A global mining company, Hudson Mining Ltd last week launched its operations in Kenya for value addition to minerals in the region, especially from the Democratic Republic of Congo.
Kenya does not have much minerals compared to the other countries in the region but Hudson Mining Ltd chose Kenya due to its political stability and advanced infrastructure.
In an address at the recently concluded MineExpo at Kenyatta International Convention Centre (KICC), Hudson Mining CEO, Solomon Cai revealed that the company will invest $200 million in phases in search of minerals in the eastern African region
“Kenya has a unique geographical location. We want to make Kenya the centre of value addition in the region. Even though Kenya is not rich in minerals like other countries in the region, it is a peaceful country which is conducive to business. Many mining companies are not comfortable in going to some of the mineral-rich countries in the region because of insecurity.,” said Mr Cai in a follow-up interview.
Mr Cai said Hudson has a multi-dimensional approach to elevate the continent’s economic prospects, create better employment opportunities, and drive sustainable growth across various industries. “We are looking a driving innovation, creating jobs, and fostering sustainable development across the continent,” he said.
The company has already established mining distribution centres in Nigeria—where it has invested $30 million in solid mineral processing—It is also present in Tanzania and Mozambique.
Kenya does not boast of much mineral deposit but it is a major transit centre for minerals in the region. Kenya’s minerals include the Green Garnet, a precious stone known as Tsavorite which bears the name of the Tsavo National Park. Rubies, sapphires, spinel, Aquamarine, Rhodolite, Kornerupines, and various Magnesian tourmalines are among the other coloured gemstones that are produced in Kenya.
Despite its enormous potential, the mining industry, according to the mining advocacy lobby group, has only contributed 0.7 percent of Kenya’s GDP on average over the past ten years.
In January, Kenya Chamber of Mines (KCM) Chairperson Patrick Kanyoro said the country can improve the mining sector to contribute about 10 percent to Kenya’s GDP at about $10 billion before the year 2030.
Philip Kirui, the chairperson of the International Conference on the Great Lakes Region (ICGLR) Audi Committee—who is in charge of vetting mining companies in the Great Lakes region—said that the government has started the process of value addition to minerals and the entry of Hudson Ltd will be a good boost to the process.
Florence Were, the acting Managing Director of the Kenya Investment Authority, said that Kenya’s geological treasures are about to be unlocked after the recent discovery of Coltan deposits.
She said that the country has put in place several legal frameworks such as the Mining Act, 2016 and the Mining Rights 2016 which were a result of the growing interests in the country’s mining sector.
“We are looking at job creation, infrastructure development and cutting-edge technological advancement in the mining sector. Mining is not just about extracting resources but building trust among communities where these resources are found,” said Ms Were
The $200 million capital infusion represents a crucial moment in Hudson’s history, signifying its expansion into the emerging African market and opening a fresh chapter in its global supply chain.
“With its rich experience, cutting-edge technology, and efficient management, Hudson aims to make a dual impact: harnessing valuable resources and adding value to Africa’s economic landscape,” said Mr Cai.
Established in 1998 in China, Hudson Mining is a subsidiary of Globelink Investment Ltd. It has been present in Nigeria since 2019. Nigeria is extremely rich in mineral resources and agricultural products.
Original news website: https://afroeconomist.com/business-economy/1898/