Why Base Titanium is not selling its assets to Kenyans?

Zawya

21-04-2025

Base Titanium, which closed its mining operations in Kenya last December, has hired South Africa-based auctioneer WH Auctions to sell its movable assets in Kwale.
The auction, scheduled for May 14-15 through webcast bidding, has excluded Kenyan companies and will feature at least 300 lots of mining, construction, plant and electrical equipment, with lots 1 to 199 on the first day and lots 200 to 325 on the second day.'All assets are located on-site at Base Titanium's mine in Kwale, Kenya, and viewing is available strictly by appointment only to arrange a site visit,' the auctioneer said in the announcement.
No Kenyan company is eligible to participate in the bidding as all assets are for export only, and buyers are responsible for managing and paying for all export permits, customs clearance, logistics and transport from the site.
All payments will be made in US dollars.'This is a rare opportunity for global buyers in Africa, the Middle East, Asia and beyond to access a large, well-curated fleet of industrial equipment that is rarely available on the open market,' the auctioneer said.
Base Titanium defended the exclusion of local buyers, saying they have the right to choose who they sell to.'Whilst some assets are being sold, both domestically and internationally, in all circumstances, it is important to note that these assets are private property, and Base Titanium has the constitutional right to dispose of them as it sees fit,' the firm told The EastAfrican.'The company wishes to clarify that, under the Investment Agreement with the Kenyan government, specialised mining and processing equipment imported for the Kwale Mine was exempt from customs duty, excise duty, and VAT. These exemptions are designed to support the large capital investment required to build projects like the Kwale Mine and are not unique to the mining sector.'In line with applicable legislation, selling equipment imported under such exemptions domestically triggers a requirement to pay duty. This would require the Kenya Revenue Authority to assign a value to each item and then calculate the applicable duties owing before authorising local disposal. This process often results in valuations that make the sale of these assets in the domestic market uneconomical.'To ensure compliance and meet closure timelines, Base Titanium has opted to sell certain assets to the international market through an international auction managed by a trusted African leader in asset disposal and extensive mine sector experience. This approach aligns with market availability, as demand for equipment to service the mineral sands industry lies overseas,' it added.
Base Titanium, a Kenyan subsidiary of Australian firm Base Resources, has been operating in Kwale for over a decade and concluded its mining operations in December 2024 due to the depletion of commercially viable ore.
The company has been acquired by an American firm, Energy Fuels, in a cash-and-stock deal valued at $240 million.
Energy Fuels is a uranium and critical minerals producer, and the deal is said to be strategic in creating 'a global critical minerals business.'The company made its last bulk shipment in Mombasa in February, marking the end of 11 years of titanium ore export from Kenya.
Base Titanium has been Kenya's biggest mineral exporter since it entered the country, and the company's exploration and future investment decisions will, however, be determined by the government's actions on the issuance of licences.
Base accounts for 65 percent of Kenya's mineral exports. In 2023, it paid about $15.5 million in mineral royalties to the government.​
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