Base Resources, an Australian based Titanium miner in Kwale has set aside Ksh1.1 billion ($7.7 million) to compensate its employees as it closes its operations in Kenya.
The company which had 1,746 employees in 2023, 870 of the employees being Kenyans from Kwale and Mombasa counties, had announced a mass layoff in October 2023.
Further the company indicated that the amount was part of the Ksh7 billion ($49.2 million) set aside by the company to fund the retirement of its Kenyan operations.
The expenses include redundancy costs, post-mining land rehabilitation and setting up agriculture projects. Subsequently, hundreds of its employees will lose their jobs as the company moves its operation to Madagascar.
“Planning for closure started many years ago and, in some important respects, ahead of original development. A major post mining land use project identified four complementary options, with feasibility studies underway: large-scale agriculture, sustainable conservation, industrial training, tailings utilization,” Base Resources said.
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Base Resources Announces Mass Layoffs
According to a notice by the institution issued in October 2023, hundreds of the workers were losing their jobs because of depletion of the commercially viable ore at the mining site.
However, the company indicated that the employees would still be involved in the postproduction activities after mining works ended, before the company relocates.
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“Following an exhaustive exploration and evaluation process seeking to further extend the life of the Company’s Kwale Operations in Kenya, mining is expected to end in December 2024 as per the current mine plan.
“Processing activities will conclude shortly thereafter to compensate hundreds of workers set to be laid off as it winds down its Kenyan operation by the end of this year. 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 reserve,” a statement from the company read in part.
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Millions Made by Base Titanium
Base Resources assumed control of the Kwale operation from Tiomin Resources, a Canadian company in 2010, acquiring it for $3 million Ksh431.6 million.
Since it began making shipment of minerals in 2014, the company had consistently paid royalties and taxes.
In the year ending June 2023, the company paid the government Ksh7 billion ($43.71 million) in royalties and taxes. In the previous year, it paid Ksh10.4 billion $64.8 million.
The payout in the 2023 financial year comprised of Ksh2.7 billion ($19.1 million) in corporate income tax, Ksh2.1 billion ($14.8 million) in mineral royalties, and $2.5 million in withholding taxes on non-government royalties and services.
The company also paid Ksh2.6 billion ($18.7 million) in utilities and other service charges to State corporations and county governments.
