Mining to process permits online in fight against graft

Mining and Natural Resources secretary Najib Balala says the ministry is seeking to to create transparency by implementing the online system. FILE  Nation Media Group

By  GERALD ANDAE, gandae@ke.nationmedia.com

In Summary

• Miners will apply for licences on the Internet sealing gaps exploited by officials.

The government plans to introduce e-licensing in issuance of mining certificates in a bid to contain corruption just months after mining licences issued at the beginning of the year were cancelled.

Mining and natural resources secretary Najib Balala says miners will be required to apply for permits through the Internet in order to avoid personal contact with officials who are known to ask for bribes.

“We want to create transparency in the sector, and the only appropriate way is to put in place a system that will enhance openness in the whole process,” said Mr Balala.

He said feedback on the applications as well as progress will also be made public.

Mr Balala said the Mining Bill was waiting for discussions at the Cabinet.

“We aim to enact this new mineral code by January 2014,” he said.

In August Mr Balala discarded the royalties and drilling charges that were in force since late 1990s and imposed new rates. He increased royalties from a range of 0.01-5 per cent to between two and 12 per cent depending on the mineral.

READ: Kenya targets more royalties from mining firms

Drilling charges also went up from a flat fee of Sh800 to Sh8,000 for the first 50 metres and an additional Sh1,000 for every extra 50 metres.

Mr Balala said a new formula would be used in sharing proceeds from minerals in order to benefit all stakeholders.

“To ensure equitable distribution of proceeds between national government, counties and the local community, there must be a mutually agreeable formula,” Mr Balala said during the launch of the Information Centre for the Extractive Sector, an initiative of the African Development Bank aimed at promoting informed policies for the sector. 

He said a percentage of the royalties would be invested in communities to improve their wellbeing while a unit would be established to steer their interests.

The centre, Mr Balala said, would help make the mining sector become more open hence beneficial to all the players.

“As you are aware, the operation in the mining sector has not been that transparent, but this centre will go a long way in playing that role,” he said.

Regional director AfDB Gabriel Negatu pointed out that oil, gas and mining were complicated issues hence the need for the information centre.