Kwale titanium mine expected to be launched in 2013

Last Updated 15 years ago by Kenya Engineer

Australian miner, Base Resources Limited , formerly known as Base Iron Limited  paid US$3 million and a cash royalty to Tiomin Resources Inc in February this year for the Kwale  mineral sands project that  is expected to be launched in 2013 thus ending years of uncertainty over the viability of the project.

Managing Director,  Tim Carstens.  Said this has resulted from a more refined view of the project  based  on the latest long-term price forecasts for mineral sands by industry experts who are forecasting higher prices for sulphate ilmenite, rutile and zircon  of $US130/t,  $US715/t  and $US1,300/t  respectively from 2015.

Mr. Joe Schwarz the general manager of Base Titanium said he expected the ongoing feasibility study to be concluded by early 2011 and  he also estimated $200 million will be raised next year to start the mine.

Mr. Schwarz said that so far Base Titanium  has yet to sign agreements with buyers of its minerals, but said the exports are likely to be destined for China, US and Europe.

Mr. Schwarz said the mine should produce 450,000 to 500,000 tonnes of refined minerals per year which should bring in about $100 million in annual revenues.

The country’s mining laws date back to the 1940’s but Mr Schwarz said the government was keen to modernize its laws, pointing to a new bill aimed at improving the sector.

The mine would have a processing plant to recover ilmenite, rutile and zircon from the mineral sand to be used to make paint, ceramic, tiles among other uses. The minerals are used for making lifestyle products for customers with a high per capita income, Mr Schwarz said.

Titanium is an important pigment for industrial, domestic and artistic applications. Titanium is a choice material for joint replacements, and tooth implants and body piercing. Since the advent of the jet engine titanium has been used in the manufacture of new alloys and production techniques to meet even tighter standards required in higher temperature performance in jet engine manufacture and lighter materials in airframe deign.

Titanium is absolutely immune to environmental attack regardless of the pollutants and is failure proof in the most aggressive environments. Its applications are increasing daily.

“Once we have the green light on the final investment decision, building the plant will take 18-21 months and we would be able to start production by 2013,” Mr Schwarz said.