SPEECH DELEVERED BY CABINET SECRETARY FOR MINING HON.

NAJIB BALALA AT THE ONGOING MINING SUMMIT FOR AFRICA - MINING ON TOP OF AFRICA SUMMIT IN LONDON I thank the Organisors for the Opportunity to speak at this August Gathering. I stand here as Cabinet Secretary of the Ministry of Mining of a duly elected Government. The Ministry of Mining is a newly created Ministry and speaks to the Importance that the Government is placing on this important Sector. If You will allow me, I would like to take this Opportunity to speak about the recent and peaceful Elections and the new Government and its strong Pro-Growth Agenda. The Elections passed peacefully and represented a Major De-Risking of Kenya. The Elections represented the Culmination of a Process of Reforms, which included the enactment of a New Constitution and a Supreme Court amongst other Reforms. A record 86% of Kenya's 14.3 million registered voters cast their ballots in the March 4th general elections, confirming a powerful Faith in the democratic Process. The New Government under the Leadership of President Uhuru Kenyatta and the Deputy President William Ruto and of which I am a Part are determined that as it said in our Manifesto Ours will be a Government capable of quickly delivering the vital changes. In the same Manifesto, We also announced that Our Country will be safe for our Children, The Youth, Elders and Investors. This is an important Statement. I can confirm that we hold Investors in the same Esteem as we hold our Citizens and that I as Mining Minister am here to say that Kenya welcomes Foreign Investors and that I will bring Policy Predictability and a Level Playing Field. The Government of Kenya is seeking to promote as broad a participation as possible. I believe

that Kenya is indeed fortunate that we are only leveraging our Natural Resources now in the Year 2013 and have the Opportunity to look back and pick the best Global Practices. The New Constitution has a clear Road Map as how Benefits are to be shared between the National Government, County governments and the Local Communities and informs our Thinking. I believe Kenya is at a Tipping Point and headed to a much faster GDP Trajectory. In fact the World Bank recently upgraded Kenya 2012 GDP to 5.7% from 5% previously. The EAC is the 2nd fastest growing Region in the World after ASEAN. The Oil and Gas Sector has been catching the Worlds Attention. The Mobile Money Phenomenon M-Pesa also is an Innovation in the Country. Kenya is the Transit State and the Route to the Sea for the EAC. We have made big strides in improving our Infrastructure and continue to invest in that Space. I as Mining Minister wish the Mining Sector to make a proper and material contribution to this Economic Revival and the Path to Prosperity outlined in our Jubilee Manifesto and Vision 2030 Until The Arrival of Base Titanium, the only mining Operation of global significance was the Magadi Soda Operation established in 1911 and now owned by Tata Chemicals. Other Developments in the Sector include The Mui Basin Coal Deposits and Rare Earth Elements around Mrima Hill in Kwale. African Barrick amongst others are exploring Known Gold Deposits in Western Kenya. As unexplored as East Africa was for Oil and Gas and the consequent Excitement around the Resource, I am confident that the Mining Sector will achieve a similar Outcome. In fact, I have a singular Determination to ignite Interest and Investment and to move with dispatch. As the Mining Minister, I am keen to confirm that The Government of Kenya is repealing the 35% Local Ownership Rule after the completion of the mining bill. I appreciate we are in a competitive World and that a

Vibrant Mining Sector will create Jobs and significant Revenues for the Government. We are here to crowd Investors in and not out. I feel this is an important statement of Fact and Intent and marks a New Departure. This Government is determined to deliver Prosperity for our People and believes that this can only be delivered via a Thriving Mining Sector and one where the Government whilst the Key Stakeholder, listens and is business Friendly. We recognize that Kenya is just embarking on the Journey to develop its mineral revenues and our First Priority is to attract foreign Capital and Expertise in order to spur growth and create a Pool of Benefits that will flow back to the Country and to its Citizens. Therefore, the Government has embarked on a Review of the Mining Act which was introduced in the 1940s and is clearly not optimized for the current times. My Ministry is currently consulting with All Stakeholders and we fully intend to have a modern and c21st Mining Act in place within 12 months. The Ministry fully intends to incorporate Good Governance, Transparency and equitable sharing of benefits into our Mining Road Map and we will incorporate the Extractive Industry Transparency Initiative. I fully intend that the Country achieves candidate country status in the Near Future and under my Watch. The New Constitution has a clear Road Map as how Benefits are to be shared between the National Government, County governments and the Local Communities and directly informs the Contours of our Thinking. We have already introduced important Reforms at the Nairobi Securities Exchange and created a New Marketplace called GEMS. This Segment is designed for Extractive Businesses [and also The IT Segment of our Economy] to raise Capital from the Institutions and Citizens of Kenya and the EAC so as to deepen our Capital markets and leverage the experience of the Securities Exchange.

It was Victor Hugo who famously said that It takes a Dream to create the Future. I have a Dream that Kenya will witness a Vibrant Mining Sector under my Watch as Minister. Kenya has a unique Hub Position in this Region and a Common Language that reaches as far as the Eastern DRC. I am keen to explore Opportunities around leveraging Kenyas Hub Position and creating a Mining Architecture that facilitates Beneficiation. The Nairobi Securities Exchange has an important Partnership with the London securities Exchange and the City of London; I hope that we can explore Opportunities to leverage Londons important Intermediary Role in the Metals and Minerals Space to bring a layer of Sophistication to the Kenya and regional Mining Economy. I will not take up anymore of Your Time and am grateful for the Audience You have given me. Under the New Government, we have embarked upon a Journey and I am here to confirm that My Ministry will be a Facilitator and will offer Certainty and Policy Predictability. This is a unique Opportunity and as The Minister I say Karibu Kenya.