International investors called to Bid for Coal Mining

Last Updated 14 years ago by Kenya Engineer

In the quest for cheaper energy, the government has floated tenders inviting international companies to explore coal in the eastern part of the country .Those interested have been given up to 16th June this year to submit expression of interest for exploration.

The coal blocks, namely A and B are located in Kitui County. Ten out of the total 15 wells drilled by the government in both blocks encountered coal at depth of 11m and 150m with fossil fuel thickness varying from 0.2m to 7m.

The exploration areas- A (121.5km2) and B (117.5 Km2), will be leased to those investors who show ability to raise over $200 million. Applicants must show audited balanced sheets for the last three years with capital base of $100 million and an annual turnover of over $100 million with ISO 9002 quality control system certification.Accompanying this also will be a certification of incorporation, organization structure, demonstrate effective environmental preservation as well as corporate social responsibility of projects undertaken at least in three developing countries.

The applicants will also be expected to show capability of undertaking the projects with daily output of at least 3,000 tonnes of coal and set up a coal fired electricity generating plant.

Other coal exploration sites in the country are block C and D which were awarded to Fenxi Mining Industry Group of China in 2011.However, parliament’s approval is required before coal production starts by 2014.Fenxi is required to pay $3-million for block C and $500 000 for block D, in return for a renewable concession of 21 years, subject to approval by parliament.

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