Balala unveils Task Force on review of Mining Licenses and Agreements

Cabinet Secretary Najib Balala has today Monday 12th August 2013 unveiled the task force that was appointed to review mining licenses and agreements issued by the Mines and geological department from 2003 to date. The task force that is headed by lawyer Mohammed Nyaoga is set to establish whether correct licensing procedures were adhered to while issuing companies with prospecting, exploration and mining licenses. Speaking during the exercise, Cabinet Secretary Najib Balala said there was no turning back in as far as streamlining the sector is concerned. Balala said he was ready to take on the hard decisions to unveil a sector that will benefit Kenyans. The task force is expected to among other things: i) Review all the agreements and licenses relating to prospecting, exploration and mining issued between January 2013 and May 2013 with a view of ascertaining their legality and establishing whether due procedure was followed in their issuance; Evaluate the status of all licenses issued between January 2003 and December 2012 with a view of determining whether they are dormant, operational or expired; Make recommendations on the basis of the findings on (i) and (ii) above to the Cabinet Secretary for Mining on the way forward with regard to any license(s) found to be operational, but where licensing procedures were not complied with, dormant or expired; Recommend measures for developing processes and institutional capacity to effectively comply with licensing procedures and Recommend to the Cabinet Secretary clear modalities and processes of licensing which will ensure transparency and spell out clear timelines.

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The members of the task force include 1. 2. 3. 4. 5. 6. 7. Mohammed Nyaoga- Chairman Carolyne Armstrong Ferhan Chaudhri Erastus Lokaale Elizabeth Cheptanui Rotich Hassan Hussein Nawaal M. Salim

The Cabinet Secretary further directed that the 43 companies whose licenses were suspended pending review should now refer their cases to the task force which commences its sittings immediately. Balala said the task force will begin reviewing licenses for the affected companies before handling all other licenses from 2003 . He assured the private sector that the government was working towards ensuring a level playing field where transparency, predictability and benefit to all was key. Mining Permanent Secretary Ambassador Dr.Titus Ekai said the Mining Ministry is committed to ensuring that mining becomes a viable sector for the country. Chairman of the task Force Mr. Nyaoga said the sector has many vested interests and assured the cabinet secretary that he will ensure that transparency and confidentiality prevails, as they strive to deliver on their mandate within the stipulated time. The Cabinet Secretary said the Mining Bill which is currently in Cabinet is geared towards assisting the sector in eradicating issues of lack of transparency, unpredictability of the sector and lack of benefits to the locals. Through the new law, we shall have a legal framework that protects companies, the government and the people of Kenya, I know we shall have challenges but we have to do the clean up said Balala ..