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Ministry of Mining
RIGHT OF REPLY
Our attention has been drawn to an article appearing in todays Standard
Newspaper page 30 in the Today in Business column under the Headline CS
orders staff audit at Australian firm as fluorspar miner is investigated.
First of all, we wish to state that this heading, alleging that the Cabinet Secretary
for mining has ordered a staff audit at Australian firm and that he has also
ordered fluorspar miner be investigated , not only incorrect, but it is also
misleading and grossly in error. The article further mixed up different issues
erroneously, and in a manner as to create misleading impression on the purpose for
which the Mining Cabinet Secretary appointed a Task Force and launched
yesterday.
The article has also erroneously stated that the Task Force was commissioned to
investigate the activities of the fluorspar firm Elgeyo Marakwet County.
Further, the article has also falsely indicated that, the Government is accusing
fluorspar of dodging (payment) of royalties.
The writer further pre-empts the recommendations of the Taskforce by saying that
the Government would take action including punitive measures after the 90days
period.
The facts of the matter are as follows;
The Cabinet Secretary for Mining Hon. Najib Balala yesterday appointed
and launched the Task Force on review of various concerns by residents
The main objective of the Task force is to ensure that mining activities benefit
the people of Kenya, even as investors make profit.
Cabinet Secretary has NOT ORDERED a staff audit at Australian firm. The
CS is however concerned that the value of mining activities to Kenyans
should be more than employment, but includes local content as well as value
addition. The issue of benefits for Kenyans from the Mining activities is of
major concern to the Government.
The Cabinet Secretary has NOT ORDERED fluorspar mining to be
investigated . The Fact is that the CS appointed a Task force specifically in
response complaints by the community, and the objective of the Task force is
to ensure good relations are restored between the Fluorspar mining firm and
the local community, and to bring harmony between the local community
and the firm.
The Government also did not accuse fluorspar of dodging royalties. The
issue of payment of royalties, and specifically the low amount of royalties
that the Government is getting, is a sector wide concern and not limited to
one firm. The Government has already engaged all concerned firms on this
issue and we expect it to be resolved once the Mining Bill becomes law. All
stakeholders have been consulted in this process of the law-making.
The Ministry is concerned by allegations that it would take punitive
measures once the Task force completes its work. We wish to state that this
is erroneous because the very fact of the creation of this taskforce is to
ensure facts come out. The recommendations for any action is to come from
the report of the task force and no the Ministry.