Base Titanium, which operates a mine in Kwale County, raised its expenditure on domestically sourced materials by 14.93 percent to $66.2 million (Sh9.67 billion) in the year ended June, benefiting suppliers of diverse goods.
The mineral sands company had bought $57.6 million (Sh8.4 billion) worth of goods from suppliers a year earlier, according to disclosures by its Australia-based parent firm Base Resources.
The disclosure comes at a time when the government is pushing firms to increase the purchase of locally-produced goods like iron and steel products in a bid to protect jobs and raise local manufacturing capacity.
This has seen Kenya further raise the cost of importing products such as iron and steel as well as paper and paperboard products through the introduction of an Export and Investment Promotion Levy at the rate of 17.5 percent in the Finance Act 2023.
Base Titanium has been mining and exporting titanium minerals ilmenite, rutile and zircon in Kwale since October 2013 when it started operations.
Titanium minerals are important pigments for industrial, domestic, and artistic applications. It is also a choice material for joint replacement, tooth implants, and body piercing.
During the review period, the firm’s sales increased a measly three percent to $271 million (about Sh39.57 billion) on diminishing ore deposits in the mining lease area.
The lower volumes of titanium minerals ilmenite, rutile and zircon were largely offset by higher ore prices in the global market in the review period.
The Perth-based miner’s shareholders, as a result, pocketed a reduced dividend of $84 million (Sh12.26 billion), a 6.67 percent drop compared with $90 million in the prior year.
The Kenyan government was also hit by the flagging volumes of titanium ore, collecting a total of Sh7.17 billion in royalties and taxes in the year ending June 2023. That was a fall of 3.4 percent compared to the Sh7.42 billion a year earlier.
