Base Titanium, the leading mineral mining firm in Kenya, has had its operations extended to 2024.
The extension comes after a long period of uncertainty which had seed the Australian firm consider relocating its operations to Tanzania over licensing delays.
The extension follows the receipt of a 'deed of variation' from the Ministry of Petroleum and Mining, which now clears the company to extend its Special Mining Lease boundary at the current site.
Base’s application was approved in July last year, but could not conduct any activities until the deed of variation was awarded.
It has finally received the permit, the firm has reported.
According to the ministry, Base Titanium has put in place “the required measures including earning a social license to operate in Kenya.”
The move now increases the mine-life at the current licensed area where operations were expected to cease in 2023.
Initially, it has projected to end mining activities in October this year.
“These are twelve more months of mining, exporting, royalties and investment in the community,” general manager external affairs, Simon Wall, told the Star on telephone yesterday.
Dubbed the “Bumamani Project” which is named after a local community, it pushes the firm’s Kwale operations to December 2024.
“The project will be mined concurrently with the Kwale South Dune deposit to maximise mining rates and better manage tailings,” management says in its report for the quarter ended June.
The firm which commenced mining titanium ores in the country in 2013, with the first shipment in February 2014, is keen to further expand its operations having applied for three prospecting licenses.
These are for Ramisi area in Msambweni, Kuranzi area near the Kwale-Taita Taveta Counties border and Lamu.
A government of Kenya moratorium on the issuance of prospecting licences, in place since November 2019, has affected the progress of all licence applications.
“The company is working with the government and other mining sector stakeholders, to see the moratorium lifted to enable the recommencement of the issuance of mineral rights,” Base says.
It’s last prospecting licence was on an area covering 136 square kilometres in Vanga area, towards the Kenya-Tanzania border of Lunga Lunga, which was approved by the Mineral Rights Board and issued in December 2018.
However, there have been little activities in the area with works stopping in the last quarter.
Another drill program (4,200 metres) in an area in Kwale East remains on hold, pending land access being obtained.
Renewed efforts to engage the community to secure access is making encouraging progress, management says.
Expenditure on exploration activities in Kenya during the April-June quarter was Sh23.7 million, an increase from Sh11.9 million in the first quarter of the year.
During the quarter under review, the company reported steady production and exports of the three key minerals– rutile, ilmenite and zircon.
The company has reported a record sales revenue of $91.3 million (Sh10.8 billion) in the quarter, with $51.8 million (Sh6.1 billion ) occurring in June, leading to an increase in receivables of $26.2 million (Sh3.1 billion)over the quarter.
Base accounts for 65 per cent of Kenya's mineral exports.
Last year, the country’s total value of minerals produced increased by 33 per cent from Sh22.7 billion in 2020, to Sh30.2 billion.
“This is attributed to a 31.5 per cent increase in the value of the titanium ore minerals from Sh19.5 billion to Sh25.6 billion in 2021, “ Kenya National Bureau of Statistics says in its Economic Survey 2022.
The minerals played a role as the country’s total value of export earnings improved from Sh643.7 billion in 2020 to Sh743.7 billion in 2021, translating to a 15.5 per cent increase.
The growth was largely attributable to increases in domestic exports of horticulture, titanium ores and concentrates, and articles of apparel and clothing accessories, KNBS says.
Total exports to China, were valued at Sh21.9 billion in 2021 compared to Sh 14.8 billion in 2020, representing a 48.1 per cent increase.
“This was majorly attributable to an increase in domestic exports of titanium ores and concentrate to this destination,” the Economic Survey states.
During the year, export price of the titanium ore and concentrates rose by 13.7 per cent to Sh47,445 per tonne , from Sh41,746 per tonne recorded in the previous period, leading to an increase in production value during the review period.
That of soda ash declined by 6.0 per cent from Sh22,778 in 2020 to Sh21,416 per tonne.
Other key minerals produced in the country include gold, crushed refined soda, soda ash, salt and gemstones.
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