Eastern Arc Mountains and Coastal Forests of Tanzania and Kenya ...

The Dominion: Tiomin Given Final Approval for Kwale Titanium Minefile://D:\Eastern%20Arc\The%20Dominion%20Tiomin%20Given%20Final%20Approval...Page 1 of 44/18/2005Print Edition Weblog Underreported Français LocalFebruary 09, 2005Tiomin Given Final Approval for Kwale Titanium MineNAIROBI, KENYA -- After years of negotiations, the Kenyan government has given a Canadian miningcompany, Tiomin Resources Inc., the final approval to start a multimillion dollar titanium miningproject in Kwale. On Feb. 2, the Kenyan government signed a fiscal agreement with Jean-CharlesPotvin, President and CEO of Tiomin, which includes a 50 per cent reduction of the corporate tax ratefor 10 years from the start of commercial production of the mine. The agreement also stipulates a 2.5 percent gross revenue royalty to the Kenyan government.The biggest foreign investment deal since the current government came to power, the mining projectwill exploit the titanium-rich sands in Kwale for at least 14 years. The Kwale project is the first of fourlarge mineral sand deposits along the coast of Kenya that Tiomin started exploring in 1995 . The Kwaleproject is expected to produce large quantities of ilmenite, rutile, and zircon, which are used in the paint,ceramic and electronic industries.The Kenyan coast is a unique tropical expanse of beaches, ancient Arabic architecture, diverse coralreefs and mangrove forests that stretches 402 kilometres. The Kenyan coastal forest is considered byConservation International to be one of the world’s 25 hotspots – areas of extraordinary biodiversity thatare seriously threatened. Many endangered species, including the only bands of Colobus monkeys on theEast African coast and also Kenya’s last remaining herds of sable antelope, depend on the coast’s fragileecosystem, which is already under stress from the tourism industry.The mining project will not only impact the coastal ecosystem but also the residents of the area whomust be relocated. There has been opposition to the project from local communities who are concernedover the destruction of their land and compensation issues. However, construction of the project willlikely begin later this year, and commercial production is expected to start by early 2007.This agreement with the Kenyan government comes at a time when Tiomin has also received a licenseto begin mining gold and other minerals in Peru.Gemma Richardson» Dongo Kundu, a film about the impact of the Tiomin project» Tiomin Resources, official site» read other articles in canadian news» Email this article to a friend