Glittering gold discovery brightens prospects

Narok County could soon join the ranks of the Africa’s gold producing countries following the discovery of huge deposits in the region. For the first time  in  the  county’s  history, international mining experts have discovered gold at Kilimapesa in Lolgorian, Transmara, which had previously not been detected.

The gold-yielding territory stretches from Kenya across the Mara to Serengeti in Tanzania more famously known for its rich tourism heritage. Residents living around the prospectively promising region are optimistic the discovery will spur the county’s growth.

To ensure that the mining activities are conducted fairly for the social and economic benefit of  the  local  residents,  the county administration is keen to work closely with the national government to beef up security as the prospectors begin their work. A British exploration company, Goldplats, has signed a deal with the national government to exploit the newly discovered deposits, which are likely to open up new revenue streams for Narok County. 

Mining Cabinet Secretary Najib Balala recently visited the new site.  Goldplats presence in the area will certainly trigger development opportunities, with experts predicting that the value of gold from the Kilimapesa mines could top Sh60 billion a year in foreign currency, making the precious metal a top revenue earner for Kenya.

The government will earn four per cent of the value of each export consignment in the form of royalties, in addition to corporate tax that is tied to the profits that Goldplats will make, according to the Commissioner of Mines and Geology Masibo Moses. Currently, a kilogramme of gold fetches Sh6 million, positioning Narok County for an economic boom as it yields the new natural resource from the depths of the earth.

The British firm is eyeing the production of an initial target of 5,000oz (about 140kg) of gold annually, helping the county to create more wealth and generate employment opportunities for its people. Governor Samuel ole Tunai says gold exports would be a ‘hot cake’ for the world market ever hungry for the precious metal, saying: “We expect to invest gold revenue proceeds for the major infrastructural and other physical projects that we have lined up to stimulate our domestic growth.”

Although the prospecting is still at the preliminary stage, the county expects to ultimately to realise proceeds from gold mining, once lease agreements and other legal mechanisms are put in place. Glittering gold discovery brightens prospects for income earning through mining activities

The Mining Bill stipulates a revenue-sharing arrangement between the national and county governments on an 80:20 basis to ensure harmonised equity of the proceeds without exploitation of all the parties involved. In the past some mining companies have taken advantage of the lack of technological knowhow in emerging economies to prospect and  expatriate  huge  profits back to their countries, to the detriment of the natives of the mineral-producing entities. But that is not likely to happen in Narok if the precautionary measures that the county leadership has put in place are strictly enforced.

The leaders want the  mining  firm  to  ensure that the locals benefits largely from their natural resources. They also want training opportunities to be accorded to residents to allow them to savour the rewarding experience of their region striking gold. In this way opportunities will accrue from management skills, technology transfer and employment that come with foreign direct investments programmes, reinforcing the sharing ratio between the national and county authorities as well as the investors. “We want that by the end of the contract, a good number of our sons and daughters will have been employed and trained deeply in various geological skills so that they too can train the successive generations,” says Governor Tunai.

Kilimapesa Gold Factory In Narok

Goldplats Chief Executive Officer Demetri Manolis has assured investors that his company, which has been prospecting in Kenya for more than a decade, will ensure that the residents reap maximum benefits from the gold resource. He says the conclusion of the elution plant at the Kilimapesa project means that new site will soon begin production. A title deed has been issued and the firm  given  the go-ahead to continue with prospect.

Mining Principal Secretary Ali Mohammed says they will monitor the progress very closely to ensure fairness and equity. Last year, Kenya earned Sh6.2 billion from the sale of two tonnes of gold, three times higher than the previous year before, an indication of the how fast the commodity is gaining prominence as an export commodity .A sharp increase in the price of gold since last year has heightened exploration activities in Turkana, Samburu, Kitui and now Narok.

The Mining ministry is preparing to issue commercial exploitation licenses to firms prospecting for other minerals such as iron ore and manganese .Goldplats presence in the area will certainly trigger development opportunities, with experts predicting that the value of gold from the Kilimapesa mines could top Sh60 billion a year in foreign currency, making the precious metal a top revenue earner for Kenya