Monday 14 January 2013

[wanabidii] The Kibaki and Raila’s Coalition Legacy



Folks,
 


The Kibaki and Raila's Coalition Legacy

 

It has been observed with utter pity, despair and sadness to see Kenya go down to waste and with the Coalition Government going down in History as a public institution that did not bother to observe agreement rules for Reform it was mandated to be in compliance and for which the political leadership took oath for its commitment to making the system function within the structured Reform Accord order.

 

There are fears that Kenya is headed towards a steep disintegration decline into serious politically instigated problems. Considering the election of 2007/8 where Kibaki stole elections and had himself sworn in a hurry in less than 12 hours before conflicting disputes and disagreement were settled and ironed out; and from where Kibaki's Cabinet was filled up with one tribal group (the Kikuyu family members) rewarding themselves with key Government postings, and this was clear to the whole world that Kibaki had sown seed of discord and confusion in Kenya; he was the author of "Hate Speech" if anything is to go by. From here people like Kimunya and Uhuru without shame employed people of their own Tribes in Key Responsibility positions to represent their special interests irrespectively. Please take note in Transport Ministry, the Police Department where it is suspected the organized groups of Mungiki and Al-shabaabs (have been recruited in great numbers to terrorize, threatens and ambush unsuspecting peaceful Citizens), the Energy and Finance, and it is in these Government Ministries there are serious conflict of Interest where unscrupulous International Corporate Special Business Interest engage in thieving of Public Finances, Wealth and Resources. It is believed matters are now complicated to a point there are complaints from ICC's Prosecutor Mrs. Bensouda claim that the Government is hiding information is not a simple statement and this position is not acceptable, it is wrong and it must not be tolerated. The world must unite to save a situation going from bad to worse so Kenya does not fall to worse-case-scenario as signs shows we are headed to worse off conflicts, most likely worse than 2007/8. The extra-judicial killings that are presently taking place, are believed to be connected and are linked to the political organized crime and terrorism requiring more investigation from the International Community……it is because, the Truth shall set us free.

 

Presently, Kenyas' election is officially active when in-fact, Census for population counting has not been released to public and education to inform public on the New Devolved Postings for Senatorial and Governorship for example, how job specification will be required to perform has not taken place in which case, people are going for election uninformed about what to expect from their elected leaders and it will be difficult to hold the elected leaders accountable or demand transparency in the course of their representation. This is totally wrong and we believe these politicians are doing this purposefully in order to take advantage of mis-information to exploit and continue in fueling corruption to benefit their special interest of the unfinished business. This is totally unacceptable and is against the Reform Accord Agreement for which will defeat the purpose of Reform struggle. We fail to understand how "Hate Speech" is gauged or instituted without informal training to educate and inform the public to understand and be informed of the Reform Accord Change packages the people are expected to observe.

 

One case-scenario is that people are wondering how the "RwaKenya Bus Co." operating in Kenya got registered to operate when it is a shared business with Kabuga the notorious Rwandan Genocide on an International wanted list.

 

Our concern is based on matters of the recent:

 

1) that Justice be defender and with it we shall in a short-space-of-time, overcome and Truly deliver our people's freedom from oppression, extra-judicial killings, environmental pollution, pain and sufferings and we shall secure good health with mental stability and all will get involved and engaged in Nation building with progressive development agenda to improve livelihood and survival fairly shared by all for common good of all in the world

 

2) careless of 'inhumane' from extra-judicial killings of innocent by organized gang attacks in Tana River with recurring violence in the glare watch of government pretending to looking the other way is unacceptable

 

3) the Samburu Turkana's constant armed attacks Stories forcing the people to be driven out of their land is an open public information the whole world know about and is no longer a hidden secret story that justice must give remedy to the people

 

4) The Nairobi's Syokimau, Migingo and Migori criminal acts of illicit, illegal and irregular forced evacuation where the illegal foreign interest of unscrupulous investors engage in corrupt occupation and throwing local people under criminally undignified migration, relocation and transfers are unacceptable; people must be fully compensated to recover their loss and the politicians charged for consequences.

 

5) That of Tiomin business interest in Kwale Kenya LTD that caused the indigenous people to hopelessly lose their livelihood and survival from oppressive criminal occupation of their land.

 

6) We have seen the accused politicians with clear cases ranging from Drug Trafficking, child and women neglect, abuse and trafficking and from evading the law; the booming of street foreign exchange black market, the Somali and Mungiki Terrorism and Pirating in Lake Victoria and Migingo with the surrounding Migori fresh water lakes as well as active recruitment of retired police and terrorists with organized gangs (Mungiki & Al-Shabaab) in the Kenya police force, and changing of the Law to suit and protect the Politically correct special interest including their gainful end is worrisome and is a conspiracy to strategically magnify crime spreading out to the greater inside-out of suburban with the local Rural regions of the whole Nation that cannot just be left to continue taking dangerous toll in the Country.

 

7) Sacking of Judges who instill ethics for discipline and observing the right code of dressing (e.g. Justice Angawa and Ombija) unfairly and leaving the crooked Judges who were earlier vetted, found unfit with grievous crimes were dismissed but later were brought back in the office to stay because of their politically correctness, is totally against the Rule of law for justice. To say Justice Angawa's unsuitability determination to continue serving as High Court Judges by the Judges and Magistrates Vetting Board defeat all reasonable logics of evaluating good workers and it is found unfair requiring Civil Society with good people to publicly stand up to determine the real truth on this matter as this kind of loose attitude is unacceptable. It is clear the corrupt conspire to punish Justice Ombija with the case of Al-Bashir which seems is what got tied together to get rid of him from High Court and this confirms that justice in Kenya will not see the light of day unless ICC Hague with the International community intervene for justice to help Kenya go through a safer Reform Transitional free from Politically correct Special Interest networking of intimidators and that another Legal panel could be set up to do the vetting which people can believe and trust in.

 

It will not fair to destroy someone's academic excellence where they struggled their life-long to achieve with long standing career they engage for good performance serving public in perfecting conduct discipline to justice, is jeopardized and left to be thrown dirt to waste by the selfish and greedy politically correct conspirators should not be left without public condemnation. It is about time things must change for better. This is defaming and destroying someone's character for selfish ends and it must not be let off the hook.

 

8) We have seen turn-table of 45% of women Representation in Parliament suppressed form the Reform Accord requirement and this behavior is not in compliance to Reform Accord Agreement.

 

9) The curtailing of email social networking and sharing in consultation forum is suppressed from claims of incitements threats (excuse for Hate Speech) and its freedom of communication is in danger and this is unacceptable and good people must stand up for their freedom

 

10) Kibaki's tenure has been seen as dividing Kenyans along ethnic tribal lines from the way Government employment is distributed and controlled by one tribal group e.g. the Kikuyu dominating most crucial Key Government Establishment such as Finance Ministry, Ministry of Energy including Transport Ministry and this is what is bringing down the Country to serious corruption while other tribal groups feel they are a second class citizen because they are treated as outcast without rights. This behavior is wrong as Kenya is for all and Government employment should be equally distributed and be shared fairly without discrimination.

 

11) Bensouda's claim that the Government is hiding information is not strange especially coming from Kibaki's leadership. It is public knowledge and common sense this information is understood to mean that the stubbornness is to frustrate and suppress evidence for a collaborative accomplice to escape fair justice and judgment for which the Government leadership is guilty about having colluded and participated to benefit in the same.

 

The Memorandum of Understanding was ratified and bonded in the Reform Accord forming part of the Constitution of Kenya mandating people's Referundum; how people want to be Governed, it is the Law that must be followed and abideth and no one has authority over the people's law where they assume powers and change policy to suit their special interest as they want. This behavior is against the law and the law must interrogate and put to task politicians who bend the law to reward themselves as they wish as such behaviors are what has brought the Nation to this dangerous corruption galore we are suffering from. The Law must be explicit and be able to shape discipline in line with obedience, which Justice Angawa has practiced all the while and penalizing her is a way to credit and promote injustices and misconduct; a corrupt cancer we struggle to end.

