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{
"id": 1518731,
"url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1518731/?format=api",
"text_counter": 196,
"type": "speech",
"speaker_name": "Ikolomani, ODM",
"speaker_title": "Hon. Benard Shinali",
"speaker": null,
"content": "THAT, the Gold Processing Bill, (National Assembly Bill No. 46 of 2023), be now read a Second Time. Hon. Temporary Speaker, when I introduced this Gold Processing Bill, I did it with the main purpose of creating a legal and institutional framework for gold processing in Kenya. The import of this Bill is to revise the scope and application of the Mining Act (No. 12 of 2016), so as to exclude the exploration and exploitation of gold from the ambit of the Mining Act. The objective of the Bill seeks to create a legal framework for collecting, purifying, smelting, fabricating, homogenising, sampling, registering, monitoring and transporting of gold or gold products. Additionally, the Bill will establish an institutional framework for collecting, purifying, smelting, fabricating, homogenising, sampling, registering, monitoring, and transporting of gold or gold products. Specifically, the Bill sets out three things. First, is to establish regulatory mechanism of gold processing activity. Second, is to create the Gold Processing Corporation. Lastly, is to align Kenya's gold processing with international standards. Part II of the Bill seeks to establish the Gold Processing Corporation to oversee gold processing that entails collecting, purifying, smelting, fabricating, homogenising, sampling, registering, monitoring and transporting of gold or gold products. The corporation will also establish and regulate Kenya's national gold standards and facilitate international accreditation of gold refineries, while producing research for the development of gold mining value chain in Kenya. With the current processing results showing presence of huge deposits of gold in Kenya, we are going to see investment of large-scale miners. Miners in Kenya largely operate without environmental and mining permits as a result of unrealistic and improper policies and regulations, as well as lack of systems to enforce the current laws on this sector. This is coupled with lack of incentives to miners to comply with the legal requirements. This Bill seeks to provide for proper infrastructure for enforcement and incentives for artisanal small-scale miners and large-scale miners. It will address the gap between policy and reality in the sector. Hon. Temporary Speaker, the establishment of an institutional framework ensures oversight, better resource management and policy implementation, while fostering collaboration across county governments and the National Government in gold processing and resource policies. Formalisation speaks not only to presence of legislation, but the activation and enforcement of it by authorities and the extent of their success. Activation of such a policy depends to a large extent, on complex institutional administrative structures at the national and local levels, which this Bill provides. It is establishing a Gold Processing Corporation for persons and companies that are licensed to operate gold processing plants in various parts of Kenya. With this kind of legislation framework, Kenya will operationalise its first international accredited gold refinery. Highly processed gold can be sold in high-premium markets internationally. Hon. Temporary Speaker, in a comparative jurisdictions analysis, it is established that Russia, the fifth largest producer of gold globally, recently passed a Bill on gold mining free delivery thus adding on its general mining laws to cover, specifically, the regulation of gold mining and processing. The country saw the need to encourage individual miners to get into the business of gold mining and processing to increase revenues from gold production and increase job creation. Similarly, Sudan has seen gold contributions to the GDP increase to over 20 per cent up from 1 per cent after the establishment of a gold refinery to handle gold processing in the country. Currently, gold accounts for more than half of Sudan's exports, making it the fourth largest producer in Africa. What is happening in Russia and Sudan is due to the realisation that countries with rich gold reserves provide management through their treasury and enjoy the critical role it plays in supporting countries' economies and stabilising their currency. Comprehensive regulations of The electronic version of the Official Hansard Report is for information purposesonly. A certified version of this Report can be obtained from the Hansard Editor."
}