Base Titanium is keen to extend its operations to Tanzania amid delays in the issuance of prospecting licenses in Kenya, which could affect its future plans.
The firm, which has been mining titanium ores in the country since 2013 with the first shipment in February 2014, has been granted three prospecting licenses by the Tanzanian government, applied during the second quarter of this year (April-June).
“The company lodged four prospecting licence applications in Tanzania for areas adjacent to the Kuranze region in Kenya. Subsequent to the quarter-end, three were granted subject to the company’s formal acceptance and payment of processing fees and annual rent,” it states in its latest quarterly results.
Its prospecting activities in Kenya on the other hand have been slowed down with delays in the issuance of licenses, mainly on a government moratorium put in place in November 2019.
The company has also faced resistance from a section of the community in Kwale where it has been keen to explore.
It had earlier secured a prospecting license which allowed drilling of the southern section of the Vanga region (Kwale), which it says was “completed with no significant mineralisation found.”
“Completion of the remaining drilling program (4,200 metres) in the North-East Sector (Kwale East) of PL 2018/0119 remains on hold pending community access being secured,” the company reports.
Three prospecting licenses for Kwale and Lamu, applied in 2019, are yet to be granted.
The Petroleum and Mining ministry has however agreed to a licence that will allow the company tap an area near its current site in Kwale, which will extend its mine life by one year.
This, as the prospecting licenses remain under process.
During a mining stakeholder’s forum this month, CS John Munyes said the firm's application for the extension has been approved.
“We have looked at the application and a license will be issued soon,” Munyes said, noting that the company has put in place the required measures, including earning a social license to operate in Kenya.
Currently, Base has 15 months of mine life at its current licensed area, where operation is expected to cease in October 2022.
The company and the ministry are expected to finalise a “Deed of Variation” that will give effect to the proposed extension.
It is also hoping the moratorium on licenses is lifted paving way for recommencement of the issuance of mineral rights.
The government placed the temporary measure to allow aerial mapping of Kenya’s mineral deposits, which is currently 90 per cent complete, according to the ministry.
Once complete, the findings will form the decision to end the freeze, Munyes said.
Base recorded a drop in minerals sold in the second quarter of this year compared to the same period last year, where total volumes were 126,246 tonnes against 138,718 tonnes.
Quarter one 2021 sales were 129, 865 tonnes for the three key minerals—lmenite, Rutile and Zircon, with China remaining the lead export destination.
