Jump to content

Kenya Fluorspar Company

Add links
From Wikipedia, the free encyclopedia

This is an old revision of this page, as edited by Ms Kabintie (talk | contribs) at 12:56, 2 July 2024. The present address (URL) is a permanent link to this revision, which may differ significantly from the current revision.

Kenya Fluorspar Company
Company typePrivately held company
IndustryMining
Founded1971 (as Fluorspar Company of Kenya)
Defunct2018
HeadquartersKimwarer, Elgeyo-Marakwet County, Kenya
Area served
Worldwide
Key people
Charles Field-Marsham (chairman and CEO)
ProductsFluorite
Websitekenyafluorspar.com

The Kenya Fluorspar Company is a mining company in Kenya, located in Kimwarer, a village in the southern part of the Kerio Valley in Elgeyo-Marakwet County, [1] that was among the few large-scale mining and metallurgical operations in Kenya, and ranked among the country’s leading foreign exchange earners. It operated as a state corporation between 1971 and 1997 and as a private company between 1997 and 2018.

Fluorspar is mined to produce hydrofluoric acid, which is used in various applications such as in refrigerants, herbicides, pharmaceuticals, high-octane gasoline, aluminum, plastics, electrical components, fluorescent light bulbs, ceramic production and optical lens production. It is also used in the manufacture of steel, air conditioning systems, and glass fiber[2].

History

Fluorspar deposits were first discovered in 1967 in Kenya's Kerio Valley region, in present day Elgeyo-Marakwet county. and the Kenyan government established the Fluorspar Company of Kenya to exploit them on a large scale. The Kenyan government established the  in 1971 to exploit these deposits on a large scale. To carry out this exploration Fluorspar Company of Kenya and mining, the government acquired 3,664 hectares (9,000 acres) of land from approximately 1,400 families. The government company was loss making and became insolvent in 1996.

In 1997,  the company had become insolvent due to tough trading conditions since China had entered the fluorspar market, increasing competition causing unsustainable falling prices. The removal of the export compensation mechanism  by the Government of Kenya in line with Kenya’s Economic Reforms 1996-1998, was also a key contributor to the company’s collapse[3].

In accordance with the Economic Reforms the Fluorspar Company of Kenya was privatized, Canadian entrepreneur, Charles Field-Marsham, purchased Kenya Fluorspar Company following an open tender process and revived Fluorspar mining in the country. Under the 1987 Mining Act the newly formed privatized Kenya Fluorspar Company Limited was granted a Mining Operating Licence and Special Mining Lease for a period of 21 years ending in March 2018, entitling the company to carry out all mining operations and exploratory drilling in the 3,664 hectares mine lease area[4].

Kenya Fluorspar Company Ltd. halted its mining operations in February 2009 due to an economic downturn and increased competition from global markets, laying off 190 workers, but it resumed operations in June 2010. In 2013, China accounted for 64.2 per cent of global flurospar production, Mongolia 5.2 per cent, South Africa 2.7 per cent, Spain 1.6 per cent and the rest of the world 7.8 per cent[5]. Operations were scaled down in June 2015, with the company laying off 75 workers and attempting to sell its existing fluorspar stock.[6][7]

In February 2016, the company announced that it would halt operations again, citing weak global fluorspar demands. By June, the company had halted its operations and laid off approximately 300 directly employed workers.[8][9] The company's land lease expired in March 2018 and was not renewed.[10] In April 2018, control of the company's mine and various assets reverted to the Kenyan government.[11]

In January 2018, it was announced that the Kenyan government set up a task force to see out the compensation of over 4,000 land owners who were displaced to make way for the then Government-owned company's mining activities in the 1970s.[12] However, disputes among local community members over the mode of compensation, with some seeking alternative land and others demanding money, as well as disagreements between the local community and state officials over the amount owed, delayed the process.[13]

Operations

Kenya Fluorspar's mining operations took place on land leased to the company by the Government of Kenya. The land was acquired in 1976 through a compulsory purchase order and compensation paid by the government.[14] Much of its product was exported to India and Europe.[15] In 2005, production was valued at $14 million.[16]

In March 2012, the company completed a de-bottlenecking of its processing plant to increase its total capacity to 120,000 tonnes, up from 108,000 tonnes in 2011.[17]

