Jobs on the line as Kenya Fluorspar closes shop

Mining Company Kenya Fluorspar is set to suspend operations following a dip in demand and international prices of the mineral.

From April 30, 2016 the mining company will suspend operations as it waits for prices to improve.

The company has been facing weak global demand since 2009, forcing the mine to cut production for six to seven months a year.

Kenya Fluorspar Managing Director Nico Spangenberg has indicated the closure of the mine will result in termination of employment for staff across all levels.

“Low demand and prices since 2012 has led to losses for the last three years. Unfortunately, a collapse in market conditions in the last six months has led to dramatic reduction in fluorspar prices and demand and thus the company’s operations have become unsustainable in the current mart,” Mr Spangenberg said in a statement.

The company has however undertaken to pay all salaries and wages to its staff.

“In the future, when the company becomes financially sustainable to resume operations, current employees will receive preference in re-employment,’ he said.

The factory is a major source of income in Elgeyo-Marakwet County and has played a leading role in providing infrastructure such as roads, education and health services.

Kenya Fluorspar however says that all its social projects in athletics, primary and nursery schools and medical centers will not be affected by the closure of the mine.

The mining company did not give an indication of when it expects to resume operations.

Fluorspar is used in the making of glassware and air conditioning systems.

According to the Kenya National Bureau of Statistics, fluorspar exports in 2014 stood at Sh1.9 billion.