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{
"id": 1523012,
"url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1523012/?format=api",
"text_counter": 456,
"type": "speech",
"speaker_name": "Sigor, UDA",
"speaker_title": "Hon. Peter Lochakapong",
"speaker": null,
"content": "mining area, so that the Council of Governors does not just appoint somebody from anywhere. We must add the provision that the person should be from a gold-mining area. That is my thinking concerning that matter. On consideration of applications, Clause 31(g) says: “The applicant's proposal with respect to engaging in community investment is socially responsible.” I have a problem in measuring “socially responsible.” This is where we are coming closer to having a relationship between the person applying for a licence and a community. That, his engaging in community investment must be socially responsible. So, that is something that we must be certain what it is about, so that when we talk about this Bill to our people, we know what is in it that we are passing. Part IV, Clause 36(1) says: “The holder of a processing licence shall enjoy the exclusive right to carry out processing operations in respect of the gold or the gold deposits specified in the licence within the area specified, subject to the provisions of this Act and the terms and conditions set out in the licence.” From my understanding, we will run into problems when somebody will be given an area to operate then he dictates terms and conditions to the people there just because no other person will be allowed to operate there. The people who will be supplying or selling gold to the person with the processing licence will not be allowed to take their gold anywhere else. So, there will be a big problem. Once somebody has been licenced, he will have the exclusive right to carry out processing operations in respect of the gold within the area specified. Clause 36(3) says: “A person appointed by the holder of a processing licence to act as an agent of the holder may exercise the rights of the licencee under the licence, subject to any limitations on the powers of the agent contained in the instrument of appointment.” You know, in this country, mining is largely done by cartels. For example, in West Pokot where I come from, particularly in Sigor, we have illegal mining going on. There is collusion between the illegal miners and people in the Ministry of Mining, right from the regional offices in Eldoret to the headquarters in Nairobi. They undertake these illegal activities with the full knowledge of the people in Nairobi yet they have not satisfied the legal requirements. It is known they do not have mining permits but they are doing mining operations. So, the provision in the Bill that somebody can get a licence and appoint an agent means that people can sit in Nairobi, do their documentation and get everything needed to obtain a processing licence then send people to the area that they will be allocated. That is not going to be good. If somebody gets a processing licence, he should go and do the job that he has been licenced to do. In West Pokot, we must pronounce ourselves on environmental degradation. It must come out clearly in the Bill. I know it is something in some sections..."
},
{
"id": 1523013,
"url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1523013/?format=api",
"text_counter": 457,
"type": "speech",
"speaker_name": "Hon. Peter Kaluma",
"speaker_title": "The Temporary Speaker",
"speaker": {
"id": 1565,
"legal_name": "George Peter Opondo Kaluma",
"slug": "george-peter-opondo-kaluma"
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"content": " You need a minute or two. Give the Member a minute."
},
{
"id": 1523014,
"url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1523014/?format=api",
"text_counter": 458,
"type": "speech",
"speaker_name": "Sigor UDA",
"speaker_title": "Hon. Peter Lochakapong",
"speaker": null,
"content": " Hon. Temporary Speaker, we have to seriously look at the environmental degradation, especially from illegal miners. In West Pokot, we have big challenges. Just as some colleagues have indicated, we may not legislate for every mineral. As we speak, we have the Mining Act, 2016. Now we also have a National Mining Corporation in place. I think it deals with what we call strategic minerals. I want to support. However, we need to talk to Hon. Bernard Shinali and see whether we can talk about certain amendments when we go to the next stage. That is so that we see whether the Bill will solve the problems we have for our people. This is because illegal miners in our areas are exploiting them. 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."
},
{
"id": 1523015,
"url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1523015/?format=api",
"text_counter": 459,
"type": "speech",
"speaker_name": "Sigor UDA",
"speaker_title": "Hon. Peter Lochakapong",
"speaker": null,
"content": "Thank you."
},
{
"id": 1523016,
"url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1523016/?format=api",
"text_counter": 460,
"type": "speech",
"speaker_name": "Hon. Peter Kaluma",
"speaker_title": "The Temporary Speaker",
"speaker": {
"id": 1565,
"legal_name": "George Peter Opondo Kaluma",
"slug": "george-peter-opondo-kaluma"
},
"content": " Lastly, Hon. Timothy Toroitich."
