KENYA – Toronto-based TIOMIN RESOURCES has arranged project financing for the Kwale titanium mineral sands project 40 km south of Mombassa. The company has arranged both a senior and a junior loan facility of US$120 million and US$35 million, respectively, plus a cost overrun facility of US$25 million. Funds from an earlier, US$60-million equity financing have been released. Total cost of the Kwale project is estimated at US$178 million.
Tiomin is preparing for production by the end of 2008. The EPCM contract has been let to AUSENCO of Australia, with detailed design and construction to begin this month. The initial production rate will be 330,000 tonnes of ilmenite, 75,000 tonnes of rutile and 40,000 tonnes of zircon per year.
“We are also pleased to announce further sale contracts, which now account for near 100% of the planned output over life of mine,” announced Tiomin president and CEO Jean-Charles Potvin. “At current prices for these products, Kwale is expected to generate approximately US$70 million in annual sales for the first five years of production. Global consumption of titanium and zircon is expected to continue growing at approximately 3% per year.”
Details and photos of the Kwale project are posted at www.Tiomin.com.