Operations at the Kenya Fluorspar Company in Kerio Valley are yet to begin a year after the government signed a multi-billion deal with a UK-based firm to revive it.
Nothing is happening at the Kimwarer-based factory in Elgeyo Marakwet County, leaving residents disillusioned.
In the deal, Soy-Fujax Mining Company was to pump Sh4.8 billion to restart mining activities.
The planned revival of the defunct Kenya Fluorspar Company was received with high hopes by residents who expected to gain economically and socially through business and emerging job opportunities.
However, the multi-billion project is yet to resume operations almost a year after it was relaunched, dashing the hopes of residents who have now moved to petition the investor- the United Kingdom-based firm- Soy Fujax Mining Company to hasten the revival process.
Rusting signposts at Fluorspar Mining Company in Elgeyo Marakwet County on September 28, 2021.Soy-Fujax Mining Company will pump in Sh4.8 billion to restart fluorspar mining activities.
Photo credit: File | Nation Media Group
The UK mining firm was to pump Sh4.8 billion to jumpstart operations of the firm to allow mining activities in a deal where the government retained a 15 percent stake in the company.
However, it is emerging that the company is still finalising documentation, including approvals from the National Environment Management Authority (NEMA), fixing of machines, and refurbishing of the factory and houses.
“The mining activities are expected to kick off soon after the company meets most of the requirements,” said a senior official who requested not to be named.
The revival of the company is expected to support more than 500 families who were displaced from more than 900 acres of their ancestral land to allow mining activities.
Fluorspar mining at Kerio Valley.
Photo credit: File| Nation Media Group
The families want the government to address the compensation issue alongside the revival of the company.
A recent visit to the Kenya Fluorspar Company Limited site in Kimwarer, Keiyo South sub-county indicated clearance of bushes in readiness for the revival of the firm.
“The liberalization of the company will be a major relief to hundreds of families in terms of emerging socio-economic activities,” said James Kwambai from Muskut village.
An estimated 3,000 workers lost employment after the Kenya Fluorspar Company (KFC) wound up mining activities almost 10 years ago due to a dramatic reduction in global fluorspar prices.
The fluorspar which was being mined at Kerio Valley was transported by road to Flax Trading Centre where it was loaded onto wagons and transported by train to Mombasa.
An earthmover scoops raw material for processing at Kenya Fluorspar Company in Elgeyo-Marakwet.
Photo credit: File| Nation Media Group
“The community members are optimistic about securing employment while such markets as Kimwarer will receive a new lease of life once the company commences full operation,” said Wilson Chemase, a member of the Kimwarer Sugutek (Fluorspar) community.
The KFC suspended mining operations almost 10 years ago due to a depressed global market for minerals.
The company exported over 106,000 tonnes of fluorspar annually before closing down operations. It had assets worth over Sh5 billion.
Transporters and hoteliers were hard hit by the closer of the operation by the Kenya Fluorspar company.
Some of the residents had set up businesses at Kimwarer market to tap into existing opportunities to generate more income.
“Operations of the company was instrumental in sustaining the transport and hotel industry that created a lot of job opportunities for the locals,” said David Chemweno, a transporter.
The exit of the Kerio Valley-based mining company left South Africa and Morocco as the remaining African counties extracting the mineral.
South Africa produces 300,000 tonnes annually, Morocco 100,000 tonnes and Kenya produces an average of 120,000 tonnes but the depressed market has impacted negatively the once lucrative mineral sector.
In Kenya, the fluorspar used in the manufacture of fluoride for cooling plants is mined in Keiyo South Sub-county, forming part of the riches of Kerio Valley.
