Author Topic: Good points on Mining Industry  (Read 43 times)

Offline gout

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Good points on Mining Industry
« on: February 04, 2023, 10:53:59 AM »
Breath of fresh air.

What do you think is the biggest handicap in the industry?
Most of the challenges we have in this country are not because of lack of resources in terms of mineral deposits or money. It is mostly an innovation issue. How can we do things differently?

How can we work with what we have? Look at Rwanda, for example. It is a small country in size, but they have coordinated their activities in such a way that mining is taken very seriously, and is run by co-operatives and associations.

When they do this as associations and co-operatives, they may not just be doing high-value minerals, they will even do industrial minerals, meaning you can aggregate and supply big companies like Bamburi.

What can Kenya borrow from there?
We need to start looking at how to help our ASMs [artisanal miners] get into associations and co-operatives because when they do that, they will aggregate.

Financial institutions will also want to have a conversation with you because you are organised and help you access capital.

We hope we do this not only with the national government but also with the Council of Governors. It is in our interest to seek partnerships that will help them get into co-operatives.

Insightful take on mining contribution to GDP.

Why do you appear to be disputing the KNBS data on sector’s contribution to the GDP which has stagnated at 0.7 to 0.8 percent in last five years, at least?
We have questioned how they are computing our contribution to the GDP. This is because in any building, for example, everything is a mineral except wood.

So when you tell me the construction sector is growing and mining is not growing [in terms of contribution to the GDP], I have an issue with how you are computing the GDP.

The materials for building like sand, building stones, ballast and even the window panes which are silica sand are not accountable for mining and quarrying.

They are either taken into construction or manufacturing. That is important because when KNBS numbers consistently show below one percent contribution to the GDP, it means the budget will also be constrained. We are going to engage every stakeholder on this.

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