How Sh6 trillion mining licence was given to a Canadian firm for a song

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Jacob Juma.

At the burial of Jacob Juma — everyone thought he was a whistle-blower and an astute businessman. His critics thought he was a vicious smart alec, corrupt and a busybody.
Jacob Juma had friends in high places: On his speed dial were politicians Raila Odinga, Moses Wetang’ula, Cyrus Jirongo and businessman Jimi Wanjigi among many others. They spoke positively about him — after Mr Juma was shot dead by unknown people in Nairobi.
ARDENT CRITIC
Mr Juma was an ardent critic of President Uhuru Kenyatta’s government and his twitter handle @Kabetes displayed his anger — a no holds barred salvo on lawyers, magistrates and politicians who blocked his path.
In the world of business, Mr Juma was not very clean. He was restless, boisterous and litigious.
But how this businessman left high and dry a Canadian firm that had given him a colossal 30 per cent shareholding in the international mining company was a story that would emerge later after the firm lost a licence it had acquired through dubious means to mine niobium in Kwale County. That was this week.
RADIOACTIVITY
Before Jacob Juma came to the scene, David Anderson, the managing director of the local subsidiary of Canadian Pacific Wildcat Resources, had been told by a Mr Robbie Louw, the CEO of a South African mining company of a Kenyan hill which was rich in niobium and rare earth minerals.
It was not a discovery as such for students of geology had since the 1960s read a paper by P.M Harris on the discovery and recovery of niobium from Mrima Hills. Also, the department of Mines and Geology had in 1966 published a comprehensive report titled ‘The Mrima Hill Niobium Deposit, Coast Province, Kenya’ and which was authored by F. W. Binge and Pieter Joubert. It was also reported that there were traces of radioactivity in the area — meaning that the area could have had minerals such as thorium, actinium, and uranium.
NON-EXISTENT FIRM
He then proceeded to incorporate a Kenyan company, Cortec Mining Kenya Limited (CMK), to start prospecting and was advised by the Commissioner of Mines Lojomon K. Biwott to appoint Harie Ndungu as the agent for the company.
Why the mining commissioner would be the one advising a company on the agent is not clear. But court records indicate that on May 15, 2007, Mr Ndungu applied for a prospecting licence for a company that was not yet incorporated and on the same day he applied, Mr Biwott gave him the licence. That was fast, for a prospector!
While individuals are normally given prospecting permits, they cannot be agents of a non-existent company such as CMK, as it was then. Thus, Mr Ndungu could not have transferred this right to another company.
SEDIMENTARY ROCK
The problem was that Mrima Hill had been closed in 1997 to mining by a previous mining commissioner, Collins Owayo, after it emerged that construction companies had exposed locals to high radiation levels after they built a road using material from the hill.
A University of Nairobi geophysicist Jayanti Patel, who had studied Mrima Hill for long, had published a 1990 study on the hill’s dangerous radioactivity and concluded that radiation levels on some areas of the hill were more than 50 times higher than what scientists consider safe. He warned that the sedimentary rock from the hill should not be used for either building homes or road constructions.
KAYA FOREST
That was the place that Cortec said it had “discovered” niobium — or rather it wanted to prospect for minerals. Cortec would later call a press conference and tell the media that since 2008 it has drilled 7,897 metres on Mrima Hills at a cost of over Sh200 million, with analysis of the drilling leading to the identification of niobium and rare earth deposits.
Cortec said it had engaged a South African geologist, Mike Saner, to conduct the initial prospecting and exploration work at Mrima Hill on its behalf.
But nobody, including prospectors, was allowed inside Mrima Hills because this was designated in May 1989 as a nature reserve which gave it extra protection — more than a forest reserve. It was also gazetted in January 1992 as a national monument for it was a historic Kaya forest, a sacred grove for the Digo community.

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