Prof Muigai’s verdict is good news to Australian mining company Base Titanium, widely regarded to have been the target of a small cabal of top government officials who have been pushing for the 35 per cent local equity participation rule. Base Resources, the Australian firm mining titanium in Kenya’s Coast, has valued 35 per cent of its local operations at $150 million (Ksh12.8 billion).
Who is – Githu Muigai – from Wikipedia, the free encyclopedia
Githu Muigai (born 1960) is the Attorney General of The Republic of Kenya. He holds a bachelor’s Degree in Law degree from the University of Nairobi, a masters degree in International Law from Columbia University School of Law. Prior to becoming Attorney General Githu Muigai has served in the defunct Constitution of Kenya Review Commission and at the United Nations as Special Rapporteur on contemporary forms of racism, racial discrimination, xenophobia and related intolerance.
Prof. Githu Muigai from http://www.softkenya.com
A gazette notice issued in September by Environment Minister Chirau Ali Mwakwere directed that mining companies cede 35 ownership to local investors. Mining firms and overseas companies have been given a grace period of between three and five years to comply.
New laws at a glance
- The regulations were welcomed by locals who saw this as a way to benefit from the mining profits generated by the foreign mining companies , who see it as arm twisting to share their profits.
- Mining activity has picked up in Kenya recently, however the majority of companies are still at the initial stages, having been issued only with prospective licences.
- Prof Muigai has clarified that only licences issued after the gazette notice, will b e affected by the 35 per cent local equity participation requirement.
Referred to as the “Mwakwere rules” and introduced by Environment Minister Ali Mwakwere. The one problem that this new law will bring about for foreign companies is , will the locals but into their shares or have the money to buy into their shares thus giving them the 35 % for approval.
Who is – CHIRAU MWAKWERE
Amb. Chirau Ali Mwakwere – Kenyan Minister of Environment
Amb. Chirau Ali Mwakwere is the Kenyan Minister of Environment. He previously served as the Kenyan Minister of Transport
In comparison , Botswana with one of the most established mining sectors — and reputed to have the most liberal mining codes — the threshold for local shareholding of mining companies is 13 per cent.
Oil and gas exploration in kenya
The oil and gas industry is also going through change , with the Ministry of Energy hopes to introduce the regulations under the reviewed Petroleum Exploration and Production Act by mid 2013. For oil and gas exploration, Acreage will now be awarded to the highest bidder who offers the best terms to the government and agrees to pay requisite fees. This exercise will be carried out publicly, replacing the current system where exploration rights are issued on a first-come first-serve basis.
By introducing competitive bidding, Kenya will join the ranks of countries like Tanzania that already have the system. Uganda plans to have a bidding process as well.