Africa-Press – Kenya. Base Titanium is expecting mineral production at Kwale to drop by about 47 per cent as it approaches the end of the current site’s mine life. This, as the future of its operations in Kenya remains pegged on the government’s decision on licensing, where an active moratorium since 2019 has stalled the firm’s future investment decisions in Kenya.
The Australian company commenced mining titanium ores in the country in 2013, with the first shipment in February 2014. It has until November next year before exhausting minerals at the current mine site in Kwale, with three prospecting licence applications pending at the ministry for almost four years.
These are for Ramisi area in Msambweni, Kuranzi area near the Kwale-Taita Taveta Counties border and Lamu, which are part of the firm’s expansion plans in Kenya. In its latest operational update, Base has projected a drop in all the three key minerals it produces in the country.
Production of Rutile is expected to go down from the 62,000 to 73,000 tonnes in the current financial year, to between 35,000 an 41,000 tonnes in the financial year 2024.
That of Ilmenite is expected to drop from 60,000 to 310,000 tonnes, to between 130,000 and 160,000 tonnes. Zircon production which is expected to rage between 22,000 to 27,000 tonnes is projected to drop to between 13,000 and 16,000 tones.
“The remaining sections of the South Dune and the areas of the North Dune and Bumamani ore bodies proposed to be mined, are estimated to have lower heavy mineral grades than the grades historically mined at Kwale Operations,”Base Resources notes in its latest operational update.
Since February this year, mining rates have been lower than expected a trend expected to be witnessed as the mine life nears its end. The firm could be forced to shut operations in the country if no progress is made on licensing.
Already, a shutdown of half the mining operation is anticipated to occur in March 2024, it said, for the relocation of the South Dune hydraulic mining units and slurry collection hopper to the Bumamani orebody which is adjacent to the current main site.
“Deposits are running out and we are yet to get a clear picture on the lifting of the moratorium,” general manager external affairs Simon Wall told the Star yesterday.
Even so, he noted there has been a sense of agency at the ministry, with lifting the moratorium the only way forward for the company to secure prospecting and mining licenses to extend its operations in Kenya.
The freeze was instituted in November 2019 to pave way for the mapping of the country’s minerals. Kenya has not renewed existing licenses since 2015 when at least 65 companies had their permits revoked.
Base accounts for 65 per cent of Kenya’s mineral exports and has received two provisional extensions since the moratorium was placed. Explorations in Msambweni area, where it had initially secured permits, is yet to show any results that would entail heavy investments.
Even with results showing deposits, it will have to apply for a mining licence to be able to extract. The government had planned to commence issuance of licenses this month, according to Mining, Blue Economy and Maritime Affairs CS Salim Mvurya, which is however yet to be effected.
“Moratorium was to safeguard Kenya’ national interests by developing the right data and eliminate speculation on the availability of substantial mineral deposits,” Mvurya said when he appeared before the Senate.
The Australian company has been instrumental in Kenya’s mineral exports and earnings. Last year, the mining sector recorded a strong performance as titanium ores continued to remain the top earner.
Total earnings from mineral production increased by 16.6 per cent to Sh35.2 billion in 2022, the Economic Survey 2023 indicates, as the sector boosted the country’s GDP growth.
The value of titanium ore minerals (Ilmenite, Rutile and Zircon) increased from Sh25.6 billion in 2021, to Sh28.3 billion in 2022, as Australian company-Base Titanium moved to the last site of the licensed mining area.
Kenya also reaped from gold whose value more than doubled to Sh3.4 billion up from Sh1.4 billion in 2021. The value of Soda Ash produced increased from Sh1.8 billion to Sh2 billion in 2022. Other key minerals were crushed refined soda (Sh657.2 million), gemstones (rough) Sh402.5 million and cut gemstone (Sh182.2 million).
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