Base Resources Limited
Base Resources Limited
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Australian company begins Kenya’s first large-scale mining operation as nation seeks more revenue from nascent mining sector. Joseph Akwiri reports
Base Resources will ramp-up mining and processing rates over coming weeks after commencing ore processing at its $A305M Kwale mineral sands project 50km south of Mombasa in Kenya.
Following water commissioning and control logic testing, first ore from the central dune has gone through the dozer trap mining unit and wet concentrator.
Concentrate is being stockpiled ready for commissioning of the ilmenite and rutile circuits leading to processing in November, to be followed by the zircon circuit in December.
Kenya’s mining industry has warned the shock government increase in mineral royalties and sudden cancellation of licences will harm the mining sector's competitiveness.
"The net impact of the proposals would be like killing the cow that produces the milk," Chamber of Mines president Adiel Gitari said.
The chamber said the revoked licence of a subsidiary of Australia's Base Resources did not affect its Kwale mineral sands project, due to start production before the end of 2013. Reuters
The Deloitte market cap performance index for listed Western Australian mining companies fell 10.9% in June 2013 year, closing at $A125.6B.
The top 5 improvers were headed by Sirus Resources and its Nova-Bollinger copper-cobalt project in Western Australia.
Deloitte lead audit partner Tim Richards said the fall was driven largely by volatile commodity prices and uncertainty surrounding economic growth, which had a combined impact on manufacturing activity and investment decisions.
Copper-cobalt explorer Sirius Resources has topped a market cap growth index for Western Australian miners/explorers with an annual near 5,500% growth.
Base Resources, the Australian company developing the Kwale mineral sands project in Kenya, has won its argument that the project is not impacted by a new regulation specifying 35% local equity in mining operations.
The company says attorney-general Githu Muigai determined the regulation applies only to mining licences issued since it was promulgated in October 2012, which excludes Kwale’s special mining lease.
Australian mineral sands developer Base Resources says it’s been buoyed by substantial interest among UK and European investors in its Kwale project in Kenya as it joins the London AIM market.
The company says dual listing will help expand its international profile as it moves through the construction of the Kwale project, heading for completion and first production in the second half of 2013.
Mineral sands developer Base Resources is launching legal action as it tries to get to the bottom of the apparent cancellation of three exploration licences it holds in Kenya.
But it stresses that its flagship Kwale project is not under threat.
An official gazette notice issued by Kenya’s Environment & Mineral Resources Minister announced the cancellation of exploration licences covering the Kilifi, Mambrui and Vipingu projects.
Base Resources is looking at new financing options to cope with a $22M cost increase for its Kenyan minerals sands project.