Tiomin Resources (TIO-T) said it will hold off further construction at the Kwale mineral sands project in southeastern Kenya following a court action launched against the Kenyan government by seven farmers who would be displaced by the project.
The seven had been given notice of expropriation by the government, which has already issued full permits for the mineral sands operation and approved a compensation scheme for local landholders. The farmers claim the government has no legal power to expopriate the land.
Another 371 landholders in the area had previously accepted compensation offers for their holdings.
Tiomin said the delay meant it could no longer meet previously announced production schedules. Principal lenders for the project will not advance funding until all legal issues have been resolved.
The court’s decision is expected on Dec. 21.
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