Australian mining firm Base Resources, the mining agency handling operations at Kwale’s titanium mines, has received Ksh. 363 million (US$ 3.5 million) in tax refunds from the Kenya Revenue Authority (KRA), the miner’s latest financial disclosures for the year ended June have revealed.
The amount translates to just 14.5 percent of the total Ksh. 2.5 billion (US$ 24.2 million) that the taxman owes the mining company since it started its local operations in 2013. The firm is however conducting negotiations with the KRA and the National Treasury to ensure that the remaining amount is paid to the company.
“Base Resources has refund claims for VAT paid in Kenya relating to both construction of the Kwale project and the period since operations commenced. These claims are proceeding through the KRA process and Base Resources is continuing to engage with the Kenyan Treasury and the KRA, seeking to expedite the remainder of the refunds,” the firm says in its latest disclosures.
According to the Business Daily, in July, the taxman allocated Ksh. 14.2 billion to clear tax refunds owed to multiple companies in the country. It remains to be seen if the mining company will be included in the latest cohort of companies eyeing refunds from the taxman.
Base Resources garnered a net profit worth Ksh. 4.96 billion from its Kwale titanium mines in the first six months of the year. Revenue generated from the mines balanced out losses worth Ksh. 25.7 million that the firm incurred from its Madagascar mines as well as a Ksh. 881 million net loss that the firm sustained from its other operations. The offset from the Kwale mines earnings enabled Base Resources to post a Ksh. 4.1 billion net profit in the first six months of the year up from Ksh. 3.5 billion registered in a similar period last year.
The good results meant improved royalties for the government which is entitled to 2.5 per cent of the export values made by the company. In the financial year ended June, the Kenyan government earned Ksh. 1.5 billion in royalties from the mining firm up from Ksh. 1.4 billion registered a year earlier.
ALSO READ: Goldplat Plc considers selling Migori mine