Government targets higher royalties from mining sector

The government says it will soon push for a larger public share of the mineral wealth. Officials on Monday said the government will seek nearly 20 per cent of the cash made by big miners, mostly foreigners, through higher royalties and a new proposal to secure government stake in mining companies.

The government is seeking to increase the royalty rates, currently ranging between three per cent and five per cent, depending on the mineral’s worth in line with the proposed new mining law. The Mining Bill 2013 has left the royalty rates open to government policy although it demands a larger public share of the wealth.

“The royalties are going to be as high as between three per cent and 10 per cent,” said Richard Ekai Titus, the principal secretary for Mining. Currently setting of the rates is subject to investment agreements with the mining firms where other issues such as concession agreements and tax are agreed.

This means precious minerals fetching premium prices in global markets may attract higher royalty compared to industrial minerals such as fluorspar and gypsum that are largely used locally

@architect I saw this article and, was to come back to read and comment about it on the comments section but clearly i had other things that were more pressing.

Here is a report by PWC on taxation..I havent seen any royalty that is over 15% depending on what is being mined http://www.pwc.com/gx/en...ther-mining_taxes.jhtml

What Australia takes as royalties http://www.bloomberg.com...-rare-earth-mining.html

If Kenya can be a pioneer in getting 20% on royalties then well and good.

Just bumped into this article on the Sub-Standard which is also a good read. http://www.standardmedia...ining-deal-is-way-to-go

Balala revokes 31 mining lincenses

Does this include the famous oil?

Another case....on Wednesday GO is representing some canadian firm on this....

who is G.O = George Oraro