Canadian gold mining firm is closing its operations in Mozambique to concentrate its activities of gold prospecting in Western Kenya

Reports Leo Odera Omolo

A Canadian owned gold prospecting firm, African Queen Mines Ltd is reported to be in the process of quitting Mozambique to focus on its gold exploration activities in Western Kenya after reviewing its portfolio of exploration properties in South West and East Africa.

The move is expected to reduce the company’s operational costs and prioritize projects for development in 2013.

The firm’s Chief Executive Irwin Olian was recently quoted as saying that African Queen Mines Limited will halt development of King Solomon project in Mozambique to concentrate its activities in Western Kenya regions of Rongo and Ugunja gold fields in Kenya and Noyem and Nyadonam in Ghana.

The discovery of large deposits of gold reserves in Western Kenya in the past five years continues to attract foreign interests with several international mining firms taking acreage.

Statistic show that in 2010, Kenya earned Kshs 6’3 billion {USD 72.9 million) from the sale of five tones of gold – three times mote than the year before, indicating how rapidly the commodity is growing down as the most important export product in the country. and especially focusing on the Western Kenyan regions.

More gold exploration companies such as Africa Barrixck,Linear Metals, Red Rocks Resopurves and Gold Plat are narrowing down on Kenya and especially focusing on the country’s Western regions.

Last November, London based African Barrick Gold plc acquired mineral prospecting area in Western Kenya from Aviva mining Limited,a firm which is wholly owned Cubstation of the Monorovia Stock Exchange quotes Aviva.

Recent survey by the government and private companies have revealed gold deposits around Migori and \Kakamega Counties in Western Kenya.

However, the gold prospecting ground in many parts of Western Kenya might not be the fertile ground for business following the recent rising in concerted agitation by the local miners, particularly the indignant Kenya, who felt that foreign companies were out to exploit the country’s minerals while not making any meaningful return to the |Kenya | Treasury.

There is discontent by local small scale miners in Migori area, which has recently led to the revocation of one company’s prospecting license. the firm, Mid Migori gold mines Limited, has been in conflict of interests between the local miners and politicians, who have been accusing them of dishonesty.

There were accusation that Mid-Migori, a firm which has been in exploration work in the area for the last ten years, was actually prospecting gold and exporting its product by road via the neighboring Tanzania without having gone through the country taxation system under the Kenya Revenue Authority. The conflict also is with the local Member of parliament Edick Omondi Anyanga, and in September last year a team of Parliamentary Select Committee on minerals and natural resources visited Migori area and held talks with the local and foreign miners. He committee had recommended the revocation of Mid-Migori Gold Mines, though one of its manager later wrote from London suggesting the change of names and accused the former area MP of under mining its activities in the area.

The local miners through the managing director of Migori Mining Company limited, a self-help group comprising local and small scale miners Mr Timon Oliewo Sure, a Kenyan mine engineer with the vast experience in gold mining gained after long service in South African gold mines came out in full support of the local MP insisting that the MP had their mandate to speak on behalf of the much exploited local miners.

Kenya is not benefiting from its abundant minerals because of illicit dealing and rackets of exporting the commodity secretly.

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