Published on 13/09/2010
By Anderson Ojwang and John Njiraini
Kenya is set to join the league of gold producing countries following confirmation that recently discovered gold deposits in parts of Migori and Narok counties are commercially viable.
According to the Government geologist in charge of Nyanza, Mr John Waita, the gold deposits can support large-scale mining for up to15 years. He revealed that companies prospecting for the mineral in the counties are in the "preparation phase" for extracting the gold.
The search for gold has been painstaking as these two men in Kakamega can attest to. Photo: File/Standard
Waita said the deposits have been found in Rongo and Nyatike, which are both in Migori County and Lolgorian in Trans Mara district, Narok County bordering Northern Tanzania.
"We are confident of gold availability in the areas and what we will need is support from the communities. We have done our exploration and have our facts right about the availability of the mineral," he told The Standard.
In Rongo and Nyatike, the prospects of viable deposits of gold were established after companies involved completed exploration.
"Because of the presence of gold in the said areas after the survey, the companies have moved to the next stage. In some areas when they know the quantity is small, they carry their luggage and move away. That is not happening here," he emphasised.
Huge impact
A senior official working with one of the mining companies prospecting in the region was guarded in his response to confirm the reports.
"There are gold occurrences in Rongo. We know if we are successful and able to start production, it will have a massive impact on the economy of the country," he said.
The official who works for Abba Mining, and asked not to be named due to the sensitive nature of the data, said studies were ongoing, and added: "If neighboring countries, Uganda and Tanzania have high potential of gold and are mining what about Kenya. We know there are some deposits but we are collecting the data to determine the quantity."
The official said massive investments in gold exploration were an indication of the interest generated by the presence of the mineral.
"Kenya has the potential of gold, but the problem is that there are no maps to show the geophysical location of the minerals, and that is what we are doing currently," he said.
Abba Mining is involved in gold processing in Botswana, Namibia and Mozambique. Other firms prospecting for gold in Homa Bay, Migori and Narok counties are
Kilimapesa, Afri-All and Mid-Migori. Mid Migori has operated for the last 10 years, and last year, London Based Mineral exploration firm Red Rock Resources Plc sought a 60 per cent stake in it, and signed an agreement with Kansai Mining that owns Mid-Migori. It paid $25,000 (about Sh2million) as a non-refundable cash deposit.
Afri-All Company has been exploring in Siaya, Bondo and Kakamega in a joint venture with an Australian mining Company. In Rongo, Abba miners have been conducting explorations while in Nyatike, Migori Mint have been on the ground at Macalder.
Waita said the regions are part of a vast gold belt known as the Archean Greenstone Belt, which is one of the earths oldest crust dating 3.7 million years. Its geological features are similar to the Gold Reef in Johannesburg, South Africa, and others in Western Australia and Northern Canada that are known to have gold and other minerals.
Waitas statement was confirmed by the acting Commissioner of Mines and Geology, Mr Moses Masibo.
He told The Standard: "I can confirm the company has identified economically viable quantities of gold in Lolgorian capable of supporting a medium scale goldmine."
A British company that has over the past three years been prospecting for commercially viable gold in Lolgorian area of Trans Mara recently discovered gold deposits that could earn the country Sh400 million annually.
Masibo added the discovered gold is of high quality, because it will not require extensive processing.
Lolgorian is part of the extensive Greenstone Belt of the Lake Victoria that stretches into the Mara in Tanzania, and is believed to have rich gold deposits.
The company, which is operating in Kenya as Goldplat Kilimapesa Project, is conducting more tests and is yet to finalise regulatory issues with the Government with a view to obtaining a mining licence. The Standard has established the deposits are between 40,000 ounces (oz) and 60,000 ounces. An ounce is the unit of measuring gold with one ounce equaling 28.34 grammes (0.02835kg).
This means the deposits can support mining of 4,000 ounces per year, with a lifespan of between 10 to 15 years. Going by the current price of gold in the international market where one ounce is trading at $1,246 (Sh100, 926 under current exchange rates), the project could earn the country Sh400 million annually or Sh32 billion in 15 years.
The amount, say industry experts, is a boom considering small time miners in various parts of Western Kenya according to industry estimates, produce a mere Sh15 million annually, although much of is sold to middlemen at prices well below those in the international market.
In Tanzania, where the gold mining industry is well established, the country produces between 100,000 and 300,000 ounces per annum.
