The government has agreed with Tata Chemicals Magadi Limited to establish a high level technical committee to address outstanding compliance concerns following the suspension of operations at the company.
The agreement was reached on Tuesday during a meeting between Cabinet Secretary for Mining, Blue Economy and Maritime Affairs Hassan Joho and executives of Tata Chemicals Magadi Limited.
Joho said the engagement was aimed at finding a comprehensive and timely resolution to the issues that led to the suspension of operations.
“To facilitate a comprehensive and timely resolution of the outstanding matters, we agreed to establish a high level technical committee,” Joho said in a statement issued on Tuesday.
The committee will be led by the Principal Secretary for Mining on behalf of the Ministry and the Chief Executive Officer of Tata Chemicals Magadi Limited on behalf of the company.
It will conduct a detailed technical review of the outstanding compliance matters and prepare a report for submission to the Cabinet Secretary. The report will then be considered by the Ministry to guide further action and direction on the unresolved issues.
Among the key matters to be addressed is mineral beneficiation and the need for greater in country value addition from mining activities.
The committee will also examine outstanding community benefits and royalty obligations linked to the company’s operations.
Land issues will form another key area of focus, with the government and the company expected to review unresolved matters relating to land.
The committee will further consider proposals to open up the area for multiple mineral extraction.
Outstanding matters between Tata Chemicals Magadi and the Kajiado County Government will also be reviewed as part of the process.
The development comes after the government raised compliance concerns that resulted in the suspension of operations at Tata Chemicals Magadi Limited.
Joho said the government remained committed to engaging investors while ensuring that companies operating in the country comply with Kenyan laws and regulations.
“As Government, we remain committed to constructive engagement with investors while firmly upholding Kenya’s laws, regulations and the interests of its people,” he said.
The Cabinet Secretary said the government’s objective was not only to resolve the outstanding compliance matters but also to establish a sustainable framework for the mining sector.
He said the framework should promote responsible mining, value addition, community development and mutually beneficial partnerships between investors, government and local communities.
The committee is expected to provide a structured platform for addressing the concerns raised by the Ministry and the company. Its technical review will form the basis for further consideration by the Ministry following submission of the report to Joho’s office.
The government has increasingly emphasised value addition and greater benefits to local communities from natural resources extracted in Kenya.
The Magadi operations are significant to the local economy, with the unresolved issues touching on community benefits, royalties, land and relations between the company and county government.
Joho said constructive engagement would remain central to resolving the dispute while protecting the interests of Kenyans.
The meeting and formation of the technical committee now provide a formal mechanism for the government and Tata Chemicals Magadi to review the outstanding matters and work towards a resolution.