A delegation from the Chinese company General Nice Development visited Kishushe between May 5th 2011 and May 10th 2011 and after deliberations agreed to finance a feasibility study for the construction of the steel complex.
The discovery of rich iron ore deposits in parts of the country has increased prospects of Kenya setting up its first steel manufacturing plant. Intensive prospecting over the past three years has yielded promising data on availability of iron ore deposits, with Kishushe Location in Taita Taveta County topping the list of areas most endowed with the natural resource. Other zones are in western Kenya.
Due to the positive find, a Chinese steel manufacturer has approached Kenyan firm Wanjala Mining Company with a proposal for partnership in the setting up of a local steel manufacturing plant.
Wanjala Mining, which set up a KES 600 million mining site at Kishushe two years ago, says it is mulling over the proposal even as it intensifies prospecting to meet the high threshold set by the Chinese firm.
Mr RK Sanghani head contractor at Wanjala Mining said that "All they want is a guarantee that we have iron ore deposits to the tune of 20 million tonnes. This is the quantity that would make such a venture, including the construction of a plant locally, economically viable."
According to Mr Sanghani, geophysical surveys have revealed rich deposits of iron ore in the Kishushe area but the belt could be more expansive than previously thought. The firm has been given a 21 year lease by the Taita Taveta County Council to carry out prospecting in the area, which is trust land. An application for a mining lease has been forwarded to the government.
For the over two years it has been operation, Wanjala Mining harvests between 10,000 tonnes to 12,000 tonnes of iron ore at Kishushe which it exports to China. The firm has, however, set itself a target of 30,000 tonnes.
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