Kenya Fluorspar Co. Ltd has hit back at what it called
"inaccurate and misleading" reports that the company had fallen
foul of revised royalty obligations set by the Kenyan Ministry
The privately held miner, which owns the Kimwarer fluorspar
project in western Kenya, released a statement late last week
strongly denying rumours of a legal rift with the government.
It had been alleged that the company had failed to pay required
royalties and to compensate local landowners for appropriating
the property on which it operates.
"There is no dispute between the Ministry of Mining and Kenya
Fluorspar Co. on payments, levies, taxes or failure to pay
monies owed on our mining operations," the company statement
"The Cabinet Secretary of Mining, Hon. Najib Balala, in a
Nation TV interview on 13 May, confirmed this, when he said
'Kenya Fluorspar has been working. They are paying their
royalties. We are in agreement. They have increased their
royalties, as per the government’s
requirements’," the statement continued.
"Kenya Fluorspar has always paid the royalties prescribed by
the Kenya government. The government gazetted royalty is 2% for
fluorspar (not 10% as alleged by some of the media), based on
its gross sales, and since 1 July 2013 to the end of December
2014, Kenya Fluorspar has paid this royalty totalling [Kenyan
shilling] Ksh 57.699m ($635,000**) to the Ministry of Mining,"
Kenya Fluorspar said.
Regarding press accusations that the company had failed to
compensate landowners for the 9,070 acres (36.7km2) it leases
for mining, Kenya Fluorspar said that no payments were owed as
the land belonged to the Kenyan government, which acquired the
property from the Kerio Valley Community in the early
"We lease our mining area from the government under a special
mining lease that commenced in 1997," Kenya Fluorspar
"We view the establishment of a task force by Honourable
Najib Balala as a welcome next step in an ongoing process to
help resolve both historical land compensation issues between
the government and Kerio Valley residents that predate our
operations, and issues that arise between sections of the
community and us."
The company added that it has a "good relationship" with
Kenya’s Ministry of Mines.
One of the few large mining companies in Kenya, Kenya Fluorspar
was established in 1971 and is one of the
country’s leading mineral exporters.
The fluorite deposits it exploits are located in the Kerio
Valley, a relatively remote part of western Kenya, where Kenya
Fluorspar operates seven active mining sites.
Recent inaccurate reports have claimed that the
company’s yearly revenue had reached Ksh 4bn
($41.75m) between 2011 and 2014, but Kenya Fluorspar has
confirmed that average annual sales of Ksh 2.35bn ($24.53m)
were recorded between 2011 and 2014.
The company has a production capacity of 100,000-120,000 tpa
fluorspar. It sells its output mainly for use in the
Originally a government-owned business, the company was
privatised in 1997 as part of a government reform policy, which
saw the company granted a 21-year lease for a 36.7km2 area.
*This article was published following the retraction of an
earlier article on www.indmin.com erroneously
stating that Kenya Fluorspar was under investigation by the
Kenyan government for an alleged failure to pay increased
royalty rates and compensate landowners for the use of its
**Conversions made May 2015 by Kenya Fluorspar