Cortec vows to sue over ‘revoked mining licence’

By STANDARD TEAM

The fight for the control of rare earths in Kenya is headed for the courts as directors of a mining company vowed to challenge the Government’s revocation of mining licences.

Cortec Mining Kenya directors David Anderson and Jacob Juma separately hinted at going to court over the Government move. On Monday, Mining Cabinet Secretary Najib Balala revoked licences of 31 mining companies, among them Cortec.

In a reply to Balala’s move, Mr Juma, a Kenyan shareholder, dismissed the revocation as inconsequential and contrary to terms of the contract.

“The minister sidestepped the law governing the mining industry. We followed the right procedure in getting the licence,” Juma said yesterday. “We will seek justice in court both locally and internationally including referring the matter to the International Chamber of Commerce in Paris and Capital Markets of the United Kingdom.”

He added, “We know the Government is warming up to some Chinese companies which have expressed interest in the mining industry and mainly rare earths and niobium in Kwale and other resources across the country.”

Riding on speculation

Also, it has emerged Kenya may not be having the rare earth mineral deposits in huge volumes as widely alleged in the recent past.

Investigations by The Standard reveal Cortec was riding on speculation that Kenya has more than Sh52 trillion worth of the precious reserves in order to raise capital from local and international markets.

Also, yesterday Mr Anderson said Cortec had not received any formal notification of a revocation. He, however, warned any attempts to “unfairly revoke their licence will be challenged in court”.

But as the court battle takes shape, more questions are emerging about the entity that is the Cortec company, including the claim that Kenya may not be having the rare earth mineral deposits.

The well-orchestrated profile-raising scheme was also aimed at boosting share prices of Pacific Wildcat Resources, which owns 70 per cent stake in Cortec. Insiders say the move was also aimed at catching attention of the mineral thirsty China.