Kwale mining project changing fortunes of local communities

The social and economic status of communities living in Kwale County is set to improve significantly following the projected completion of the world-class Kwale Mineral Sands Project (“the Project”) by Base Titanium Limited later this year.
The multi-faceted project, whose infrastructure development commenced in October 2011, will result in the creation of direct and indirect employment, skills transfer as well as enhanced capacity of health and education services in the area.
“We have put in place policies that enable us to deliver sustainable community development, not only in upgrading social infrastructure, but also in the areas of employment, training and knowledge transfer. We want to play a significant role in upgrading the skills of those Kenyans who will man our operation and the future mining industry in Kenya,” said Base Titanium Managing Director, Tim Carstens.
Carstens said Base Titanium has also adopted a collaborative approach that promotes sustainable economic growth while also ensuring prosperity and significant improvements in the quality of life for the host communities.
As part of this commitment and in line with international best practice, Base Titanium has invested close to US$10 million (Ksh870 million) in community resettlement and infrastructure such as schools, health facilities and water boreholes.
This investment complements the development of Kenya’s first large-scale mining project comprising an 8 kilometre sealed access road, an 8.8 million cubic metre water storage dam, a 14km 132kV power transmission line, a port facility, a tailings storage facility and processing plants at a capital cost of US$298 million.
In January 2013 Base Titanium marked the halfway point in Project construction scheduled for completion later this year.
“Base Titanium will export about 330,000 tonnes of ilmenite, 80,000 tonnes of rutile, and 30,000 tonnes of zircon annually marking Kenya’s emergence as an important supplier to the world market. Physical construction is now 50% complete and remains on schedule for practical completion in Q3 2013 and first shipment of minerals in Q4 2013,” Mr Carstens said.
To date, the mining firm has invested US$145 million and committed US$263 million in the flagship project that is alone expected to contribute 1% to Kenya’s GDP and elevate mineral sector export value above that of coffee.
In addition to its foreign direct investment and export revenue contributions, during its thirteen year life, the Project will generate US$300 million in government revenues through royalties and taxation, apportion of which will flow directly to the Kwale community.

• Base Titanium is a corporate member of the Extractive Industries Transparency Initiative (“EITI”) and supports its aim of strengthening governance through improving transparency and accountability in the broader extractive industries sector.

• Over 1,200 people are currently engaged in the construction phase of the Project.

• About 300 Kenyans will be employed in a number of technical and non-technical professional, skilled and semi-skilled categories once the Project is operational.

• Since the start of construction over 700 people have been recruited from the local communities to work with contractors building the Project.