22 December 2012

Kenya: Gold Mining Row Erupts in Migori

Gold mining company Mid Migori has dismissed a parliamentary report recommending revocation of its license as baseless.

The Departmental Committee on Lands and Natural Resources report adopted by the house on Wednesday recommended investigations into allegations that the company has been exporting gold through Tanzania disguised as exploratory samples sent for testing, with a view to terminate its operations.

"We would like to state that Mid Migori Mining has not been carrying out any mining activities as alleged in the parliamentary report," said Andrew Bell the managing director of Red Rock Resources which owns Mid Migori Resources.

Mineral samples extracted from Migori are sent to Tanzania for laboratory testing logged with the Ministry of Environment and Natural Resources.

"We do not shrink from any kind of investigation, since we have nothing to hide and have complete answers for any question," said Bell in a statement.

"The gold content in the samples is so negligible that all the samples ever sent for testing would contain less than US$50 (Sh4200) worth of gold".

The committee probe stemmed from allegations by Nyatike MP Omondi Anyanga that Mid Migori was not exploring but was illegally producing gold.

The MP claimed that Mid Migori Mining firm had been carrying out illegal mining activities in the area for the past 20 years with no benefits to the local community.

"We have recently applied for a Mining Lease over part of the license area in order to move towards production at the Macalder tailings in Migori but for now we are only involved in exploration," he said.

Red Rock Resources is a London-listed mining company, and has partnered with Mid Migori Mining since 2009 and have been prospecting and exploration for gold in Migori, Kuria West and Nyatike in South Nyanza.

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