Base reports higher quarterly output at Kwale

PERTH (miningweekly.com) – The Kwale mineral sands project, in Kenya, delivered higher heavy mineral concentrate output during the three months to March, as mining activity progressed back into high-grade orezones.

ASX- and Aim-listed Base Resources on Friday reported that heavy mineral concentrate production during the March quarter reached 209 787 t, compared with the 88 087 t delivered in the previous quarter.

Ilmenite production for the March quarter increased from 109 649 t to 110 760 t, while rutile production remained fairly stable at 21 194 t, compared with the 21 768 t produced in the December quarter, and zircon production was up from 7 507 t to 7 865 t over the same period.

Base told shareholders that the usual slowdown in demand through the March quarter, as well as the continued lack of a firm direction in the markets, had resulted in ongoing cautious buying behaviour from customers.

Ilmenite sales for the quarter declined from the 103 035 t achieved in the December quarter to 95 984 t, while rutile sales were down from 23 896 t to 14 500 t. Zircon sales, however, increased from the 7 723 t achieved in the December quarter to 9 556 t.

Revenue per tonne of product sold also declined for $245/t in the December quarter to $208/t.

Meanwhile, Base was expecting full-year rutile production to reach between 82 000 t and 86 000 t, while ilmenite production would top between 440 000 t and 455 000 t, and zircon production between 29 000 t and 31 000 t.