Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
During the first Mining Forum ever held in Kenya, Mining Cabinet Secretary Dan Kazungu said his country will strive to have more organized mining sector.
Among the first steps the government will implement to work towards that goal is conducting a year-long airborne survey to map mineral deposits. With an initial funding of approximately $29.64 million, the objective of the study is to attract mining explorers particularly to the western part of the country where gold has been discovered.
“For example only 4% of gold reef has been explored leaving 96% potential, the proposed airborne survey on the potential of the minerals in Kenya is underway, we are expecting to get a contractor by December who will map out all areas throughout the country,” he told investors on the first day of the two-day forum that gathered over 200 people representing 40 mining companies from Africa and elsewhere.
Kazungu is trying to sell Kenya as a destination that offers companies and investors opportunities to tap into new green field projects. Thus, he is also promising to uphold the principles of accountability and transparency stipulated in the recently approved Mining Act. “Going forward new mining licenses will be made online, you do not have to come to our offices, we are expected to talk to investors 30 days after they make their applications,” he said at the conference in Nairobi.
According to Reuters, the East African nation has proven deposits of titanium, gold, and coal, and it may also have copper, niobium, manganese and rare earths.
Comments
MzunguMadman
I hope they are able to stop people like Deputy President William Rutu from stealing mines from foreign miners, after all the exploration has been done & reserves proven. Pacific Wildcat got burned in this exact manner.