MINISTRY OF MINING, BLUE ECONOMY AND MARITIME AFFAIRS TENDER APRIL 2023

STATE DEPARTMENT FOR MINING

EXPRESSION OF INTEREST (EOI)

REVIVAL OF FLUORSPAR MINING AT KIMWARER, ELGEYO MARAKWET COUNTY, KENYA

TENDER NO.                             MMBE &MA/SDM/EOI/009/2022-2023

Background

The Ministry of Mining, Blue Economy and Maritime Affairs, State Department for Mining (hereinafter “the Ministry”), is charged with the responsibility of regulating and promoting mineral development in Kenya. The Mining sector plays a significant role in Kenya’s social economic development.

The State Department invites expressions of interest from qualified bidders to establish and re-start mine operations at the Fluorspar Mine located in Kimwarer, Elgeiyo Marakwet County, Republic of Kenya under a Public Private Partnerships arrangement.

The mine will exploit fluorite deposits using existing project infrastructure including the processing plant and mining equipment, utilize available transport facilities and ferry the product to Mombasa for export to international markets.

It is estimated that at an average fluorspar concentrate production of 74,000 tpa, (range 35,000 tpa to 129,000 tpa) over the mine life, the mine could be in production for up to 40 years.

It is expected that this project will benefit residents of Elgeyo Marakwet County by improving the livelihoods of the beneficiary communities, through creation of direct and indirect employment opportunities.

Objectives of the project:

  • To revive mining operations in Kimwarer and exploit fluorspar deposits therein;
  • To utilize and make good use of facilities left by the vacated fluorspar mine operator;
  • To provide a source of livelihood to the residents of Kimwarer area and Elgeyo Marakwet County in general;
  • To improve the social economic status of beneficiary communities; and
  • To increase revenues for the county and national levels of governments.

Property Location and Description

The Kimwarer Property is located within the Kerio Valley, adjacent to Kimwarer township with a population of approximately 1,500 and about 300 KM northwest of Nairobi.

The property is situated approximately 70 km (straight line) southeast of Eldoret, a city of approximately 500,000 people with regular commercial air services to and from Nairobi.

The property area has low to moderate relief, ranging from 25m to 100m. The topography of the area Includes a wide valley bounded by escarpments (steep cliffs) at its eastern and western boundaries, extending into relatively flat terrain with little to moderate vegetation.

Existing Infrastructure

The current existing site infrastructure consists of:

  • A processing plant;
  • Tailings storage facilities;
  • Warehouse and stores;
  • Explosives magazine;
  • Mine maintenance yard and central workshop;
  • Diesel power generators; 
  • An office block
  • Metallurgical laboratory;
  • Staff quarters and staff and community canteen
  • A primary school and health centre
  • A police post
  • Assorted machinery – compressors, welding machines etc Geology and Mineralization

The Kerio Valley fluorspar deposits are situated within a splay of the Rift Valley, extending from Zimbabwe to Ethiopia in East Africa. The mineralized zones are situated within north, northeast and northwest trending shear zones with intense hydrothermal alteration.

The host rocks are Precambrian age alternating units of steeply dipping to sub-horizontal quartzofeldspathic gneiss, marble biotite gneiss and quartzite. Surface traces of the mineralized units, interlayered with the meta-sedimentary rocks, indicate that they may represent an isoclinal folded sequence. In general, the surface traces of the mineralized zones coincide with topographic contours, and in places, with areas of topographic lows, and the alteration/ mineralization zone ranges in width from 50m to 140m.

Mineral Resources

The Mineral Resources at Kimwarer have been estimated at a mining discard cut-off grade of 10% CaF2 and a minimum horizontal width of 5m of mineralization. At this cut-off grade, the Indicated Mineral Resources total approximately 21.9 Mt at an average grade of 31.4% CaF2. In addition, the various mineralized zones contain some 6.4 Mt of Inferred Mineral Resources at an average grade of 31.1% CaF2 From previous studies, a fluorspar concentrate of 97% CaF2 grade at 99.8% recovery is feasible, based on the mineralogy of the sample. CaC03 is the main contaminant in a concentrate. At 97% CaF2 grade, the CaC03 level will be 1.9%, which is double the acceptable limit of 1%. All other contaminants are below the maximum level.

Service Description

The Government seeks an investor who will finance, revive and operate the Fluorspar Mine within Kimwarer Location of Elgeyo Marakwet County. There may be need for the investor to rehabilitate and maintain the machinery and other assets left behind by the former mining company.

