Mining company signs cooperation agreement with communities – Kenya News Agency
Australian mining company “Base Titanium”, based in Kwale, signs its first-ever mining contract with local communities in Kwale and Mombasa counties.
The two coastal counties made history after the signing of Community Development Agreements (CDA) in connection with the new mining law of 2016.
The signed agreement will see the mining company offer programs to support the development of local communities.
CDA will see local communities receive funding from the mining company for development projects tailored to their needs.
The partnership agreement was an ongoing consultative discussion in an effort to safeguard the sustainable development and growth of local communities.
Among other things, the new law introduces the sharing of mining royalties between the national government, county governments and communities.
The law states that the royalties are shared between national and county governments and communities on a percentage of 70-20-10 respectively.
The signed agreement will see approximately 250 million shillings shared annually between the CDAs of the two deconcentrated units.
The signing agreement held at the Jacaranda Beach Hotel in Diani, County Kwale was attended by Cabinet Secretary (CS) for Mining and Petroleum John Munyes and General Manager of Base Titanium for External Affairs, Simon Wall.
Munyes noted that ADC will present a phased approach to address endemic challenges in local communities facing resource extraction.
âWe have marked an important step in the operationalization of the 2016 mining law and hope that it will promote a constructive dialogue between the mining company and the local communities,â he said.
He called the agreement between the mining company and host communities an âexceptional precedentâ that would be replicated elsewhere in the country.
In the landmark deal, the company simply known as “Base,” which conducts large-scale mining activities in the Msambweni sub-county of Kwale, is required to turn over one percent of its total revenues from the exploitation of minerals.
The deal will essentially see the mining company cede one percent of the gross revenue which will go to development projects in Msambweni which is the main mining area, Lunga Lunga where people affected by mining activities have been resettled and Mombasa which serves as the end point of the ore transport corridor and storage facility prior to export.
âThis signing of these agreements is an important step that will ensure equitable distribution through large-scale mining activities in the region,â said Munyes.
He said the new mining laws will attract long-term investment and ensure that host communities derive more economic benefits from the mining sector.
Munyes thanked the mining company and the host community for their cordial relations, noting that the government is committed to streamlining the lucrative mining sector to unlock mining potential through the promotion of the 2016 Mining Act.
He said the government is committed to diversifying the country’s economy with the mining industry as one of the focus areas as Kenya’s next economic frontier.
“We are aware of the fact that mining is a major contributor to employment and economic development of the country and that is why we want to promote Kenya as a favorable destination for mining investments,” he said. he declares.
Munyes said operationalizing CDAs will help identify impactful community projects that should be funded by the mining company.
He said community engagement was vital in anchoring the culture of dialogue, which is important to avoid unnecessary conflicts associated with mining companies.
The deal will essentially see the mining company cede one percent of the gross revenue which will go to development projects in Msambweni which is the main mining area, Lunga Lunga where people affected by mining activities have been resettled and Mombasa which serves as an end point. of the mineral transport corridor before export.
Base Titanium Community Relations Manager Pius Kassim said the road to achieving CDAs has been long and multiple stakeholders have been involved.
He said the CDAs will leave a rich legacy of positive socio-economic development results resulting from responsible mining practices of Base Titanium.
“This is in accordance with the 2016 Mining Law and the 2017 Regulation of the Community Development Agreement which prescribes the payment to the host community of the benefits of mining operations when a mandatory amount guaranteed by the license holder goes to support community development projects, âKassim said.
He said the Kwale mines project is based on a 13-year mine life and includes a high-grade ore deposit with high-value mineral assemblage like rutile, ilmenite and zircon.
Mshenga Ruga, who also chairs the Msambweni CDAs, said they were excited about the prospects of setting up such committees to guide the development of projects in which residents have more say.
He said CDA offers the potential to inform, initiate and resolve disputes with large-scale miners at the local level and gain benefits from mining activities.
âWe hope that our plea for more funding will be accepted once this new agreement has been adopted to accelerate development in areas bordering mine sites,â Ruga said.
MPs Mishi Mboko (Likoni), Kassim Tandaza (Matuga) and Feisal Bader (Msambweni) were present.
MEPs said they hoped projects aimed at empowering women, youth and people with disabilities would be given priority.
By Hussein Abdullahi