Kenya starts compliance review of Tata Chemicals Magadi after July mining suspension

A joint government technical committee began a review of Tata Chemicals Magadi's compliance on Monday 5 October, the Kenya Broadcasting Corporation (KBC) reported the same day. Mining Principal Secretary Harry Kimtai opened the committee's workshop, according to KBC.

Hassan Ali Joho, Cabinet Secretary for Mining, Blue Economy and Maritime Affairs, suspended the soda ash producer's mining operations in a notice dated 28 July for failure to meet obligations under the Mining Act. The Standard and Citizen Digital reported the suspension on 29 July, the day Joho issued a statement on it.

The committee brings together representatives of State Departments, government agencies and technical experts, KBC reported. It will assess the company's compliance with legal and regulatory requirements and its environmental, community, land and mineral development obligations.

The review will look at the progress Tata Chemicals Magadi has made on concerns raised by the national government, the Kajiado County Government, the Magadi community and other affected stakeholders, according to KBC.

When it finishes, the committee will prepare a report with findings, recommendations and a proposed course of action, which will go to Joho to inform the government's decision on the company's future operations, KBC reported. The government said the exercise aims to give an objective, evidence-based assessment of the company's compliance before any decision is made on its operations, according to KBC.

Joho's 29 July statement listed several grounds for the suspension. The Standard and Citizen Digital reported them as the lack of a mineral beneficiation and value addition strategy, outstanding royalty reconciliation and payment obligations, inadequate export reporting and reconciliation, poor implementation of Community Development Agreements, inadequate employment and skills transfer plans for Kenyan citizens, weak procurement of local goods and services, and environmental compliance gaps.

The Standard reported that Joho said the decision followed years of engagement between the State Department for Mining and the company over its statutory obligations. The company must submit documents showing full compliance with all statutory obligations and resolve all outstanding liabilities before mining can resume, The Standard reported.

Citizen Digital reported on 8 September that a high-level technical committee had been formed after a meeting between Joho and Tata Chemicals executives that day. Among the matters it was to examine were mineral beneficiation and in-country value addition, outstanding community benefits and royalty obligations, unresolved land matters, opening up the area for multiple mineral extraction, and pending matters with the Kajiado County Government.

In a statement to Al Jazeera, published on 24 September, Tata Chemicals said its subsidiary had submitted a comprehensive response to the ministry on 11 August on the issues raised in the 28 July suspension notice, and that it was waiting for further direction from the ministry. The company said it respected the authority of the Kenyan government and remained committed to constructive engagement with the agencies and regulators concerned.

Tata Chemicals Magadi, formerly the Magadi Soda Company, was established in 1911 and has been part of Tata Chemicals since 2005, according to the company. Citizen Digital reported on 29 July that it produces natural soda ash at Lake Magadi, with annual exports of more than 350,000 tons to Southeast Asia, India, the Middle East and other markets.