How Kenya walked away with a whopping $7.1 million from titanium sales royalties last year

How Kenya made a whopping Sh711.9 million from titanium sales royalties last year.
  • The Kenyan government earned royalties worth $7.1 million, a 14.3 percent increase, in the six months ended December.
  • The fat pay cheque were driven by better prices of the titanium minerals, including rutile and zircon, in the international markets.
  • Base Resources says it expects titanium prices in the international markets to remain stable or rise further this year.

Australian firm Base Resources paid Kenyan government a whopping Sh711.9 million ($7.1 million), last year from mineral proceeds.

The government earned royalties worth $7.1 million, a 14.3 percent increase, in the six months ended December from the Australian firm which is mining titanium in Kwale, the multinational disclosed in a trading update.

Sales revenue increased 13 per cent for the reporting period, achieving an average price of product sold (rutile, ilmenite, zircon and zircon low grade) of $365 per tonne (comparative period: $317 per tonne), with averaged realised prices higher for rutile and zircon, offset by lower prices for ilmenite,” Base Resources said in the trading update.

The amount represents a 14.3 percent increase from 2017 proceeds when the government earned royalties worth $6.2 million (Sh622.9 million) from the Kwale operation.

The fat pay cheque were driven by better prices of the titanium minerals, including rutile and zircon, in the international markets.

Sales of the commodity stood at $102.1 million (Sh10.2 billion) in the review period, up 13.1 percent from $90.2 million (Sh9 billion) a year earlier.

Base Resources says it expects titanium prices in the international markets to remain stable or rise further this year, a move that will support revenue growth as production is also expected to rise.

The higher turnover helped the Kwale operation make a net profit of $22.6 million (Sh2.2 billion), a jump of nearly 10 per cent from $20.6 million (Sh2 billion) in the previous period.

Improved profitability also benefited the Kenya Revenue Authority (KRA) which collected more taxes.

The company’s income tax expense rose to $5.2 million (Sh520 million) from $4.4 million (Sh440 million).

Base Resources pays royalties at a rate of 2.5 percent but says it is ready to double this to five per cent if the government agrees to a deal it has proposed.

JOIN OUR PULSE COMMUNITY!

Unblock notifications in browser settings.

Eyewitness? Submit your stories now via social or:

Email: news@pulselive.co.ke

Recommended articles

4 side effects of being a virgin for too long, according to research

4 side effects of being a virgin for too long, according to research

Ini Edo posts new photos amid reports of welcoming a baby through surrogacy

Ini Edo posts new photos amid reports of welcoming a baby through surrogacy

KDF moves to forcibly acquire Sh 500M supermarket land in Nairobi

KDF moves to forcibly acquire Sh 500M supermarket land in Nairobi

Willy Paul apologizes to Kenyans on Behalf of Diana B

Willy Paul apologizes to Kenyans on Behalf of Diana B

Zari Hassan lectures Tanzanians over her viral black innerwear video

Zari Hassan lectures Tanzanians over her viral black innerwear video

DP Ruto's firm wins Sh190M Nairobi county gov't tender

DP Ruto's firm wins Sh190M Nairobi county gov't tender

Diana Marua hospitalized, Bahati gives update [Photos]

Diana Marua hospitalized, Bahati gives update [Photos]

Betty Kyallo shares photos of the first Subaru she bought after joining KTN

Betty Kyallo shares photos of the first Subaru she bought after joining KTN

North Korean man who smuggled 'Squid Game' into the country to be sentenced to death

North Korean man who smuggled 'Squid Game' into the country to be sentenced to death