2010 Minerals Yearbook

KENYA

U.S. Department of the Interior August 2012

U.S. Geological Survey
 The Mineral Industry of Kenya
By Thomas R. Yager

In 2010, Kenya played a significant role in the world’s Migori were 1.42 Mt at a grade of 1.64 g/t gold (Red Rock
production of natural soda ash. The country’s share of the Resources plc, 2010; Fraser, 2011).
world’s mine production of soda ash amounted to 4%. Other Iron and Steel.—Devki Steel Mills Ltd. (a subsidiary of the
domestically significant mining and mineral processing Devki Group of Companies) operated three steel plants with
operations included cement, fluorspar, and petroleum refining. a combined capacity of 250,000 metric tons per year (t/yr).
Kenya was not a globally significant consumer of minerals Starting in March 2011, Devki planned to build a new steel mill
(Kostick, 2011). with a capacity of 1 million metric tons per year (Mt/yr). The
first phase of the project could start production in mid-2012
Minerals in the National Economy with a capacity of 250,000 t/yr. Capital costs of the project were
estimated to be about $450 million (McGregor, 2010).
In 2010, the manufacturing sector accounted for 9.7% of In 2010, the production of galvanized steel sheets increased
the gross domestic product, and mining and quarrying, 0.4%. to 201,410 metric tons (t) from 182,151 t in 2009. The increase
The mining and quarrying sector grew by 9.8% in 2010 after may have been attributable to the expansion of Mabati Rolling
contracting by 4.5% in 2009. In 2008 (the latest year for which Mills Ltd.’s galvanized steel production capacity by 35,000 t/yr
data were available), formal employment in the mining and (Naidoo, Shevel, and Zvarayi, 2010; Central Bank of Kenya,
quarrying sector was reported to be about 6,600 (National 2011b, p. 17).
Bureau of Statistics, 2009, p. 33: Central Bank of Kenya, 2011c, Niobium (Columbium) and Rare Earths.—In late
p. 15). September, Pacific Wildcat Resources Corp. (PAW) of Canada
commenced a drilling program at the Mrima Hill niobium and
Production rare-earth elements project. PAW hoped to identify a resource
of at least 13 Mt at a grade of at least 1.3% niobium pentoxide
In 2010, fluorspar production increased by 184%; gold, by (Pacific Wildcat Resources Corp., 2010).
90%; soda ash, by 17%; and cement, by 12%. The production Titanium and Zirconium.—In 2010, Base Resources Ltd.
of most gemstones was estimated to have increased by between of Australia acquired the Kwale mineral sands deposits from
10% and 15%. Cement production increased by 71% from 2006 Vaaldiam Mining Inc. of Canada. The company planned to
to 2010. Refined lead production decreased by an estimated 50% complete a feasibility study on a new mine at Kwale in the
in 2010 (table 1). second quarter of 2011. Depending on the results of the study,
Base Resources could start mining in mid-2013. During the
Structure of the Mineral Industry first 6 years of the project, ilmenite production was likely to be
330,000 t/yr; rutile, 80,000 t/yr; and zircon, 40,000 t/yr. In the
Most of Kenya’s mining and mineral processing operations subsequent 5 years, production was expected to decrease to an
were privately owned, including the diatomite, fluorspar, average of 190,000 t/yr of ilmenite, 55,000 t/yr of rutile, and
gemstone, salt, and soda ash mines, the lime plants, and the steel 25,000 t/yr of zircon (Base Resources Ltd., 2011, p. 4, 7, 8).
mills. All cement plants except for East Africa Portland Cement
Co. Ltd. (EAPC) were privately owned. The Government held Industrial Minerals
a 52% share in EAPC and a 50% share in Kenya Petroleum
Refineries Ltd. Artisanal and small-scale miners produced Cement.—Kenya had five cement producers with a combined
gemstones and gold. capacity of 5.7 Mt/yr. National cement production increased
to 3.71 Mt in 2010 from 3.32 Mt in 2009. Higher output was
Commodity Review attributable to the construction of new plants and the recent
capacity expansions at existing plants (Central Bank of Kenya,
Metals 2011b, p. 17).
In 2010, Bamburi’s production remained nearly unchanged at
Copper, Gold, Silver, and Zinc.—Aviva Corporation Ltd. of about 1.9 Mt. EAPC increased its output to 975,000 t in 2010
Australia signed a joint-venture agreement with Lonmin plc of from 845,000 t in 2009. ARM’s plant at Kaloleni had a capacity
the United Kingdom to explore in the Ndori Greenstone Belt in of 300,000 t/yr; the company commissioned a new plant with a
July 2010. Drilling started at the Bumbo polymetallic deposit capacity of 730,000 t/yr at Athi River in December. Mombasa
in November, where resources previously were estimated to Cement produced about 300,000 t of cement in 2010 compared
be 1.2 million metric tons (Mt) at a grade of 11% zinc, 3.5% with 250,000 t in 2009. The company planned to complete the
copper, 40 grams per metric ton (g/t) silver, and 1 g/t gold. expansion of its plant’s capacity to 1 Mt/yr from 500,000 t/yr
In August, Red Rock Resources plc of the United Kingdom in 2011 (Athi River Mining Ltd., 2011, p. 34, 43; Renaissance
estimated that resources at the Macalder tailings project at Capital LLC, 2011, p. 55).

