Nairobi — Mining Cabinet Secretary Hassan Joho has established a high-level technical committee to address outstanding compliance issues surrounding the suspended operations of Tata Chemicals Magadi Limited.
The committee was formed after Joho met executives of the soda ash manufacturer on Tuesday, a day after the Cabinet Secretary accused the company of failing to comply with government directives governing mining operations in Kenya.
The technical team will be led by Mining Principal Secretary Harry Kimtai on behalf of the government, while Tata Chemicals Magadi CEO Swaminathan Nagarajan will represent the company.
The committee will review the outstanding issues and submit its findings to Joho for consideration and further direction.
Committee to review Tata’s mining operations
Among the matters the committee will examine are mineral beneficiation and local value addition, outstanding community benefits and royalty obligations, unresolved land issues, opening up the area to multiple mineral extraction operators, and pending matters involving the Kajiado County Government.
The latest development comes after Joho said on Monday that the government had raised compliance concerns with Tata Chemicals in July, but the company opted to seek court intervention rather than address the issues raised.
“Suspension of Tata Chemicals was done in July this year. The initial notice came out in July, and instead of responding to the queries we sent regarding beneficiation, compliance and following the law, they went to court to request to be allowed to continue,” Joho said.
Joho raises concerns over community benefits
Joho has also accused Tata Chemicals of failing to meet its obligations to communities living around its Magadi operations.
He cited provisions of the 2016 Mining Act, which require the establishment of a community development agreement committee involving affected communities.
“According to the 2016 mining law, to start mining in any area, you must build a committee with the affected community, and this committee must get a minimum of 1% of gross income of the company in cash, and the committee is supposed to negotiate with the investor, which Tata has not done since 1928,” he said.
The Cabinet Secretary said the government wants Kenya to obtain greater economic benefits from its mineral resources through processing, value addition and increased participation by local communities.
“Our minerals are our wealth, and they are supposed to build our economy, industrialise our country, and benefit our local communities,” Joho said.
Government seeks more operators in Magadi
The government has also questioned Tata Chemicals’ continued dominance of mineral extraction around Lake Magadi, with Joho arguing that additional operators could be allowed to participate in exploiting the resource.
The committee’s findings are expected to guide the government’s next steps on the company’s operations, including compliance, community benefits, mineral processing and the broader management of mineral resources in the area.
