The Competition Authority of Kenya (CAK) has approved the proposed acquisition of gold exploration company Shanta Gold Limited by ETC Group’s Saturn Resources Limited for an undisclosed sum.
- Saturn Resources is a newly incorporated undertaking in Kenya.
- ETC Group, its parent company, is an investment company with assets in a diverse range of industries, including logistics, agrochemicals, insurance, fertilizers, distribution of FMCG.
- Shanta Gold Limited is in the gold exploration business and currently holds mining licences in the western Kenya region where it discovered three more gold fields in 2022.
The three fields; Kimingini, Dhene and Miruka now add to the traditional Isulu and Bushiangala gold fields, raising hope that the firm will strike a commercially viable find whose potential has been estimated to be KES 164 billion.
This now brings to five, the number of gold fields with high inferred gold deposits within the popular Lihranda corridor that stretches from Kakamega, Vihiga, Busia and parts of Siaya. The gold prospecting industry in Kenya is fragmented with a few licensed large-scale players and many artisanal and small-scale miners. The bulk of the gold prospecting is carried out in the remote regions of western Kenya near Lake Victoria rich in gold ore.
CAK says the market structure and concentration for gold prospecting in western Kenya will not be negatively affected since the acquirer is not in a similar market. “The transaction is unlikely to lead to a substantial lessening of competition in the market for gold exploration,” said CAK.
Prospecting for mineral deposits in Kenya is controlled by the State Department of Mining, Blue Economy and Maritime Services. A prospecting license is issued for a maximum of three years renewable for a further 2 years. A mining license is issued for 25 years, renewable for a further 15 years.
Shanta Gold Finds 3 New Gold Fields in Western Kenya – Kenyan Wall Street
