Kenya revitalises mining to unlock growth & global opportunities

Kenya's mining sector is currently experiencing a revitalization, with a strategic focus on value addition, partnerships, and sustainable mining practices. The country holds significant untapped potential in critical minerals that align with global technological and green energy trends. Charles Komen, Chairman of the Mining Committee at the Kenya National Chamber of Commerce & Industry, spoke to CNBC Africa about the sector's potential and future prospects. One of the key success stories in Kenya's mining sector is the establishment of BASE Titanium, which received various incentives such as tax breaks and royalties during its start-up phase, leading to its recognition as a key Vision 2030 project. To attract more foreign direct investment, Komen emphasized the importance of offering similar incentives and engaging with local communities to address concerns and ensure collaboration. Additionally, infrastructural development in mining areas has been a priority for the government to support the industry. There have been efforts to streamline the licensing process and provide exemptions on mining equipment to encourage growth in the sector. Public-private partnerships (PPP) are highlighted as crucial in driving growth in the mining industry. Private sector involvement brings innovation, capital investment, and efficiency to mining projects. Komen pointed out the appointment of a new PPP director with extensive experience in development, signaling the government's commitment to supporting collaboration between public and private entities. Through effective partnerships, the sector can progress rapidly and sustainably. The focus on environmental, social, and governance (ESG) principles is a key consideration for the mining sector, given its potential environmental impact. Komen highlighted initiatives such as the Planet Gold program and efforts to promote mercury-free mining processes to comply with stringent ESG policies. The collaboration between the Ministry of Environment and the mining industry aims to ensure responsible mining practices and environmental protection. As mining is a capital-intensive activity, financing remains a significant challenge for the sector. Alternative financing models such as private equity, venture capital, and impact funding are emerging trends that provide opportunities for investors to support mining projects. Local financial institutions play a crucial role in offering low-interest loans and risk-sharing mechanisms to facilitate growth in the industry. With Kenya's rich mineral deposits, including rare earths, coltan, manganese, titanium, copper, and uranium, there is immense potential for multinational companies to invest in the country's mining sector. The recent acquisition of Energy Fuels, a U.S.-based company specializing in uranium and critical minerals, highlights the growing interest in Kenya's mining resources. Encouraging investors to explore various mineral opportunities, Kenya aims to become a key player in the global mineral supply chain, contributing to the country's economic growth and development.