Tiomin Resources (TIO-T) expects to begin construction later in the year on its Kwale mineral-sands project in southeastern Kenya following the signing of a fiscal agreement with the national government.
Kwale, with a proven and probable reserve of 140 million tonnes grading 4.6% total heavy minerals, awaits only project financing before construction can start. Permits are already in place and resettlement of local residents, which had been a stumbling block in previous years, is under way.
Under the fiscal agreement, the corporate tax rate on the project is halved for the first ten years of commercial production at Kwale. The government also has a 2.5% royalty on gross revenue from the project.
The agreement was signed today in Nairobi by two government ministers, Kalonzo Musyoka of Environment and Natural Resources and David Mwiraria of Foreign Affairs.
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