Titanium firm seeks access to mineral land

Base titanium plant in Kwale County. [File, Standard]

Mining firm Base Titanium is in talks with the Government to help it get access to mineral deposits in Magaoni, Kwale County, before its licence expires.

The firm says it has five years left on its lease but has been unable to access the deposits due to political tensions.

“Consultations are underway. We want the Government to help facilitate access to the areas for exploration since we have a licence to do that,” said External Affairs and Development General Manager Joe Schwarz.

Last year, the company put off exploration plans in northeastern Kwale because of the high political temperatures.

It accused politicians of exploiting land issues during campaigns and whipping up emotions that rendered operations unviable.

Mr Schwarz was speaking when Base Titanium released its 2018 quarterly update, which showed that significant improvement in prices cushioned the firm from reduction in mining volumes.

“Ongoing high plant utilisation rates and low inventory levels among major pigment producers are maintaining a strong pigment pricing environment,” he said.

Restrictions to Chinese pigment production, caused by Government environmental inspections have helped to underpin prices through the usual seasonal slowdown in demand.

Demand for zircon continued to be strong throughout the March quarter, remaining well above the company’s capacity to supply.