CS Joho forms technical committee to address Tata Chemicals standoff

Mining Cabinet Secretary Hassan Joho has overseen the establishment of a high-level technical committee to resolve outstanding compliance issues surrounding the suspended operations of Tata Chemicals Magadi Limited.

The committee follows a meeting between Joho and executives of the soda ash manufacturer on Tuesday, a day after the Cabinet Secretary accused the company of failing to comply with government directives governing mining operations in Kenya.

The committee will be led by the Mining Principal Secretary Harry Kimtai on behalf of the government and Tata Chemicals Magadi Limited CEO Swaminathan Nagarajan representing the company.

It will conduct a technical review of the outstanding issues and submit its findings to Joho for consideration and further direction.

Among the issues the committee will examine are mineral beneficiation and in-country value addition, outstanding community benefits and royalty obligations, unresolved land matters, opening up the area for multiple mineral extraction and pending matters involving the Kajiado County Government.

The latest development comes after Joho said on Monday that the government had raised compliance concerns with Tata Chemicals in July, but the company opted to seek court intervention instead of addressing the issues.

“Suspension of Tata Chemicals was done in July this year. The initial notice came out in July, and instead of responding to the queries we sent regarding beneficiation, compliance and following the law, they went to court to request to be allowed to continue,” Joho said.

Joho had also accused the company of failing to meet obligations to communities around its Magadi operations, citing requirements under the 2016 Mining Act.

“According to the 2016 mining law, to start mining in any area, you must build a committee with the affected community, and this committee must get a minimum of 1% of gross income of the company in cash, and the committee is supposed to negotiate with the investor, which Tata has not done since 1928,” he said.

The CS has further argued that Kenya should derive greater economic value from its mineral resources through beneficiation and increased local participation in mining.

“Our minerals are our wealth, and they are supposed to build our economy, industrialise our country, and benefit our local communities,” Joho said.

The government has also questioned Tata Chemicals' continued operation in Lake Magadi, with Joho arguing that more operators could be allowed to exploit the mineral resource.

“Lake Magadi is 100 sq km and produces Trona that regenerates. The operation over the period has been done around 2sqkm. Why should we not encourage multiple operators and optimise for full beneficiation?” posed the CS.

Last week, President William Ruto ordered Tata Chemicals to leave the country, accusing the company of failing to deliver sufficient development and employment opportunities in Kajiado despite holding a contract spanning about a century.

Ruto said the contract would instead be awarded to another company under stricter conditions.