Sofax Fluorspar Kenya partners with China’s Mizztech Group to revive Kerio Valley plant

In a move set to rekindle Kenya’s position as a major player in the global mineral market, Sofax Fluorspar Kenya has today signed a landmark Memorandum of Understanding (MoU) with the Chinese firm, Mizztech Group, to refurbish its processing plant in the mineral-rich Kerio Valley. This agreement signals a significant milestone, marking a crucial step in the long-awaited revival of Kenya’s fluorspar mining operations after years of dormancy.

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The signing ceremony, held at the Kenya National Chamber of Commerce and Industry (KNCCI) headquarters in Nairobi, sets the stage for a comprehensive Engineering, Procurement, and Construction (EPC) contract. This full-scope contract, which is expected to be finalized within the next six months, will see Mizztech Group take the lead in overhauling the processing facility, bringing it up to modern, world-class standards. This partnership follows closely on the heels of Sofax Fluorspar Kenya securing a landmark 25-year mining licence (ML/2025/0216) from the State Department of Mining just a month prior. Valid until 3rd June 2050, the licence grants the company exclusive rights to mine, mill, and market Acidspar Grade Fluorspar (97% CaF₂). This project, officially named the Sofax Fluorspar Project, is poised to be a major catalyst for economic growth, job creation, and foreign exchange earnings.

Speaking during the signing ceremony, John Masanda, Chief Executive Officer of Sofax Fluorspar Kenya, expressed profound optimism about the agreement’s potential. “This MoU with Mizztech Group is not just about refurbishing a plant; it is about unlocking the full potential of the Kerio Valley fluorspar reserves, creating jobs, and positioning Kenya as a competitive player in the global fluorspar market,” he stated. “This marks a major step in revamping our processing operations and delivering value to our stakeholders over the next 25 years.”

Echoing this sentiment, Charles Cheng, CEO of Mizztech Group, highlighted the global significance of the mineral. “Fluorspar is a critical mineral used in the production of steel, aluminum, glass, ceramics, and various chemical applications. Through this collaboration, we aim to bring cutting-edge technology and expertise to Kerio Valley, ensuring world-class processing standards that meet the demands of global markets.”

The Historical Context: The Revival of a Dormant Giant

For decades, Kenya’s fluorspar mining industry was a vibrant economic driver, primarily through the operations of the state-owned Kenya Fluorspar Company (KFC) that was established in 1971. The company, which operated from the same Kerio Valley site, was once a key employer in the region, providing livelihoods for thousands of people and contributing significantly to the national treasury. Production was robust, with the mine exporting substantial quantities of fluorspar, primarily to Europe. However, years of operational challenges, including ageing machinery, falling global fluorspar prices, and mismanagement, led to the company’s eventual closure and subsequent liquidation.

The shuttering of the mine left a significant void in the local economy. Businesses in the surrounding communities of Kimwarer and Soy were severely impacted, and a large workforce was left without employment. The processing plant fell into disrepair, becoming a stark reminder of a once-thriving industry. The “revival” now championed by Sofax and Mizztech represents a powerful narrative of economic redemption—a promise to restore the prosperity that once defined the region. This new partnership signifies a crucial shift from past challenges, leveraging private sector investment and international expertise to build a more sustainable and technologically advanced operation. The transition from a state-run entity to a private enterprise with a strong foreign partner signals a more agile and efficient approach, one that is better suited to the demands of the modern global market.

Fluorspar’s Global Significance and the Value of Acidspar

Fluorspar, scientifically known as calcium fluoride (), is a mineral of immense industrial importance. It is a key raw material in a diverse range of manufacturing processes, and its market is segmented based on its purity or “grade.” The three primary grades are:

• Metallurgical Grade (Metspar): This is the lowest-purity grade, typically containing 60-85% CaF2​. It is primarily used as a flux in steel production to lower the melting temperature and remove impurities, making the process more efficient.
• Ceramic Grade (Ceramics Grade): With a purity of 85-96% CaF2​, this grade is used in the production of glass, enamel, and cooking utensils. It helps in opacifying and coloring these materials.
• Acid Grade (Acidspar): This is the highest-purity fluorspar, with at least 97% CaF2​. It is the most valuable of the three grades and the one Sofax is licensed to produce. The high purity is essential for its primary use: the production of hydrofluoric acid (HF). Hydrofluoric acid is a fundamental chemical in the modern world, serving as the precursor for a vast number of other fluorine-based chemicals.

The production of hydrofluoric acid from Acidspar is a critical process that underpins numerous global industries. HF is used to make:

• Fluorocarbons: These are used in refrigerants for air conditioners and refrigerators.
• Aluminum Fluoride: A key component in the smelting of aluminum.
• Polymer Products: Fluorspar derivatives are used to produce polytetrafluoroethylene (PTFE), a polymer with exceptional properties. Better known by its brand name, Teflon, this material is used in non-stick cookware, electrical insulation, and chemical-resistant equipment.
• Pharmaceuticals and Agrochemicals: Many drugs and pesticides contain fluorine, making Acidspar a critical input for these sectors.
• Electronics: High-purity fluorine is essential for etching silicon chips in the semiconductor industry.

