December 16, 2012

Good news for Kenya

From the Nairobi, Kenya Standard:
Scramble for resources put Kenya on global mining radar
The recent discoveries of commercial coal deposits in Mui Basin in Kitui County, huge crude oil wells in Turkana, and titanium deposits in Kwale is turning Kenya into an emerging mineral resource powerhouse.

This change in fortune is a big plus for a country that has hardly relied on mineral resources. Traditionally, Kenya�s economy is largely dependent on agriculture, tourism and some level of manufacturing.

However, the bullish outlook for natural resources is driven by demand in China and other rapidly industrializing nations.

Already, Kenya is on the global radar, as scramble for natural resources take shape. After years of waiting, Base Titanium is on the verge of becoming one of the first major mining companies to establish itself in this lucrative sub-sector. The Australian mining firm, Base Resources, will earn in excess of Sh76.5 billion from the Titanium mining project at the Kenyan Coast that is at an advanced stage.

The Government will take a third of the total proceeds through royalties and taxation, which translates to about Sh25.5 billion over the 13 year mine life of the Kwale project.
One Kenyan shilling is equivalent to just over one US penny so Kenya takes home about $290 Million for this one mining project. Not bad for a Nation with a real GDP of $33 Billion (a bit less than 1% and this doesn't count the oil and other mines). Posted by DaveH at December 16, 2012 5:22 PM
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