 

The world is watching and people of the world must unite to call a spade a spade; that the corruption killer cancer must not be left to spread anymore but things must change for better and the Law must take its right place to justify that the law protects dignity for human rights with environmental safety including the Democratic Constitutional obligations without fear or intimidation.

 

We must not be afraid, let us continue to stay sober, alert and on course for the Truth and Justice and God will see us through. We shall overcome and life shall be of meaning again because we believe………

 

Judy Miriga
Diaspora Spokesperson
Executive Director
Confederation Council Foundation for Africa Inc.,
USA
http://socioeconomicforum50.blogspot.com
 
 
 
10th Parliament Dissolves:
Effective midnight tonight the current parliament shall be officially dissolved bringing to an end the life of one of Kenya's controversial parliaments. The 10th parliament began on controversial note dogged by a disputed presidential election result. And as KTN's Aaron Ochieng reports, it wound up on an equally controversial note after members unsuccessfully tried award themselves a hefty send off package sparking public outcry. Last Modified: 14 Jan 2013 22:38

MPs asked to hand over as 10th Parliament bows out

SHARE THIS STORY

Updated 47 mins ago
By Peter Opiyo
NAIROBI, KENYA: The Tenth Parliament closed shop on Monday with outgoing members directed to hand over by clearing with all relevant departments.
Parliamentary authorities asked the MPs who on Tuesday officially assume the title 'former' in reference to the positions they held up to Monday, to also clear out of their constituency offices at Continental House.
January 14 marked the end of one of the most quarrelsome and divided parliaments Kenya has ever had, perhaps due to the complexities of the Grand Coalition Government forced on Kenyans by the circumstance of disputed 2007 presidential election, and the subsequent wave of post-election violence, followed by international mediation and finally a power-sharing deal.
The 222 former members now join the long list of aspirants, some of whom are also former Members of Parliament (MPs), in the scramble for various seats on offer in the March 4 elections.
Several outgoing MPs have already indicated they would be defending their parliamentary seats or going for newly created positions of County Governors, Senators and Women Representatives.
On Thursday, which was the last sitting of the Tenth Parliament, MPs milled around Parliament posing for pictures with their colleagues.
As MPs began clearing from Parliament, where some were sitting for their second or even third terms, House Speaker Kenneth Marende announced that members of the Parliamentary Service Commission will remain in office until the election of a new Speaker.
Marende who also chairs the PSC, which is the administrative unit of the House, ruled that the operations of the House must continue. He also hinted he would seek re-election as House Speaker in the next Parliament.
A communication from the administration of the National Assembly instructed members to clear with Parliament following the expiry of its term. This would see them vacate the offices they occupy at Continental House and hand over any property they got from Parliament.
Inventory purposes
Clerk of the National Assembly Justin Bundi wrote to all the MPs asking them to clear with the relevant departments with effect from Monday.
"The term of the 10th Parliament will expire on January 14, 2013. Equipment/items issued to your offices during the last five years require clearance and this process involves different departments for inventory purposes," Mr Bundi said in a letter to the MPs.
The outgoing MPs have to clear with various departments such as sports, catering, and accounts, amongst others.
"All honourable members are requested to complete the attached form and clear with various departments with effect from January 14, 2013," directed Bundi.
Parliament has also suspended catering services to MPs until next month, ostensibly to "allow for minor repairs" to the dining unit.
"This is to inform all honourable members that Kenya National Assembly Catering Services will be suspended with effect from January 14, 2013, evening to allow for minor repairs. Services will resume on February 4, 2013," said another letter from Bundi.
The MPs enjoy a subsidised four-course meal, of the status of a five-star hotel, at Parliament's restaurant at Sh490 per plate instead of the market rate of around Sh2,500.
The letter is copied to Marende, PSC, Clerk of the Senate, Director General Joint Services, Senior Deputy Clerks and Directors of various departments.
At the MPs' offices at Continental House, personal assistants were busy clearing offices of the outgoing representatives's personal effects. The MPs have also been asked to return the log-in cards they were handed for transacting business in the ultra-modern chamber. The Chamber is fixed with electronic devices for e-voting and also has automated monitors that require a log-in card for one to contribute to debate.
Salaries
At the same time Mr Bundi has also written to Constituency Office Managers to remain responsible for Constituency Offices until after the General Election.
However, the contracts signed between MPs and the Constituency Office staff expired with the dissolution of Parliament, except for the case of the managers. They, however, will be paid three months' salary in lieu of notice.
"The contracts signed between the current MPs and the Constituency Office Staff, except for the Constituency Office Managers, are to expire on January 14, 2013 (on Monday) and the officers concerned shall be paid three months salary in lieu of notice in accordance with Regulation 25 of the Constituency Office Regulations," added Bundi.
But the Clerk said the salary would only be paid after confirmation from the Constituency Office Managers that the officers have cleared with the PSC, including bank account transactions.
The managers must ensure the offices are closed and secured so that they are not used by anybody before the March 4 polls. They will also prepare inventory of all the furniture and equipment and send a copy to the Clerk.
According to the letter, gratuity for Office Managers and security guards will only be processed after the incoming MPs have confirmed that the Commission's property and bank accounts have been fully accounted for by the Office Managers.
The handing over in the Constituency Offices must take place within seven days after the gazettement of new MPs after elections. But in cases where an MP is re-elected, the office staff would be required to sign new contracts.
Constituency Office staff for nominated MPs will be paid gratuity with effect from July 1, 2010 and it is payable only to a personal assistant, driver and secretary as prescribed in

