Govt softens stance on Tata Chemicals as joint committee reviews Magadi dispute

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NAIROBI, Kenya, Sep 8 — The government has shifted from its tough stance against Tata Chemicals Magadi, with Mining Cabinet Secretary Hassan Joho authorising a joint technical committee with the company to review outstanding compliance issues that could determine the future of its operations at Lake Magadi.The move marks a more conciliatory approach to the dispute after President William Ruto last week told Tata Chemicals to “pack their bags and leave” and announced plans to bring in new investors to develop the mineral resources at Lake Magadi.Joho said the committee, to be led by the Principal Secretary for Mining and the chief executive officer of Tata Chemicals Magadi, will undertake a detailed review of the unresolved matters and submit its findings to his office for consideration and further direction.The development follows a meeting between Joho and executives of Tata Chemicals Magadi on Tuesday, aimed at finding a “comprehensive and timely resolution” to the compliance concerns that led to the suspension of the company’s operations.“Following the suspension of operations at Tata Chemicals Magadi Limited, today at my office I led a fruitful engagement with the Company’s executives regarding the compliance concerns we raised as a Ministry,” Joho said.“To facilitate a comprehensive and timely resolution of the outstanding matters, we agreed to establish a high-level technical committee.”The committee will examine five key areas: mineral beneficiation and in-country value addition, outstanding community benefits and royalty obligations, unresolved land matters, opening up the area for multiple mineral extraction, and outstanding issues involving the Kajiado County Government.The committee’s findings could provide a basis for further government action, including consideration of whether the company has addressed the regulatory concerns surrounding its operations.Joho said the government remained open to working with investors while insisting that companies operating in Kenya comply with the law and protect local interests.“As Government, we remain committed constructive engagement with investors while firmly upholding Kenya’s laws, regulations and the interests of its people,” he said.The latest development contrasts with Ruto’s position last week when he said Tata Chemicals had operated at Lake Magadi for about a century without delivering enough jobs, factories or local value addition.“That Tata company has had the contract for 100 years, yet it has not built anything in Kajiado. It has not established a factory here, and it has not employed our people. The other day, I told them to pack their bags and leave,” Ruto said during a development tour of Kajiado.The President said any new investor would have to establish manufacturing facilities in the county, including factories for glass and chemicals, rather than simply extracting soda ash for export.“We have said that we will bring in a new company, but the conditions for that company will be clear: it must establish a large factory to manufacture glass here in Kajiado County and another facility to manufacture chemicals here,” he said.Tata Chemicals Magadi’s operations were suspended on July 28 following government concerns over regulatory compliance.The Ministry has previously cited issues including mineral beneficiation and value addition, royalty obligations and export reporting.The company has maintained that it submitted the required regulatory compliance documents to the ministry as it sought reinstatement of its licence, with the suspension putting about 500 jobs at risk.The dispute has since expanded into a wider political and community debate over the future of Lake Magadi, including land ownership, employment, community benefits and access to services associated with the company.Former Deputy President Rigathi Gachagua has called for the reopening of the plant, arguing that residents should not bear the consequences of the dispute while negotiations continue.The shutdown has also raised concerns over services linked to the company, including water and healthcare in Magadi, prompting Ruto to direct the government to restore water supplies and ensure the local hospital remains operational.Tata Chemicals Magadi, formerly Magadi Soda Company, has operated at Lake Magadi since 1911 and became part of Tata Chemicals in 2005. It extracts trona from the lake and processes it into soda ash, a product used in glass manufacturing, detergents, chemicals and water treatment.