A United Kingdom mining firm is set to start mining a Kenyan gold mine with estimated deposits valued at more than Sh180 billion ($1.8 billion).
The government has approved the granting of a mining licence to London-based Red Rock Resources which is supposed to produce gold at a site in Migori. The Ministry of Petroleum and Mining posted the approval on its website.
The multinational firm says that upon receipt of official confirmation of the intended grant pending approval by Mining Cabinet Secretary John Munyes, it will be invited to fulfill fee payment and registration requirements.
"We are entering the last stage of what has been a lengthy process, and thank all involved,” Red Rock’s chairman Andrew Bell said in a trading update.
“We look forward to the confirmation of grant, and to renewing progress towards our aim, which is to have a producing gold mine."
Why Red Rock Resources is over the moon
It is not hard to see why Red Rock Resources is over the moon with the news. Last year, the firm was forced to settle a court case with the government which had terminated its mining licence in May, 2015.
The firm did not say why the Ministry of Mining had cancelled its initial mining licences. The company’s licences that were cancelled, SPL122 and SPL202, were issued under the former Mining Act.
The multinational now plans to resume exploration and production of gold in the Migori belt area covering 243 square kilometres.
A previous resource estimate placed gold deposits at the South West Kenya site at 1.2 million ounces that would have a market value of Sh187.7 billion ($1.87 billion) based on the current bullion price of about $1,528 (Sh157,000) per ounce.
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