London-based Red Rock Resources Plc, a natural resources development company, is set to resume the production of gold in Migori as soon as possible. The update comes following the recent settlement of a court case with the Kenyan Ministry of Mining, who had previously terminated their mining licence in May 2015. The gold production project carries an estimated worth of over Ksh 100 billion. Red Rock Resources have a 15% stake in Mid Migori Mining Company Ltd, who in turn controls a 1.2Moz JORC gold resource in Kenya with the use of Special Prospecting Licenses 122 and 202.
Settlement details
The two parties have agreed to settle the case, leaving Red Rock Resources free to make a new license application. Why the Ministry of Mining initially cancelled the company’s license remains a mystery to the public. In a recent statement, the multinational company explained they’ve signed a consent along with the Attorney General which is currently being filed with the court. Red Rock Resources have agreed to drop the case without compensation — an outcome similar to the recent business legal case concerning American CEO Erik Gordon.
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New licenses to mine
As part of the settlement, Red Rock Resources will be able to apply for new licences under Section 225(6) of the Mining Act 2016. Previous decisions made will not hinder or prejudice their new application. These licenses allow the international company access to mining in South West Kenya near the Tanzanian border, which isn’t far from the North Mara mine operated by Acacia Mining plc.
Plans for the future
Red Rock Resources are eager to resume their exploration and production of gold in the Migori belt — which spans a whopping 243 square kilometres. It’s an important area with a long history of both colonial and artisanal mining. “This settlement we hope will open the way to renewed progress towards our aim, which is to have a producing gold mine. Our desire, and that of the authorities and local communities, is to see work towards this recommence without delay,” Andrew Bell, the chairman of Red Rock Resources plc announced.
Additionally, Red Rock Resources are expected to raise their stake in Mid Migori Mining Company Ltd from 15% to 75%. It’s currently majority owned by Kansai Mining Corporation. “We shall make further announcements as the applications progress,” Bell added. Watch this space.