Waita said exploration in Rongo began in May this year, and that the technical teams are moving fast and will start production once they have ascertained the quantity. In May this year, during the long rains, small-scale miners in Nyatike harvested gold worth Sh15 million in just two weeks, said Waita, indicating a high presence of the mineral.
"Small scale miners have been reaping millions of shillings from gold mining in the three districts, an indication of its presence," he said.
"The discovery in Kenya is small scale but economically viable. It will significantly transform the economy of the area," said Cedric Simonet, the chairman of the Kenya Chamber of Mines (KCM).
Simonet, who is also the Managing Director of International Gold Exploration (IGE) and at one point was involved with the Kilimapesa project, added the project will employ 100 people directly and many more indirectly once it gets going.
Until September last year, the Kilimapesa project was in partnership with Goldplat and IGE, but the company assumed full ownership after acquiring IGEs stake at a cost of Sh203 million. Though Goldplat Kilimapesa already has the consent of the local community to commence mining, it cannot embark on the project before obtaining a mining lease from the Government, and carrying out a land survey of the area.
A mining lease, which lasts for about 20 years, ensures the company can recoup its investments. Ironically, due to lack of a modern mining law and a clear mining policy, talks between the company and the Government on how to charge loyalty seems to be dragging the issuance of the mining lease.
"The country needs a clear mechanism for charging loyalty, which should be higher for scarce minerals," said Moses Ikiara, the executive director of Kenya Institute of Public Policy and Research Analysis (KIPPRA).
Mining Bill
The current Mining Act, which dates back to the 1940s, has been termed as major block in the development of the mining industry.
However, efforts are ongoing to present a new Mining Bill in Parliament, while the process of developing a mining policy is in high gears.
In Migori County, Macalder has been coded as the target area. Others are Kamwango in Rongo and Lolgorian in Trans Mara.
Western Provincial Deputy Geologist Paul Mwadime also said there were high hopes for gold in the area.
"Mining exploration for gold in the area started during the colonial days, but the investigation has not been intense as now," said Mr Mwadime.
Additional reporting by Renson Mnyamwezi
The Standard | Online Edition :: Kenya strikes gold
By Anderson Ojwang and John Njiraini
Kenya is set to join the league of gold producing countries following confirmation that recently discovered gold deposits in parts of Migori and Narok counties are commercially viable.
According to the Government geologist in charge of Nyanza, Mr John Waita, the gold deposits can support large-scale mining for up to15 years. He revealed that companies prospecting for the mineral in the counties are in the "preparation phase" for extracting the gold.
The search for gold has been painstaking as these two men in Kakamega can attest to. Photo: File/Standard
Waita said the deposits have been found in Rongo and Nyatike, which are both in Migori County and Lolgorian in Trans Mara district, Narok County bordering Northern Tanzania.
"We are confident of gold availability in the areas and what we will need is support from the communities. We have done our exploration and have our facts right about the availability of the mineral," he told The Standard.
In Rongo and Nyatike, the prospects of viable deposits of gold were established after companies involved completed exploration.
"Because of the presence of gold in the said areas after the survey, the companies have moved to the next stage. In some areas when they know the quantity is small, they carry their luggage and move away. That is not happening here," he emphasised.
Huge impact
A senior official working with one of the mining companies prospecting in the region was guarded in his response to confirm the reports.
"There are gold occurrences in Rongo. We know if we are successful and able to start production, it will have a massive impact on the economy of the country," he said.
The official who works for Abba Mining, and asked not to be named due to the sensitive nature of the data, said studies were ongoing, and added: "If neighboring countries, Uganda and Tanzania have high potential of gold and are mining what about Kenya. We know there are some deposits but we are collecting the data to determine the quantity."
The official said massive investments in gold exploration were an indication of the interest generated by the presence of the mineral.
"Kenya has the potential of gold, but the problem is that there are no maps to show the geophysical location of the minerals, and that is what we are doing currently," he said.
Abba Mining is involved in gold processing in Botswana, Namibia and Mozambique. Other firms prospecting for gold in Homa Bay, Migori and Narok counties are
Kilimapesa, Afri-All and Mid-Migori. Mid Migori has operated for the last 10 years, and last year, London Based Mineral exploration firm Red Rock Resources Plc sought a 60 per cent stake in it, and signed an agreement with Kansai Mining that owns Mid-Migori. It paid $25,000 (about Sh2million) as a non-refundable cash deposit.
