This archive report was first published on 25 July 2019.
On July 25, 2019, Australian mining firm Base Resources reported a substantial increase in the value of titanium exports from its Kwale mine, reaching Sh7 billion in the quarter ended June.
The significant jump in sales was attributed to higher prices of titanium in international markets, which more than compensated for reduced production and shipments.
Although the volume of exports dropped 1.5 percent to 139,592 tonnes, the company benefited from higher prices, with average revenue per tonne of sales increasing by 28.1 percent to $482 (Sh50,000) in the review period.
Base Resources' shift to the South Dune, where it exhausted resources in the Central Dune, will provide access to another resource estimate of 114 million tonnes.
As a result of the improved sales, the government is expected to receive higher royalties, paid at the rate of 2.5 percent of the export values.
Base Resources noted that production and sales of the products do not always track each other in any given quarter, with some minerals allowed to accumulate before being exported.
According to the company, demand for its ilmenite remains greater than its ability to supply, with enquiries regularly received from potential new customers globally.
