National

UK firm secures a Kenyan trading licence for manganese mining

Marula was awarded a trading licence for manganese mined in Kenya. Photo: X/MarulaPlc

By Bashir Mohammed | Thursday, April 18, 2024

This announcement follows Marula’s recent acquisition of a 60 per cent stake in a manganese mining operation in Samburu County from local firm Gems and Industrial Minerals Ltd.

Marula, a UK-based mining firm, has successfully obtained a trading licence for manganese in Kenya.

The licence, valid until the end of the year and renewable annually, allows Marula to begin the commercial exploitation of manganese ore in Samburu County, Kenya.

Following regulatory filings with the London Stock Exchange, Marula released a statement emphasising the significance of this development.

"The granting of the licence is considered an important step for the company as it looks to complete its investment in the Larisoro Manganese Mine in Samburu County in Kenya, increase production of high-grade manganese ores and make sales into the export markets," stated Marula.

This announcement follows Marula’s recent acquisition of a 60 per cent stake in a manganese mining operation in Samburu County from local firm Gems and Industrial Minerals Ltd. (GIM). Valued at up to £1.55 million (Sh253 million), the acquisition underscores Marula's strategic focus on mining battery metals.

“The granting of the licence is considered an important step for the company as it looks to complete its investment in the Larisoro Manganese Mine in Samburu County in Kenya, increase production of high-grade manganese ores and make sales into the export markets,” Marula said in the regulatory filings published on Wednesday.

The agreement between Marula and GIM involves a multi-stage payment process. Marula initially disbursed £300,000 (Sh48.96 million) to GIM, with further payments contingent upon milestones such as the signing of technical support and commercial agreements and the achievement of commercial sales targets. Marula also retains the option to increase its stake in the venture to 70 per cent at a later stage.

The move marks Marula’s foray into Kenya’s mining space.

Larisoro, located in Samburu County, is a shallow open-pit mine that has produced manganese ore with an average manganese content of 33.41 per cent over the past six years.

Asian markets purchase a product that contains more than 37 per cent manganese after processing the ore.

Kenya boasts substantial manganese deposits in various regions, including Taita Taveta, Kilifi, Samburu, Isiolo, and Marsabit (Moyale). Despite this potential, there has been limited large-scale exploitation of manganese ore thus far.

According to data from the Observatory of Economic Complexity (OEC), Kenya exported $18 million (Sh2.4 billion) worth of manganese ore in 2022, positioning it as the 14th largest global seller of the product. South Africa currently leads the global market, with exports totalling $2.96 billion (Sh387.8 billion) in 2022.