The company got the notification from the Attorney General of Kenya that the recently introduced 35% local equity participation regulations will not be applied to Base's Special Mining Lease No 23 covering its 100% owned Kwale mineral sands project.
The Kenyan government has clarified that the regulations are applicable to only those mining licences issued after the regulations came into force on 12 October 2012.
Base is developing the Kwale Mineral Sands Project, which is an advanced and highly competitive project in a sector with a significant forecast supply shortfall widely expected to emerge in the medium term.
It represents an advanced development opportunity with all material project approvals, permits and licenses required for development currently in place, funding secured and construction of all project elements underway.
Specifically, two pilot plant operations at Kwale provide confidence in processing behaviour and indicate a suite of readily marketable products.
The project's high value mineral assemblage and low stripping ratio result in a projected revenue to cash cost ratio that would place Kwale in the top quartile of world mineral sand producers.
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