Kenya—2010 22.1
 In November 2010, National Cement opened its new plant new plants. Cement demand in Kenya is expected to increase to
at Athi River with a capacity of 700,000 t/yr. Cemtech Sanghi 3.3 Mt in 2011, 3.9 Mt in 2013, and 4.6 Mt in 2015. In Burundi,
Group of India planned to build a new cement plant at Pokot Rwanda, Tanzania, and Uganda, cement demand is likely to
with an initial capacity of 1.2 Mt/yr by 2012 (Kimanthi, increase to a total of 8 Mt in 2015 from 5 Mt in 2010; demand
2009, p. 7; Central Bank of Kenya, 2011a, p. 20; Waerp and for Kenyan cement exports is expected to increase as a result.
Arnoldsen, 2011). The outlook for fluorspar, gemstones, and soda ash depends
In 2010, Kenya’s cement consumption increased to about heavily on world market conditions. Steel and refined lead
3 Mt compared with 2.7 Mt in 2009 because of growth in the production could increase because of the export ban instituted
construction sector. Cement prices were about $120 per metric by the East African Community in August 2010 to alleviate
ton in 2010 compared with landlocked African countries with regional shortages of scrap metal (Bureau of International
high power and transportation costs, such as Congo (Kinshasa) Recycling, 2010; Renaissance Capital LLC, 2011, p. 27–28,
(about $400 per metric ton), Burundi (about $350 per metric 34–35).
ton), Rwanda (about $300 per metric ton) and Uganda (nearly
$200 per metric ton) (Central Bank of Kenya, 2011a, p. 23; References Cited
Renaissance Capital LLC, 2011, p. 9, 34).
Fluorspar.—In 2009, Kenya Fluorspar Co. (KFC) shut Africa Oil Corp., 2010, Africa Oil Bogal-1 well update: Vancouver, British
Columbia, Canada, Africa Oil Corp. press release, July 27, 1 p.
down mining operations because of sharp decreases in demand Athi River Mining Ltd., 2011, 2010 annual report and financial statements:
in the fluorochemicals sector resulting from the worldwide Nairobi, Kenya, Athi River Mining Ltd., 72 p.
economic crisis. KFC indicated that mining could restart if Base Resources Ltd., 2011, Quarterly activities report—December 2010: West
acid-grade fluorspar prices increased to at least $270 per metric Perth, Western Australia, Australia, Base Resources Ltd., 15 p.
Bureau of International Recycling, 2010, BIR officially contacts representative
ton compared with between $230 and $240 per metric ton in governments to express concerm: Paris, France, Bureau of International
February 2010. By the end of the second quarter of 2010, prices Recycling press release, September 2, 1 p.
increased sufficiently to allow the mine to reopen (Tran, 2009; Central Bank of Kenya, 2011a, Kenya monthly economic review: Nairobi,
Industrial Minerals, 2010; Roberts, 2010). Kenya, Central Bank of Kenya, January, 46 p.
Central Bank of Kenya, 2011b, Kenya monthly economic review: Nairobi,
Soda Ash.—Magadi Soda Ash Ltd. mined trona from Lake Kenya, Central Bank of Kenya, February, 42 p.
Magadi. The production of soda ash increased to 473,689 t in Central Bank of Kenya, 2011c, Kenya monthly economic review: Nairobi,
