Mineral sands developer Base Resources is finally set to embark on titanium extraction in its Kwale project in Kenya following the completion of the processing plant.

After close to two decades of false starts, the company has announced production of the mineral will commence in early October and anticipate the first shipment before the end of the year.

“We are currently undertaking the testing of the processing plant and plan to start extraction in early October,” said Joe Schwarz, Base Resources GM for External Affairs and Development.

He added that construction of other infrastructures to facilitate the transportation of the mineral from the site that is located 50 km from the Likoni Port facility has been completed. This includes the construction of a 200-m-long ship loading facility.

“The first shipment of minerals is expected to take place before the end of the year,” he said.
Base Titanium, which is a wholly-owned subsidiary of Australian-listed firm Base Resources Limited, plans to commence shipping of three distinct product streams processed from the Kwale project in which it has invested over $150-million.

The firm intends to produce 330 000 t/y of ilmenite, 80 000 t/y of rutile and 30 000 t/y of zircon over a period of 13-years mine-life.
The minerals are used as pigment in paper, plastics, ceramics, as well as titanium metal and other products.
The Kenya government is expected to rake in $300-million in taxes and royalty payments over the life of the mine, together with considerable indirect taxation benefits.

Base Resources, which acquired the project from Tiomin Resources Inc of Canada, has already secured markets for the minerals in the US, Japan, Saudi Arabia and some parts of Europe.

The firm has received a five year commitment from an American company for the purchase of the entire rutile deposits to be extracted, while supply agreements for the ilmenite and zircon extracts are underway.
Commencement of extraction of the minerals will enhance Kenya’s mining profile as it comes at a time when the government exploit the sector that has largely remained dormant and transform it to a major economic growth catalyst. The project is Kenya’s first large-scale mine.

The mineral sector is estimated to have the potential to contribute about 10% to Kenya’s gross domestic product annually but currently contributes a paltry 1%, raking in $207,5-million last year. The project has even been nominated by Vision 2030, Kenya’s development blueprint, as a flagship project.

The Kwale project has been one of the most controversial in the East Africa nation since Tiomin Resources discovered titanium in the mid-1990s. Controversies have ranged from land ownership, compensation, environmental impact assessment to lack of funds.