Kenya’s mining and extractives industry is experiencing a significant upturn, buoyed by recent reforms aimed at bolstering sector revenues and capitalizing on its vast mineral wealth. The country’s proactive approach, from legal overhauls to comprehensive resource mapping, underscores a robust commitment to harnessing new revenue streams.
A recent breakthrough in Coltan discovery marks a pivotal moment, with Kenya Broadcasting Corporation confirming the availability of this highly prized mineral. Minister of Mining, Salim Mvurya, hailed the find as a potential economic game-changer, though precise quantities are yet to be determined.
Coltan, short for columbite-tantalite, is a vital metallic ore revered for its extraction of niobium and tantalum. This mineral, encompassing columbite and tantalite, fuels various industries, particularly in the production of tantalum capacitors essential for mobile phones, computers, automotive electronics, and cameras. The Democratic Republic of the Congo is a key player in coltan mining, showcasing its widespread presence and significant contribution to global markets.
The discovery is the culmination of the Kenya Nationwide Airborne Geophysical Survey (KNAGS), initiated in 2019. This extensive survey, covering the entire Kenyan territory, has unearthed a treasure trove of minerals, adding to Kenya’s existing portfolio of titanium, gold, and copper deposits.
This discovery is anticipated to bring economic benefits, create job opportunities, and give a boost to Kenya’s mining industry, as the global demand for coltan is rapidly increasing and its price, averaging $48 per kg, depends on the tantalum content.
Despite this wealth, Kenya’s mining revenues have historically lagged, averaging just over US$100 million annually. However, projections by the Kenya Chamber of Mines foresee transformative potential, estimating a sectoral contribution of 10% to GDP and over US$10 billion by 2030.
Acknowledging this potential, Kenya has embarked on sweeping reforms, including lifting a four-year mining license ban and auditing mineral rights holders.