Good, greedy side of Kenya's 10th Parliament

SHARE THIS STORY

Updated Sunday, December 30 2012 at 10:13 GMT+3
By Alex Ndegwa
Parliament had an eventful 2012 passing laws that will help improve governance, but the MPs equally engaged in mischief to secure their sectarian interests.
MPs had by December 18 passed a record 97 Bills, including those to implement the Constitution and reform the education, insurance, financial and health sectors.
Explosive debate like censure Motions to reprimand public officials that usually spice up sessions did not lack from the agenda.
Theatrics from mavericks like Makadara MP Mike 'Sonko' Mbuvi occasionally stirred the House offering comic relief during otherwise humdrum debates. Parliament reopened in February to pending Constitutional Bills, which had a February 27 deadline among them, the crucial Devolution Bills.
The County Government Bill caused a standoff between the House and the President, who rejected attempts to empower the governor to chair the County Security Council.
MPs backed off by reinstating the security function to the national government and deleting another clause that provided for the redeployment of the Provincial Administration to counties.
Also in the in-tray was the Independent Electoral and Boundaries Commission report on the creation of 80 new constituencies, which had stalled in political acrimony. After two days of acrimonious debate in March, Parliament approved the report providing for 290 constituencies and 1,450 county wards but sought an additional 100 wards and redrawing of boundaries.
IEBC, however, rejected proposals to carve out clan enclaves and gerrymandering by MPs scheming to influence the outcome of the General Election in their own and their allies favour.
In the same month a report authored by a House committee after a probe on the rapid depreciation of the shilling caused a storm. The investigation was necessary given the economic turmoil of a weakened shilling, but the cause was poisoned when debate veered to ethnic and political tussles.
A recommendation for the removal of Central Bank Governor Njuguna Ndung'u was expunged after a controversial vote.
Sonko had a spectacular flip-flopping during the debate, initially dismissing the performance of the Governor and later changing his mind.
"Kutokana na ripoti ambayo nimetoa tunamwomba huyu gavana ajiuzulu kazi kwa sababu kazi imemshinda (based on this report, we ask the Governor to resign because he has failed)," said Sonko.
But shortly thereafter, he voted for an amendment to expunge sections of the reports that adversely mentioned Prof Ndung'u.
A month later the indecision by some MPs was evident during consideration of a report on appointments to the Ethics and Anti-Corruption Commission.
After vetting, the Justice and Legal Affairs committee had opposed the nominations of Mumo Matemu, Jane Onsongo and Irene Keino.
Saboti MP Eugene Wamalwa, a member of the committee, had backed the recommendations to reject the nominees saying they "did not satisfy us." But on May 10, Mr Wamalwa – as Justice minister – seconded a Motion to approve the same nominees. He urged speedy adoption of the names "so that we ensure that this country has a commission that can fight corruption."
Chepalungu MP Isaac Rutto, another member of the committee, and Government whip Jakoyo Midiwo, who had initially expressed doubts the trio could effectively fight graft, also softened their stand.
Onsongo and Keino have since assumed their positions but the High Court revoked Matemu's appointment as chairman of EACC.
This year has also seen the integrity of the 10th Parliament put to question by members who have accused their colleagues of corruption. Gichugu MP Martha Karua once described corruption among MPs as a defilement of the integrity of the National Assembly.
MPs for hire?
"As a matter of fact, I have said the way we are behaving, we are like the greatest auction house in Africa and we know that this Motion may have been sponsored by those who are afraid of certain things, including some sections of the Ocampo Six," Ms Karua had told Parliament during debate on a motion on the International Criminal Court.
The bribery allegations rocked the House in April when MPs approved the Finance Bill in the night to end a deadlock that had persisted since June last year.
A proposal to fix the interest rates that commercial banks can charge on consumer loans had forced the Government to withdraw the Bill on numerous occasions.
Finance Minister Njeru Githae offered a sweetener to soften the MPs- a tidy Sh3.7 million each as gratuity at the end of their tenure, which was more than double the current severance pay.
But Karua and nominated MP Millie Odhiambo claimed in the House that some MPs were bribed to defeat the proposal. Ms Odhiambo had claimed that some MPs were bribed with Sh50,000 each to defeat the bid to regulate interest rates.
"MPs have refused to reduce interest rates for the public, but when it comes to our own things, we are very quick and sneaky," she said.
Later the Gichugu MP said, "I have information from two members that PNU MPs were paid at Pan Afric Hotel while the ODM legislators converged at the gazebo to receive their bribes of Sh50,000."
National Assembly Speaker Kenneth Marende was forced to intervene after bribery allegations became frequent, with the latest spat involving Finance Assistant Minister Oburu Odinga and Mutito MP Kiema Kilonzo.
Angered with Kilonzo's persistence over a question touching on taxation of a certain firm, Oburu claimed the MP had attempted to extort money from the businessmen. An aggrieved Kilonzo vowed to relinquish his parliamentary seat if the bribery allegations were proved.
Marende acknowledged the allegations, though unproven claims, had reached crisis levels. "I wish to state categorically that in my capacity as the Speaker of the National Assembly, I do not and shall not condone the use of this House or the membership in it for purposes of, or as avenues for corruption or other criminal conduct," he said.
In June MPs worked late into the night rewriting electoral laws to subvert efforts to promote discipline in political parties. They stamped a seal of approval for a series of amendments designed to facilitate party hopping as dozens of their colleagues face court cases for defections yet they have clung onto their parliamentary seats.
Personal gain
Also they relaxed stringent electoral timelines that were designed to curb last-minute defections by losers in party nominations, thus allowing MPs to change parties until January 4. And in August MPs ensured an easy return to the National Assembly for dozens of their own suspected of involvement in crimes.
The MPs tore out sections of the Leadership and Integrity Bill and voted against requirements on wealth declaration, vetting by State agencies and publication of their pending criminal court cases.
Commission for the Implementation of the Constitution moved to court to challenge the watering down of the integrity law. August also witnessed the historic occasion of the opening of the refurbished 400-seater chamber that had been undergoing renovation for three months.
President Kibaki attended the opening of the picturesque horseshoe designed chamber, which is installed with the state-of-the-art technology, including electronic voting system and computer monitors.
The retractable seats, though, cost a fortune, Sh200,000 apiece.
In November Parliament amended the law on vetting of judges and magistrates to block courts from hearing cases of individuals found unfit to serve in the Judiciary. The lawmakers amended the Vetting of Judges and Magistrates Act 2011 to provide that the Vetting Board will have the last word on the scrutiny.
The changes also provide that the removal from office of any judicial officer under the Act "shall not be subject to question in, or review, by any court."
In September the House approved the Breast Milk Substitutes (Regulation and Control) Bill, against opposition by some members and a manufacturing business lobby opposed to restriction of the sale of breast milk substitutes in Kenya.
 
 
 
KIBAKI SIGNS 30 Bills into law, including his enhanced retirement benefits but rejects perks for PM, VP, CJ, MPs and other State Officers.
 
 
--- On Mon, 1/14/13, Christine Baraza <christinebaraza@yahoo.com> wrote:
 
 
From: Christine Baraza <christinebaraza@yahoo.com>
Subject: [uchunguzionline] KIBAKI GREEDINESS
To: "uchunguzionline@yahoogroups.com" <uchunguzionline@yahoogroups.com>, "VuguVuguMashinani@yahoogroups.com" <VuguVuguMashinani@yahoogroups.com>, "Kiswahili" <Kiswahili@yahoogroups.com>, "BUNGE MWANACHI" <bungelamwanainchi@yahoo.com>, "MWANYAGETINGE NETWORK" <mwanyagetinge@yahoogroups.com>, "YOUNG PROFESSIONALS" <youngprofessionals_ke@googlegroups.com>, "Progressive- Kenyans" <progressive-kenyans@googlegroups.com>
Date: Monday, January 14, 2013, 4:11 PM

Kibaki has ended his legacy by showing Kenyans his TRUE colors. The Greediest President in modern times by awarding himslef Kshs.25 million send off plus 1 million per month till he dies. What a President? He has not only caused animosity and disharmony/disunity between communities than he found Kenya but also shown that he does not really care about Kenyans welfare but his own..OVER TO YOU CIVIL SOCIETY and KENYANS.....

AG: Govt handed suspects' court files to Bensouda

The attorney general Githu Muigai. PHOTO / FILE

The attorney general Githu Muigai. PHOTO / FILE

By AGGREY MUTAMBO amutambo@ke.nationmedia.com
Posted Saturday, October 27 2012 at 13:04
International Criminal Court prosecutor Ms Fatou Bensouda left the country on Friday with a harvest of files of past domestic cases involving the four Kenyan suspects.
Attorney General Githu Muigai told the Nation on Saturday that the government responded to the request by Ms Bensouda for information concerning the suspects.
Prof Mugai however refrained from mentioning the exact case files his office handed to the Office of The Prosecutor (OTP).
"It is a work in progress. Even this week that they (officials from the OTP) have been here, we have already given them files about all the cases that were concluded here domestically," he said on the sidelines of a symposium by Kenya Women Medical Association in Nairobi.
Deputy Prime Minister Uhuru Kenyatta, Eldoret North MP William Ruto, former Head of Civil Service Francis Muthaura and radio journalist Joshua arap Sang face charges at the International Criminal Court (ICC) of bearing the greatest responsibility for crimes committed during the 2007-2008 post-election violence.
ICC Prosecutor Fatou Bensouda was in the country from Monday to Thursday during which she met President Kibaki and Prime Minister Raila Odinga and requested for information concerning the suspects.
Asked whether the government would agree to give details on wealth owned by the suspects, the AG said: "When the times come, we will advise on that."
Prof Muigai confirmed that Ms Bensouda requested for information on what they (the suspects) own, but added co-operation on the matter will depend on how fast other agencies resolve to release the information.
"We have always done it, we are still doing it. They can request motor vehicle records, sometimes, we give that. They can request files that have been concluded in court, we give that.
"It depends on what they have requested, how soon the government ministries or department can respond to us, and then we respond to them, said Prof Muigai.
Of the four, Mr Ruto has had two recent cases on alleged land grabbing.
In April last year, Mr Ruto was acquitted of Sh43 million land fraud charges after the prosecution failed to prove the case in which he and his co-accused Mr Joshua Kulei and Mr Sammy Mwaita were charged with fraudulently obtaining Sh272 million from the Kenya Pipeline Corporation (KPC) by selling it plots in the Ngong Forest.
In the same year, a farmer in Turbo, Eldoret went to court claiming Mr Ruto had grabbed his 100-acre land during the post-poll skirmishes. The farmer, Mr Adrian Muteshi, in July told the court that Mr Ruto had told him he had been cheated into buying the land. The farmer added that the MP had personally apologised to him and agreed to return the land.
On Wednesday, Ms Bensouda had asked Chief Justice Willy Mutunga for court files on cases touching on atrocities committed in Kapsabet and the Kenya Assemblies of God Church at the height of the violence.
Even with the co-operation by the Kenyan government, Ms Bensouda still complained of obstruction by some unnamed government agencies that she accused of blocking the release of other pieces of information about the suspects.

