Base Titanium to shut down Kenya mine
Base Titanium, Kenya’s largest titanium miner, is preparing to wind down its mining operations after depleting the titanium ore reserves in its Kwale-based mines, with phased employee layoffs set to begin in January 2025.
A total of 1,600 employees will be laid off in phases by June 2025, coinciding with the end of physical site activities. The first phase, impacting about 350 employees, begins in January 2025. The company has allocated $7 million (approx. Sh906.5 million) for compensation under Kenyan labor laws and a collective bargaining agreement (CBA). Support initiatives include counseling, entrepreneurial skills training, and equipment support for affected employees.
Since its inception: Sh28 billion has been contributed to government revenue through taxes. Local content expenditure totaled Sh11.5 billion, benefiting Kenyan SMEs. The company invested Sh3.7 billion in social infrastructure, including health, education, and livelihoods. Land compensation exceeded Sh3 billion, significantly improving local socio-economic conditions.
Impact
Rehabilitation of the mine site is 90% complete, with monitoring set to continue for 12-18 months before handing over the land to the government. Base Titanium’s mine closure plan, approved by the National Environment Management Authority (NEMA), is the first of its kind in Kenya, offering a framework for future mines.
Base Titanium Base Titanium’s closure marks the end of an era in Kenya’s mining sector but leaves behind a significant economic, social, and environmental legacy. The company remains hopeful about future investments, depending on the outcome of its ongoing exploration activities. The firm plans to continue exploration under its four prospecting licenses: Kwale: License secured near current mines. Tana River and Lamu: Licensing processes ongoing. Exploration activities could take 5-10 years or longer to determine the feasibility of new investments.
Since commencing operations in 2013, Base Titanium has exported rutile, zircon, and ilmenite, contributing to 65% of Kenya’s mineral exports. Capital investments exceeded $380 million (Sh49.2 billion).
