Kenya to Develop Coal Deposit with China’s Fenxi Mining

Bloomberg reported that this week, Kenya plans to sign a concession accord with China’s Fenxi Mining Industry Co. to develop a deposit containing 400 million metric tons of coal. The move will allow the country to tender 31 more blocks spread across counties in both the north and south of the nation.

As quoted in the market news:

A Benefits Sharing Agreement may be signed by tomorrow for blocks C and D at Mwingi, 143 kilometers (89 miles) northeast of the capital, Nairobi, John Omenge, chief geologist at the Energy Ministry, said in an interview on Dec. 3. Signing of the concession accord has been delayed since Fenxi won the tender to explore the blocks in 2011, after local residents demanded a share of income from the project.

‘Signing the first agreement will send a positive signal to investors, and open the way for us to tender the other blocks’ by the end of the first quarter of 2014, Omenge said.

Click here to read the full Bloomberg report.