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Friday, 29 June 2012

Ministry of Energy - Kenya calls for Expression of interest for the concessioning of Mui Basin Coal Block A & B

The Ministry of Energy(Kenya) is calling for expression of interest for the concessioning of Mui Basin Coal Blocks A & B. If you are interested in this investment please have a look at this link:

Block C & D are already being developed by a private Chinese company, Jingu Group via its subsidiary Fenxi Industry Mining Group that won the contract to develop it.

A reliable contact tells me there are plans to put up a 300MW coal power plant in the coastal town of Kilifi to produce electricity from the coal. However, this plan is dogged by several issues such as:

1. Environmental lobbyists protesting against the pollution of the environment by future coal extracts.
2. Locals residents of the Mui basin wanting international standards to be applied in their compensation,  resettlement and profit sharing i.e. 10% of the profits of the Chinese company.

This is a prudent move as they are taking a leaf from the South African Black Empowerment policy that stipulates that 25% of profits from mineral extractions go to local communities around the mines.