Mining Cabinet Secretary Hassan Joho has formed a technical committee to address outstanding compliance issues involving Tata Chemicals Magadi Limited.
The move follows a meeting between Joho and senior Tata Chemicals executives on Tuesday.
Joho had accused the company of failing to comply with government requirements governing mining operations in Kenya.
Committee to review Tata Chemicals compliance
Mining Principal Secretary Harry Kimtai will lead the committee on behalf of the government.
Tata Chemicals Magadi CEO Swaminathan Nagarajan will represent the company.
The committee will review the outstanding issues and present its findings to Joho. The Cabinet Secretary will then decide on the next steps.
The team will examine several issues surrounding Tata Chemicals’ operations at Lake Magadi.
These include mineral processing, local value addition, community benefits and royalty payments.
The committee will also review unresolved land issues and proposals to allow more companies to extract minerals from the area.
In addition, it will address pending matters involving the Kajiado County Government.
Joho accuses company of ignoring government concerns
The latest development comes after Joho said the government raised compliance concerns with Tata Chemicals in July.
According to the CS, the company chose to go to court instead of responding to the government’s concerns.
Joho said the government had asked the company to address issues related to mineral beneficiation, compliance and mining laws.
“The initial notice came out in July, and instead of responding to the queries we sent regarding beneficiation, compliance and following the law, they went to court,” he said.
Government raises concerns over community benefits
Joho has also questioned Tata Chemicals’ contribution to communities around its Magadi operations.
He cited requirements under Kenya’s 2016 Mining Act, which provides for community participation in mining activities.
The CS said mining companies should ensure local communities benefit directly from mineral resources found in their areas.
Joho also wants Kenya to gain more value from its minerals through local processing and increased participation by Kenyan businesses.
“Our minerals are our wealth, and they are supposed to build our economy, industrialise our country, and benefit our local communities,” he said.
Joho wants more operators at Lake Magadi
Meanwhile, the government is considering whether other companies should operate alongside Tata Chemicals at Lake Magadi.
Joho said the lake covers about 100 square kilometres and produces trona, a mineral that naturally regenerates.
He noted that Tata Chemicals currently operates across about two square kilometres of the area.
Joho questioned why Kenya should not allow more operators to exploit the resource while increasing local processing.
“Why should we not encourage multiple operators and optimise for full beneficiation?” he asked.
Ruto ordered Tata Chemicals to leave Kenya
The committee comes days after President William Ruto ordered Tata Chemicals to leave Kenya.
Ruto accused the company of failing to provide enough development and employment opportunities to residents of Kajiado despite holding a contract that has lasted for about a century.
The President said the government would instead award the contract to another company under stricter conditions.
The new technical committee will now review the outstanding issues before Joho determines the government’s next course of action.
