Kwale Base Resources receives Sh200m VAT refund from Treasury
Base Titanium manager Simon Wall displays minerals produced at the factory in Kwale County. PHOTO | FILE
Australian miner Base Resources has started receiving refund claim payments incurred during the construction of the Kwale-based facility.
Base Resources, which is mining titanium in Kwale County, said the Treasury paid Sh200 million in Value Added Tax (VAT) refund in the last quarter of 2015.
The miner is claiming $20 million (Sh2 billion) VAT refund incurred during the construction of the Kwale Mineral Sands project, which started in December 2011.
“These claims are proceeding through the Kenya Revenue Authority process, with a number of operational period claims, totalling approximately $2 million (Sh200 million), settled during the quarter.
Base is continuing to engage with Kenyan Treasury and the Kenya Revenue Authority, seeking to expedite the remainder of the refund,” said an operational update by the miner.
Base Resources has been asking for quick payment of the refund since January 2015 and had hoped to have the entire amount by the end of the first quarter of last year.
The miner has had a rough last couple of months due to poor price of ilmenite on the international market and the recent cancellation of a major order by a customer.
The undisclosed Chinese customer cancelled a contract for the supply of 100,000 tonnes of ilmenite due to a delay in the commissioning of its furnace.
The order is nearly a quarter of ilmenite Base produced by the Australia Stock Exchange firmin the last financial year.
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