Kenyan Fluorspar Company Looking To Reopen

Kenya’s Fluorspar Mining Company looks set to re-open in June when the price of fluorspar in the world market is expected to have improved.

Managing director, Mr Nico Spangenberg, said the firm is still monitoring emerging market trends but he expressed optimism that prices for fluorspar will have improved sufficiently for the factory to get back on its feet.

Mr Spangenberg revealed that prices of fluorspar in the world markets had considerably increased from about $170 per tonne to between $230 and 250 dollars per tonne though prices are still low compared to the $450 dollars per tonne during the year before the recession.

Fluorspar prices dropped by 65 per cent between November and December 2008 prompting closure of the factory, as it became no longer profitable to operate.
“The bad business storm started hitting us in November 2008 and eventually ground our operations to a halt. Many people have felt the effect of the company’s closure as circulation of money in the area has been severely affected,” Mr Spangenberg said.
India and Western Europe are the company’s main markets for the commodity although it is looking elsewhere to sell its product.

When the firm wound up operations last March 180 employees and an additional 230 contracted workers were rendered jobless, Mr Spangenberg said, adding that 210 employees were still at the factory and will be pivotal when it finally starts operations.