2010 from 404,904 t in 2009. Increases in production were Kenya, Central Bank of Kenya, May, 44 p.
attributable to improvements in the worldwide economic China National Offshore Oil Company Ltd., 2011: Annual report 2010: Hong
Kong, China, China National Offshore Oil Company Ltd., 136 p.
situation and recovery from competition with Chinese Fraser, Mark, 2011, Energy assets now a sleeping bonus: Gold Mining Gazette,
synthetic soda ash. From 2005 to 2009, 84% of Magadi’s v. 6, no. 43, December/January, p. 21.
output was exported. Soda ash was consumed domestically Industrial Minerals, 2010, Prices: Industrial Minerals, no. 514, July, p. 69–71.
in glass production and by ARM in the production of sodium Kimanthi, Eric, 2009, Cement sector: Nairobi, Kenya, Kestrel Capital
(East Africa) Ltd., 30 p.
silicate, which was used in detergents, soaps, and chemical and Kostick, D.S., 2011, Soda ash: U.S. Geological Survey Mineral Commodity
metallurgical applications. In 2010, ARM’s sodium silicate Summaries 2011, p. 148–149.
output was about 54,000 t (Central Bank of Kenya, 2011a, p. 20; McGregor, Sarah, 2010, Devki Steel of Kenya to build 1 million-ton
Renaissance Capital LLC, 2011, p. 50; Ministry of Environment mill: Bloomberg L.P., November 19. (Accessed August 11, 2011, at
http://www.bloomberg.com/news/2010-11-19/devki-steel-mills-of-kenya-to-
and Natural Resources, written commun., September 30, 2010). spend-450-million-building-a-steel-mill.html.)
Naidoo, Rishentra, Shevel, Eyal, and Zvarayi, Patricia, 2010, MRM maintains
Mineral Fuels A+ rating: Global Insights, v. 13, no. 7, July, p. 2.
National Bureau of Statistics, 2009, Kenya facts and figures 2009: Nairobi,
Kenya, National Bureau of Statistics, 81 p.
Petroleum.—In July, China National Offshore Oil Company Pacific Wildcat Resources Corp., 2010, Pacific Wildcat commences drilling at
Ltd. (CNOOC) plugged the Bogal-1 exploration well on Block 9 Mrima Hill niobium/rare earth project: West Kelowna, British Columbia,
in north-central Kenya because of unfavorable results. CNOOC Canada, Pacific Wildcat Resources Corp. press release, September 28, 4 p.
withdrew from all exploration activities in Kenya by the end of Red Rock Resources plc, 2010, Migori—Indicated resource at Macalder
Tailings: London, United Kingdom, Red Rock Resources plc press release,
2010. Africa Oil Corp. of Canada planned to drill exploration August 19, 3 p.
wells on Blocks 10A and 10BB in the first half of 2011 (Africa Renaissance Capital LLC, 2011, East African Cement—Cement beyond borders:
Oil Corp., 2010; China National Offshore Oil Company Ltd., Greenwich, Connecticut, Renaissance Capital LLC, 60 p.
2011, p. 17). Roberts, Jessica, 2010, Fluorspar forging ahead: Industrial Minerals, no. 510,
March, p. 41–46.
Tran, Alison, 2009, Kenya Fluorspar hopes for Q3 restart: Industrial Minerals,
Outlook no. 503, August, p. 11.
Waerp, Trond, and Arnoldsen, Finn, 2011, The last cement frontier: International
Cement production is likely to increase because of the Cement Review, July, p. 62–68.
increased capacity at existing plants and the construction of

