The national government has assured Kwale residents that it will release mineral royalties amounting to Sh1.7 billion and Sh900 million to community before the mining licence for Base Titanium expires on June 30.

Principal Secretary Harry Kimtai said the funds, which have been delayed for years, will be disbursed to the county and local communities as part of their rightful share from the lucrative titanium mining operations in the region.

The PS who spoke during an inspection tour at Base Titanium mining site in Kwale, said the government through the ministry of mining is committed to ensuring the National Treasury releases the funds before the due date.

“What is owed to counties and communities must be given to them, because it is law and must be followed to the latter,” he said.

Kimtai admitted there has been a delay in the disbursement of the mineral royalties but emphasised that the government is now committed to transparency and accountability in mineral revenue sharing as the current Base Titanium special mining license period draws to a close.

Base Titanium, a subsidiary of Australia’s Base Resources, has been mining ilmenite, rutile, and zircon in Kwale since 2013. Its licence is set to expire on June 30, sparking concerns from local leaders and residents over whether the communities would receive their fair share before operations wind down.

State responsibility

Kimtai said the Ministry of Mining is working closely with the National Treasury to ensure the funds are disbursed without delay, so that all pending issues are resolved before Base Titanium’s planned exit.

The PS noted that the release of the mineral royalties is part of the mine closure agreement and emphasised that it is the ministry’s responsibility to follow up and ensure that the county and affected communities receive what they are entitled to.

He insisted the government is committed to a transparent and accountable process and assured that local stakeholders will continue to be engaged in discussions about the post-mining land use and future mining operations in the region.

The PS also revealed that discussions are ongoing to grant Base Titanium an extension of up to 15 years not for continued extraction, but to complete the rehabilitation and restoration of mined-out areas.

He noted that the rehabilitation process is currently 55 per cent complete and that the remaining work requires more time to ensure proper restoration and effective long-term environmental monitoring.

“The company has told us that the Tailing Storage Facility requires a bit of time, for rehabilitation and close monitoring because if rushed it can be disastrous and we agreed on that with them,” he said.

Kimtai said they will engage the National Land Commission (NLC) and the National Environment Management Authority (Nema) to review laws related to expired leases and develop clear legal guidelines on post-mining land use and environmental obligations.

Community service

However, he revealed, the government will specifically allow Base Titanium to continue with the rehabilitation of specific areas where restoration and rehabilitation has not been completed.

He explained that some of Base Titanium’s infrastructure such as a dam and a 132KV high-voltage power station has been handed over to the Coast Water Works Development Agency and Kenya Power to enhance water supply and improve electricity connectivity for local communities, respectively.

He added that some of the equipment will be disposed of locally, while others will be re-exported or transferred to various agencies to support community development initiatives.

The PS further noted that the government is still in consultation with the PMLU committee on the future use of the land, and a final decision will be made after the completion of public participation forums.

He also encouraged other international investors to consider Kenya’s mining sector, noting that the country is rich in mineral resources and has progressive policies and laws that support a favourable business environment.