Court moves to clear 200 pending appeals

PHOTO | PHOEBE OKALL Chief justice Willy Mutunga (centre) poses with the 16 newly appointed Court of Appeal judges at the Supreme court on December 11, 2012 after they were sworn in at State House.

PHOTO | PHOEBE OKALL Chief justice Willy Mutunga (centre) poses with the 16 newly appointed Court of Appeal judges at the Supreme court on December 11, 2012 after they were sworn in at State House. The Court has embarked on a month-long crash programme to reduce the backlog of pending cases in Nairobi and Mombasa. NATION MEDIA GROUP

By PAUL OGEMBA pogemba@ke.nationmedia.com
Posted Tuesday, January 15 2013 at 00:30

In Summary

  • According to a statement from the office of the Chief Justice, four Court of Appeal benches will sit every day in Nairobi to hear 188 civil applications and another bench of three judges will be sitting in Mombasa to hear 35 civil appeals
  • The move comes in the wake of plans to decentralise the Court which will from February sit permanently in Kisumu, Nyeri and Malindi
    The Judiciary has earmarked more than 200 cases pending at the Court of Appeal for completion in the next one month.
    The Court on Monday started the month-long crash programme to reduce the backlog in Nairobi and Mombasa.
    A record four benches simultaneously sat in Nairobi for the first time to speed up conclusion of the appeals.
    According to a statement from the office of the Chief Justice, four Court of Appeal benches will sit every day in Nairobi to hear 188 civil applications and another bench of three judges will be sitting in Mombasa to hear 35 civil appeals.
    This has been greatly helped by the recent appointment of 16 new appellate judges. The intention is to clear the backlog before the new judges get acquainted with their new roles.
    It also comes in the wake of plans to decentralise the Court which will from February sit permanently in Kisumu, Nyeri and Malindi.
    However, most cases listed for hearing did not proceed as many litigants asked for additional time to file and submit their documents.
    An appeal by former President Daniel Moi is among the cases to be expedited. Mr Moi appealed against a ruling that he should pay a former intelligence chief Sh1.96 billion in compensation.
    The appeal has been pending since May 2011 when the High Court found Mr Moi liable for detaining his former spy chief and business associate Stephen Muriithi for three years.
    A three-judge bench of judges John Mwera, GBM Kariuki and Kathurima M'Inoti took over the case and extended orders stopping Mr Muriithi from claiming the money until the appeal is heard and determined.
    The judges gave both Mr Moi's and Mr Muriithi's lawyers two weeks to file their submissions and have the case fixed for hearing on a priority basis.
    Lady Justice Jeanne Gacheche in April 2011 ruled that Mr Moi was personally liable for detaining Mr Muriithi without trial and ordered him to pay Sh50 million as punitive damages and Sh80 million as compensation, with a 12 per cent compound interest from July 1982.
    Mr Muriithi accused the former president of unlawfully ordering his detention without trial with the intention of getting some properties they co-owned.
    Among the properties are parcels of land in Nairobi and Nakuru which, he said, were registered under investment companies in which both he and Mr Moi were partners.
    Through lawyer Ochieng Oduol, Mr Moi accused the judge of making a mistake by proceeding on assumption that Mr Muriithi's detention in 1982 was without any lawful cause.
Magnitude of voter ignorance will take IEBC by surprise during polls
Posted Tuesday, November 27 2012 at 18:51
According to the information available on the Internet from IEBC, the total number of Voter Registration Centres in the country is 24,601.
I want to believe that the same centres will be used as polling stations in the coming General Election.
Correct me if I'm wrong. You will realise that I have not received any civic education on many issues related to voter registration. I want to further believe that there are fewer BVR kits than the centres.
I would like to be educated on how polling will operate. At least for now during voter registration, one kit is used in more than one centre in a number of areas.
Since the polling stations will operate more or less simultaneously during the elections, it will not be practicable to use one machine for more than one station.
When I went to register, I was told that all I will need on polling day will be my physical presence and my ID.
After I had registered, I was not given what other voters before me were given and that is the "IEBC acknowledgement slip", the reason being they had been exhausted.
The IEBC supervisor said he would try to get them from Nairobi, even as the slip was not really that necessary. He added that I could collect the slip on polling day. What a joke! Why did the IEBC waste public funds to print and provide it in the first place?
But come to think of it, if the IT system misbehaves, I have no evidence to show that I'm a voter. So, I do not want to buy the idea that the slip is not important.
I hope the IEBC will not rely entirely on the IT system to store and do everything. I believe it would be advisable to also have the data in hard-copy just in case something unexpected happens, say, about 10 per cent of the machines fail to work during polling day.
Finally, I am imagining that many voters will not be familiar with the new system. What steps is the IEBC taking to ensure that all Kenyans are familiar with the new system and, that any form of interference regarding those voters who will not be conversant with the system is minimised?
If ever there was time when the IEBC was to be on top of things, this is it. It is very easy to mess things up with the IT system, unless those handling the process are really people of integrity who care about the welfare of Kenya and the people of this nation.
For heaven's sake, let us all, as a country and people, try to avoid a repeat of the rigging and stealing of elections of the 2007. God bless the IEBC! God bless Kenya and the people of this great nation!
BERNARD KITUR, Nairobi
Politicians, especially sitting MPs and councillors who have lost touch with the voters and thus on their way out, cannot be expected to spearhead such a campaign as some even wish that no one registers to send them home.
In my interactions with the public, I have realised that they are yet to know that everybody aged 18 and above and with an ID card or passport is being registered afresh.
Some are still keeping their old voters' cards thinking that the ongoing registration exercise is only for those who had lost them or had never been listed as voters.
Other Kenyans are being turned away because they have the old generation ID cards and have decided to keep off instead of going to apply for the new generation IDs (Immigration ministry promised to have 60,000 churned out weekly).
There is also the feeling that people should even be bribed to register. Some have been asking questions such as "Why register?" "Why vote?".
They have lost hope in the people they voted for in the past to the extent that they see no need to vote any more.
DENNIS BIKO, Kakamega
Create awareness
Failure by the IEBC to meet its weekly target of 3.7 million is cause for alarm. The result is a clear indication that Kenyans, besides other hindrances like lack of ID cards and insecurity, are deficient of voter education.
The IEBC and other organisations have scored poorly in educating the masses on the need to enlist afresh.