22.2 U.S. GEOLOGICAL SURVEY MINERALS YEARBOOK—2010

 TABLE 1
KENYA: PRODUCTION OF MINERAL COMMODITIES1

(Metric tons unless otherwise specified)

Commodity2 2006e 2007e 2008e 2009e 2010e

e r
Aluminum, secondary 6,000 6,000 6,000 5,500 6,000
3 3 3 3
Carbon dioxide gas, natural 9,359 11,028 22,030 15,711 19,000
3 3 3 3 3
Cement, hydraulic thousand metric tons 2,174 2,546 2,829 3,320 3,710
e
Clays:
Bentonite 60 70 70 65 70
Kaolin 810 910 940 850 900
Other 21,000 24,000 25,000 23,000 24,000
3 3 3 3
Diatomite4 185 201 72 231 250
Feldspar 25 30 30 30 30
3 3 3 3 3
Fluorspar, acid grade 83,428 82,000 98,248 15,667 44,500
e
Gemstones, precious and semiprecious:
Amethyst kilograms 75 80 60 45 50
Aquamarine do. 260 290 210 170 190
Cordierite, iolite do. 85 100 80 60 70
Green garnet do. 830 940 700 560 630
Ruby do. 5,300 6,000 4,500 3,600 4,000
Sapphire do. 3,600 4,100 3,000 2,400 2,700
Tourmaline do. 8,300 9,400 7,000 5,600 6,300
3 3 3 3 3
Gold, mine output, Au content4 do. 432 3,023 340 1,055 2,000
r
Gypsum and anhydritee 9,500 11,000 11,000 10,000 11,000
Iron oree 310 350 360 330 360
Lead, refined secondary 1,000 1,000 1,000 500 250
Limee 50,000 50,000 50,000 45,000 47,000
Petroleum refinery products:
r, 3 r, 3 r, 3 r, 3
Gasoline thousand 42-gallon barrels 1,523 1,763 1,549 1,340 1,350
3 3 r, 3 r
Kerosene do. 912 796 742 840 850
3 3 r, 3 r
Jet fuel do. 1,792 1,871 1,753 2,000 2,000
r, 3 r, 3 r, 3 r, 3
Distillate fuel oil do. 2,742 2,958 2,790 2,907 2,900
r, 3 r, 3 r, 3 r, 3
Residual fuel oil do. 3,971 3,558 3,431 3,311 3,300
r, 3 r, 3 r, 3 r, 3
Liquefied petroleum gas do. 349 385 379 341 350
3 3 r r
Other do. 935 697 660 670 670
r, 3 r, 3 r r
Total do. 12,224 12,028 11,300 11,400 11,400
5 3 3 3 3
Salt, crude 35,024 11,596 24,345 24,125 25,000
3 3 3 3 3
Soda ash 374,210 386,598 513,415 404,904 473,689
e
Stone, sand and gravel:
Granite for dimension stone 210 240 240 220 230
Limestone for cement thousand metric tons 1,100 1,200 1,500 1,600 r 1,700
Limestone for dimension stone 36,000 41,000 42,000 38,000 40,000
Marble for dimension stone 130 150 150 140 150
Sand, industrial; glass 14,000 16,000 16,000 15,000 16,000
Shale 220,000 250,000 260,000 240,000 250,000
Sulfuric acid 20,000 20,000 20,000 19,000 20,000
e
Estimated; estimated data are rounded to no more than three significant digits; may not add to totals shown. rRevised. do. Ditto.
1
Table includes data available through August 11, 2011.
2
In addition to the commodities listed, brick clays, gravel, murram (laterite), crushed rock, construction sand, and steel (both crude and semimanufactured)
may be produced, but quantities are not reported, and available information is inadequate to make reliable estimates of output.
3
Reported figure.
4
Exports.
5
Production by Magadi Soda Ash Ltd. only.

