Flourspar to reopen for business

Feb.1, 2010
Plans are underway for the re-opening of Fluorspar Mining Company, whose closure has adversely affected the economic status of many residents of Kerio Valley in Keiyo South District.
The company is likely to re-open in June this year when the price of fluorspar in the world market is expected to have improved.
Its managing director, Mr Nico Spangenberg, said the firm is still monitoring emerging market trends, but expressed optimism that the factory will be back on its feet and will create more jobs for Kenyans.
He revealed that prices of the mineral had considerably increased from about 170 dollars per tonne to between 230 to 250 dollars per tonne in the world markets.
However, he noted, though the rates are better, they are still low compared to the high rates of 450 dollars per tonne that the commodity fetched during peak seasons of the year before the recession.
Fluorspar prices had dropped by 65 per cent from November 2008 to December last year, prompting closure of the factory, when it was no longer profitable to operate.
"The bad business storm started hitting us in November 2008 and eventually ground our operations to a halt. Many people have felt the effect of the company's closure as circulation of money in the area has been severely affected," the managing director said.
India and Western Europe are the main markets for the commodity, but the company will explore other potential markets once it resumes business, he added.
When the firm wound up operations last March following an economic slump, 180 employees and an additional 230 contracted workers were rendered jobless, Mr Spangenberg said, adding that 210 employees were still at the factory and will be pivotal when it finally starts operations.