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From VOA Learning English,
this is the Economics Report.
Recent discoveries of mineral wealth in Kenya
could help add to east Africa's biggest economy.
The government also is taking steps
to improve the openness of the mining industry.
But some citizens are concerned
that new mining projects will damage local communities.
Mining companies say, the mineral resources
could be worth billions of dollar.
Local communities say,
they hope this will help their economies.
And the government has warned companies
about making announcements
about new resources before they are confirmed.
Kenya's Secretary of Mining Najib Balala says
the government will ask mining companies for details
about their findings before making them public.
"Any public announcements by a mining company,
we as a government needs to have that notification
21 days before their announcements."
The discoveries also could upset some communities
where big mining projects are planed.
One example is the recent discovery of rare minerals
in the Mrima Hills in the coast area of kwale.
The mining company Cortec reported finding a deposit of
more than 600 kilograms of Niobium.
The element is used in making steel
and metal mixtures called superconducting alloys
that allow electric currents to travel very easily.
Cortec says the discovery could be worth 50 billion dollars.
But a dispute has begun between the company,
the government and the local communities.
Leaders of the Mijikenda ethnic group which lives near Kenya's coast,
say they practise their religion in the Mrima Hills.
Joseph Morando is an official of the kaya people
who are part of the local ethnic group.
He says his people are oppose to mineral mining
in the Mrima forest and in the area.
He says they are appealing to the government to save the area
which is an important part of their history.
The area also is listed as a world heritage site
by the United Nations cultural agency or UNESCO.
The Kenya government has not announced how payments it receives
from mining companies called royalties would be used.
Mining Secretary Najib Balala is expected to present legislation,
proposing that the central government take 70% of mining royalty,
local government would receive 25%
and local communities would receive 5%.
The government says it hopes that reforms
in the mining industry will improve openness.
Mr Balala says that Kenya canceled 31 mining licences
during the first half of this year,
because of concerns over the process for receiving a licence to mine.
That's this week's Economics Report from VOA Learning English.
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