Kwale mine in Kenya set for closure
Base Resources, has announced its decision to close operations at the Kwale Operations in Kenya. The move aligns with the existing mine plan and comes after a comprehensive exploration and assessment process aimed at extending the operational life of the Kwale mine.
During the assessment, the company evaluated two potential areas adjacent to the mine and determined that neither possessed the necessary grade or size to justify the capital investment required to extend or establish new mining operations. Additionally, the softening product price outlook for mineral sands over the relevant period and the cost, timing, and human impact of a substantial land acquisition and community resettlement program were considered in the company’s evaluations.
Assessment
As a result of these assessments, Base Resources plans to cease operations at the Kwale mine once the existing Kwale ore reserves are fully depleted by December 2024, as anticipated. The company’s managing director, Tim Carstens, stated that they had explored all possibilities for extending the life of Kwale operations but were unable to identify additional mineral deposits of sufficient grade or scale to support an extension.
With the closure of the Kwale mine on the horizon, Base Resources will shift its focus to the development of the Toliara rare earth project in southwest Madagascar, Kenya. This reflects the company’s commitment to maximizing the value of its remaining ore reserves while planning for the transition to post-mining land use.
