A United Kingdom (UK) mining company has threatened to sue the government of Kenya over dramatic events in Migori County that have put its business in jeopardy.
UK-based Goldplat PLC claims that the government has illegally reallocated land in Migori County that it had purchased due to rich gold reserves.
Representatives from the company claim that the dramatic tussle begun in October 2017 and despite various attempts to resolve the conflict the government has been reluctant.
Goldplat's Kenyan subsidiary Kilimapesa is said to have been notified that an unnamed prospector had sought clearance to explore the Ksh16.9 Billion reserve which it objected to.
"The area in dispute contains roughly 140,000 ounces of gold in the resource or approximately 20 per cent of the total resource for Kilimapesa.
"No exploration will be undertaken until this issue has been resolved and confirmation has been received that no part of the initial exploration licence has been taken away without compensation," communiqué from the company read in part.
The company further claims that the government, through the Ministry of Mining, is yet to make a clarification on the status of the disputed application.
In a note to its investors, Goldplat relayed that numerous meeting had been held with Mining Cabinet Secretary John Munyes and other government officials to the effect but they have not been successful.
The London-based company outlined that it could not afford to lose the rich prospect as proceeds from the venture would help in recovering from loses being made by the subsidiary.
"But if efforts to find a partner to invest in the mine and the exploration licence are successful, the requirement for any more capital input by the Group will be removed.
"Discussions have begun with a number of interested parties and operational focus remains on achieving profitable production," the company assured its investors.
