Base Resources Limited
Base Resources Limited
Full text is available to Level 2 subscribers only
Subscribe to Mining Business Media
Full access to Mining Business Media's unique blend of global mining sector news and commentary is available by subscription only.
$A275.00 per year*
(*up to 10 users)
GST included in Australia
Direct debit/cheque/credit card:
Click here
Subscription inquiries, email subscribe@miningbusiness.net or call 61+413 772 044.
Related Content
African mineral sands producer Base Resources has reported a successful start to the ramp-up of operations in the transition to the South dune at its Kwale project in Kenya.
Following depletion of the Central dune orebody at end-June, Kwale’s Sept qtr (Q1FY20) mining rate exceeded its planned 18Mtpa and ore grade progressively improved from 1.8% to 3.6% HM.
Mineral sands miner Base Resources is predicting lower production again in the coming year at its 100%-owned Kwale project in Kenya after completing the relocation of mining operations from the depleted Central Dune into the South Dune in June.
Base has met its reduced production guidance for the June year (FY19) at 92,389t rutile (guidance 88,000-94,000t), 402,698t ilmenite (385,00-415,000t) and 31,941t (31,000-34,000t).
FY20 guidance is 64,000-70,000t rutile, 315,000-350,000t ilmenite and 25,000-28,000t zircon.
Mineral sands miner Base Resources is back to nameplate capacity at its 100%-owned Kwale operations in Kenya after making the successful transition of mining operations from the depleted Central Dune to the South Dune orebody.
All three hydraulic mining units are now fully operational after the two-week transition that included commissioning new slurry and process water booster pumps, 7.4km slurry and water pipes and 8.5km 11kV power supply to the new mining area.
Mineral sands producer Base Resources is showing increased interest in a possible switch of focus at its 100%-owned Kwale operations in Kenya after posting a maiden resource estimate of 2.6Mt heavy minerals at the Kwale North Dune.
Base aims to move in June from the depleted Central Dune to the lower-grade South Dune, but the North Dune now offers potential to add life to the Kwale operations.
The depletion of the Central Dune orebody and move to lower-grade South Dune in June 2019 has led African mineral sands miner Base Resources to lower production guidance at its 100%-owned Kwale operations in Kenya for the year to June 2020.
In January, due to falling production from the Central Dune, Base reduced its FY19 guidance by up to 8% to 88,000-94,000t rutile, 385,000-415,000t ilmenite and 31,000-34,000t zircon.
Base Resources has already begun work on a DFS after completing a preliminary study that confirms its Toliara project in Madagascar as one of the world’s best mineral sands development opportunities.
Australian-based Base Resources is targeting a final investment decision in the March 2020 qtr on its Toliara project in Madagascar after its PFS confirmed it as one of the world’s best mineral sands development opportunities.
The PFS outlines capex cost of $US439M for the 13Mtpa first stage development, with the option for a $67M second stage expansion to 19Mtpa.
African mineral sands producer Base Resources has reduced FY19 guidance at its 100%-owned Kwale operations in Kenya after the declining Central Dune orebody reduced Dec qtr (Q2) production to 108,465t (Q1: 118,265t) ilmenite, 24,505t (25,125t) rutile and 8,252t (9,683t) zircon.
It’s now predicting FY output of 385,000-415,000t (previously 420,000-450,000t) ilmenite, 88,000-94,000t (88,000-93,000t) rutile and 31,000-34,000t (32,000-37,000t) zircon.
Completion of its Phase 2 mine optimisation project has enabled African mineral sands producer Base Resources to follow its record FY18 profit result by posting record rutile and zircon production at its 100%-owned Kwale operation in Kenya for the Sept qtr (Q1FY19).
Kwale’s Q1 production was 118,265t (Q4FY18: 114,773t) ilmenite, 25,125t (24,451t) rutile and 9,683t (9,286t) zircon. Total operating costs were $US103/t ($102/t).
Higher prices accompanying steady sakes volumes from its Kwale mineral sands operation in Kenya have delivered record revenue and profits for Base Resources in the year to end-June.
Sales revenue rose to $US198.8M (FY17: $162.4M) at an average price of $330/t rutile, ilmenite, zircon and zircon low-grade ($255/t), a margin of $210/t ($150/t) over total costs of $120/t ($105/t).
Base reported NPAT of $34M ($15.8M) and EBITDA of $109.3M ($82.7M).