The Kwale Operation is having a significant impact on the regional and national economy.
Annual operating expenditure of over US$60m provides a significant multiplier impact across various sectors of the Kenyan economy.
As the first globally significant, large-scale mining project in Kenya, it has opened up a new sector of the economy, propelling minerals into the top four export earners.
The Kwale Operation is the flagship for Kenya’s mining sector and currently accounts for 65% of the nations mining industry. The success of the Kwale Operation serves as a national case study, intended to attract further investment in Kenya.
Direct Economic Contribution
Our Kwale Operation has a direct, positive effect on the standard of living for the people of Kwale and Kenya more generally.
The total invested in the development of the Kwale Operation was US$350m. Of this, the direct spend in Kenya was about US$100m on contractors, machinery and equipment, goods, support services and employment during the construction phase.
Kwale Operations generated earnings of US$115.7m in the 2020 financial year and accounts for 65% of Kenya’s total mineral output value. Base Titanium is the largest exporter in tonnage through the Port of Mombasa.
Base Titanium priorities the recruitment of local people via a system that is designed to maximise employment benefits and project benefits for local communities. Over 1,100 people are currently employed by Base Titanium and its contractors. Of these 69% are from Kwale County and 98% are Kenyan.
Direct taxation contribution
In the 2020 financial year Base Titanium paid over US$32.5m in direct tax, royalties and VAT. Total payments to government and other national entities since the Kwale Operation commenced total over US$139m to date. More at EITI.
It is estimated that Kwale Operations adds more than US$100m to Kenya’s GDP annually. Over the life of the mine the contribution to GDP will be close to US$1 billion.
Indirect Economic Contribution
Kwale Operation also has a positive indirect effect on the standard of living for the people of Kwale, and Kenya more generally.
Through indirect (supply chain) and induced (consumer spending) activity Kwale Operation supports an estimated additional 2,800 jobs in the Kwale region and wider Kenyan economy.
Base’s policy is to support local suppliers where possible and results in over 70% of Kwale Operations non-labour costs being sourced from Kenyan businesses. This includes spare parts, maintenance, operating consumables, transport, security and other outsourced supplies and services. Operating costs in the 2020 financial year were over US$65.8m.
Base Titanium works in consultation with affected communities and local government to identify and prioritise community development opportunities to achieve more inclusive outcomes. Each year the company invests approximately US$2.5m on community and environment programs.
Post-mining land use
A Mine Closure Plan is being developed with affected communities and other stakeholders to identify the post-mining land use opportunities (small-scale farming, commercial farming, forestry, community wildlife sanctuary, etc.). Consultation will be undertaken in a timely manner to inform our strategy. Infrastructure built by Base Titanium such as the 8.6 gigalitre Mukurumudzi Dam, the 8km paved access road and the 16km long power transmission line will be utilised in any post mining land use.