A base titanium plant.[Photo/sdr]Australian miner Base Resources reported that the taxes were paid in the year ended June, noting that the operation that included the production of titanium had turned more profitable.
The firm’s annual report said the sales for the year had soared to nearly Sh22.2 billion.
These were in addition to Sh400 million paid in royalties - bringing the total amount paid to Sh1.2 billion.
“Our increased revenues and profitability are reflective of not just rising realised prices but also our continued sharp focus on maximised production, operational consistency, innovation, and cost management,” the company chairman, Keith Spence, said.
The Kenyan unit is the core operation for Base Resources, which is listed on the Australian and London stock exchanges.
Last year, the firm reported Sh650 million in losses, partly due to subdued prices for mineral sands.
The Sh800 million in taxes were in addition to the Sh400 million over the 12 months to June in royalties from the sale of mineral sands extracted from the Kwale mines.
The company remits 2.5 per cent of its revenues from the sale of mineral sands such as zircon, rutile, and ilmenite to the Government as royalties.
The mineral sands are the primary sources of titanium oxide, which is used as a base pigment in paint and the manufacture of ceramics as well as production of titanium.
The Base Titanium general manager in charge of external affairs and development, Joe Schwarz, said there are expectations that the prices of mineral sands would go up. Growth in prices is expected to be driven by demand from China. The price of mineral sands ilmenite and zircon are also expected to go up.