CS Balalablahblahblah Handover notes to new Mining MinisterThis is the section on Cortec in the handover notes, full notes can be found here but I copied the relevant parts
https://www.scribd.com/doc/297745948/Cs-Balala-s-Hand-Over-Notes-to-Mining-Cs-Dan-Kazungu
E.
OUTSTANDING ISSUES 1.
Base Titanium Royalty Negotiation
The Ministry entered into negotiations with base Titanium Limited in relation to increasing their royalty payments to government for their Kwale Mineral Sands project. The talks began in February 2014 and envisaged to be complete within one month. However, the same has remained outstanding. The Ministry had expected that a meeting scheduled for 14
th
December between the Companies Top management and Government representatives would have solved the issues.
2.
Cortec Mining ICSID Arbitration case
Then Commissioner of Mines and Geology issued Cortec Mining Kenya Limited (CMK) with a Special Mining Lease (SL) No. 351 on 7th March2013. Until then CMK was operating on a Special Prospecting Licence No. 256. The Cabinet Secretary for Mining suspended CMK SL On 5th August 2013 amongst 43 other after the Jubilee Government came into power and upon information that there were illegal issuance of licences during the transition to the new government. CMK went to court on 9th September 2013 seeking a Judicial Review of the
Cabinet Secretary’s decision of
suspension and revoking SL351 and order of prohibition against the Minister. During the case, the National Environment Management Authority (NEMA), BASU Mining Limited, Kenya Forest, Service (KFS), National Museum of Kenya (NMK), County Government of Kwale and three individuals Kenyans Enjoined themselves as interested parties to oppose the application by CMK. In March 2015, the court ruled in favour of the Ministry thus cementing the
Ministry’s
decision to withdraw
CMK’s Li
cence.
Later, Cortec moved to the Court of appeal and at the same time resulted to the International Centre for Settlement of Investment disputes relying on UK and Northern Island and Kenya Bilateral Investment Treaty. The Arbitration proceedings are ongoing with the republic of Kenya being represented by the firm of DLA Piper in collaboration with IKM Advocates, Kenya.