The land will be home to a proposed ship-loading facility for production from Kwale, 50 km to the south. Tiomin had intended to build a similar facility at Shimoni but changed its plans to soothe the environmental concerns of local residents. The government had previously approved the proposed port facility at Shimoni.
Mombasa Harbour is the second-largest port on the eastern coast of Africa.
Tiomin is in negotiations to establish a fiscal/investment agreement for Kwale with the government of Kenya. Tiomin has already been issued a special mining lease for Kwale. The 16-year lease, originally issued in mid-December 2002, can be renewed for a further 10 years. The lease allows the junior to mine and process Kwale’s heavy mineral sands.
The project is in the advanced feasibility phase, with an engineering review slated for completion by the end of April. The company also entered the final negotiating phase for project financing and expects to begin construction later in the year.
Kenya recently tabled plans to revamp its mining laws to entice foreign investors to the country. The government says it plans to establish rules regarding environmental protection, local processing, technology transfer and royalties and taxes.
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