},
{
"id": 1523017,
"url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1523017/?format=api",
"text_counter": 461,
"type": "speech",
"speaker_name": "Marakwet West, Independent",
"speaker_title": "Hon. Timothy Kipchumba",
"speaker": null,
"content": " Thank you for giving me an opportunity to contribute on this very important Bill, the Gold Processing Bill. From the onset, I thank Hon. Bernard Shinali for this very important piece of legislation. My understanding of this legislation is that we are either addressing issues or conflicts will arise out of such legislation. We have the Gold Mining Act of 2016. If you read Clause 4(2) of this legislation, it says that this Act shall prevail in cases of any inconsistency between this Act and any other legislation. The Mining Act of 2016 is the parent mining Act in this country. Look at royalties between the national Government and county governments. The Mining Act of 2016 clearly provides what county governments shall get out of mining activities in a certain county. There are royalties out of a mining in a certain area and county. If the Bill passes to be an Act of Parliament and we say that the Bill shall prevail in cases of an inconsistency with the Mining Act, it defeats the very intention of us passing the Mining Act of 2016 as a House. Those are the issues we shall look at and address when it comes to the Committee of the whole House. Be it as it may, I believe this country is sleeping on its major resources. We need to do much to identify the minerals we have in this country. I believe we can get certain minerals in this country if we are serious to invest in determining where to find them. A county like Turkana and a constituency like Tiaty can sustain themselves if we are serious to invest in the minerals we have. We, as a country, must invest in that area. There are many gold deposits in this country. I usually see men and women collecting gold deposits with their bare hands and some small basins along River Arol in Marakwet West Constituency where I come from. They wash the minerals and sell. I always ask myself what would happen if these people using their bare hands and local techniques to process gold in their primitive or traditional means had gold commercialised. I am very sure we would get deposits that would even fund the economy of this country to some extent. I support the Bill to the extent that it comes to this House in good faith and is not to make Kenya a corridor or transit country for some people to smuggle gold from other parts of Africa. We have been told that there is gold in Kenya. There are people who export gold to other countries. Currently, Kenya is not a gold-mining country but there is a lot of gold that passes through this country. So, I hope that once this Bill is passed in this House, it shall not be used by corrupt elements to smuggle gold from other neighbouring countries and process it as if it is from certain areas of this country, then export it to other countries. I hope that the Bill is not being introduced so that that activity is executed by some few elements. Clause 35 provides that the term of a processing licence shall be for a period not less than 25 years. In my opinion, that should be reviewed. It is not fair that a company is granted a licence for a period not less than 25 years. Further, Clause 35 does not give circumstances under which that licence can be revoked. It should have some limits so that if you give us a blanket of 25 years, then we shall give conditions under which that licence can be revoked. This is because it can be subject to abuse. Be that as it may, to sanitise our mining industry, it is also good to break down the Mining Act (Cap. 306) so that we have sector-specific legislation. Sometime back, there were many reported cases of theft of transformers in this country. I asked Kenya Power the reason behind the rampant theft of transformers in this country. To my shock, I was informed that those who steal transformers extract copper from them. Kenya is not a copper exporting country and we do not process copper in this country for export. Under which circumstances is this copper extracted and exported to other countries? Therefore, if we had a copper processing law in this country, we could address such issues. If we have a Bill that provides for the entire 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."
},
{
"id": 1523018,
"url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1523018/?format=api",
"text_counter": 462,
"type": "speech",
"speaker_name": "Marakwet West, Independent",
"speaker_title": "Hon. Timothy Kipchumba",
"speaker": null,
"content": "process of mining – exploration, processing, to the end product – it will seal some of the loopholes that we experience with extraction of some minerals in this country. Thank you, Hon. Temporary Speaker."
},
{
"id": 1523019,
"url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1523019/?format=api",
"text_counter": 463,
"type": "speech",
"speaker_name": "Hon. Peter Kaluma",
"speaker_title": "The Temporary Speaker",
"speaker": {
"id": 1565,
"legal_name": "George Peter Opondo Kaluma",
"slug": "george-peter-opondo-kaluma"
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"content": " The Mover to reply. Meanwhile, Hon. Peter Masara, approach the Chair."
