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Mining in Kitui to resume

28 October 2013, 09:43

Nairobi - Mining operations are poised to resume in the Kitui County after government, political and community leaders reached an out-of –court settlement.

Kitui leaders filed a court petition in August last year citing non-involvement in the discussion, which led to signing of a mining contract between the government and a Chinese company Fenxi Mining Industry.

Fenxi Mining Industry was the first company to win a coal-mining contract in Kenya.

The community demanded better compensation terms for their land and further direct revenue benefits for the Kitui County government.

“The ministry has reached an understanding with the local leaders of the Mwingi Central Constituency Development Self Help Group, under which the latter will withdraw the matter from the court,” said the Ministry of Energy and Petroleum Cabinet Secretary, David Chirchir.

The deadlock had delayed concession for mining of what is estimated to be over 500 metric tonnes of coal discovered in the area.

This will add 5000 megawatts of power to the national power grid.

The government has embarked on exploitation of mineral resources and establishing of additional energy sources in a bid to achieve the objectives of the Vision 2030.Flagging of the coal-mining activity is intended to reduce hydro-power dependency.

- CAJ News


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