Afri-All Company has been exploring in Siaya, Bondo and Kakamega in a joint venture with an Australian mining Company. In Rongo, Abba miners have been conducting explorations while in Nyatike, Migori Mint have been on the ground at Macalder.
Waita said the regions are part of a vast gold belt known as the Archean Greenstone Belt, which is one of the earths oldest crust dating 3.7 million years. Its geological features are similar to the Gold Reef in Johannesburg, South Africa, and others in Western Australia and Northern Canada that are known to have gold and other minerals.
Waitas statement was confirmed by the acting Commissioner of Mines and Geology, Mr Moses Masibo.
He told The Standard: "I can confirm the company has identified economically viable quantities of gold in Lolgorian capable of supporting a medium scale goldmine."
A British company that has over the past three years been prospecting for commercially viable gold in Lolgorian area of Trans Mara recently discovered gold deposits that could earn the country Sh400 million annually.
Masibo added the discovered gold is of high quality, because it will not require extensive processing.
Lolgorian is part of the extensive Greenstone Belt of the Lake Victoria that stretches into the Mara in Tanzania, and is believed to have rich gold deposits.
The company, which is operating in Kenya as Goldplat Kilimapesa Project, is conducting more tests and is yet to finalise regulatory issues with the Government with a view to obtaining a mining licence. The Standard has established the deposits are between 40,000 ounces (oz) and 60,000 ounces. An ounce is the unit of measuring gold with one ounce equaling 28.34 grammes (0.02835kg).
This means the deposits can support mining of 4,000 ounces per year, with a lifespan of between 10 to 15 years. Going by the current price of gold in the international market where one ounce is trading at $1,246 (Sh100, 926 under current exchange rates), the project could earn the country Sh400 million annually or Sh32 billion in 15 years.
The amount, say industry experts, is a boom considering small time miners in various parts of Western Kenya according to industry estimates, produce a mere Sh15 million annually, although much of is sold to middlemen at prices well below those in the international market.
In Tanzania, where the gold mining industry is well established, the country produces between 100,000 and 300,000 ounces per annum.
Waita said exploration in Rongo began in May this year, and that the technical teams are moving fast and will start production once they have ascertained the quantity. In May this year, during the long rains, small-scale miners in Nyatike harvested gold worth Sh15 million in just two weeks, said Waita, indicating a high presence of the mineral.
"Small scale miners have been reaping millions of shillings from gold mining in the three districts, an indication of its presence," he said.
"The discovery in Kenya is small scale but economically viable. It will significantly transform the economy of the area," said Cedric Simonet, the chairman of the Kenya Chamber of Mines (KCM).
Simonet, who is also the Managing Director of International Gold Exploration (IGE) and at one point was involved with the Kilimapesa project, added the project will employ 100 people directly and many more indirectly once it gets going.
Until September last year, the Kilimapesa project was in partnership with Goldplat and IGE, but the company assumed full ownership after acquiring IGEs stake at a cost of Sh203 million. Though Goldplat Kilimapesa already has the consent of the local community to commence mining, it cannot embark on the project before obtaining a mining lease from the Government, and carrying out a land survey of the area.
A mining lease, which lasts for about 20 years, ensures the company can recoup its investments. Ironically, due to lack of a modern mining law and a clear mining policy, talks between the company and the Government on how to charge loyalty seems to be dragging the issuance of the mining lease.
"The country needs a clear mechanism for charging loyalty, which should be higher for scarce minerals," said Moses Ikiara, the executive director of Kenya Institute of Public Policy and Research Analysis (KIPPRA).
Mining Bill
The current Mining Act, which dates back to the 1940s, has been termed as major block in the development of the mining industry.
However, efforts are ongoing to present a new Mining Bill in Parliament, while the process of developing a mining policy is in high gears.
In Migori County, Macalder has been coded as the target area. Others are Kamwango in Rongo and Lolgorian in Trans Mara.
Western Provincial Deputy Geologist Paul Mwadime also said there were high hopes for gold in the area.
"Mining exploration for gold in the area started during the colonial days, but the investigation has not been intense as now," said Mr Mwadime.
Additional reporting by Renson Mnyamwezi
The Standard | Online Edition :: Kenya strikes gold
