Base Titanium has started ore extraction at its new site in Kwale, which is expected to extend the life of its mines until the end of next year.
Its Australian-based parent firm – Base Resources — said in a trading update that mining at the new site, known as Bumamani, commenced in late February as planned.
The new mining area, which covers the Kwale North Dune, is expected to yield up to 17.9 million tonnes of titanium ore, out of which the firm expects to get 42,000 tonnes of rutile, 171,000 tonnes of ilmenite and 20,000 tonnes of zircon.
Base Titanium is also in the early stages of exploring a new mining site to the east of the Kwale operation area, which if productive might extend the life of the operation beyond next year.
“With the recent commencement of mining operations on the North Dune, the Bumamani Project has extended Kwale mine life until late 2024,” said Base Resources managing director Tim Carstens in the firm’s financial update for the six months ended December 2022.
“Beyond this, the exploration programme underway in the Kwale East region represents our best opportunity for further, near-term, mine life extension, with over 5,000m drilled to date.”
The firm had said last year that it would make a capital expenditure of Sh3.3 billion on the Bumamani site.
In the three months to September 2022, it spent Sh1.17 billion ($9.2 million) on preparatory work, land and equipment acquisition for the site.
Base Titanium’s push for new mining sites in Kwale, as well as exploratory work further afield in northern Tanzania, comes at a time when higher global titanium prices have raised its earnings to a record high.
In the six months to December 2022, the miner’s Kenya operation realised revenue of $126.6 million (Sh16.03 billion), driven by a 32 percent jump in the sales price of its product in the market compared to the corresponding period in 2021.
It produced 38,384 tonnes of rutile, 170,771 tonnes of ilmenite, 14,043 tonnes of zircon and a combined 9,228 tonnes of low-grade rutile and zircon products in the half-year period.
Rutile achieved an average price increase of 36 percent compared to the previous period, while Zircon and ilmenite prices rose by 29 percent and 12 percent respectively.
