Republic of Kenya

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

of Kimwarer area, Elgeyo Marakwet County in relation to Flourspar

mining.

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.

 Accordingly, and in order to clear these misunderstanding, we hereby below

reiterate the mandate and terms of reference for the Task Force on review
of various concerns by residents of Kimwarer area, Elgeyo Marakwet
County in relation to Fluorspar mining.

The mandate of the Task Force is to;

Conduct a comprehensive review of the license area under which Kenya
Fluorspar company operates,
Investigate claims by the locals on unfair treatment by the company,
Investigate circumstances under which compensation alleged funds were
diverted to other uses by past and present administrators and politicians,
Explore ways of compensating the residents for their deprived land,
Advice the government on alternative ways of sorting out the injustice and
To provide a written report of its findings to the Cabinet Secretary with clear
matrix on recommended actions and estimated costs.
The TERMS OF REFERENCE of the Task Force are;
To conduct desk research into circumstances that led to commencement of
mining operations in Kimwarer;
To conduct field research in the area with a view of establishing concerns by
locals in relation to fluorspar mining in the area
To establish the exact number of households and the extent to which owners
of land (9,070 Acres) where the operations were set were compensated for
their land;

 To establish the number of households that were directly affected by way of

deprivation of land by the commencement of mining and processing
operations;
To establish the economic and social benefits of the fluorspar operations vis
a vis the negative effects (if any) of the mining operations;
To establish the wishes of the people on the ground on how to resolve the
constant friction with the company operating in the area;
To recommend ways of correcting historical injustices meted on the people
(if any) pursuant to relevant laws on community and private ownership of
property;
To present a written report to the Cabinet Secretary for Mining within 90
days of this appointment with clear recommendations, matrix of timelines
and approximate cost for the recommended approach/approaches; And
Any other function as may be directed by the Cabinet Secretary in writing.

PUBLIC COMMUNICATIONS DIVISION

MINISTRY OF MINING