Base Resources an Australian mining firms, has recorded a 26.1 percent increase in the value of titanium exports from its Kwale mine to 7 billion Kenyan Shillings in the second quarter which ended in June 2019.
The increase is as a result of higher prices of the commodity in international markets.
Sales in the same period last year )2018), stood at 5.5 billion Kenyan Shillings, with the higher selling prices more than making up for the reduction in production and shipments.
The improvement in sales will inevitably lead to higher earnings for the Kenyan government which is paid royalties at the rate of 2.5 percent of the value of the exports.
The volume of exports of the minerals, including zircon, rutile and Ilmenite, dropped 1.5 percent to 139,592 tonnes from 141,812 tonnes after production declined by 20 percent, to 118,787 tonnes.
Base Resources made it known that production and sales of the products do not always track each other in any given quarter, as some minerals are allowed to accumulate before they are exported.
Production was down in the review period, due to a two week interruption in output as the company (Base Resources), moved its operations to the South Dune after exhausting resources in the Central Dune where it had begun mining.
The move to the South Dune will see the multinational company gain access to another resource estimated at 114 million tonnes.
Base Resources says it has benefitted from the higher prices of the commodities.
In a trading update the multinational stated that, “As expected, constraints on the global supply of sulphate ilmenite and high-grade chloride feedstocks (including rutile) have continued to have an impact on the market and supported further positive price momentum,”.
The trend is expected to continue in the short term.
The company added that, “Demand for Base Resources ilmenite from existing customers remains greater than the company’s ability to supply and enquiries are regularly being received from potential new customers globally.”
Base Resources stated that it recorded an average revenue per tonne of sales of $482 (50,000 Kenyan Shillings) in the review period compared to $376 (39,000 Kenyan Shillings) the year before. This represents an increase of 28.1 percent.
