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February 22, 2018

Base Titanium demands Sh1.9 bn refund from KRA

Stackling of ilmenite mineral taking place at Likoni port storage facility, Base Titanium External Affairs and Development General Manager Joe Schwarz  wants remaining sh1.9billion in tax refund from KRAPhoto/Alloys Musyoka
Stackling of ilmenite mineral taking place at Likoni port storage facility, Base Titanium External Affairs and Development General Manager Joe Schwarz wants remaining sh1.9billion in tax refund from KRAPhoto/Alloys Musyoka

Australian-owned Base Titanium wants Kenya Revenue Authority to expedite the refund of $18.4 million (Sh1.9 billion) in accumulated Value Added Tax refund claims as at the end of December last year.

Joe Schwarz, general manager external affairs and development at Base Titanium, said the firm has received a refund of only $4.4 million (Sh453 million) since September.

Base Resources is continuing to engage with the Kenyan Treasury and the Kenya Revenue Authority, seeking to expedite the remainder of the refunds. The claims are related to the construction of the Kwale project and the period since the firm started operations in late 2013,’’ said Schwarz.

He said the company is ready to pay five per cent in royalties from the current 2.5 per cent. The additional levy was to commence this January but the state is yet to come clear on the issue.

“We hope that the additional charge will be used by the government to spur impactive social economic ventures across the country.” The firm has single handedly pumped Sh1 billion in various income generating activities including health, education and agriculture.

Base Titanium recorded steady production of minerals and sales during the quarter under review compared to the results of the same quarter in 2016.

The firm produced 119209 tonnes of Ilmenite in the quarter to December compared to 113,806 tonnes realized same period in 2016. This was however slightly low compared to 119,376 recorded the previous quarter to September.

There was a significant improvement in the production of both Zircon and Zircon low grade, with the former jumping by over 1000 tonnes to hit 9569 tonnes against 8591 tonnes in 2016. There was also a slight improvement in production of Rutile from 9136 tonnes in September to 9569 in December.

The firm that accounts for 57 per cent of Kenya’s mineral exports is planning to conduct further explorations in Kwale in the quarter to June this year. In October last year, it announced an updated mineral resource estimate for Kwale South Dune, resulting in a 19 per cent increase in contained in site heavy mineral.

In December, Base Titanium reached an agreement with World Titane Holdings to aquire an initial 85 per cent in the wholly owned Mauritian subsidiaries in Madagascar. It will also commence explorations in Tanzania next week.

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