The fact that Sofax is targeting Acidspar production at 97% purity signifies its ambition to tap into the most lucrative and technologically demanding segments of the global market. The quality of the output will be a key determinant of its success.

The New Chapter: Details of the Sofax-Mizztech Partnership

The MoU between Sofax and Mizztech is not merely a symbolic gesture; it is a foundational step in a detailed, multi-phase project. The agreement paves the way for the Engineering, Procurement, and Construction (EPC) contract. This type of contract is common in large-scale infrastructure projects, where a single company is responsible for all aspects of a project from start to finish. Mizztech Group’s role as the EPC contractor will involve:

1. Engineering: Designing the new processing plant. This includes everything from the layout of the crushing and milling units to the chemical processing lines and the final bagging and loading facilities. The design must be modern, efficient, and meet international environmental and safety standards.
2. Procurement: Sourcing all the necessary equipment, machinery, and materials. This is a complex logistical exercise that requires a strong supply chain network, which Mizztech, as a Chinese-based firm, is well-positioned to manage.
3. Construction: The actual building and installation of the new plant. This phase will involve a large workforce, both local and international, and is expected to inject significant capital directly into the Kerio Valley economy.

Mizztech Group’s Expertise: As a key player in this project, Mizztech Group brings decades of experience in the mining and metallurgy sectors. The company is known for its proficiency in plant refurbishment and the application of modern processing technologies, particularly in the beneficiation of critical minerals. Their involvement in similar projects globally gives them the technical know-how to handle the complexities of revamping the dilapidated Kerio Valley plant. Their expertise in implementing efficient, low-waste processing techniques will be vital in ensuring the project’s long-term sustainability and profitability.

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Economic and Social Impact: A Catalyst for Growth

The revival of the fluorspar mine holds immense promise for Kenya’s economy and its people. The projected impact is multifaceted and extends far beyond the mine’s fence.

Job Creation: The refurbishment and subsequent operation of the plant will create a wave of new employment opportunities. The construction phase alone will require hundreds of skilled and unskilled laborers. Once operational, the mine will provide direct jobs for miners, engineers, technicians, and administrative staff. Furthermore, the ripple effect will create thousands of indirect jobs in the local supply chain, from transport and logistics to hospitality and retail services. This is a critical factor for the Kerio Valley region, where economic alternatives have been limited since the mine’s closure.

Foreign Exchange and Export Earnings: As a high-value export commodity, Acidspar Fluorspar will generate significant foreign exchange earnings for Kenya. The global demand for fluorspar remains robust due to its use in key industrial applications. By re-entering this market, Kenya will not only boost its export revenue but also diversify its export portfolio, reducing its reliance on traditional commodities.

Contribution to Industrialization: The project aligns perfectly with Kenya’s broader industrialization agenda, a key pillar of the government’s Vision 2030 development plan. The mining sector is a critical component of this vision, and large-scale projects like the Sofax Fluorspar Project are essential to realizing its potential. The revival of the mine will also encourage the development of local skills and expertise in mining and mineral processing, creating a human capital base that can support future projects.

Community Development: Sofax Fluorspar Kenya has a responsibility to ensure that its operations benefit the local community. This includes not just job creation but also investments in social amenities like schools, health centers, and infrastructure. Successful, community-engaged mining projects are built on a foundation of trust and shared prosperity, a lesson that can be drawn from the experiences of other large-scale resource extraction ventures in Africa.

Strategic Alignment: Kenya’s Vision for Mining

The 25-year mining licence granted to Sofax is a powerful statement of intent from the Kenyan government. It signals a long-term commitment to the private sector and a renewed confidence in the country’s mining potential. A long-term licence provides the stability and assurance that companies like Sofax need to justify significant capital investment in infrastructure and technology. It reflects a clear regulatory framework aimed at attracting foreign direct investment (FDI) into the sector.

The government’s role, as highlighted by KNCCI Ag CEO KK Mutai, is to create an enabling environment for such partnerships to flourish. The Chamber’s mandate to facilitate trade and investment is instrumental in linking local enterprises with global partners, thereby unlocking opportunities for economic transformation. This partnership is a testament to the success of this strategy, demonstrating how private-public sector collaboration can yield tangible results.

Looking Ahead: The Road to Production

While the signing of the MoU is a momentous occasion, it is the first step on a long and complex journey. The next six months will be critical as Sofax and Mizztech work to finalize the EPC contract, a process that will involve detailed technical and financial due diligence. Following that, the construction and refurbishment phase will commence, a period that could take several years to complete.

Beyond the physical reconstruction, the project will also face challenges related to logistics, market fluctuations, and operational efficiency. The success of the Sofax Fluorspar Project will depend on a combination of factors: the stability of the global fluorspar market, the company’s ability to maintain high product quality, and a robust and collaborative relationship with the local community.

The revival of the Kerio Valley mine is more than just a business story; it is a story of national ambition. It represents Kenya’s renewed commitment to leveraging its natural resources for sustainable development and its aspiration to become a key player in the global mineral supply chain. With the strategic partnership between Sofax and Mizztech, a new chapter has begun for Kenya’s mining sector, promising a return to prosperity for the people of Kerio Valley and a significant boost to the national economy.

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By: Montel Kamau

Serrari Financial Analyst

15th August, 2025