After 'Pack And Go', Kenya Govt Agrees To Set Up Panel To Resolve Mining Dispute With Tata Chemicals Ltd

 

 

New Delhi : Days after Kenyan President William Ruto ordered Tata Chemicals Limited to cease operations near Lake Magadi in southern Kenyan Rift Valley, about 120 kilometres southwest of Nairobi, his government has now agreed to set up a high-level technical committee to review the Indian conglomerate's compliance with mining rules, including demands for local value addition, royalty payments and community benefits.

Kenya's Mining Cabinet Secretary Hassan Ali Joho said on Tuesday that the government and Tata Chemicals Ltd have agreed to form a high-level technical committee to review outstanding compliance issues, including local value addition, royalty obligations, community benefits and land matters.

 

"Following the suspension of operations at Tata Chemicals Magadi Limited, today at my office, I led a fruitful engagement with the Company's executives regarding the compliance concerns we raised as a Ministry," Joho said in a letter on Tuesday.

 

"To facilitate a comprehensive and timely resolution of the outstanding matters, we agreed to establish a high-level technical committee. The committee will be led by the Principal Secretary for Mining on behalf of the Ministry and the Chief Executive Officer of Tata Chemicals Magadi Limited on behalf of the Company," the letter read.

As per Joho, the key matters to be addressed include mineral beneficiation and in-country value addition, outstanding community benefits and royalty obligations, unresolved land matters, opening up the area for multiple mineral extraction and outstanding matters with the Kajiado County Government. "As Government, we remain committed to constructive engagement with investors while firmly upholding Kenya's laws, regulations and the interests of its people. The objective is not only to resolve the outstanding compliance matters but also to establish a sustainable framework that promotes responsible mining, value addition, community development and mutually beneficial partnerships," he added.Earlier, it was reported that Kenya has withdrawn Tata Group's century-old concession to mine soda ash near Lake Magadi, following the dispute over local processing, royalties and the economic benefits of the company's operations.

 

The move came after President Ruto ordered Tata Chemicals Magadi Ltd. to leave Kenya, accusing the company of failing to create enough local economic value from the mineral resources extracted in Kajiado County.

According to a Bloomberg report, Ruto ordered the withdrawal of Tata Group's concession, arguing that Kenya is losing potential factories, jobs, technology and other opportunities by sending soda ash abroad for processing.

Lake Magadi, near the Tanzanian border, is home to Africa's largest source of trona, the mineral used to produce soda ash. Tata's chemicals unit has operated in the area for decades, but residents and local leaders are reportedly divided over whether the company should continue its operations.