Kimunya, Kenya Ports Authority, Kikuyu Board Members

Font size: Decrease font Enlarge font
Amos Kimunya Minister of Transport Amos Kimunya Minister of Transport
The Kenya Ports Authority is the recent culprit with transport Minister Amos Kimunya coming under fire over selected appointments to the authority. He has been accused of appointing to the Board Directors from his community while ignoring qualified candidates from other communities. The board includes: Mr. Bernard Gaithuma Njuguna, Ms Eunice Wanja Njeru, Ms Khadija Karim, Mr. Abdalla Mohamed Abdala Fadhil and Mr. Komora M. Jillo. The entire board of directors is as follows; Bernard Shukri, Khadija Karim - Director, Abdala Fadhil, Ian Karanja, Bernard Gaithuma, Eunice Njeri, Musengi, Joseph Kinyua, Cyrus Njiru, James Waweru, Edward Ngige, Nduva Muli, Gichiri Ndua and Muthoni Gatere.
Nepotism in Kenya goes hand in hand with current leadership. This culture of hiring or rewarding people from one's community once one gets into office is denying many qualified Kenyans a chance of employment. A recent report done on universities in Kenya revealed that over 70% of employees in these institutions are from one ethnic community. Another report revealed that the office of the Prime Minister also had employees from his ethnic community. This plus many other public institutions and corporate organizations are guilty of the same.
The appointments to the KPA Board have sparked controversy to the point of Gideon Mung'aro, Member of Parliament for Malindi suing the transport minister. In his suit the MP said that 'appointing the board in the manner he did is to deny the board independence with an agenda an intention to benefit himself and members of his ethnic community and also to ensure that members of his ethnic community are the majority in the board with a view to influence decisions in the board.' Other coastal MPs have since accused the minister of putting his community's interests ahead of national interests. High Court Judge Mohammed Wasame has however ruled that the appointments must be stopped to allow the court and the public to look into how the minister used his powers.
Such controversies are all too common in Kenya with some people pointing out that they fail to meet the constitutional test of balance and fairness in terms of regional consideration. Kenyans gave their views on what they thought of tribal appointments. Many pointed out that this is not even news as in many institutions, one has to be of the right tribe to get an appointment qualified or not. Tabitha of Umoja says that to get a job nowadays is not easy. One has to either be very qualified or of the right tribe with regard to the organization one is applying into. She says this all too common and one has only to look at public offices to get the point. She remembers when a ban was effected on speaking vernacular languages in office as evidence that its all about one's ethnic background.
Moses of Nairobi University says that he is surprised at this present government that as an administration that came to power on the platform of change, it has failed to deal with the challenge of tribalism. He says that he was excited when in 2002, a promise of equity, fairness and shunning of tribalism was made yet it is this same government that has failed to keep this promise. It is as if certain tribes are being rewarded while others watch and complain. He says this is an answer as to why post election violence took place. People were frustrated due to the lack of equity of resources and seemed to be venting out. He says as long as this imbalance continues, there will be a lot of unrest.
But even as Kenyans give their views and demand some accountability, the leaders in question will at most face an appointed commission, defend themselves and walk free. Amos Kimunya is expected to face the National Cohesion and Integration Commission and explain how he exercised his powers. The question that remains is whether the National Cohesion and Integration Commission will do something to rectify the problem or whether the matter will be recorded and filed somewhere then forgotten. It is up to Kenyans to put into office leaders that can solve their problems instead of adding to their problems.

Reader Request: Kibaki's Kikuyunization Programme Part 3

Clinging on to power "by any means necessary" is a way of maintaing the status quo within the Mount Kenya Mafia cartel

The point with the "Kikuyunization Lists" is to show how appointments to top jobs in Government and Parastatals, are made in favor of the GEMA/Mt. Kenya Region's people. GEMA: Gikuyu Embu and Meru Association.

The Kikuyu dominate, followed by the Meru and then the minority Embu fill a few positions. The surnames determine who is who.

The lists show that non-GEMA members are appointed to non-executive positions in case they serve as Board Members in these organizations. As we head towards 2012, we have a clear picture of Kibaki's ethnically/tribally-biased administration which has managed to entrench Kikuyu hegemony that only draws more resentment among the remaining tribes that have largely been left out. Taxpayers come from all over the country, yet the majority of those enjoying top jobs are from one region. Kenyans should wake up!

Permanent Secretaries (GEMA):

Agriculture ———————— Dr.Romano Kiome —————————Meru
Office of the President ———– Francis Muthaura —————————-Meru
Internal Security and Provincial Administration: ——-Mr. Francis Kimemia
Private Secretary to the President: ——Prof. Nick Wanjohi
Comptroller State House: —————- Dr. Nelson Githinji
Secretary Presidential Press Service: —-Mr. Isaiya Kabira
Public Comms Secretary & Gvt Spokesman: ———Dr. Alfred N. Mutua, E.B.S (Rumored to be Muthaura's Son)
PM Office: PS Public Sector Reforms and Performance Contracting: —Mr. Richard Ndubai
PS Office of Deputy Prime Minister ——————————- Prof. Karega Mutahi
Energy PS: —————————————————Mr. Patrick M. Nyoike, C.B.S.
Finance PS ————————————————— Mr. Joseph K. Kinyua, C.B.S.
Fisheries PS: ————————————————- Prof Micheni Ntiba
Foreign Affairs PS——————————————–Patrick Wamoto (Acting)
Industrialization PS—————————————— Dr. (Eng.) Kibicho Karanja
Medical Services———————————————-Ms. Mary Ngari
Director of Medical Services: —————————— Dr. Francis Kimani

Metropolitan

Physical Planning ———————————————Ndirangu Maina
Roads PS ——————————————————-Mr. Michael Kamau
Transport PS —————————————————Silas Njiru
PS Ministry of Youth —————————————–Mr. James Muiru Waweru
Controller and Auditor General —————————–Mrs Priscilla Njeri Komora

Public Service Commission

Chairman —————— Mr. Titus Justus Kahiga Gateere
Commissioner ———— Mary M. Gikuyu —————-Kikuyu
Commissioner ————-Ruth Njoki Mathai ———– Kikuyu
Commissioner ————-Josephine K. Gichuhi ——– Kikuyu
Commissioner ————-Onesmus Njathika Ireri —— Kikuyu
Commissioner ————-Johnson G. Kibera ———— Kikuyu
Commissioner ————-John Muketha, SS ———— Kikuyu

Kenya Institute of Administration
Director: ——————————————————– Margaret Kobia

Water Services Regulatory Board
Chairman: ——————————————————-Jane Njogu

NACADA
Chairman: ——————————————————Frank Njenga
Secretary: ——————————————————Jenipher Kimani

Kenya Tourist Development Corporation
Chairman: ——————————————————Charles Wachira

Public Archives Advisory Council
Director: ——————————————————- Lawrence Mwangi

Export Promotion Council
Chairman: ——————————————————Peter Kimuyu

Kenya Revenue Authority
Commissioner General: —————————————Michael Waweru

Tea Board of Kenya
Chairman: ——————————————————-Sicily Kariuki

Retirement Benefit Authority
Director: ——————————————————– Kanyi Gachoka

Kenya Water Institute
Chairman: —————————————————— Jacob Kaimenyi

Kenya Re-Insurance Corporation
Chairman: ——————————————————- Nelius Kariuki
Director: ——————————————————— Eunice Mbogo

Capital Markets Authority
Chairman: —————————————————– Chege Waruinge

Consolidated Bank of Kenya
Director ——————————————————– David Ndegwa

Kenya Post Office Savings Bank
Chairman: —————————————————— Wilson Kinyua
CEO: ———————————————————— Nyambura Koigi

KASNEB Chairman:
Francis Kibera CEO: ——————————————- Erastus Gitau

Kenya National Assurance
Chairman: —————————————————– Alexander Kaminchia

Central Bank of Kenya
Governor: —————————————————– Njuguna Ndungu

Capital Markets Tribunal
Chairman: ——————————————————Morris Njage

Kenya Institute of Public Policy and Research
Director: ——————————————————–Moses Ikiara

National Irrigation Board
Chairman: ——————————————————–Francis Gichaga

Kenya National Trading Corporation
Director: ——————————————————— Gladys Maina

Kenya Industrial Property Institute
Chairman: ——————————————————– Moses Thairu

East African Portland Company
Director: ———————————————————- Ndegwa Kagio

Industrial Property Tribunal
Chairman: ———————————————————Lillian Wanjira

Kenya Industrial Research and Development
Institute Director: ————————————————-Elias Njoka

Numerical Machining Complex
Chairman: ——————————————————– Jonathan Muturi

Co-operative College of Kenya
Principal: ———————————————————- Esther Gicheru

Pyrethrum Board of Kenya
Chairman: ——————————————————— Isaac Mwangi

New Kenya Cooperative Creameries
Chairman: ———————————————————-Matu Wamae
Managing Director: ———————————————–Francis Mwangi

Kenya Ordinance Fact Corporation
Chairman: ———————————————————- Jeremiah Kianga

Tana and Athi River Development Authority
Chairman: ———————————————————–A. Mureithi (deceased)
Director: ————————————————————-S. Maina

Horticultural Corporation Development Authority
Chairman: ———————————————————– Joseph Kibe

Jomo Kenyatta Foundation
Director: ————————————————————- Nancy Karimi

Agricultural Finance Corporation
Chairman: ————————————————————Patrick Kariuki

National Sports Stadia Management Authority
Director: ————————————————————–S. Mwai

