NAIROBI, Kenya- The government wants the vast area leased to Tata Chemicals Magadi Limited opened for the extraction of minerals beyond soda ash as negotiations over the company’s future begin.
Mining, Blue Economy and Maritime Affairs Cabinet Secretary Hassan Joho listed “opening up the area for multiple mineral extraction” among five unresolved issues to be addressed by a newly established technical committee.
Tata Chemicals controls about 240,000 acres in the Magadi area under its lease, although its primary operation is the extraction and processing of trona into soda ash.
The government has previously indicated that it wants much of that land released and opened to other investors.
President William Ruto said Tata should retain only the portion it requires for its operations and return about 90 per cent of the leased land.
The technical committee will be led by the Principal Secretary for Mining on behalf of the ministry and the chief executive officer of Tata Chemicals Magadi Limited on behalf of the company.
Joho said it would conduct a detailed review of mineral beneficiation and local value addition, outstanding community benefits and royalties, unresolved land issues, multiple-mineral extraction and disputes involving the Kajiado County Government.
The committee will submit its findings to the Cabinet Secretary for consideration and further direction.
Gachagua cited lithium, oil and gas
The government’s reference to multiple-mineral extraction comes days after DCP leader Rigathi Gachagua said lithium, oil, gas and other valuable minerals had been discovered in the Magadi area.
Gachagua linked the reported discoveries to the government’s decision to suspend Tata’s operations and President Ruto’s subsequent directive that the company leave Kenya.
He accused people close to the government of seeking control of the land and the minerals believed to be beneath it.
The government has not confirmed his accusations or publicly released geological findings verifying the reported deposits.
Gachagua also said Tata had been pressured to pay Sh9 billion or surrender a 40 per cent stake in its Kenyan operations.
He did not provide evidence supporting the assertion, and the government has not confirmed it.
Ruto ordered Tata to leave
President Ruto recently ordered Tata Chemicals to shut down and leave Kenya, accusing it of operating in Magadi for decades without delivering sufficient employment, industrial development or benefits to Kajiado residents.
The President said new investors would be brought in to construct glass and chemical manufacturing plants and ensure that minerals extracted in Kenya are processed locally.
Tata Chemicals has maintained that it complies with Kenyan laws and remains committed to resolving the dispute through established legal and regulatory channels.
Joho’s announcement indicates that the company’s operations and control of the land will now be subjected to negotiations and a technical review.
“As government, we remain committed to constructive engagement with investors while firmly upholding Kenya’s laws, regulations and the interests of its people,” Joho said.
The committee’s eventual recommendations could determine how much land Tata retains, whether other companies will be allowed to extract minerals within the leased area and whether the suspended soda ash operations will resume.
