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What ails Kenya’s mining sector

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Kenya’s mining sector has historically been a low-profile sector, known primarily to those working in the industry. However, recent civil unrest and growing calls from Generation Z for better governance have thrust the sector into the spotlight, exposing the vast mineral wealth beneath our feet.

This new interest is not only a clarion call for the potential profitability of this sector, but also a painful reminder of the significant costs and challenges associated with mineral discovery, extraction and refining.

Mineral exploration in Kenya since independence has been mainly carried out by private companies. Over the years, these companies have identified various mineral deposits throughout the country.

The 2022 national aerial survey, which revealed 970 distinct anomalies, highlighted untapped potential. These anomalies—unusual findings in soil or rock—point to potentially valuable mineral deposits, pointing geologists to where they can explore further. However, the journey from anomaly to a viable mining project is fraught with financial and technical challenges.

The cost of detailed exploration of the ground to determine the abundance and quality of minerals is high, and requires sophisticated machinery and highly skilled personnel. The viability of any mining project depends largely on the accuracy of these exploration results. Insufficient data on recoverable volumes and mineral grades can render a project uneconomical, emphasizing the need for careful and expensive exploration efforts.

Once a viable mineral deposit is confirmed, the extraction phase presents its own set of hurdles. This phase requires significant investments in land acquisition, legal documentation, machinery, and human resources.

Setting up a medium to large-scale mining operation is a daunting task, with payback periods ranging from three to ten years. A critical barrier to such operations in Kenya is the erratic and insufficient power supply.

Reliable and ample power is critical to mining machinery and overall operational efficiency. Unfortunately, Kenya’s current power infrastructure is not equipped to support large-scale mining operations, which is a clear warning sign for potential investors.

The refining process is the final, but crucial, stage. This stage requires massive processing facilities, advanced technology, and the safe disposal of hazardous by-products, known as tailings. Refining is complex and expensive, especially for industrial and strategic metals.

For example, the 17 rare earth minerals found locally are relatively easy to extract, but they require complex and expensive refining processes due to their similar chemical properties. This requires significant energy, sophisticated machinery, and a comprehensive plan for the disposal of hazardous waste. Other minerals such as limestone, gypsum, iron ore, and coltan face similar refining challenges, which can severely impact the overall profitability of mining operations.

Mining is a capital-intensive venture with the final product representing a small portion of the total investment. Kenya faces three major issues: inadequate exploration capacity, insufficient power for operations, and limited refining capacity. Addressing these challenges is critical if Kenya is to unlock the full economic potential of its mineral resources.

This is where Kenya’s vibrant and passionate Generation Z can make a transformative impact. Their fight for better governance, transparency and job opportunities resonates perfectly with the needs of the mining sector.

Generation Z’s quest for change could push governments to improve infrastructure, especially in the energy sector, making it more attractive for mining investments. Their demand for job opportunities could be met by creating a robust mining sector that provides jobs at various stages – from exploration to extraction to refining.

Moreover, Gen Z’s tech-savvy and innovative mindset can introduce new technologies and methodologies to the mining process, enhancing efficiency and reducing costs. Their environmental awareness can ensure the sustainability of mining operations, balancing economic growth with environmental conservation.

Kenya’s untapped mineral wealth holds the promise of significant economic growth. However, realizing this potential requires addressing current challenges related to exploration, energy and refining.

Generation Z’s enthusiasm and demands for a better Kenya can drive much-needed change, transforming the mining sector into a cornerstone of Kenya’s economic future. Synergy between government, the private sector and the youth population can elevate Kenya’s mining industry, creating a thriving and sustainable economic landscape. Working with artisanal and small-scale gold miners in Migori.

The author is a mining and mineral processing engineer.

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