Base Titanium Limited is a wholly-owned subsidiary of Base Resources Limited. Its flagship development is the Kwale Mineral Sands Operations in Kwale County, about 50km south of Mombasa. Construction at the Kwale Project was completed at the end of 2013 and the first bulk shipment of ilmenite departed from Mombasa in February 2014.
The Kwale Mineral Sands Project, Kenya’s first large scale mining project has made significant economic contributions since the development of the mine commenced in 2011. The mine’s future is also equally significant according to a new Ernest & Young report. The report which quantified the total economic and revenue contributions from the development to the operation of the project, shows that the mine has made a substantial contribution to the establishment and expansion of the mining economy. This is through direct, indirect and induced benefits such as employment, building a local supply chain as well as raising Kenya’s international profile as a global mining destination.
Base Titanium Managing Director, Tim Carstens had this to say, “The findings of this study clearly demonstrate the reality of the mining economy. Large-scale, responsible mining is not just about government revenues; it has a much wider positive impact. Job creation, the supply chain and induced economic activity combined results in a mining economy four times the size of just the direct government revenue.”
According to the report between 2012 and 2014, Base’s capital investment of $310 million supported about 3,285 direct jobs of which 1,314 went to the local community in Kwale. In 2016, the mine’s multiplier effect is projected to be even greater with an additional 43 jobs supported elsewhere in the Kenyan economy for every 10 direct employee jobs that Base creates. At the moment Base directly employs over 600 people. The company is expects to pay a total of $236 million in taxes over the 13 year life of the mine, It’s planned and past expenditure in the local community is expected to hit $9 million this year and spend about $15 million in employee direct compensation 94% of whom are Kenyan. This expenditure by the company will surely have a positive effect on the Kenyan economy.
While noting the contribution of the project, Mr Carstens made a case for the need to attract more large scale investors in the sector. “There are currently only two large-scale operations in Kenya – Magadi Soda and Kwale Mineral Sands. With sound and competitive tenure, fiscal and regulatory regimes and positive investor perceptions in place must be in place, it is entirely conceivable that another two large mines could be in construction in the next five years in a growing mining sector. The critical precursor to further mines is establishing a healthy exploration sector now.”
Also present during the report launch was Cabinet Secretary for Mining, Dan Kazungu who congratulated Base Titanium for its contribution to the growth of the sector and pledged his support to ensuring a stable, predictable and conducive environment for future mining investments.