Base Resources Limited, has announced that it will shut down mining operations in Kwale by December 2024.
This follows an extensive exploration and evaluation process that was aimed at extending the life of operations, however the company found there were insufficient mineral deposits of the required grade and scale to support an extension of mining operations.
“We have explored all avenues for further extending the life of Kwale Operations, However, despite these efforts and broad support from the local community, we have been unsuccessful in identifying additional mineral deposits of sufficient grade or scale to support a further extension,” Said Tim Carsten Base Resources Managing Director in a press release.
The company’s evaluations included two prospective areas, the Kwale North Dune Mineral Resource and the Kwale East exploration area, both of which were found to lack the necessary economic feasibility for further mining.
The most significant factor contributing to this decision was the limited remaining capacity of the Kwale Operations tailings storage facility. As any extension to the existing mine plan would have required an alternative tailings disposal solution, involving substantial capital expenditure and increased operating costs.
The company also cited the softening price outlook for mineral sands and the difficulties of land acquisition and community resettlement.
The managing director, expressed in a statement the company’s new focus stating “The Company’s focus at Kwale now necessarily turns to detailed closure planning and transition to post-mining land use whilst ensuring we continue to safely extract maximum value from the remaining ore reserves,”
With the conclusion of its Kwale Operations, Base Resources will now shift its focus to the Madagascar based Toliara mining project.
Base resources began mining operations in Kwale in late 2013 focusing on the extraction of rutile an important element in the production of titanium. Since inception the mining operation has created 3,400 jobs in the region.
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