ARM Cement has applied for a license to mine limestone in Chonyi, Pangani, Chauringo, Maereni and Mazeras areas in Kilifi County according to a Gazette notice published on August 10, 2018.
The cement company has also sought for permits in Kajiado and Makueni counties which the Ministry of Petroleum and Mining is currently considering.
Last month, ARM’s chief executive Pradeep Paunrana said the three mining licenses it has applied for will boost existing operations and help regularise the firm’s permits in accordance with the new Mining Act.
“Anyone with objections about ARM Cement being granted the license should submit objections to the Cabinet Secretary at the Ministry of Petroleum and Mining within 42 days from the date the Gazette notice was published.”
Upon receiving the approval of these license applications, ARM will be better positioned to compete with Mombasa Cement, Bamburi Cement, and East African Cement.
Demand for cement in Kenya is expected to grow going forward largely driven by the Government’s Big Four agenda particularly investment in affordable housing. This will provide an opportunity for ARM to supply the local market and in the bottom line improve its financial position.
New Management To Steer Turnaround
On Monday, the NSE listed company announced changes to its senior management including the appointment of a seasoned business executive Linus Gitahi as its board Chairman, tasked to ensure a turnaround of the company’s performance as well as restore investor confidence.
The market remains optimistic that the company still has a great chance to restructure its balance sheet and business operations and be able to compete favorably.
