Kenya: we are the 35%

Whether you call it resource nationalism or getting a fair share of your natural resources, when countries introduce local ownership regulations it can hit foreign investors hard.

The latest case is Base Resources, a small-cap listed in Australia, with a flagship project in Kenya – Kwale Mineral Sands. Kenya’s mining ministry wants a local equity stake of 35 per cent of all mining licences. The market reaction? Base shares fell 36 per cent on Monday.