Kenya Fluorspar Fully Compliant with Government Tax Obligations

Industrial Minerals - May 15 2015

Media Archive

Despite press reports that the company was at odds with the Kenyan government over its tax payments, Kenya Fluorspar has stressed that it has fulfilled state demands for increased royalties on production from its Kimwarer project and is not required to compensate landowners for use of its mining lease area.

Kenya Fluorspar Co. Ltd has hit back at what it called “inaccurate and misleading” reports that the company had fallen foul of revised royalty obligations set by the Kenyan Ministry of Mines.

The privately held miner, which owns the Kimwarer fluorspar project in western Kenya, released a statement late last week strongly denying rumours of a legal rift with the government. It had been alleged that the company had failed to pay required royalties and to compensate local landowners for appropriating the property on which it operates.

“There is no dispute between the Ministry of Mining and Kenya Fluorspar Co. on payments, levies, taxes or failure to pay monies owed on our mining operations,” the company statement said.

“The Cabinet Secretary of Mining, Hon. Najib Balala, in a Nation TV interview on 13 May, confirmed this, when he said ‘Kenya Fluorspar has been working. They are paying their royalties. We are in agreement. They have increased their royalties, as per the government’s requirements’,” the statement continued.