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Kenya plans to create a state-owned mining company

Kenya is considering creating a national mining company, to act as the investment arm of the government where joint venture with the private investors is involved. The government could take up to 35% of shares in mining companies; the mining activity proceeds corresponding to this stake would then be shared between public institutions (up to 70% for the central government, 25% for county government and 5% for local communities).

This proposal is one of the recommendations included in the Mining Bill draft that is currently taken to Parliament for debate and adoption. The new law is intended to ease the process of licensing private investors, carrying out of relevant studies and fostering participation of the communities where the mineral resources are found. Kenya is reviewing its existing Mining Act, which had been implemented by the British colonial regime in 1940. According to existing map on mineral resources, Kenya has potential for oil, gas, iron and steel, coal, gold, silver, zinc, copper, titanium and zirconium, niobium and rare earth metals among many others.

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