Kenyan suppliers pocketed Ksh 6.8B from Base Resources contracts
Kenya’s mineral top exporter, Base Resources says it paid out
Ksh 6.8 billion ($57M) to Kenyan suppliers from its Kwale Mine which is 7.5pc
more than it paid last year.
According to Base Resources Sustainability Report 2022, 71pc of purchases It made this year were from 384 Kenyan suppliers with the remaining 29pc from international suppliers.
Of the total amount, Kwale based suppliers pocketed Ksh 1.9 billion or 28pc of the contracts, while Mombasa based suppliers were paid Ksh 2.1 billion to account for 30pc of payments.
“Local procurement enables us to provide greater economic benefits to the communities where we operate, supporting jobs and putting more money into the local economy. We know that every dollar we spend with local suppliers creates multiple additional jobs from the subsequent rounds of supplier purchases in the local economy, allowing the wider community to reap indirect benefits from mining,” said the firm in the report.
The Kwale-based titanium mining giant says during the year, suppliers from the rest of Kenya were paid 42pc or Ksh 2.9 billion.
Last year, the miner paid local suppliers Ksh 6.4 billion ($53 million) or 77pc of total contract payments.
During the period, Base Resources exported 448,401 tonnes of minerals which was a 5.3pc more than 425,785 tonnes it exported last year with the firm now accounting for 65pc of Kenya’s total mineral output value.
“As one of the largest mining companies in Kenya, we strive to create shared value. So far, we have contributed Ksh 16.5 billion to the Kenyan economy through payment in royalties and taxes,” said Simon Wall, Base Titanium General Manager for External Affairs.
Base Resources said total government payments including employee taxes also amounted to Ksh 7.8 billion.
The Australian mining firm has been operating the Kwale Mine since securing the license in 2013. However with the mine life of Kwale Mine set to end in October 2024, Wall said Base Resources is seeking license extension.
“Although the Kwale project mine life is coming to an end, we are actively seeking to extend operations through exploration programs in proximity to the existing operation, bringing further employment, development and socio-economic benefit to the local community and people of Kenya,” added Wall.
Of the total taxes paid, Ksh 2.3 billion included catch-up royalties in what Base Resources says follows finalisation of extended negotiations as part of agreed retrospective increase to the royalty rate applicable to Kwale Operations.