Tata takes 'high-level' action to sort Kenya ops

Tata Chemicals has announced the formation of a high-level technical committee to investigate regulatory concerns surrounding its Kenyan subsidiary, Tata Chemicals Magadi Limited (TCML). The committee, co-chaired by Kenya's Principal Secretary for Mining and the company's CEO, will conduct a thorough technical review of the issues raised by the Ministry of Mining and submit a report to the Cabinet Secretary for further review.

The latest move follows a meeting between the Cabinet Secretary and TCML executives on September 8, which both parties deemed "fruitful" in discussing the issues raised by the ministry. This action comes after Tata Chemicals submitted all required information and documentation to the Kenyan government on August 11, asserting full compliance with all applicable regulations.

The dispute began when President William Ruto ordered the suspension of TCML's operations, citing a lack of mutual benefit to Kenya. Ruto also stated the government's intention to involve two other companies in the operations. The Kenyan government had previously ordered TCML to halt operations and cease exporting soda ash from its Magadi Soda factory in late July.

Despite this setback, Tata Chemicals, which acquired the Magadi plant in 2005, remains committed to resolving the issues via productive dialogue and legal channels.