Base Resources ups titanium ore reserve estimates

By Mark Denge

Australian mining firm Base Resources said yesterday that it had increased ore reserve estimates for the Kwale titanium project by 20 per cent after the conclusion of a feasibility study.

The miner said it now projects 140.6 million tonnes of viable ore reserves at the long-delayed project. The estimated development cost of the project is now projected to be at least $256 million.

"On the basis of this reserve, mine life has increased from 11 to 13 years," Base Resources said in a statement. Progress was being made in implementing a $150 million debt facility, the firm said, having appointed WestLB AG as lead arranger.

Better than expected

Base Resources said the banking syndicate also planned to make available a $20 million overrun facility.

The project has been delayed by a series of setbacks — including demonstrations by environmental groups, disputes with local farmers over compensation for land and drawn-out talks with the Government.

It is expected to produce 330,000 tonnes of ilmenite a year, about 10 per cent of the world’s supply, another 80,000 tonnes of rutile per year, which represents 14 per cent of global output, and a further 40,000 tonnes of zircon.

"The outlook for mineral sands producers has continued to improve over the past six months, with prices achieved increasing steadily, (and a) greater acceptance of the likelihood of an enduring uplift in price ranges," Base Resources said.

—Reuters