conticoal looking at kenya , page-53

there is the fact that South African companies are not well percieved in East Africa

Hi Flabert, I would be interested in this 'fact' Flabert. Do you have any links to verify this? Thanks

This is an old link, but shows the community compensation issue will probably be addressed in advance, as opposed to what happened with that Canadian company. Looks like a great chance to get in at the ground floor on a 'VAST deposit'.

http://www.miningtopnews.com/search-for-coal-fuels-fresh-hope-for-vast-deposits.html

Search for Coal Fuels Fresh Hope for Vast Deposits

Tuesday, August 8th 2006

Kenya�s hopes of becoming a coal producer are much higher after exploratory drilling in two districts yielded encouraging results.

According to Government geologists carrying out studies in the Mui basin in Kitui and Mwingi districts, coal, which is currently imported, has been found at a depth of 11 metres.
On site: Workers and part of the machinery, including a towering rig, used in exploratory drilling for coal in Mui basin, which stretches across Kitui and Mwingi districts.

The development raises hopes of economic growth as the cost of energy in the country is likely to go down significantly.
�Preliminary results show that out of the 18 wells so far drilled at different points, 10 have coal deposits,� Mr Joseph Ndollo, the lead site geologist, told the Sunday Nation.

The depths vary from one well to the other, with some as shallow as 11 metres and others as deep as 136 metres.
Samples of the mineral deposits extracted during the exploration have been chemically analysed and found to meet the required standards. They were analysed by the University of Nairobi�s Geology Department and experts from South Africa where coal mining has been a major activity in the Eskom and New Vaal areas.

Acting Energy minister Henry Obwocha confirmed to Parliament early this week that a chemical analysis of the coal samples from the basin was found to be promising.

The minister, who was responding to a question by Mutito MP Kiema Kilonzo, said the Government was now preparing a report on the economic viability of the project.

Coal, the oldest source of energy in the world, was responsible for the industrial revolution in Europe in the mid-19th century.

The chief geologist in the ministry of Energy, Mr Don Riaro, says the anticipated exploitation of coal in the area would free some of the country�s foreign exchange reserves for other purposes.

In economic terms, world energy demand is fast increasing with global industrialisation. The discovery and exploitation of coal in the country, therefore, means that Kenya�s industrial development which, to a large extent, is hinged on the cost of energy, will be achieved at a faster rate.

With an indigenous source of energy, the country will have attained full industrial development by 2020.

Millions of shillings are spent annually on crude oil imports as petroleum accounts for 80 per cent of the commercial energy consumed, making the exploration of an alternative source of energy urgent.

For instance, in 2003, Kenya imported 3,234,600 tonnes of oil compared to 2,562,200 the previous year. The total oil import bill rose by 46.9 per cent from Sh43.9 billion in 2002 to Sh64.5 billion.

Modern clean coal technologies have greatly reduced emissions and improved combustion efficiency, making the demand for coal to grow by 62 per cent over the last 30 years. This demand is expected to grow by another 53 per cent up to the year 2030, meaning Kenya may as well export the same resource if the deposits are found in plenty.

According to a recent report titled Mineral potential towards wealth creation and employment compiled by experts in the industry, commercial coal mining could easily contribute to 20 per cent or more to the country�s economic wealth if the deposits in the two districts are exploited well. Coal, a bio-chemical sedimentary rock composed of compressed organic matter, is used in a variety of ways but mainly in electricity generation.

The valuable mineral forms in swamps and bogs where water is deficient in oxygen and where organic matter accumulates faster than it decomposes. It takes centuries to form through a process known as coalification.

Coal can also be used as fuel in metallurgical furnaces, while its tar is used in the production of synthetic petroleum and the manufacture of gaseous fuels.

The advantages of using coal as a source of energy include its being reliable and cost-effective. It is safe to transport, to store and use, and unlike other sources of energy like geothermal power or hydropower, it is not affected by weather patterns.

The swampy Mui basin covers two administrative divisions, one in each district � Mutito in Kitui district and Mui in Mwingi district. It is an elongated trough measuring about six kilometres wide, with an estimated area of 400 sq km.

The two districts are both arid with high food dependency ratios and poverty levels. More than 25,000 families inhabit this basin, which stretches 55 km across the two districts. It is an extension of the African Karoo formation which runs from South Africa to Somalia through Mozambique and Kenya.

Many residents on whose farms the proposed coal wells are to be drilled expect hefty compensation from the Government. They also want to be the first ones to be considered for jobs when the actual mining begins.

Kitui District Commissioner Abdi Hassan has directed environmental management committees to create awareness among people living in the Mui basin that coal mining in the district could be a reality and that residents should not be worried about the fate of their farms.

�The Government knows that area residents are anxious to know their fate and that they also dread being resettled elsewhere but this can only be determined once the reserve estimation is finalised,� Mr Hassan said.

Responding to concerns by the locals that they had been kept in the dark about the project, the DC also assured them that an environmental impact assessment would be carried out before any commercial mining.

He also cautioned the locals against engaging in dubious land transactions with people who wanted to buy their land hoping it will appreciate in value when the project starts.