Kenya raises mineral royalties, revokes new mining licenses
Kenya raises mineral royalties, revokes new mining licenses
* Licenses issued Jan-May 2013 cancelled
* Steps follow sector-wide review
* Minister says Kenya must benefit from mineral potential
NAIROBI, Aug 5 (Reuters) - Kenya has raised the royalties levied on minerals mined in the east African country and revoked all prospecting and mining licenses issued during the first five months of this year following a sector-wide review, it said on Monday.
Mining Secretary Najib Balala said the cancellation of permits came after complaints regarding the issuance process. He promised earlier this year to review laws regulating the sector in a country with proven deposits of titanium, gold and coal.
"We want to ensure the country gains from the mineral potential," Balala told a news conference.
Royalties on gold, of which Kenya is a relatively small producer, would increase to 5 percent of gross sales value from 2.5-3 percent. For rare earth, niobium and titanium ores, royalties would rise to 10 percent of gross sales value for from 3 percent previously, Balala said.
The region's largest economy has more than 300 local and foreign firms prospecting for minerals or producing on a small scale, up from less than 30 two years ago, Kenya's Chamber of Mines says.
Among the companies prospecting in Kenya is Cortec Mining Kenya, a subsidiary of Canada-based minerals and metals firm Pacific Wildcat Resources, which is scouring along the coastal region for Niobium reserves.
Other companies operating in the country include Australia's Base Resources, with a titanium mine also in the country's coastal region that will be Kenya's biggest mine when it starts production before the end of this year.
Nice to know Anaconda is in Canada (Newfoundland). In two years local and Foreign prospecting firms have increased 10 times in Kenya. Seems to me that the world is being explored at an accelerated pace without rules and regulations in the under developed countries. The price of gold and other precious minerals have dropped dramatically to a point where this accelerated pace most certainly slows down and in some cases stop completely. Firms that are in an exploratory mode solely and Not producing most likely will not survive this current environment. It just seems to me that there is a correction taking place worldwide where the "Strong will survive, and the Weak will Die", Luckily for us Anaconda is in a strong position with NO DEBT and a friendly environment.
GLTA!!! Cheers!!!!