Tiomin gets nod for Kenyan project

After years of study, the Kenyan government has approved a 16-year mining lease for Tiomin Resources‘ (TIO-T) Kwale titanium-sands project, southwest of Mombasa.

The lease, which can be renewed for a further 10 years, gives Tiomin exclusive right to mine and process Kwale’s heavy mineral sands.

The lease now must face a 90-day period of public scrutiny before it can be formally issued.

Kwale has long been the target of environmental groups who have criticized the company’s environmental impact study. A separate study, commissioned by the environmentalists, argued that the project could end up destroying surface and groundwater flow patterns and possibly contaminate a major aquifer.

In early 2002, a lawsuit launched by three local landowners in Kenya against the company’s local subsidiary was dismissed. The suit sought to prevent development of the project.

Tiomin must also address the relocation of two towns with about 5,000 residents.

Meanwhile, the company is negotiating to expand the lease to cover 15% of the mineralization found on the defunct Ramisi sugar cane plantation.

Last summer, the government of Kenya granted the project an environmental licence following a 2-year review of Tiomin’s environmental impact study. The government also gave the go-ahead for a port facility at Shimoni.

Kwale has a resource of 200 million tonnes of mineral sands grading 2% ilmenite, 0.5% rutile and 0.3% zircon. Plans call for an open-pit mine capable of producing 300,000 tonnes ilmenite, 38,000 tonnes zircon and 75,000 tonnes rutile annually for six years. The total mine life is pegged at 13 years.

Tiomin is trying to arrange long-term sales agreements to support project financing and is in discussions with engineering companies concerning the design and construction of the mine and mill.