It is expected that the successful bidder will among others, carry out the following studies before commencing operations:

  • Upgrade the inferred resources to indicated resources by undertaking infill drilling;
  • Undertake a geotechnical study for the existing open pits (4) in order to confirm pit slope angles and to minimize strip ratios;
  • Undertake further work to optimize the open pit designs in order to reduce the overall material difference between the Whittle pit shells and ultimate pit designs;
  • Undertake detailed mine planning in order to schedule a blending programme to meet a minimum mill head grade of 35% CaF2 and mill grind ability requirements;
  • Carry out further metallurgical test-work in order to confirm process recovery of 70% and acid grade fluorspar specifications can be met by processing lower grade material than historical production grades; and
  • Carry out a waste rock dump location option study and dump design for the projected waste tonnage from the open pits in order to minimize haul distances and to confirm dump stability.

Eligibility and qualification of bidders

  • Company profile;
  • Technical and financial capability in mining and mineral processing;
  • Proof of experience in marketing of minerals and mineral related products;
  • A brief overview of fluorspar mine operationalization roadmap;
  • A clear demonstration of the proposed benefit to be accrued to the Community and the National Government;
  • Clear demonstration of effective environmental preservation;
  • A clear demonstration of effective Corporate Social Responsibility;
  • A Copy of certificate of incorporation/ business registration;
  • A Copy of PIN and Tax compliance certificates;
  • A copy of CR12 or equivalent.

Shortlisting of bidders shall be based on the above criteria.

The EOI evaluation process will include a functionality/technical evaluation. No price evaluation will be done at this

Stage-

Medium of Communication

All documentation submitted in response to this Expression of Interest must be in English.

Cost of Expression of Interest

All Companies are expected to fully acquaint themselves with the conditions, requirements and specifications of this EOI before submitting responses. Each firm assumes all risks for resource commitment and expenses, direct or indirect, of EOI preparation and participation throughout the EOI process. The Ministry is not responsible directly or indirectly for any costs incurred by Companies.

Correctness of Responses

All applicants must confirm satisfaction regarding the correctness and validity of the EOI.

The Ministry Reserves the Right to:

  • Extend the dosing date;
  • Verify any information contained in a response;
  • Request documentary proof regarding any tendering issue;
  • Cancel or withdraw this EOI as a whole or in part; and
  • Not to include supplier on the list of suppliers on the approved database based on functional criteria not met.

Disclaimer

This EOI is an expression  of interest only and not an offer document. Answers to it must not be construed as acceptance of an offer or ~: . :-,e existence of a contract between the parties. By submission of its EOI, Companies shall be deemed to have satisfied  themselves with and to have accepted all Terms Si Conditions of this EOI. The Ministry makes no representation warranty assurance, guarantee or endorsements to service provider concerning the EOI, whether with regard to accuracy completeness or otherwise and the Ministry shall have no liability towards the service provider or any of the party in connection therewith.

EOI Submission:

Eligible firms are to submit their clearly labelled “EXPRESSION OF INTEREST (EOI) FOR REVIVAL OF FLUORSPAR MINING AT WMWARER, ELGEYO MARAKWET COUNTY, KENYA TENDER NO. MMBE Si MA/SDM/E0I/009/2022- 2023” by hard copy to be deposited in the Tender Box situated on 2nd Floor, Works Building so as to be received not later than Wednesday, 26th  April, 2023 at 10:00 a.m. East African Time.          

The Envelope should be clearly addressed to:

The Principal Secretary
State Department for Mining
Ministry of Mining, Blue Economy and maritime Affairs
P.O. Box 30009-00100
Nairobi.

EOI Opening:

The EOI documents will be opened immediately thereafter in the presence of bidders’ representatives who choose to attend at Works Building, 3rt Floor, Ministry Boardroom.

Only successfully pre-qualified  firms will be invited to the next stage of Request for Proposal (RFP) for Revival of Fluorspar Mining at Kimwarer in Elgeyo Marakwet County, Kenya.

Late submissions will not be accepted.

This EOI is also available the Government of Kenya Tender Portal www.tenders.go.ke. And in the Ministry’s website www.mibema.goke  The Ministry reserves the right to accept or reject any or all applications.

HEAD, SUPPLY CHAIN MANAGEMENT SERVICES

 For; PRINCIPAL SECRETARY

ANNEXUREA

Competence Criterion Key Aspects of Criterion Points
Experience The Bidder possesses experience in exploration, mine development, mining and related research More than 10 years working experience 20
    5-10 years working experience 10
    3-5 years working experience 7
    Less than 3 years working experience 3
    No experience 0
References for Previous Work   More than 5 project references 10
    3-5 project references 7
    2 project references 5
    Less than 2 references 3
    No references 0
Financial Capability Proof of Financial Capability to undertake the Project Audited Financial Statement for the last three years 10
    Bank Reference 10
Marketing Proof of experience in marketing of minerals and mineral related products Provide list of potential clients 5
    Proof of recent transactions in relation to minerals and mineral products 5
Methodology An overview of the proposed Fluorspar mine operationalization roadmap Schedule of activities leading to the proposed mine operationalization 20
Qualifications The Bidder Is expected to have relevant qualifications’^ exploration, mine development, mining and related research Relevant Qualifications 20
    Qualification not relevant 0

 

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