It is fair to say that until recently Kenya was not generally renowned for being a destination for mining investment. However now, with the world’s eyes focused firmly on Africa as an epicentre for mining activities, Kenya is emerging as a location of particular interest in the wake of developments that have proven that the country does indeed hold significant mineral-based potential.
With the industry taking on ever greater significance and the country receiving more and more interest from international investors, the creation of a dedicated Chamber of Mines became a necessity. “The Kenya Chamber of Mines (KCM) was established in the year 2000,” explains Chief Executive Officer, Monica Gichuhi, “with its key mandate being to act as a representative for the private sector companies operating in Kenya’s mining sector.”
At first KCM existed mainly as a lobbying body, pushing for more favourable working conditions for miners and private stakeholders. However, in line with the growth in prominence of the sector, the Chamber’s role has continued to evolve to take on a number of core roles including the marketing of the industry locally and internationally to promote investment opportunities, drive awareness of the industry amongst local communities and be a source of information for its members.
“Over time,” Ms Gichuhi continues, “we began opening up our membership to any and all service providers that wanted to become involved with mining. This has led to a situation where today we have gone from having a membership portfolio that was once home to exploration companies and mine operators, to one that caters for those in the legal, financial, consultation and equipment supply fields. This in turn has helped bring added value to the aforementioned explorers and operators, as well as any foreign owned entities looking to enter the marketplace, as they now have direct access to a list of all manner of service providers that can cater for their needs.”
Proof of the rapid development of the mining sector in Kenya can be seen throughout the country, from the major breakthroughs being made at the Kwale Mineral Sands Project to the purchasing of licences by the likes of Barrick Gold in the last year, an event which marked the entry of one of the best known global players into the country. Such events have also resulted in an influx of junior miners coming into Kenya seeking their own opportunities.
These developments have clearly not gone unnoticed and have helped lead to the Kenyan government establishing a dedicated Ministry of Mining for the first time in its history. “In the past mining had always been banded together in government with other natural resources or as part of environmental discussions,” Ms Gichuhi states. “It is of huge significance therefore that it now has its own docket within government, something which very clearly highlights the confidence it has in the positive benefits the industry can bring to Kenya in the future.”
What is happening within government does not mean however that the role of KCM has diminished in any way. In fact it is perhaps more important now than ever before that the Chamber maintains the pressure it places on the powers that be to ensure that the proper legislation and regulations are in place to properly support the growth of mining and attract investment.
In addition to its lobbying for the legislation reform process to be speeded up and for the introduction of better tax conditions for the industry, a topic that is high on the Chamber’s agenda at present is the gathering of comprehensive geological data for the whole of Kenya, an act that will prove invaluable when it comes to attracting investors to take up licencing opportunities. “As of today we are still waiting to conduct a full airborne survey that will map out the country’s resources,” Ms Gichuhi says. “This is something that we want carried out as soon as possible and we continue to push hard for it to take place. In truth I believe the government is now starting to realise, thanks to the ever-growing amount of licence applications it is receiving, the importance of such an undertaking, but we will continue to lobby for it until it happens.”
It would be remiss to not also consider the reaction to the increase in mining activities and operations from Kenyans themselves, particularly local communities around which said operations are beginning to take shape. As KCM is well aware such events can open the door to misinformation of the positives and negatives of the development of the industry spreading amongst local people, therefore it is one of the Chamber’s key tasks to act as an accurate source of information and advice.
Of course the buck doesn’t stop there with the Chamber. It also falls upon the mining companies themselves to build and maintain a positive image for the sector. Where the Chamber does play a role in this is by constantly promoting the concepts of responsible, ethical and sustainable operations.
“First and foremost,” Ms Gichuhi says, “anyone wanting to become a member of KCM must be in full compliance with the laws and regulations that govern the environment. Further to that, part of our own strategic objective has been to develop a code of ethics for our membership which will see them ensuring their full compliance with issues surrounding environmental protection, community relations and corporate social responsibility initiatives.”
When asked to look ahead to what the future holds for KCM, and the mining sector in Kenya as a whole, one of the first things on Ms Gichuhi’s agenda is the third annual Mining Business and Investment (MBI) Conference taking place in October at the Safari Park Hotel in Nairobi. “The MBI Conference is one of the significant events on our calendar,” she enthuses. “It is here that we draw in a whole host of current and future investors, all of whom are keen to get a better understanding of mining in Kenya, what opportunities exist here, the challenges that we are working to overcome and what the government’s position is when it comes to supporting the industry, all of which makes for a hugely important event for all parties involved.”
Kenya is undoubtedly one of the foremost reasons why Eastern Africa is now regarded as a new frontier for mining in the developing world. With the country’s relatively unexplored land playing host to a wealth of mineral based opportunities there is unlikely to be any slowdown in the near future when it comes to investors seeking out new projects for exploration and development.
With that in mind Ms Gichuhi is keen to emphasise that there are long-term plans for the KCM to evolve and grow alongside the mining sector so as to continue fulfilling its mandate and obligations. “As well as positioning ours for the expected growth in membership that the Chamber will receive going forward, we are also planning for the possibility of one day becoming part of an integrated Chamber of Mines and Energy. The bringing together of these two separate entities would bring Kenya in line with international standards and will help give both fields a larger platform for dialogue and one collective voice to represent the hugely important extractive industries in the country.”
Written by Will Daynes, research by David Brogan
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