Australian mining Company Base Titanium is hopeful about higher mineral productivity in this financial year. This is according to its most recent production guidance range for financial year 2021. The company which has recorder higher sales than previously projected in the first quarter hopes to mine between 300,000 and 320,000 tonnes of Ilmenite on the upper hand from a previous projection of 270,000 to 300,000, in a recently revised production projection.
The output of Zircon is expected to increase to between 26,000 and 28,000 tonnes, from 23,000 tonnes previously projected while that of Rutile, the third mineral classification mined at Kwale, remains the same -between 70,000 and 80,000 tonnes.
“There remains, however, the possibility of a halt to, or curtailment of, operations at some point in the future due to a severe Covid-19 outbreak on site or change in government health directives that could impact on the achievement of this guidance,” the firm says.
Between January and March this year, the firm recorded a significant increase in sales which meant higher mineral output as compared to the previous quarter.
Read: Base Titanium to Continue Mining in Kenya Beyond 2022
A total of 84,178 tonnes of Ilmenite was mined in the first quarter of this year and sales increased by 80.6%. Rutile mined in the first quarter was 19448 tonnes and its sales increased by more than half as compared to the previous quarter. 26,074 tonnes up from 12,017 tonnes. Zircon sold was 6,612 tonnes up from 6399 tonnes from the previous quarter.
All this increase is in spite of the covid-19 pandemic which has disrupted several sectors of the economy. Total operating costs however, were significantly higher (Sh2.1 billion) compared to the previous quarter where it spent Sh1.8 billion in operations. This was due to a one-off non cash adjustment of Shs 355.9 million brought about by a revision in underlying assumption for the rehabilitation and mine closure provision.
Meanwhile, Base has significantly been contributing to the Kenya’s mineral exports and earnings, accounting for 65% of Kenya’s mineral output. The company plans to extend its operations in the country after completion of the current mine life, in October next year.
