Base Resources employee displays a sample of the mineral on January 28,
2014. Base Resources Managing Director Tim Carstens said on July 8, 2016
the anticipated increase in production in all its three products would
spur exports and boost sales. PHOTO | KEVIN ODIT | NATION MEDIA GROUP
Australian miner Base Resources is expecting the production of
titanium in its Kwale County operations to increase by more than 10 per
cent next year on the back of improved efficiency from new equipment
installed in June.
Base Resources, Managing Director Tim Carstens said on Friday the anticipated increase in production in all its three products, rutile, ilmenite and zircon, would spur exports and boost sales.
In the financial year ending June 2016, the company’s rutile production went up by 19 per cent to 85,654 tonnes compared to 71,537 tonnes the previous year.
Ilmenite production shot up by 6.5 per cent to 455,870 tonnes from 427,655 tonnes the previous year while zircon production went up by 40 per cent to 31,389 tonnes from 22,416 tonnes.
“Operationally, the quarter (June 2016) has been one characterized by consistent production, further enhanced plant performance in throughput and sound cost control. We expect an increase in throughput in 2017,” Mr Carstens said in an interview.
He, however, added that relatively sluggish activity in the mineral sands global market weighed down revenues for its output as market prices for the minerals stood on average at Sh20,800 ($208) per tonne.
Mr Carstens revealed the firm is eyeing the speedy refund for its VAT claims by the taxman totalling Sh1.9 billion ($19 million) as at 30 June 2016 to boost its operations.
The Kenya Revenue Authority (KRA) has since reimbursed the miner a total of Sh100 million out of these claims.
“Base Resources is continuing to engage with the Kenyan Treasury and the Kenya Revenue Authority to expedite the remainder of the refund. We are encouraged by the recent move by Treasury to allocate KRA monies for VAT claims through a supplementary budget,” said Mr Carstens.
The miner was recently granted another exploratory drilling licence by the Ministry of Mining covering an expanded area of 177 square kilometers in Kwale County.
By 2017, Mr Carstens said the company expects to have a clearer vision of the potential titanium ore deposits in the area. It plans to commence an exploration drilling programme in September.
“The proposed drilling programme follows a successful airborne geophysics programme, conducted in 2015, covering the south coast region of Kenya from Mombasa to the Tanzanian border which identified a series of exploration targets that were subsequently confirmed through ground reconnaissance,” he said.
“The initial programme will comprise 18,000 metres of aircore drilling for which tenders are currently being evaluated.”
Base Resources has also applied for an additional special prospecting licence for an additional area covering 136km2 towards the Tanzanian border.
Titanium lifted Kenya’s mining exports by 14.7 per cent to Sh24 billion helping the industry to contribute the second-highest growth of gross domestic product after the construction sector last year.
Base Resources, Managing Director Tim Carstens said on Friday the anticipated increase in production in all its three products, rutile, ilmenite and zircon, would spur exports and boost sales.
In the financial year ending June 2016, the company’s rutile production went up by 19 per cent to 85,654 tonnes compared to 71,537 tonnes the previous year.
Ilmenite production shot up by 6.5 per cent to 455,870 tonnes from 427,655 tonnes the previous year while zircon production went up by 40 per cent to 31,389 tonnes from 22,416 tonnes.
“Operationally, the quarter (June 2016) has been one characterized by consistent production, further enhanced plant performance in throughput and sound cost control. We expect an increase in throughput in 2017,” Mr Carstens said in an interview.
He, however, added that relatively sluggish activity in the mineral sands global market weighed down revenues for its output as market prices for the minerals stood on average at Sh20,800 ($208) per tonne.
Mr Carstens revealed the firm is eyeing the speedy refund for its VAT claims by the taxman totalling Sh1.9 billion ($19 million) as at 30 June 2016 to boost its operations.
The Kenya Revenue Authority (KRA) has since reimbursed the miner a total of Sh100 million out of these claims.
“Base Resources is continuing to engage with the Kenyan Treasury and the Kenya Revenue Authority to expedite the remainder of the refund. We are encouraged by the recent move by Treasury to allocate KRA monies for VAT claims through a supplementary budget,” said Mr Carstens.
The miner was recently granted another exploratory drilling licence by the Ministry of Mining covering an expanded area of 177 square kilometers in Kwale County.
By 2017, Mr Carstens said the company expects to have a clearer vision of the potential titanium ore deposits in the area. It plans to commence an exploration drilling programme in September.
“The proposed drilling programme follows a successful airborne geophysics programme, conducted in 2015, covering the south coast region of Kenya from Mombasa to the Tanzanian border which identified a series of exploration targets that were subsequently confirmed through ground reconnaissance,” he said.
“The initial programme will comprise 18,000 metres of aircore drilling for which tenders are currently being evaluated.”
Base Resources has also applied for an additional special prospecting licence for an additional area covering 136km2 towards the Tanzanian border.
Titanium lifted Kenya’s mining exports by 14.7 per cent to Sh24 billion helping the industry to contribute the second-highest growth of gross domestic product after the construction sector last year.
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