MINISTRY OF MINING

PRESS STATEMENT ON THE REPORT ON IMPLEMENTATION OF THE MINISTERIAL TASK FORCE ON LICENCES ISSUED DURING GOVERNMENT TRANSITION 2013BACKGROUND

On 16th August 2013, the Government appointed a Task Force to review licences that had been issued during the period when government was in transition. During this period, and as is normal practice during all periods of transition, a directive had been issued stopping any signing of Contracts and Issuance of Licenses. The Task Force that was appointed for this exercise comprised of distinguished professional in Kenya, most of them imminent advocates and was led by Mohammed Nyaoga, a respected Senior Counsel in Kenya. The Task Force submitted its preliminary report in September 2013 and, subsequently, the Final Report in January 2014.LICENCES REVIEWED BY TASK FORCE

The Task Force reviewed a total of 43 licences that were issued between January and May, 2013. Out of this number, 28No. titles hadalready been approved but not granted, while 15No. titles been approved and issued .

In some instances some companies had been issued with a Mining Lease for which they had not even applied for.The licences reviewed were of the following categories;

Mining Locations Licences

-4 No.

Exclusive Prospecting Licences- 2No.

Special Prospecting Licences

-35No.

Mining Leases

- 2 No.Total

43No.In order to ensure that the process was fair and transparent, all the 43 Licence holders/applicants were given an opportuntiy to demonstrate that the mineral title(s) issued met the legal and technical requirements, through re-submission of documentation that accompanied their applications. Out of the 43No. holders/applicants, 22No. responded positively and submitted their documentations. ACTIONS TAKEN FROM THE TASK FORCE REPORT

The Task Report was tabled before the Ministerial Licencing Advisory Committee in February 2014 for review and decision. The Ministry has since been monitoring the adherance to the Mining licence application requirements for the last one year and this and the of this exercise was concluded on 18th February 2015. We therefore wish to inform the public on the following findings and decisions made;i. Four (4No.) companies had met all the criteria and the suspension was lifted and licences validated.ii. Three (3No.) companies whose applications were done unprocedurally were found to have violated the law and the suspension was upheld and licences revoked.

iii. One (1No.) company had gone to court and the committee deffered consideration pending completion of the court process.

iv. Seven (7No.) companies whose applications had deficiencies in their application had suspension lifted and were given opportunity to fulfill the application requirements. Of these only one (1No.) fulfilled and was approved. The remainder six (6No.) did not fulfill application requirements and were subsequently rejected.

v. 32No. companies whose applications were found to be invalid in one way or the other were offered the opportunity to make fresh applications. Of these 32No.; Two (2No.) withdrew their applications

Six (6No.) made fresh valid applications and were approved

Two (2No.) requested for more time to fulfill the requirements and were granted.

22No. did not respond and their applications were rejected

NAJIB BALALACABINET SECRETARY

PAGE 1