A new mining law in Kenya is expected to drastically reduce the powers of the commissioner of mines and restrict ministerial authority in granting exclusive mining licences to investors.
The new law could mean more resource benefits for communities living in areas with minerals, fair tax payments to the government and more transparency in granting mining licences.
The Department of Mines and Geology at the Ministry of Environment and Natural Resources confirmed to the Business Daily that the new mining law was at an advanced stage and will soon be presented to the Cabinet.
The main law guiding mining activities in Kenya was fist enacted in 1940 by the colonialists and was last reviewed in 1987. It is expected to give security of tenure for mining licences and set up a tribunal for resolving mining disputes.
The proposed Mining Act will also set up a board to oversee its implementation. The implementation of the current Act is overseen by the Commissioner for Mines and Geology.
It means the commissioner will not have exclusive rights to grant mining licences as has been the case.
Under the envisaged mining law, a new mining licensing system is to be introduced to provide for among others, a simplified and harmonised licensing of mining operations and a considerably curtailed discretion on the part of the minister in charge of mining.
The new law also seeks to harmonise mining with the Environment Management and Co-ordination Act of 1999 and requires a restoration and rehabilitation of mined out areas and cushioning of local communities against adverse effects of mining.
The main minerals produced in Kenya are soda ash, fluorspar and salt. The country has gold which is mined by small holder miners and titanium deposits which are not yet to be commercially mined.
The new law comes at a time when non-governmental groups are concerned at lack of transparency in mining industry in Kenya and the rest of Africa.
Source: Business Daily, Nairobi
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