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Talking points for Cabinet Secretary Hon.

Najib Balala on the status of Mining in the country, Monday 5 th August 2013

Members of the Press Welcome to the Ministry of Mining. I have called you this morning to share with you some very important issues affecting the mining industry in this country. Since the establishment of the new Ministry of Mining and my assumption of office on the 16 th May 2013, several strides have been made in driving Kenyas mining agenda forward, a lot has also happened in the sector , some of which you have reported. The Mining Bill Ladies and gentlemen, after assuming office, I embarked on the process of reviewing the Mining Bill. Through consultations with key stakeholders and the private sector, I am happy to announce here today, that the Bill is now ready to be forwarded to cabinet for consideration and approval. Ladies and gentlemen, the bill seeks to among other things establish the following key institutions: National Mining Corporation (NMC) - Investment arm of the government in the mining sector. It will hold interests on behalf of the government in mining companies. National Mineral Certification Laboratory Minerals and Metals Commodity Exchange Minerals Sovereign fund The Bill also proposes a 10% free carry interest

Licensing Ladies and gentlemen, I have today revoked all licenses (Prospecting, Exploration and Mining), issued between 14th January 2013 and 15th May 2013 (Transition period) This follows a number of complaints regarding the issuance process. Consequently, I hereby appoint a task force to undertake a comprehensive review of all the licenses issued from January 2003 to date. The purpose is to assess the validity of licenses, draft recommendments and provide a report to me to enable me take necessary action within 60 days. The Chairman of the task force is Mr. Mohammed Nyaoga - .

Royalty, Licensing and drilling charges Royalties Ladies and gentlemen, the ministry has reviewed all royalty; Licensing and drilling charges that were previously charged .I will soon gazette new rates applicable to all mining companies. (The proposed charges are attached)

Announcement of Minerals Finds and Results Ladies and gentlemen, I have in the recent past witnessed several roadside announcements by mining companies, regarding discovery of

minerals in various parts of the country. This has created unnecessary expectations from members of the public. I hereby wish to inform all mining companies that prior to making public any results concerning their analyses, projections or estimates; they should provide such information to my office for approval at least 21 days before the date of the intended publication. No company is allowed to go to the media to announce any results as this creates unnecessary and unwanted expectations.

Equal and level playing field Ladies and gentlemen, All the above changes are aimed at ensuring that the Ministry creates a level playing field in the mining industry in the country.

Thank You