NAIROBI, Kenya, Oct 22 – Base Resources Limited has reported that mineral production at the Kwale project has increased in all its three products.
The Australian company, which is licensed to mine titanium, produced 116,121 tonnes of ilmenite in the period under review compared to 113,476 tonnes produced during the quarter ended June.
Its production of rutile also went up from 19,499 tonnes to 20,926 tonnes. Zircon’s production also went up from 6,484 tonnes in the quarter ended June to 6,546 tonnes.
According to Joe Schwarz, the company’s General Manager External Affairs and Development, the recent stock market correction in China and the heightened economic uncertainty in Europe resulted in unusually sluggish demand conditions for all mineral sands products in most parts of the quarter.
The company also stated that the government is yet to clear all the money it owes it.
“Base Resources has received US$4 million (Sh408 million) in tax refunds from the Kenya Revenue Authority. However, the government is yet to refund a total of US$21 million (Sh2.184 billion),” Schwarz said.
The VAT refund claims relate to the construction of the Kwale project and the period since operations began which amounts to about US$21 million as at end of last month.
He explained that the amount the government owes it is hindering it from servicing loans it had taken to carry out its activities.
This comes on the back of the company’s net loss of Sh1.6 billion for its international operations for the financial year ended June 30.
Base Resources incurred Sh1.1 billion in royalties expenses while its operating costs shot up to Sh6.8 billion from Sh1.6 billion.
Schwarz credited the loss to increased operating costs and royalties as being behind the loss.
Positive results were however reported in the Kenyan branch that managed to reduce its net loss from Sh556.5 million incurred last year to Sh115.5 million this year.