Kenya—2010 22.3
 TABLE 2
KENYA: STRUCTURE OF THE MINERAL INDUSTRY IN 2010

(Metric tons unless otherwise specified)

annual
Commodity Major operating companies and major equity owners Location of main facilities capacity
Aluminum, secondary Booth Manufacturing Ltd. Plant at Nairobi 4,000
Do. Aluminium Enterprises Plant at Kikuyu 1,200
Do. Crystal Industries Ltd. do. 1,000
Do. Narcol Aluminium Rolling Plant at Mombasa 1,000
Do. Aluminium Extruders Plant at Nairobi 800
Carbon dioxide gas, natural Carbacid Ltd. Mine at Kereita 23,000
Cement Bamburi Cement Ltd. (Lafarge Group, 58.6%) Plants at Mombasa and Nairobi 2,200,000
Do. East African Portland Cement Co. Ltd. (EAPC) (LaFarge Plant at Athi River 1,300,000
Group, 41.7%; National Social Security Fund, 27%;
Government, 25%)
Do. Athi River Mining Ltd. (ARM) do. 730,000
Do. do. Plant at Kaloleni 300,000
Do. National Cement Company Ltd. (a subsidiary of Devki Plant at Athi River 700,000
Group of Companies)
Do. Mombasa Cement Ltd. do. 500,000
Diatomite African Diatomite Industries Ltd. Kariandusi and Soysambu 4,000
Fluorspar Kenya Fluorspar Ltd. Mine at Kerio Valley 100,000
Gemstones:
Garnet kilograms Bridges Exploration Ltd Scorpion Mine in Taita Taveta 40
Do. Artisanal and small-scale miners Mines in Taita Taveta District na
Ruby and sapphire kilograms Rockland Kenya Ltd. Mine at Kasigau 6,000
Glass Central Glass Industries Ltd. Plant at Nairobi 47,500
Do. Bawazir Glass Works Ltd. Plant at Mombasa na
Gold kilograms Artisanal and small-scale miners Mines in Migori and Turkana na
Districts
Iron ore Wanjala Mining Co. Mine at Wanjala 10,000
Lead, refined secondary Associated Battery Manufacturers Co. Ltd. Plant at Athi River 3,000
Lime Homa Lime Company Ltd. Plant at Koru 30,000
Do. Athi River Mining Ltd. Plant at Kaloleni 25,000
Petroleum, refined thousand Kenya Petroleum Refineries Ltd. (KPRL) (Government, Refinery at Mombasa 32,900
42-gallon barrels 50%, and Essar Energy Overseas Ltd, 50%)
Salt Kensalt Ltd. Plant at Mombasa 120,000
Do. Magadi Soda Ash Ltd. (Brunner Mond Group Ltd., 100%) Plant at Magadi 45,000
Do. Mombasa Salt Works Ltd. and others Mines near Malindi na
Soda ash Magadi Soda Ash Ltd. Mine at Magadi 715,000
Sodium silicate Athi River Mining Ltd. (ARM) Plants at Athi River and Kaloleni 60,000
Steel:1
Crude Devki Steel Mills Ltd. Three plants in Kenya 250,000
Do. Kenya United Steel Co. Ltd. (subsidiary of Alam Group of Plant at Mombasa 20,000
Companies)
Billet Devki Steel Mills Ltd. Three plants in Kenya 250,000
Do. Kenya United Steel Co. Ltd. Plant at Mombasa 20,000
Rolled Mabati Rolling Mills Ltd. do. 100,000
Do. Standard Rolling Mills Ltd. do. 80,000
Do. Devki Steel Mills Ltd. Plant at Nairobi 36,000
Do. Kenya United Steel Co. Ltd. Plant at Mombasa 30,000
Sulfuric acid Kel Chemicals Ltd. Plant at Thika 14,500
Do. Pan Africa Chemicals Ltd. Plant at Webuye na
e
Estimated. Do., do. Ditto. NA Not available.
1
In addition to its billet and rolled steel facilities, Kenya has several galvanized steel plants.

22.4 U.S. GEOLOGICAL SURVEY MINERALS YEARBOOK—2010