Kenya Plant Health Inspectorate
Chairman: ————————————————————Justin Irina

National Housing Corporation
Director: ————————————————————–J. Ruitha

Kenya Cultural Centre
Chairman: ————————————————————M. Kaggia

Kenya National Library
Director: ————————————————————–Irene Muthoni

Moi University
Chairman: ————————————————————-Evan Mwai

Kenya Literature Bureau
Director: ————————————————————– Adams Karauri

Kenya Education Staff Institute

Chairman: ———————————————————— Joseph Kimura
Director: —————————————————————B. Gachanja

Commission for Higher Education
Chairman: ————————————————————-Kihumbu Thairu

Kenya Power and Lighting Company
Director: —————————————————————E. Njoroge

Higher Education Loans Board
Chairman: ————————————————————-Joseph Kimura

Water Service Trust Fund
Director: ————————————————————–S. Mwangi

KENGEN LTD (THE HEIGHT OF TRIBAL HUBRIS—GEMA)
Managing Director & CEO ————————————-Edward Njoroge
Non- Executive Director —————————————-Kinyua
Non- Executive Director —————————————-Patrick Nyoike
Non- Executive Director —————————————-Sarah W. Wainaina
Non- Executive Director —————————————-Musa Ndeto
Non- Executive Director —————————————-George M Njagi
Non- Executive Director —————————————-Humprey Muhu
Non- Executive Director —————————————-Henry Nyamu M'Narobi
Non- Executive Director —————————————-Rebecca Miano

DIRECTORS (84% GEMA)
Managing Director & CEO ————————————-Edward Njoroge
Operations Director ———————————————-Richard Nderitu
Business Development & Strategy —————————- Director Albert Mugo
Regulatory Affairs Director ————————————-Simon Ngure
Company Secretary/ Legal & Corporate Affairs Director — Rebecca Miano
Finance & Commercial Director ——————————–John Mudany
Human Resources & Administration Director —————-Beatrice Soy

MANAGERS
Transformation Monitoring Office Manager ——————David Muthike
Corporate Affairs Manager ————————————–Mike Njeru
Supply Chain Manager ——————————————-Patrick Kimemia
Operations Manager, Eastern Hydro —————————Joel Ngugi
Operations Manager, Geothermal ——————————John Karanja
Operations Manager, Western Hydro ————————–Frank Konuche
Technical Services Manager ———————————— Solomon Kariuki
Geothermal Development Manager —————————-Geoffrey Muchemi
Capital Planning & Strategy Manager. ————————-Elizabeth Njenga
Regulatory Affairs Manager ————————————-John Ndambiri
Environment & CDM Manager ———————————Pius Kollikho
Projects Execution Manager ————————————-David Kagiri
Finance Manager ————————————————–Henry Nyachae (Kikuyu-Kisii)
Human Resources Manager ————————————–John Maina
Performance Management Manager —————————-Mary Waceke Muia
Insurance Manager ————————————————Ann Mbugua
Technical Services & Quality Manager ———————- Henry Ithiami
Special Project Manager ——————————————George Muga

National Oil Corporation (Directors 7 out of 9 are GEMA)
Chairman ————————————————————Mr. Peter K. Munga
Director ————————————————————–Mr. Patrick Nyoike
Director ————————————————————–Mr. Joseph Kinyua
Director ————————————————————–Mr. Paul G. Ngatia
Director ————————————————————–Mr. Paul Muhia Ngugi
Director ————————————————————–Mr. James Gacheru
Director ————————————————————–Mr. Gaciku Kangari

Communication Commission of Kenya

Chairman: ————————————————————–Joseph Njagi
Director: —————————————————————-John Waweru

Athi Water Service Board
Director——————————————————————L. Mwangi

Coast Water Service Board
Chairman: —————————————————————Joseph Muturi

Kenya Film Corporation
Director: —————————————————————–Wachira Waruru

Tana Water Service Board
Chairman: —————————————————————James Kimani

National Council for Science and Technology
Chairman: —————————————————————Henry Thairu
Secretary: —————————————————————G. Kingoria

Kenya Petroleum Refinery
Chairman: —————————————————————Justus Kagenu

Coffee Research Foundation
Chairman: —————————————————————K. Njuguna
Director: —————————————————————–J. Kimemia

Energy Tribunal
Chairman: —————————————————————Njuguna Njenga

Concerned Kenyan

MAINA NJENGA INCLUDED IN ICC CHARGES

Friday, January 4, 2013 - 00:00 -- BY OLIVER MATHENGE
THE name of Mungiki leader Maina Njenga will now be included in the Document Containing Charges for the trial of Deputy Prime Minister Uhuru Kenyatta and former Cabinet Secretary Francis Muthaura .
The ICC Chief Prosecutor Fatou Bensouda had previously only mentioned "Mungiki leaders" who cooperated with Uhuru and Muthaura in the attacks in Naivasha and Nakuru.
The trial judges in the Hague have now accepted Uhuru and Muthaura's application that Maina Njenga should be specifically mentioned as among those contacted for the purpose of securing Mungiki services for the PNU coalition.
The trial of Uhuru and Muthaura at the Hague will start on April 10 while the trial of William Ruto, Uhuru's running mate, will start on April 11, the day scheduled for the second round run-off in the presidential election.
Muthaura also succeeded in having the name of former Police Commissioner Gen Hussein Ali included in the charges where the prosecution alleges that the former cabinet secretary ordered the police not to interfere with the Mungiki as they were travelling to Naivasha and Nakuru.
However Uhuru and Muthaura lost their bid to remove references to "pro-PNU youths" during the post-election violence. The two had argued that the prosecution wrongly attributed crimes committed by the Mungiki to "pro-PNU youths".
The judges allowed a request by Uhuru and Muthaura that the prosecution state the specific number of ODM supporters killed in Naivasha and Nakuru.
Originally the charges stated that, "In carrying out the attacks, the Mungiki and pro-PNU youth killed over 150 perceived ODM supporters"
The judges want the charges to now read that, "In carrying out the attacks, the Mungiki and pro-PNU youth killed approximately 150 people, including at least 82 perceived ODM supporters."
The judges also want the prosecution to specifically state in the charges that Uhuru and Muthaura held a preparatory meeting on or about January 3, 2008 at the Nairobi Club.
The trial judges also asked ICC Chief Prosecutor Fatou Bensouda to remove references to attacks in Nairobi slums from the charges against Uhuru and Muthaura/
Judge Christine Van den Wyngaert said that the charges should only contain "material facts and circumstances of the case as well as their legal qualification." She said that the charges should avoid background information.
"It would be far better if the Pre-Trial Chamber had itself formulated the charges exhaustively or made clear which parts of the Prosecutor's Document Containing the Charges it confirmed and which ones it rejected," Judge Christine said in a separate opinion.
In the case against Eldoret North MP William Ruto and radio presenter Joshua Sang, the prosecution has been asked to include the names of other persons involved.
"This information is to include the names of the three divisional commanders, if the prosecution considers them to be members of the common plan, as well as the names of any other members of the common plan, whose identity is known to the prosecution," the judges said.
Meanwhile, the ICC Presidency has asked the Trial Chamber V judges to seek the opinion of Bensouda and other participants on a request by Muthaura that the ICC relocate the trials to Nairobi or Arusha.
"The presidency requests the Chamber to seek the views of the parties on the application by the Defence for Mr. Muthaura, before deciding whether to recommend the Presidency to consult the relevant national authorities," declared Judge Cuno Tarfusser, who is the ICC Second Vice-President.