},
{
"id": 1523020,
"url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1523020/?format=api",
"text_counter": 464,
"type": "speech",
"speaker_name": "Ikolomani, ODM",
"speaker_title": "Hon. Bernard Shinali",
"speaker": null,
"content": " Thank you, Hon. Temporary Speaker. As I reply, I emphasise that once enacted into law, the Gold Processing Bill, 2023, will provide the first ever regulatory framework for gold processing. It will streamline the gold processing sector and help our country to maximise on the benefits of this rare mineral. A vote for this Bill is a vote for its immense economic benefits. First, the Bill will help establish a framework to create jobs by capping illegal gold transportation through our porous borders to black markets, which has led to loss of jobs in our country. Secondly, the regulatory and formalising gold processing in Kenya will generate significant revenue from taxes, licences and royalties. This answers some of the questions that have been raised, that this corporation will fully depend on the Exchequer for its funding. We are only looking for the initial capital and it will be generating its own revenues, hence giving Kenya revenue as I have already indicated. In addition, the establishment of a clear mechanism to track gold and get royalties back to gold-producing areas will spur socio-economic development while enhancing the country's revenue to run various initiatives. As it is, it is not known where gold comes from. So, this Bill provides for the establishment of cooperatives in the local artisanal areas to identify and track back the royalties to where the gold was mined. The framework provided for in the Bill will also attract both local and foreign investment into the country's gold processing sector because there will be a proper framework where business can be done. The passage of the Gold Processing Bill will also institutionalise a robust regulatory and oversight framework to ensure that gold processing activities are conducted in a safe and environmentally friendly manner. The Bill establishes the Gold Processing Corporation that will be responsible for monitoring, compliance and enforcing regulations. This means that it will not be involved in transporting itself, but will be licensing institutions that are qualified to transport, and homogenise. For example, gold refineries will be the actual participants in these activities. This will mitigate against the loopholes that gold dealers have been exploiting at the expense of communities in areas with gold deposits and the country, which continues to lose revenue in the absence of a regulatory framework. The Mining Act 2016, which I participated in passing, should be reviewed. This Bill was sent to the Ministry, and the committee itself looked at it, hence getting this approval. The Bill will also benefit small-scale miners. As a House, we have dealt with issues where artisanal and small-scale miners across the country, who are at the bottom of the pyramid of our gold economy, have suffered for many years. They remain vulnerable to exploitation, illicit gold trafficking, counterfeit gold dealings and fraud. This Bill has the welfare of these small-scale miners in mind. It will protect their rights and interests by addressing illegal trading practices in gold, which denies the maximum returns from gold. The Gold Processing Bill will bring this to an end through the establishment of the Gold Processing Corporation as the regulatory body thereby securing maximum returns and encouraging investor confidence in Kenya’s gold sector. Establishing gold refineries and licensing, which is not provided for in the Mining Act 2016, will provide value addition to our gold. This means that jobs exported to Dubai and other areas will be domiciled in Kenya, and the youth and other participants in this field will get jobs. Further, once passed into law, the Bill will enhance returns to small-scale gold miners through value addition as opposed to the minimum gains that they have been making through 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."
},
{
"id": 1523021,
"url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1523021/?format=api",
"text_counter": 465,
"type": "speech",
"speaker_name": "Ikolomani, ODM",
"speaker_title": "Hon. Bernard Shinali",
"speaker": null,
"content": "unprocessed gold. The law will also support small-scale miners by providing them with access to modern processing facilities and technical assistance, including research. I take this opportunity to thank all Members who have contributed to this Bill and participated by giving me ideas to enrich it. I also thank the Departmental Committee on Environment, Forestry and Mining and the Directorate of Legal Services in the National Assembly who ably helped me to develop this Bill to what it is. I have listened to contributions by Members and keenly noted them. I will be open to further discussion so that we can make this Bill better for it to serve the gold processing sector and the artisanal and small-scale miners. Once more, I thank all Members who have contributed and those willing to propose amendments to this Bill. I will seek them. Hon. Temporary Speaker, I beg to reply and ask Members of this honourable House to pass this Bill into law. Thank you."
}
]
}