Base Titanium’s plans to continue investing in the country has received a major boost after approval of four out of the eight prospecting licenses it applied for.
The licenses have since been gazetted and are going through a public notice period.
This allows feedback from the community, before the Cabinet Secretary, with advice from the Mineral Rights Board, approves the licenses.
The Mining Act 2016 stipulates that a person or community may object to the grant of a licence within twenty-one days in the case of an application for a prospecting licence and within forty-two days in the case of an application for a mining licence.
The Cabinet Secretary shall then hear and determine any objection to an application through the Minerals Rights Board.
The latest development ends more than five years of waiting, where the 2019 moratorium on issuance of licenses and permits had slowed down the process. The ban was lifted last October.
Base had eight applications to prospect in the Kwale, Kuranze (Kwale-Taita Taveta border) and Lamu regions, most of which were lodged prior to the decision to implement the moratorium in 2019. It is also interested in prospecting for mineral in Tana River.
“The company continues to engage with Kenya’s Department of Mining with a view to having these licenses issued and the remaining applications progressed,” the company said in its quarterly report for the period ended June.
The gazettement now gives hope to Base’s future activities in Kenya as the Kwale mine-life nears its end, in December. This will bring to an end about 11 years of mining activities in Kenya.
“Mining at Kwale operations is planned to end in December 2024 when ore reserves are expected to be fully depleted, with processing activities concluding shortly thereafter. Decommissioning and final rehabilitation of the mine and associated infrastructure will commence immediately thereafter,” the company said.
During the quarter under review, the government inaugurated and convened a Post-Mining Land Use Committee, mandated to provide oversight of mine closure and undertake broad stakeholder engagement to canvass views on post-mining land use options.
Speaking to the Star on the telephone, Base Titanium general manager External Affairs, Simon Wall, said the company remains compliant to the country’s mining laws, as it remains optimistic of future investments in the country.
“Base respects the licence application process and believes the opportunity for the public to participate is an important step. We look forward to working with the ministry to address any issues raised by the public in relation to Base prospecting license applications,” Wall said.
Base which has been mining titanium ores– rutile, Zircon and Ilmenite in Kwale since 2013, with the first shipment of minerals made in February 2014, accounts for 65 per cent of Kenya's mineral exports.
In the 2023 financial year, it paid about Sh2billion in mineral royalties to the government.
The firm’s investment in Kenya begun in 2010 with a capital expenditure on its project to date being in excess of $380 million (Sh50.5 billion-current exchange rate).
The planned exploration are long-term plans, as it would take between five to 10 years, if not longer, to establish the existence of adequate resources before making heavy investment.