Base Resources mines titanium in Kwale. FILE PHOTO | NMG
Australian mining firm Base Resources paid Sh1.1 billion to the
Kenyan government in the form of taxes and royalties in the six months
ended December, when its net profit more than doubled to Sh2.1 billion.
The
multinational, which mines titanium in Kwale, says in a regulatory
filing that it paid the government income taxes of Sh467.4 million and
royalties amounting to Sh635.9 million in the review period.
Base paid Sh490.3 million royalties in the same period the year before when it did not, however, pay income taxes.
Higher
payouts to the government came on the back of rising prices for its
exports rutile, ilmenite, zircon and zircon low grade, which have
significantly boosted its profits.
The Sh2.1 billion net profit is more than double the net
earnings of Sh859 million recorded a year earlier, with the performance
driven by a 27.8 per cent sales jump to Sh9.2 billion.
Sales volume declined 5.3 per cent to 284,499 tonnes but higher titanium prices led to the jump in sales value.
Base said the average price per tonne of its titanium minerals surged 34.7 per cent to Sh32,373 from Sh24,021.
“In
the reporting period, Base Resources sold more than 280,000 tonnes of
product from the Kwale Operation, with shipments being made to a
combination of customers with existing offtake agreements, regular
customers buying on a spot basis and casual spot customers,” the company
said in a statement.
The multinational added that it
has maintained its strong market presence in China –the world’s largest
ilmenite market– with over 225,000 tonnes of ilmenite sold into the
Chinese market during the reporting period.
“Solid
relationships with major Chinese ilmenite consumers have ensured regular
sales through a mix of shorter term contracts (one to three-year
duration) and spot sales.”
Base said it raised its
capital investment at the Kwale mine to Sh1.7 billion in the review
period from Sh238 million a year earlier.
The higher investment went into construction of the second phase of the mine which is expected to be complete by June.
No comments :
Post a Comment