Name and Location
Kwale mineral sands project, Kenya.

Client
Base Resources.

Project Description
The project is located about 50 km south of Mombasa and 10 km inland from the Indian Ocean. The Kwale processing plant is designed to process ore, recover ilmenite, rutile and zircon products and generate several reject streams.

A dozer-trap mining unit has been selected as the optimum mining method, instead of a large bucket wheel excavator.

A port facility will also be built at Likoni, 50 km north of the project site, on the southern side of the existing shipping channel that services the Port of Mombasa.

The project has a Joint Ore Reserves Committee-compliant reserve of 140.6-million tons, grading at 4.9% total heavy minerals, of which 61% is in the proven category. Over the 13-year life-of-mine, the project is expected to produce about 4.7-million tons of product.

Value
The project is estimated to cost about $310-million.

Duration
Kwale produced its first ilmenite and rutile concentrate in December 2013.

Latest Developments
Base Resources has received an export permit to wave off its first bulk shipment from the Kwale project.

The maiden shipment of about 25 000 t of ilmenite set sail from the Likoni marine facility, which was completed in December.

Deliveries of finished ilmenite and rutile product are being stockpiled in the 60 000 t capacity port storage shed in advance of the shipment.

All work packages at Kwale are now complete and operational, with the exception of the zircon circuit of the mineral separation plant, which is undergoing feed commissioning.

Zircon production is expected to start within the next few weeks.

Key Contracts and Suppliers
SRK Consulting and Barclays Capital, Standard Chartered Bank, West LB and Caterpillar Finance (underwriters); Ausenco (main contractor – detailed design and engineering, and engineering, procurement and construction management contract); Actom (power station) and Lamco (port facility).

On Budget and on Time?
The project remains on schedule to make the first bulk product shipments in January 2014.

Contact Details for Project Information
Base Resources MD Tim Carstens, tel +61 8 9322 8910 or email tcarstens@baseresources.com.au.
SRK Consulting, tel +27 11 441 1111, fax +27 11 880 8086 or email johannesburg@srk.co.za.
Barclays Capital press office, tel +44 20 313 418 886 or email Corporate.Communications@barclayscapital.com.
Ausenco, tel +61 7 3169 7000, fax +61 7 3169 7001 or email investor.relations@ausenco.com.
Actom, tel +27 11 820 5111 or fax +27 11 820 5100.