Australian mining firm Base Resources, the mining agency handling operations at Kwale’s titanium mines, is yet to receive Ksh. 20 billion tax refunds from the Kenya Revenue Authority (KRA) ever since it entered the county in 2010.
According to the mining firm’s latest company report, the company has only received Ksh.3.5 billion from the taxman as at the fiscal year ending June 2019 despite paying the government tax and royalties worth Ksh. 1.1 billion in the last six months of 2018.
“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 to expedite the refunds,” says the company’s second quarter activities report.
Despite registering a 20 per cent reduction in minerals mined at its Kwale mine in the second quarter of the year, Base Resources saw exports of the commodities increase by 27.2 per cent in the period under review.
The significant increase in the number of mineral exports from the Kwale mine was as a result of improved prices of the mineral deposits on the international scene and this has seen Base Resources’ sales increase to Ksh. 7 billion in the period under review compared to Ksh. 5.5 billion registered during a similar period last year.
“As expected, constraints on the global supply of sulphate ilmenite and high-grade chloride feedstocks have continued to have an impact on the market and supported further positive price momentum,” the multinational company said in a trading update last week.
Base Resources took over mining rights from Tiomin Kenya Limited, a subsidiary of Tiomin Resources Incorporated in Canada, in July 2010 before injecting about Ksh16 billion to revive the mineral mining business.
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