Mining Principal Secretary Elijah Mwangi on Friday directed firms to formulate comprehensive environmental rehabilitation programs and present them to the ministry for fastracking.
Addressing stakeholders in Kilifi during an extensive inspection of cement manufacturing companies in the area, PS Mwangi ordered firms to include the duration they would use to rehabilitate the section of the environment destroyed during the process of mining.
While acknowledging significant progress towards restoration of the vegetation cover by some firms, he noted that most companies still needed to put in a lot of effort, especially in areas with challenges of seawater incursion.
“Environmental concerns must inform all operations by mining investors as a matter of priority. Nurturing nature and love for the environment are key values that support sustainable mining operations because mining cannot be divorced from environmental issues,” PS Mwangi stated.
In his engagement with cement firm owners, the PS also appraised them on the need for compliance with the Mining Act Cap 306, regarding royalty payments.
He further noted that the government had begun the process of implementing the provisions of the Mining Act, Section 180 that demands mining companies to deposit environmental restoration bonds as security for rehabilitating mined areas.
“The money will rehabilitate degraded areas should a mineral right holder fail to rehabilitate their site. Additionally, the treasury has allowed the opening of a Special Purpose Account where 20 per cent of mineral royalties are defined by the Mining Act,” the PS stated.
The PS also informed the firms of the introduction of Mineral Development Levy which is pegged at 0.5 per cent of gross sales made by the companies.
According to Mwangi, the mineral development levy money would be used for geological surveys, mineral exploration and other critical areas to grow Kenya’s mining sector. "We are committed to unleashing the full potential of the sector while supporting and upholding all issues related to environmental integrity," the PS stated.
The latest directives come a day after Mining Cabinet Secretary Hassan Joho directed mining companies across the county to heed the mining regulations 2024 on payment of royalties.
CS Joho noted that the mining regulations demanded that all miners remit their royalties every month through the eCitizen platform which would later be channelled to the Central Bank of Kenya (CBK).
The CS warned that any miner who fails to remit their royalties within sixty days from October 1 this year, risks having their mining permit revoked. “Note that the Mining Act stipulates that failure to remit royalties within 60 days after filing is grounds for revocation of a mining license or permit by the Cabinet Secretary,” the ministry revealed.
