Kenya set to resume fluorspar exports after 8-year hiatus
Kenya is poised for a historic re-entry into the lucrative international fluorspar market by June this year after confirmatory findings of millions of tons of high-grade, commercially viable fluorspar deposits in the Kimwarer area in Elgeyo Marakwet County.
The geological data from exploratory works by Sofax Fluorspar, the investor, indicated the potential for hundreds of millions of tons of fluorspar mineral with confirmed commercially viable resources estimated to be at least 18 million tons.
The Principal Secretary (PS) for the State Department for Mining, Elijah Mwangi, stated that Kenya was determined to reclaim her slot as a leading fluorspar producer in Africa, joining the league of the continent’s prime exporters, including South Africa and Morocco.
Speaking during an inspection tour at the Fluorspar Processing Plant to assess the progress of revival of the facility, the PS noted that the repair works for revamping and rehabilitating the fluorspar processing plant were being accelerated to fast-track Kenya’s commencement in the exportation of the mineral to allow the country to reap from the surging global demand for the product.
“We want to expedite the revival of this facility and allow Kenya to reclaim her slot as a leading exporter of fluorspar to the international mineral market. This is a goal we are achieving as soon as possible,” he said.
The revival of the Fluorspar Processing Plant at a cost of Ksh4.8 billion is one of the landmark projects in the mining sector. The production proper is expected to start in June, marking the triumphant return of Kenya into the fluorspar export business after an eight-year hiatus since 2017, when the country exited the global fluorspar market following a severe downturn in international fluorspar prices.
The looming reopening of the processing plant has triggered expected excitement within the sector, with mining experts predicting Kenya’s substantial gains from the high demand for fluorspar by developed nations.
The Director of Geological Services, Enoch Kipseba, says the gradual global shift towards the adoption of green energy in spearheading the growth in technology and innovation has seen a sharp spike in demand for high-grade fluorspar, particularly in the manufacturing of modern batteries for powering electric vehicles.
“The global rush and transition into clean energy is a welcome boost to the fluorspar market, and Kenya is set to reclaim her market share in the export trade,” he explained.
Although South Africa and Morocco are the current dominant players in fluorspar mining in Africa, Kenya’s entry is expected to trigger significant excitement, particularly owing to the high quality of her fluorspar which has fewer impurities.
The investor, Sofax Fluorspar, says the production will start in June after the repair and test-running of the mining and processing equipment. The firm is projecting to hit a daily processing capacity of 500 tons with an estimated annual fluorspar output of 120,000 tons.
While expressing confidence in the market trends, John Masanda, Sofax Regional Director, said the fluorspar demand across the world was likely to keep rising in the near future to meet the huge consumption appetite for the mineral.
According to Sofax, comprehensive geological works done in the 9,000 acres under the project have identified 12 major sites with potential for yielding high-grade fluorspar. The investor says they have deployed digitized systems for monitoring price trends in the international market, which will determine production output.
“Our production will be determined by the market prices. We are confident with the current and future outlook that promises to give us a favourable climate in the global fluorspar market,” he said.
The resumption of fluorspar mining in Kenya marks a monumental turning point for the government towards addressing critical economic issues in the country, including job creation, promotion of exports to enhance the balance of trade and improvement of the socioeconomic welfare of the communities within the region.
The PS says the revival of the fluorspar processing plant will create over 300 direct employment opportunities and 2,500 indirectly. He also noted that through the Community Development Agreement (CDA), the local community will receive one per cent of the company’s gross sales for priority projects.
“This revival of this facility is not only about the investor but more about the community’s welfare. We expect the residents to enjoy enhanced benefits of their mineral resource,” he said.
He stated that the current reforms in the sector were intended to incentivize and encourage more players in the sector to attract more strategic investments.
As part of getting ready for exporting the inaugural consignment to the market, the company is in the process of acquiring a berth from Kenya Ports Authority to facilitate its shipping operations.