Kwale titanium project back on track after long hiatus

By Patrick Beja

After a long lull, the process of developing a Sh16 billion titanium mining project in Kwale county has resumed. This comes after the successful take-over of Tiomin’s mining rights by a new investor last July, ending many years of uncertainty over the project initiated in 1995.

Base Titanium took over the mining rights from Tiomin Kenya Limited, a subsidiary of Tiomin Resources Incorporated of Canada, last July, and intends to inject $200 million (about Sh16 billion) into the business.

The project is billed to be the single biggest mining investment in Kenya, and will be a litmus test for such projects in future. It is expected to boost export earnings by $100 million (about Sh8 billion) per annum when production commences.

According to the firm, Kwale is projected to be producing over 12 million tonnes of ore per annum, which will include 330,000 tonnes of Imenite, 80,000 tonnes of Rutile, and 40,000 tonnes of zircon, per annum.

Currently Kenyan and Australian experts are carrying out the drilling to confirm the existing titanium ore reserves. Base Titanium community has also hired about 70 local youth in the ongoing test mining.

"The company is trying to fulfill its pledge of involving the local residents in the mining project," liaison officer, Pius Kassim, explained.

When commercial mining starts, he explained, more than 350 people would get permanent employment in the firm.

Harmonise standards

Base Titanium plans to start commercial production of titanium in March 2013, after the development of the required infrastructure, which includes a wet concentrator, and minerals separation plant. Others include a water dam, boreholes, a 16km power transmission line of 132kv; 8km of all weather road and minerals export terminal facility at Likoni in Mombasa.

The company plans to finalise take-off agreements in February next year, and complete developing the funding package in May when the final investment decision will be made.

By June, a detailed engineering design will be in place, paving way for the start of the construction phase in July, and later the commercial production in March 2013.