A British mining firm, Shanta Gold Limited, has announced one of the biggest gold reserves discovered in the country, valued at approximatel...
A British mining firm, Shanta Gold Limited, has announced one of the biggest gold reserves discovered in the country, valued at approximately Sh683 billion in Kakamega County.
The firm projects that approximately 337 acres of land, mostly consisting of privately held properties, will be required, resulting in the relocation of about 800 families.
To tackle this issue, it has identified six potential areas for resettlement covering approximately 1,932 acres, offering displaced families the choice between financial compensation or moving within the same area.
As per an Environmental Impact Assessment (EIA) report submitted to the National Environment Management Authority (NEMA), Shanta Gold's Kenyan branch verified 1.27 million ounces of gold at its Isulu-Bushiangala underground mining project, situated in Kakamega South Sub-county.
The report, titled Shanta Gold West Kenya Feasibility Study: Isulu-Bushiangala Underground Mining Initiative, was developed by KurrentTechnologies Limited in collaboration with South Africa's DigbyWells Environmental.
It details proposals to create a major underground mine at the Musoli and Isulu sites, approximately 55 kilometers northwest of Kisumu.
The Isulu and Bushiangala resources hold 1,270,380 ounces with an average grade of 11.43 grams per tonne of gold," the report mentions, referring to the project as "a positive impact on the region and Kenya overall.
Currently, at market prices, the deposit is worth approximately Sh683 billion, positioning it among the nation's most significant mineral finds.
Shanta Gold Kenya Limited (SGKL), established within the country in 2010, is a fully owned branch of a company listed in London and is requesting NEMA's permission to move forward with the underground mine and processing facility under its current exploration license.
The mine will employ Long Hole Open Stoping (LHOS), a mechanized underground technique that enables the precise removal of ore with minimal impact on the surface.
As per the company, the excavated cavities will be filled with cemented aggregate, minimizing the chances of ground subsidence and deterioration.
Key infrastructure will consist of a processing plant capable of handling 1,500 tonnes per day, a facility for storing tailings, waste rock dumps, administrative buildings, and a power plant with a capacity of 12 megawatts.
"Although the project will lead to significant effects, these will be reduced through corrective actions," the EIA states.
The initiative is economically viable, technically possible, and socially appealing.
SGKL General Manager Jiten Divecha, who approved the report, stated that the company's goal is to establish "a top-tier underground operation that adheres to international safety and environmental standards."
The mine is expected to operate for eight years, although additional exploration might prolong its activities.
The EIA projects a capital expenditure ranging from US$170 million to US$208 million (Sh22–27 billion) along with yearly operational expenses of approximately US$19 million (Sh2.5 billion).
The company anticipates paying royalties of approximately US$4.3–4.7 million (Sh560–610 million) to the government annually, along with US$1.5 million (Sh195 million) as part of the Mineral Development Levy.
Under the Mining (Community Development Agreement) Regulations, Shanta Gold will also distribute 1% of the value of the gold mined directly to local communities.
Kakamega County, recognized for its agricultural activities and small-scale mining, is anticipated to gain employment opportunities and improved infrastructure when the projects start.
The EIA creates hundreds of direct and indirect job opportunities, especially during the construction and production phases.
According to Kenya's Mining Act, 3% of total gold sales will be paid to the national government as royalties. Out of this, 20% will be sent to Kakamega County and 10% will be allocated to local communities via development initiatives.
Local authorities have previously shown hope that the mine will "unleash the economic opportunities in western Kenya," as long as it is handled with care.
Although it holds potential, the project has sparked worries regarding land acquisition, possible relocation, and environmental dangers.
The report states that land will be obtained from both private and public owners in Musoli and Isulu. Certain residents are worried about being forcibly removed, receiving inadequate compensation, and losing their ancestral land.
There is concern and fear regarding forced removals from ancestral territories," notes the EIA. "Participants highlighted the significance of clear communication and active public involvement.
Shanta Gold states that the process of acquiring land will be voluntary and involve negotiations, in accordance with Kenya's Land Act (2012) and the Performance Standards set by the International Finance Corporation (PS5).
Furthermore, a Resettlement Action Plan will oversee compensation and restoration of livelihoods.
Environmental concerns were the main focus during discussions, including inquiries about water usage, dust management, and chemical safety.
The EIA highlights possible dangers to the Yala and Isiukhu river basins, which flow into Lake Victoria. Baseline tests have already revealed elevated levels of nitrates and manganese due to agricultural runoff.
"Ongoing surveillance will take place on streams and rivers both upstream and downstream," the consultants suggest, noting that stormwater management and regulated blasting will be implemented to avoid pollution and vibration-related harm.
It was determined that cyanide, intended for use in processing, will be managed according to global safety regulations.
The research emphasizes the region's ecological and cultural vulnerability, due to its closeness to the Kakamega Forest, one of East Africa's remaining tropical rainforests.
Archaeological studies have discovered ceramic artifacts and sacred Mugumo (fig) trees, which will be protected or moved with respect after discussions with community elders.
The environment is categorized as "critical or endangered," necessitating rigorous measures for biodiversity preservation. Shanta Gold has been advised to restrict land clearing, restore mined areas gradually, and engage local communities in conservation initiatives.
A Human Rights Impact Assessment, following UN standards, highlighted dangers affecting small-scale miners, at-risk populations, and employee well-being.
The report suggests community learning initiatives, gender desks within healthcare centers, and education programs for young people and women to encourage equitable involvement in mining-related positions.
Experts point out that although the Kakamega gold discovery represents a significant economic boost, its long-term viability will rely on environmental awareness and open leadership.
"Assuming all environmental protections are followed, the project will continue to provide advantages to both the local communities and the nation," the EIA states.
NEMA is anticipated to reach a conclusive decision regarding the project's approval following the evaluation of the report. Should it be approved, Shanta Gold will proceed with mine development, possibly establishing Kakamega as Kenya's emerging hub for large-scale gold mining.
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