Mining firm says it paid Sh226m to Government in royalties

Mining company Base Titanium has denied paying only Sh100 million as royalties since it began operations in February last year.

In a paid up advertisement, the firm said it remitted Sh226 million in royalties to the Government. “In the recent past, Base Titanium has been subjected to a series of allegations attributed to Cabinet Mining Secretary in connection with the royalties and VAT refunds as reported in the media,” said the firm an the advert. The firm noted that the allegations were meant to undermine its work. On VAT refund, the company said it invested Sh26 billion in developing the project, in which it incurred and paid VAT to the value of Sh2.5 billion. “In accordance with the VAT Act, Base is entitled to claim a refund on excess of input VAT paid less output Vat,” it said, noting that its products are for the export market, hence zero-rated.