Base Resources is feeling the impact of the fall of minerals prices in the global market due to the low uptake of the same in China despite the firm increasing exports globally.

Consequently, prices of the firm’s titanium mineral — zircon, ilmenite and rutile — exports from it’s Kenyan operation have plunged by up to 60 per cent. But despite a challenging market, BR managing director Tim Carstens said yesterday the firm’s profitability remained afloat.

“We are still making recording reasonable operational cashflow standing at $20 million (Sh2 billion) this quarter, making us one of the most profitable mineral sands companies in the world,” says Carstens.

He says despite the low prices, the company has opened up new markets — with ilmenite now exported to china, rutile to US while zircon going to Europe.

“We are also shipping to Japan, Taiwan, Saudi Arabia,” said Carstens. He said the challenge of the company, which is Kenya’s first large scale mining project, is to service a $215 million (Sh22.7 billion) debt it took to set up to set up local operations.

Nearly $400 million (Sh40 billion) was used to start mining explorations in Kwale, half of which was borrowed with the remaining half financed by its shareholders.

“The debt facility is adversely affecting the firm’s cashflow,” he said. The company produced 121,727 of tonnes ilmenite in this quarter, up from 103, 736 in the previous quarter.

“We produced 25,382 tonnes of rutile, up from 15,168 tonnes and 7,621 tonnes of zircon up from 5,178 tonnes in the current and previous quarter respectively,” said Carstens. BR spends Sh3.3 billion of its operation input in Kenya which creates significant economic stimulus.

The company’s offers 2,200 and 600 indirect and direct jobs to Kenyans, with 25 per cent of its management consisting of locals.Cash operating costs for the first quarter inclusive royalties to the government US$13.5 million.

Lower than the US$14.2 million of the corresponding quarter. BR spends Sh3.3 billion of its operation input in Kenya which creates significant economic stimulus. The company’s offers 2,200 and 600 indirect and direct jobs to Kenyans, with 25 per cent of its management consisting of locals.