Base Titanium pays Ksh.2.3 billion in additional royalties to Kenya

Base Titanium has paid Ksh.2.3 billion ($18.8 million) in additional royalties to the Kenyan government for the financial year ended June 30, 2022.

The Australia-based firm has made the disclosure in its inaugural sustainable report taking the tally of tax payments made by Base Resources to government to Ksh.7.9 billion ($64.8 million) for the fiscal year.

“The payment of $18.8 million covers catch-up royalties following the finalization of long-running negotiations as part of which we agreed to a retrospective increase to the royalty rate applicable to Kwale Operations,” Base Resources stated in its sustainability report.

Base recently amended its Special Mining Lease to reflect a higher royalty rate of five per cent from a long-standing rate of 2.5 per cent to warrant the top-up in payments to the government.

The firm estimates total taxes paid to the Kenyan government since its Kwale Operations commenced in 2013 at over Ksh.19.4 billion ($158 million).

Base Titanium began active operations in Kwale in 2013 from which it mines titanium resources including ilmenite, rutile and zircon.

The firm which has its base in the South East of Kenya off the Port of Mombasa has a staff complement of 1,291.

Base Titanium is set to wrap up its Kwale mining operations next year after obtaining a license extension from the Mining Ministry earlier this year.

In the year to June 2022, Base Resources posted a net profit of Ksh.9.9 billion ($80.7 million) with revenue growing by 40.8 per cent to Ksh.34.2 billion ($279.1 million) in the period.