This archive report was first published on 15 September 2019.
On September 15, 2019, Base Resources, an Australian-owned titanium miner, received a significant tax refund from the Kenya Revenue Authority (KRA). The company received $3.5 million (Sh363 million) as part of the accumulated Value Added Tax refund claims in the financial year ended June.
The tax refund is a portion of the Sh2.5 billion backlog owed to the company since it started its operations in Kwale in late 2013. The refunds translate to 14.5 percent of the total amount owed.
Base Resources is continuing to engage with the Kenyan Treasury and the KRA to expedite the remainder of the refunds. The company has been seeking to resolve the issue and clear the backlog.
The Treasury has been slow in clearing the refunds compared to the Sh1.5 billion royalties earned from the Australian firm in the review period. The government charges royalties at the rate of 2.5 percent of the export values.
Base Resources' Kwale unit is crucial to the company's profitability. The unit posted a 13 percent jump in net profit to Sh4.96 billion in the period under review, contributing to the company's overall net profit of Sh4.1 billion.
The company is keen on expanding its Kwale operations, which are expected to secure further revenues. The Kwale North Dune Mineral Resources contain 171 million tonnes, and further drilling has been completed to assess the economics of potential mine life extensions.