The company asserted that it had taken various steps to address environmental concerns, such as through dust and spillage reduction, water purification and recycling, and tree planting.[18] The company was compliant with NEMA requirements and held a certificate of environmental compliance.[19]

Community work and sponsorship

Kenya Fluorspar Company Ltd. was a leading employer in the area with 400 workers. Its corporate social responsibilities program provided health, education and other facilities to its employees and the local community.[20]

Corporate social responsibility

In 2008, the company sponsored an annual 10 km road running competition in Kerio Valley. It also sponsored the football team Fluorspar F.C., which competed in the Nationwide League.[21][22]

In August 2012, the company launched a taekwondo gym known as the Kenya Fluorspar Centre in Kerio Valley.[23]

See also

References

  1. ^ "Kenya inks Sh4.8bn deal to revive fluorspar mining in Kerio Valley". Nation. 2024-02-18. Retrieved 2024-06-28.
  2. ^ "Fluorspar Statistics and Information | U.S. Geological Survey". www.usgs.gov. Retrieved 2024-07-01.
  3. ^ "Fluorspar company in Kenya halts operations, lays off workers". The East African. Retrieved 2019-06-16.
  4. ^ "The East African: - News|Flourspar enters European market despite Chinese competition". 2011-07-20. Archived from the original on 2011-07-20. Retrieved 2019-06-16.
  5. ^ https://www.theeastafrican.co.ke/tea/business/fluorspar-company-in-kenya-halts-operations-lays-off-workers--1337396
  6. ^ "Kenya flourspar company resumes mining operations". The Standard. Retrieved 2019-06-16.
  7. ^ "Kenyans to lose jobs in firm's closure". Daily Nation. Retrieved 2019-06-16.
  8. ^ "Kenya Fluorspar halts operations, sends home all staff". Capital Business. 2016-02-18. Retrieved 2019-06-16.
  9. ^ "Kenya Flourspar Company shuts down tomorrow". The Star. Retrieved 2019-06-16.
  10. ^ "Battle for compensation as flourspar mining firm exits". Business Daily. October 14, 2018. Retrieved 2019-06-16.
  11. ^ "Fluorspar: Kenya Fluorspar ends Kerio Valley mine operations". Roskill. Retrieved 2020-02-12.
  12. ^ Kibor, Fred. "Kerio Valley families displaced by fluorspar firm to get compensation". The Standard. Retrieved 2019-06-16.
  13. ^ "Fresh dispute over pay stalls bid to revive fluorspar mining". Daily Nation. Retrieved 2019-06-16.
  14. ^ "Kenya Fluorspar Company Ltd (KFC) | Properties for sale and to let". 2013-06-19. Archived from the original on 2013-06-19. Retrieved 2019-06-17.
  15. ^ "Fluorspar Statistics and Information". www.usgs.gov. Retrieved 2019-06-17.
  16. ^ "Flourspar mining set to be the real big earner". Daily Nation. Retrieved 2019-06-17.
  17. ^ Hodge, Brian (October 2012). "Fluorspar illuminated" (PDF). Industrial Minerals.
  18. ^ "Environment". 2013-06-25. Archived from the original on 2013-06-25. Retrieved 2019-06-17.
  19. ^ "Kenya Fluorspar Company-NEMA Compliance and Environmental Policy – Kenya Document Exchange". 2013-09-02. Archived from the original on 2013-09-02. Retrieved 2019-06-17.
  20. ^ The East African, September 15, 2008: Flourspar enters European market despite Chinese competition (page 2) Archived 2011-07-20 at the Wayback Machine
  21. ^ "iaaf.org - Kibet and Kibarus overcome hot and humid conditions to win 10km in Eldoret". 2008-09-22. Archived from the original on 2008-09-22. Retrieved 2019-06-17.
  22. ^ "Kenya Football .:. Story - Nationwide Updates: Afc Leopards Tops Zone A". 2010-01-02. Archived from the original on 2010-01-02. Retrieved 2019-06-17.
  23. ^ "World-class gym for Kerio Valley". Daily Nation. Retrieved 2019-06-17.
Retrieved from "https://en.wikipedia.org/w/index.php?title=Kenya_Fluorspar_Company&oldid=1232192660"