Kenya: Failure to Register Costing Millions Daily

By Laban Wanambisi, 30 November 2012
Nairobi — The Institute for Education in Democracy is cautioning that resources for the Independent Electoral and Boundaries Commission are going to waste following low voter registration.
IED Executive Director Peter Aling'o estimates that the IEBC is incurring losses amounting to Sh80million daily due to non-failure to register.
An Interim report by its Observation Group on the ongoing Biometric Voter Registration shows that most kits allocated countrywide are underutilised with some recording no registrations in a day.
"It should be noted that the IEBC is spending close to $1 million of the taxpayers' money per day on the BVR process. If eligible persons do not turn out to register, the country continues to waste close to one million US dollars of taxpayers' money per day and we cannot afford this," he said.
He raised concern that the last minute rush that Kenyans are known for could lead to some of them being locked out of the process due to time constraints since its takes roughly 10 minutes to register one person.
He added; "We are therefore calling upon Kenyans not to wait for the last minute but should register now, today not tomorrow."
The Observation Group report attributes the low turnout in the process to the fact that many people are reluctant to register as voters where they currently reside, due to the political zoning being fanned by the political parties.
"We are also concerned that the political dynamics that we are seeing in the country where certain parts and regions are being zoned is creating a general fear and an environment of intimidation particularly for those who are perceived not to be part of the dominant political ideology in that region this is also impacting negatively on those areas," he stressed.
Meanwhile Aling'o said the Independent IEBC is not capable of preparing efficiently for the Kenyans living in the Diaspora to register and participate in the March 4 polls.
Aling'o, who has participated in the observation of many elections on the continent including the presidential and parliamentary elections in Uganda in 2006 and in Lesotho in 2007, said the commission should come out clearly and explain to the Diaspora why they have to wait until 2017.
He is warning that a protracted court battle over the right of the Kenyans in Diaspora to vote might end up affecting the date of the elections.
"The time remaining now does not allow the IEBC to do this. In my view, I would tell IEBC to apologise to Kenyans for giving them the assurance and tell them although we thought this could happen, in practical terms it cannot happen, it is unfortunate."
Alingo said that the IEBC will also need to ensure that they put measures to secure details of those who will be registered in the Diaspora.
"It's not an easy thing particularly when it comes to safeguarding the integrity of those ballots, because Diaspora voting in most cases takes place in advance so the security and integrity of the registration and the ballot are things you must plan well in advance about and be able to assure Kenyans that this will not be tempered with and if you do not do that you end up where we are of voting."
At the same time, Alingo is calling on Parliament to deal with the amendment to the election act which will allow Kenyans who are waiting to collect their national identification cards to use their waiting cards.
"This simply means we will be using evidence of registration as a criterion for registration. The criteria is that you must be a Kenya citizen, which is not determined by holding a national ID but it's a birth right, "he argued.
 
 
 

Story of Tiomin Kenya LTD and Samburu Turkana Armed Attacks

 

TIOMIN KENYA LIMITED

 

KWALE MINERAL SANDS PROJECT

 

TECHNICAL REPORT

 

MARCH 2006

 

Compiled by:

 

Ausenco Limited

Level 2, 44 St Georges Terrace

Perth

Western Australia 6000

Australia

Tel: +61 (8) 9223-1900

Fax: +61 (8) 9202-1443

 

 

www.ausenco.com

 

 

 

- 2

 

 

IMPORTANT NOTICE

 

This report was compiled in a format consistent with National Instrument 43-101

Technical Report, in accordance with Form 43-101F1, for Tiomin Resources Inc by

Ausenco Ltd (Ausenco). The quality of the information, estimates, conclusions and

recommendations contained herein is consistent with the level of effort involved in

Ausenco's services, based on i) information available at the time of preparation, ii) data

and reports supplied by sources independent of Ausenco, and iii) the assumptions,

conditions, and qualifications set out in this report. This report is intended to be used

by Tiomin Resources Inc subject to the terms and conditions of its contract with

Ausenco. Any use of this report by any party other than Tiomin Resources Inc is at

that party's sole risk.

 

 

- 3

 

 

ITEM 2: TABLE OF CONTENTS

 

 

ITEM 1......................................................................................................................................1

 

 

ITEM 2: TABLE OF CONTENTS...............................................................................................3

 

 

ITEM 3: SUMMARY .................................................................................................................8

 

 

1. PROPERTY LOCATION.............................................................................................8

2. OWNERSHIP............................................................................................................10

3. GEOLOGY AND MINERALISATION........................................................................10

4. CONCLUSIONS AND RECOMMENDATIONS.........................................................12

4.1 Conclusions......................................................................................................12

4.2 Recommendations...........................................................................................12

ITEM 4: INTRODUCTION AND TERMS OF REFERENCE....................................................13

 

 

5. INTRODUCTION AND TERMS OF REFERENCE...................................................13

5.1 The Company...................................................................................................13

5.2 Previous Reports/Studies.................................................................................13

5.3 2004 Project Review........................................................................................13

6. TECHNICAL REPORT..............................................................................................14

ITEM 5: DISCLAIMER.............................................................................................................15

 

 

7. RELIANCE ON OTHER EXPERTS ..........................................................................15

ITEM 6: PROPERTY DESCRIPTION .....................................................................................16

 

 

8. LOCATION OF PROPERTY AND DETAILS OF EXPLORATION LICENCE...........16

9. LOCATION OF MINERALISED ZONES...................................................................16

10. PERMITS AND ENVIRONMENTAL LIABILITIES.....................................................16

11. RESETTLEMENT .....................................................................................................17

ITEM 7: BIOPHYSICAL DESCRIPTION.................................................................................19

 

 

12. GEOMORPHOLOGY, PHYSIOGRAPHY.................................................................19

13. ACCESS...................................................................................................................19

14. CLIMATE ..................................................................................................................19

15. VEGETATION, LAND USE.......................................................................................19

16. LOCAL RESOURCES ..............................................................................................20

17. SUFFICIENCY OF SURFACE RIGHTS ...................................................................20

 

ITEM 8: HISTORY...................................................................................................................21

 

 

 

- 4

 

 

18. HISTORY..................................................................................................................21

 

 

ITEM 9: GEOLOGICAL SETTING...........................................................................................22

 

 

19. GEOLOGICAL SETTING..........................................................................................22

 

 

ITEM 10: DEPOSIT TYPE.......................................................................................................23

 

 

20. DEPOSIT TYPE........................................................................................................23

 

 

ITEM 11: MINERALIZATION...................................................................................................24

 

 

21. MINERALISATION....................................................................................................24

 

 

ITEM 12: EXPLORATION.......................................................................................................25

 

 

22. EXPLORATION ........................................................................................................25

 

 

ITEM 13: DRILLING................................................................................................................26

 

 

23. DRILLING .................................................................................................................26

 

 

ITEM 14 TO 16: SAMPLING AND DATA VERIFICATION......................................................28

 

 

24. SAMPLING AND DATA VERIFICATION..................................................................28

 

 

24.1 Sampling, Drilling and Assays..........................................................................28

 

 

24.2 Sample Preparation and Analysis....................................................................28

 

 

24.3 Sample Security...............................................................................................29

 

 

24.4 Data Corroboration...........................................................................................29

 

 

ITEM 18: MINERAL PROCESSING AND METALLURGICAL TESTING................................30

 

 

25. MINERAL PROCESSING AND METALLURGICAL TESTING.................................30

 

 

25.1 Pilot Plant 1997................................................................................................30

 

 

25.2 Pilot Plant 2003................................................................................................30

 

 

ITEM 19: MINERAL RESOURCE AND MINERAL RESERVE ESTIMATES ..........................32

 

 

26. MINERAL RESOURCES..........................................................................................32

 

 

26.1 Database Construction and Validation.............................................................32

 

 

26.2 Statistical Analysis of the Database.................................................................32

 

 

26.3 Variographic Analysis.......................................................................................32

 

 

26.4 Resource Modelling Procedures and Parameters ...........................................33

 

 

26.5 Resource Continuity.........................................................................................35

 

 

26.6 Resource Validation.........................................................................................35

 

 

26.7 Classification of Resources..............................................................................36

 

 

26.8 SRK Audited Mineral Resources......................................................................37

 

 

27. MINERAL RESERVES .............................................................................................38

 

 

27.1 Estimation and Classification of Mining Reserves ...........................................38

 

 

27.2 SRK Audited Mineral Reserve Statement........................................................38

 

 

ITEM 21: INTERPRETATION AND CONCLUSIONS .............................................................39

 

 

28. PRODUCTION..........................................................................................................39

 

 

28.1 Overburden or Topsoil Removal ......................................................................39

 

 

 

- 5

 

 

28.2 Mineable Reserve............................................................................................40

 

 

28.3 Production Scheduling.....................................................................................43

 

 

28.4 Concentrates Production..................................................................................46

 

 

ITEM 22: RECOMMENDATIONS ...........................................................................................47

 

 

