NAIROBI, Kenya, Nov 12 — The government is set to earn Sh607.2 million in royalties and an additional Sh193.8 million in Mineral Development Levy after UK-based Shanta Gold discovered gold deposits worth an estimated Sh680 billion in Kakamega County.
According to an Environmental Impact Assessment (EIA) report titled “Shanta Gold West Kenya Feasibility Study: Isulu–Bushiangala Underground Mining Project” submitted to the National Environment Management Authority (NEMA), the combined resource at the Isulu and Bushiangala sites stands at 1.3 million ounces, with an average grade of 11.43 grams per tonne (g/t). The mine’s life span is projected at eight years.
The report pegs the capital investment at Sh27 billion, with annual operating costs expected to hit Sh2.5 billion.
“The project entails the use of underground mining techniques for the potential development of a gold mine. Key infrastructure includes a processing plant, tailings storage facility, waste rock dumps, water management systems, power supply, administrative buildings, and ancillary infrastructure,” the EIA states.
Located in Ikolomani Constituency, the project will affect parts of Idakho North and Idakho Central wards, where some residents will be resettled and compensated.
The report notes that land acquisition and compensation will follow both Kenyan land laws and international resettlement standards, specifically the IFC Performance Standard 5 on Land Acquisition and Involuntary Resettlement.
“Land acquisition and involuntary resettlement will be avoided where possible, minimized and mitigated, and will be carried out in accordance with the aforementioned guidelines,” the report adds.
A Resettlement Policy Framework (RPF) has been developed to guide the creation of a detailed Resettlement Action Plan (RAP), which will manage compensation, displacement, and loss of assets or cultural property.
The Isulu–Bushiangala gold project is one of the largest potential underground mining operations in Kenya and could significantly boost the country’s mineral revenue base while creating local employment and infrastructure growth in western Kenya.
