10 global mining firms are all suing Kenya over the government’s decision to cancel the firms’ licences to operate in the country. According to the International Centre for Settlement of Investments Disputes (ICSID), the lawsuits seek a total of $3.2 billion in compensation.
The largest of the suits, a $2 billion claim, was brought forth by Cortec Kenya Limited. The company says the Kenyan government revoked its licence to prospect at a site in Kwale County shortly after it obtained a National Management Authority permit. The company had also announced a plan to invest $434 million in the Kwale County venture.
According to the government, the process of granting Cortec’s 21-year-old license violated procedure and also violated regulations that banned exploration of minerals in a gazetted forest.
Another company, WalAm, suffered a similar fate in 2012 when the Kenyan government accused them of breaching the contract terms in regard to construction of plants.
Trade Principal Secretary Chris Kiptoo says the decisions were taken to protect the environment, public health, avert taxation disputes as well as cool down tempers among resident communities who were to be evicted paving way for the projects.
Other firms that lost licences include Sirmonet Mineral Kenya, Yongtai Mining Company, Balham Trading Company, Ololunga Mining and Industrials as well as AQ Kenya Gold Ltd, the East African reports.
