The Kwale based Australian mining firm, Base Titanium has inked a mining agreement with the local communities in Kwale and Mombasa counties in Kenya.
The mining firm signed the Community Development Agreements (CDAs) in relation to the new Mining Act 2016 and was witnessed by the Cabinet Secretary (CS) for Mining and Petroleum John Munyes and Base Titanium General Manager for External Affairs Simon Wall at the Jacaranda Beach Hotel in Diani, Kwale County.
The partnership agreement has been an ongoing consultative discussion in an effort to safeguard the sustainable development and growth of the local communities. The new mining laws will in the long run attract investment and ensure host communities reap more economic benefit from the mining sector.
The signed agreement will see the mining firm deliver local community development support programmes. The CDA will see the local communities receive funding from the mining firm for development projects tailored to their needs. The new act among other things also introduces the sharing of mining royalties among the national government, the county governments and communities. The Act stipulates that royalties are shared by national and county governments and communities on a percentage of 70-20-10 respectively.
Addressing endemic challenges in local communities
About Ksh 250million will be shared annually between the CDAs in the two devolved units. According to CS Munyes, the CDA will present a progressive approach to addressing the endemic challenges in local communities encountering resource extraction.
“We have marked an important milestone in the operationalization of the mining Act 2016 and hope it would foster constructive dialogue between the mining company and the local communities. We are alive to the fact that mining is a major contributor to jobs and economic development in the country and that is why we are out to promote Kenya as a favourable destination for mining investment,” said CS Munyes.
Base Titanium which carries out large scale mining activities in Msambweni sub county of Kwale is obligated to remit 1% of their total earnings accrued from minerals exploitation. The percentage will be channeled towards development projects in Msambweni which is the main mining area, Lunga Lunga where persons affected by the mining activities were resettled and Mombasa that serves as the end point of the mineral transport corridor and storage facility before export.