This archive report was first published on 10 May 2020.
Kenya's mining sector faced a tough year in 2019, with earnings from minerals declining by 5.5% to Sh29 billion, according to data from the Kenya National Bureau of Statistics (KNBS). This decline was seen in various minerals, including soda ash, crushed refined soda, and gold.
KNBS reported that the value of most minerals compared to 2018 values showed a notable decline. The total earnings from mineral production dropped from Sh30.8 billion in 2018 to Sh29.1 billion in 2019. The production of major minerals such as titanium ore minerals of ilmenite and rutile also declined by 24% and 12.6%, respectively.
However, some minerals like salt and cut gemstones showed an increase in production, with salt production growing by 6.3% and cut gemstones production growing by 36.5%. The value of titanium ores produced in Kwale reduced to Sh19.6 billion in 2019 from Sh20.3 billion.
Base Titanium, which operates the Kwale mine, attributed the reduction in titanium ore production to the migration from one end of the mine to another following depletion of resources. The company stated that the mining volume was lower due to the transition to the South Dune ore body following depletion of the Central Dune.
Gold production was also affected when one of the major producers, Goldplat, put its mines under care and maintenance as it sought a strategic partner. This led to a decline in earnings from gold from Sh2 billion in 2018 to Sh1.4 billion in 2019.
Additionally, soda ash earnings fell after a cutback in production due to a dispute between Tata Chemicals and Kajiado County over land rates. Earnings from soda ash dipped to Sh5.1 billion in 2019 from Sh6.9 billion.
