mvurya said
the government is working to ensure there is an organised gold mining and
refining in Kakamega County and across the country as the lack of a refinery
has led to mushrooming of unregulated operations that are exploiting artisanal
miners.
“Right now, we
have companies that have been prospecting and some of them will graduate into
mining licences very soon,” he said.
All gold mining activities in the county are carried out by artisanal
miners who operate informally as they have not been issued with permits under
Section 95 of the Mining Act, 2016.
This is because
of the moratorium that had been imposed in December 2019 against issuance of
licences and permits.
All other
operators hold prospecting licences. A few have applied for licences over the
past few years, but these have not been processed due to the prevailing
moratorium on issuance of mineral rights.
However, the CS
said his ministry has put in place measures to start granting artisanal miners
permits upon lifting of the moratorium.
These measures
include the gazettement of the Kakamega County Artisanal Mining Committee in
accordance with Section 94 of the Mining Act, 2016. The committee is comprised
of members of the local artisanal mining association.
Source:
https://nation.africa/