Name of the Project
Kwale Operations extension project.

Location
Kwale County, Kenya.

Project Owner/s
Mineral sands miner Base Resources.

Project Description
A prefeasibility study on the Kwale Operations’ Bumamani project has concluded that it is economically feasible to mine higher-grade subsets of the Bumamani and Kwale North Dune deposits concurrently with the Kwale South Dune deposit, which would extend the mine life of the Kwale Operations by 7.5 months, until July 2024.

An estimated 11.4-million tonnes of material will be mined to produce an estimated

34 000 t of rutile, 113 000 t of ilmenite and 13 000 t of zircon.

Mining operations will use existing hydraulic mining units relocated from the South Dune, and the mined material will be processed through Kwale Operations’ existing concentrator and mineral separation plants.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
Not stated.

Capital Expenditure
The project will require upfront capital of $13.6-million.

Planned Start/End Date
Not stated.

Latest Developments
A definitive feasibility study is under way to improve the accuracy of project estimates.

In September, Base Resources signed a deed of variations with the Kenya government for its Kwale special mining lease (SML), enabling the company to incorporate the Kwale South Dune ore reserve into the project while increasing the rate of royalties payable to government.

Prior to being varied, the applicable royalty rate under the SML was 2.5% and it is on this basis that royalties have been paid. However, from first export of minerals, royalty costs have been paid at an assumed royalty rate of 5%, based on an expected outcome from the long running discussions with government.

In consideration for entry into the deeds of variation, in particular an agreement to a royalty for the period to June 2018 at a rate lower than had been accrued, Base subsidiary Base Titanium will withdraw its claim for a refund of value added tax receivables pertaining to the construction of Kwale operations.

The royalty rate for the period from the first date of mineral exports to the end of June 2018 has now increased to 3%, while increasing to 5% for the period from July 2018 until the end of the SML.

Key Contracts, Suppliers and Consultants
None stated.

Contact Details for Project Information
Base Resources, tel +254 20 513 0100 or email info@basetitanium.com.