Gov’t, Tata Chemicals Magadi Form Committee to Resolve Compliance Disputes

The government has agreed with Tata Chemicals Magadi Limited to establish a high-level technical committee to address outstanding compliance concerns following the suspension of operations at the company.

In a statement on Tuesday, September 8, Mining Cabinet Secretary Hassan Joho said the decision was reached after he held a meeting with executives of Tata Chemicals Magadi Limited to discuss the concerns raised by the ministry.

"Following the suspension of operations at Tata Chemicals Magadi Limited, today at my office I led a fruitful engagement with the Company’s executives regarding the compliance concerns we raised as a Ministry," the statement read.

Joho said the committee will bring together senior officials from the Ministry of Mining and the company to facilitate a comprehensive review and timely resolution of the issues.

"To facilitate a comprehensive and timely resolution of the outstanding matters, we agreed to establish a high-level technical committee. 

"The 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," the statement added.

According to Joho, the committee will examine the unresolved compliance matters and submit its findings to the Cabinet Secretary for consideration and further direction.

"The committee will undertake a detailed technical review of the outstanding and unresolved compliance matters, prepare and submit a report to my office for consideration and further direction," the statement further read.

Among the key issues to be addressed are mineral beneficiation and in-country value addition, outstanding community benefits and royalty obligations, and unresolved land matters.

The committee will also consider the opening up of the area for multiple mineral extraction, as well as outstanding matters involving the Kajiado County Government.

On Thursday, September 3, President William Ruto confirmed that he ordered the shutdown of the company.

Speaking in Oloiren, Kajiado County, he said the company had held the license to mine soda ash in Lake Magadi for a hundred years without making sufficient investments in the county or creating enough employment opportunities for locals. 

Ruto noted that Lake Magadi holds significant economic potential that could transform Kajiado and contribute to Kenya’s industrial development.

"We have vast resources at Lake Magadi that can transform Kajiado County and our country, Kenya. That Tata Chemicals company has had a licence for 100 years but has not built anything in Kajiado or employed any people from Kajiado.

"I told them to pack up their things and leave. Let them go. These people come here, take our resources and transport them to India and other countries," he said.

Ruto said the government will issue the Magadi soda ash mining license to a new investor at Lake Magadi under conditions. 

He said the new investor will be required to build a glass manufacturing plant and another plant for manufacturing chemicals in Kajiado. 

"We will bring in a new company, and the condition for that company is that it must establish a major glass manufacturing plant here in Kajiado County, as well as another company to manufacture chemicals," he added.