Shanta Gold Ltd. has projected annual operating costs of about $19 million for its planned Isulu–Bushiangala underground gold mine in western Kenya, even as the London-listed miner faces rising community skepticism over its intentions on the ground.
- •According to feasibility documents filed with regulators, the mine’s average life-of-mine cost is estimated at US$92 per tonne, covering mining, processing, administration, support services, selling and royalties.
- •The underground operation is expected to yield about 1.27 million ounces of gold over an eight-year lifespan, with total capital investment ranging between US$170 million and US$208 million.
- •Locals say years of drilling and equipment movement have blurred the line between prospecting and production, fueling suspicions that gold extraction may already be underway.
Royalties to the Kenyan government are projected at US$ 4.3 million to US$4.7 million annually, alongside a 1% community development levy tied to gold output value. The figures are part of Shanta’s West Kenya feasibility study, which aims to determine the commercial viability of the Kakamega County project.
Yet, despite these promising numbers, the company is contending with local mistrust. During public consultations in Kakamega South, Albert Shisanya, a market supervisor, questioned whether Shanta’s long-running activities had already crossed into production. “Shanta Gold has been here for years — how can we be sure this is still exploration and not mining?” he asked, drawing murmurs of agreement from residents.
That concern, shared widely across Isulu and Musoli, has become one of the main challenges facing Shanta’s West Kenya venture.
Casper Musungu, a local elder, voiced similar doubts. “We see trucks moving, we see drilling, but we don’t see any accountability,” he said. “People want clear proof that gold isn’t being taken out secretly. Without openness, it’s hard to believe this is just research.”
The company’s Environmental and Social Impact Assessment (ESIA) acknowledges that mistrust over transparency has become “a major controversy within the community,” threatening to erode social trust ahead of licensing.
In response, Shanta Gold Kenya Ltd., a wholly owned subsidiary of Shanta Gold, said it is committed to clarifying its operations. “We understand there has been confusion, but there is no mining taking place,” said Jiten Divecha, the company’s Kenya general manager. “All current work is part of feasibility studies and environmental assessments required by law. We remain committed to transparency and continued community dialogue.”
