NEW DELHI: In a setback for Tata Chemicals, Kenyan President William Ruto said on Thursday that he has directed the firm to cease operations in the country, saying its presence at Lake Magadi in Kajiado County did not benefit his country.
He said his government would bring in new investors to take over the site. Ruto said any new investor for the resources around Lake Magadi should establish both a glass processing plant and a chemical processing facility locally before being allowed to operate.
He said the Tata firm was asked to leave because it had been exporting raw soda ash rather than processing it domestically.
The announcement escalates an ongoing dispute that began weeks ago. In an earlier regulatory disclosure to stock exchanges, Tata Chemicals said its subsidiary Tata Chemicals Magadi Ltd (TCML) received a notice on July 28 from Kenya’s mining ministry to suspend mining operations. Later, in a separate order, the company was asked to halt soda ash exports.
In a statement, the company said, “TCML has provided a comprehensive response to the matters raised by the ministry, including information regarding its compliance with applicable regulatory requirements. We await the ministry’s review of our submissions and further direction.”
TCML has been mining natural soda ash from the trona deposits at Lake Magadi since 1911 and is Africa’s largest soda ash producer. The Magadi operation represents one of the key manufacturing hubs for Tata Chemicals globally.
When contacted, Tata Chemicals said, “We respect the authority of the Government of Kenya and remain committed to constructive engagement through the appropriate legal and regulatory channels to resolve the outstanding matters.”
