Sunday, 28 August 2016

New law to boost mining industry, says CS Kazungu




Mining Cabinet Secretary Dan Kazungu has said new laws on mining will move away from the traditional Corporate Social Responsibility model of engagement with communities and move towards the more comprehensive Community Development Agreements.

‘This will ensure that the communities are involved by mining companies to address issues that directly affect them. Both parties will hold dialogue to agree on what development projects will be carried out to suit the communities’ needs,’ said Kazungu on Wednesday during a stakeholders engagement on the draft mining regulations and guidelines.

Kazungu said that the new regulations are revolutionary in making Kenya an attractive destination for mining.

‘This will enhance the country's competitiveness globally by providing a stable, predictable and transparent investment climate for exploration and mining companies,’ said the Cabinet Secretary.
‘For the first time in this nation’s history there will be a clear framework for management of artisanal mining in Kenya,’ he explained.

 On the 1st of April 2016 the Minerals and Mining Policy was passed by Cabinet and is ready for submission to Parliament for adoption. 

On the 6th of May the President assented to the Mining Bill 2016 effectively repealing the 1940 legislation. 

According to the CS the 27th of May 2016 marked the commencement of the Mining Act 2016.
Mining contributes only 1% to the Gross Domestic Product GDP of Kenya.