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{
    "id": 1012455,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1012455/?format=api",
    "text_counter": 134,
    "type": "speech",
    "speaker_name": "Mathioya, JP",
    "speaker_title": "Hon. Peter Kimaru",
    "speaker": {
        "id": 13427,
        "legal_name": "Peter Kimari Kihara",
        "slug": "peter-kimari-kihara-2"
    },
    "content": "the regulatory body called Standards of Disclosure for Mineral Projects that regulates resource deposits classification. The realisable value of the gold has not yet been determined, that is, the likely value of the extracted gold less the cost of extracting it. Significantly, more exploration work is required to determine if the gold deposit is economically viable, that is, if it would make a profit if extracted. If it happens that the gold in the ground would not make a profit, it will not be mined and, therefore, the value of the gold while still on the ground is meaningless. If the discovered resource is proved to be economically viable and mined, it would be done so using underground mining methods given the ore bodies characteristics delineated so far. If other gold discoveries were proved viable in future, the mining methods would depend on the physical parameters of the deposits discovered. On the ownership of Acacia Exploration Kenya Limited that has been awarded the rights to prospect gold in the Lihanda Gold Corridor and whether it has any local shareholding, the Ministry stated that Acacia Exploration Kenya Limited is wholly owned by Shanta Gold - a London Stock Exchange listed company. The company has no local shareholding. On the formula and structure the Ministry intends to use in ensuring that there is equitable shareholding of revenue and royalties between the national Government, the county governments and the local communities within the Lihanda Gold Corridor once economic exploration of gold commences, the Ministry indicated that in ensuring that there is equitable sharing of royalties, Section 183 (5) of the Mining Act No.12 of 2016 provides that royalties are shared proportionately at 70 per cent to the national Government, 20 per cent to the county government and 10 per cent to the communities where the mining operations occur. Currently, all revenues are remitted to the Consolidated Fund. However, in terms of order of operations and the royalty sharing formula, and in accordance with the Constitution, the Ministry of Petroleum and Mining, in conjunction with other State agencies - including the National Treasury - has drafted the Mineral Royalty Fund Regulations under the Public Finance Management Act for purposes of disbursement of the 20 per cent and the 10 per cent royalty shares to the counties and communities affected by mining operations, as well as providing guidelines on the use of the shared royalties. Further, to ensure more benefits to the communities from the mining operations, the Mining Act provides the following:"
}