Construction of the first gold refinery in the country has started in Kakamega county.
Construction of the Sh3 billion Kakamega Gold Refinery is scheduled to be completed by May next year.
The refinery is expected to be a game changer in employment creation and value addition in the mining industry, not only in Kakamega county and the Lake Region Economic Bloc but the entire nation and the East African region.
Kakamega Governor Wycliffe Oparanya presided over the groundbreaking in Litambitsa, Ikolomani subcounty, on Monday.
The launch of the refinery was to be presided over by President Uhuru Kenyatta in June, but the visit was postponed twice.
President Kenyatta issued a presidential directive to the mining department to ensure the promotion of value addition in the sector targeting several minerals.
They include gemstone processing in Kisii, granite in Vihiga and gemstone in Taita Taveta.
Oparanya said the establishment of the refinery will facilitate and ensure economic exploitation of gold within the Western region and the Lirhanda Corridor.
The governor said once operational, the refinery is expected to process gold mined by artisanal miners in Kenya as well as small-scale and large-scale mining companies in East Africa.
“The revelation of a feasibility study that commenced in March 2019 is that there is potential for commercial exploitation of gold in Kakamega county, but currently exists only in small-scale and artisanal miners who are working on old mines and alluvial deposits,” he said.
The factory will comprise a processing plant to separate gold from the ore, a refinery to purify the gold, an office block and a training centre on 12.25 acres.
The Acacia Mining Company, which has been prospecting for gold in Kakamega for the last five years, concluded a survey that established commercial viability of gold deposits in the county.
The survey revealed that there exists an estimated gold occurrence of 1.1 million ounces in Isulu, Bushiangala and Rosterman in Ikolomani constituency.
The company discovered high-grade gold deposits and estimated that the mines at the Lirhanda Corridor in Kakamega have a resource of 1.31 million ounces of gold, whose grade is one of the highest in Africa and estimated at Sh 171 billion.
Kakamega county has the oldest gold mining sites dating from the early 1930s.
Mining activities in the area ceased in the 1950s due to various reasons including depletion of economic reserves, technical operational problems, increasing production costs, the effects of the Second World War and the onset of the struggle for Independence.
Other counties where gold occurrences have been registered include Turkana, West Pokot, Samburu, Narok, Nandi, Siaya, Migori, Homa Bay and Marsabit.
Oparanya said mining has sustained a significant proportion of residents for many years.
The governor, however, said the sector is riddled with brokers and middlemen who exploit artisanal miners, adding that the industry also lacks transparency in the gold hardware markets.
He said artisanal miners in the county face challenges in accessing licences.
“We need to formulate a strategy to ensure that people engaging in gold mining get optimal economic gains, access proper equipment and technology, enhance collateral to access credit facilities and make transparent systems for marketing final products,” Oparanya said.
He said the county government will register artisanal miners in co-operatives to guarantee collateral, timely communication of crucial information, as well as increased access to lucrative markets.
“This momentous refinery will revolutionise the gold mining sector in Kakamega county and the country and make the county a key mineral processing hub in eastern Africa,” he said.
Gold is used for manufacturing jewellery, electronics, medical and dentistry equipment. It is also used for establishing monetary standards and as a risk diversification instrument globally.
Oparanya said other industries will come up once the refinery is operational.
"This gold mining should contribute to the industrial growth of Kakamega county through structured development of value addition, supply chain and transfer of skills for our people. This will lead to greater mineral profiling by attracting diverse investment opportunities in devolved units," he said.
The governor said he nominated the chairman of the artisanal mining committee last year as a requirement of the Mining Act 2016.
He said the committee has been gazetted by the Cabinet secretary for Mining and Petroleum.
“The committee will be instrumental in regulating the artisanal mining sector in the county and advising the government on matters of licensing, optimal and sustainable utilisation of minerals.
Edited by A.N