29. RESOURCE DEVELOPMENT .................................................................................47

 

 

ITEM 23: REFERENCES........................................................................................................48

 

 

30. REFERENCES .........................................................................................................48

 

 

30.1 Geological........................................................................................................48

 

 

30.2 Hydrology.........................................................................................................48

 

 

30.3 Mineral Processing...........................................................................................49

 

 

30.4 Tailings deposition ...........................................................................................49

 

 

30.5 Project..............................................................................................................49

 

 

ITEM 25: ADDITIONAL REQUIREMENTS FOR TECHNICAL REPORTS ON DEVELOPMENT

PROPERTIES AND PRODUCTION PROPERTIES ...............................................................51

 

31. MINING OPERATIONS ............................................................................................51

 

 

31.1 Mining...............................................................................................................52

 

 

31.2 Process Plants.................................................................................................58

 

 

31.3 Waste Disposal Facilities.................................................................................69

 

 

31.4 Concentrates Transport ...................................................................................71

 

 

32. LIKONI MARINE TERMINAL....................................................................................74

 

 

32.1 Marine Terminal Description............................................................................74

 

 

33. POWER SUPPLY.....................................................................................................77

 

 

34. WATER SUPPLY......................................................................................................78

 

 

35. INFRASTRUCTURE.................................................................................................82

 

 

35.1 Buildings and Facilities.....................................................................................82

 

 

35.2 Roads...............................................................................................................83

 

 

36. COMMUNICATIONS ................................................................................................83

 

 

36.1 Existing Public Switched Network Services.....................................................83

 

 

36.2 New Systems...................................................................................................84

 

 

36.3 Computer Systems...........................................................................................85

 

 

37. MARKETING.............................................................................................................86

 

 

37.1 Titaniferous Feedstocks Supply/Demand Outlook...........................................86

 

 

37.2 Marketable Products from Kwale.....................................................................86

 

 

37.3 Off-take Agreements and Letters of Interest....................................................87

 

 

38. ENVIRONMENT .......................................................................................................89

 

 

38.1 General ............................................................................................................89

 

 

38.2 Mining Environmental Impacts.........................................................................89

 

 

38.3 Rehabilitation ...................................................................................................90

 

 

38.4 Wet Plant Impacts............................................................................................91

 

 

38.5 Mineral Processing Plant Impacts....................................................................91

 

 

38.6 Socio-Economic Impacts..................................................................................92

 

 

38.7 Infrastructure....................................................................................................92

 

 

38.8 Impacts of the Likoni Marine Terminal.............................................................93

 

 

38.9 Impacts of the Transport Route........................................................................93

 

 

38.10 Future action....................................................................................................94

 

 

 

- 6

 

 

39. CAPITAL COST SUMMARY.....................................................................................95

39.1 Basis of Estimate .............................................................................................95

39.2 General ............................................................................................................95

39.3 Mining...............................................................................................................96

39.4 Treatment and associated tailings facilities......................................................97

39.5 Infrastructure....................................................................................................98

39.6 Indirects............................................................................................................99

39.7 EPCM costs ...................................................................................................100

39.8 Plant Services................................................................................................100

39.9 Owner's Costs................................................................................................101

39.10 Closure Costs.................................................................................................101

40. OPERATING COST SUMMARY ............................................................................103

40.1 Basis of Estimate ...........................................................................................103

41. ECONOMIC ASSESSMENT...................................................................................105

41.1 Financial Model..............................................................................................105

41.2 Summary of the Evaluation............................................................................105

41.3 Conclusion .....................................................................................................106

 

- 7

 

 

LIST OF FIGURES

 

 

Figure 1 Location Map ..........................................................................................................8

Figure 2 Location of Kwale Dunes........................................................................................9

Figure 3 Typical Cross Section - Central Dune...................................................................10

Figure 4 Location of Central and South Dunes...................................................................11

Figure 5: Central Dune final design showing pit sequence progressing north to south ........43

Figure 6: South Dune final design showing pit squence progressing north to south ............44

Figure 7 Facility Schematic Block Diagram ........................................................................52

Figure 8 Simplified Flowsheet.............................................................................................59

Figure 9 Kwale Layout Diagram..........................................................................................60

Figure 10 Wet Plant Flow Sheet ...........................................................................................61

Figure 11 Feed Preparation Circuit Flow Sheet.....................................................................64

Figure 12 Dry Rutile Circuit Flow Sheet.................................................................................65

Figure 13 Wet Zircon Circuit Flow Sheet ...............................................................................66

Figure 14 Dry Zircon Circuit Flow Sheet ................................................................................67

Figure 15 Likoni Transport Route ..........................................................................................73

Figure 16 Likoni Marine Terminal Plan ..................................................................................75

Figure 17 Water Balance .......................................................................................................81

Figure 18 Kwale Communications System ............................................................................85

Figure 19 Annual and cumulative project cash flow.............................................................106

 

 

LIST OF TABLES

 

Table 1 Coordinates of Exploration Licence Boundaries....................................................16

Table 2 Summary of drilling programs at Kwale.................................................................25

Table 3 SRK Audited Mineral Resource Statement – For Density 1.70 t/m3 .....................37

Table 4 SRK Audited Mining Reserve Statement...............................................................38

Table 5 Central Dune Pre-strip using Scraper Fleet ..................................................................39

Table 6 Summary Mineable Reserve Comparison.............................................................42

Table 7 Mineable Reserve for Kwale Central and South Dunes -As at July 2005 at a

 

 

4.22% Ilmenite Equivalent Cut-off Grade .............................................................. 42

Table 8 Kwale Central Annual Schedule Summary............................................................45

Table 9 Kwale South Annual Schedule Summary ..............................................................45

Table 10 Recovery Rates .........................................................................................................

Table 11 BWE and auxiliary scraper fleet capital cost..........................................................55

Table 12 Central Dune summary unit mining cost................................................................56

Table 13 South Dune summary unit mining cost..................................................................56

Table 14 Tailings Dam Volumes...........................................................................................70

Table 15 Dry densities of Deposited Tailings .......................................................................71

Table 16 Capital Cost Summary – November 2005 Capital estimate. ...............................102

Table 17 Operating Cost Summary by Functional Centres (Years 2-10) ...........................104

Table 18 Operating Cost Summary by Discipline Centres (Years 2 -10) ...........................104

 

 

 

- 8

 

 

ITEM 3: SUMMARY

 

 

1. PROPERTY LOCATION

The Kwale deposit is located 50 kilometers south of Mombasa and about 10 kilometers

inland from the coastline as shown in Figure 1. Roads and tracks give good access to the

site from the main coastal highway.

 

 

Figure 1 Location Map

 

There are two areas separated by the Mukurumudzi River that contain economically

exploitable concentrations of heavy minerals. One is the Kwale Central Dune, which is

approximately 2 km long and 1 km wide. The other is the Kwale South Dune, which is

 

 

 

- 9

 

 

slightly larger in area, being approximately 4km long and 1km wide. These zones, together

with the lower grade mineralisation within the North Dune are shown in Figure 2. The

concession area is located in the coastal uplands formed by a series of ancient dunes that

run parallel to the coastline.

 

 

Figure 2 Location of Kwale Dunes

 

 

- 10

 

 

2. OWNERSHIP

Tiomin Resources Inc is a Canadian based mineral exploration and development company

listed on the Toronto stock Exchange.

 

Tiomin Resources Inc is the sole owner of Tiomin Kenya Limited (TKL) a company

registered in Kenya. Tiomin holds exploration permits for four mineral sands prospects in

Kenya which TKL are presently exploring. In July 2004, Tiomin was granted a 21 year

renewable Special Mining Lease for the Kwale project.

 

The subject of this Report is the Kwale mineral deposit, which project is proposed to be

developed by TKL.

 

Tiomin Resources Inc has disclosed to Ausenco during the preparation of this Technical

Report that Barrick Gold Corporation holds a 20% Net Profits Interest, following capital

payback to Tiomin, in the Kenyan properties, including Kwale.

 

3. GEOLOGY AND MINERALISATION

The deposit lies within the Magarini sands formation, which forms a belt of low hills

running parallel to the coast. The formation was deposited during Pliocene times and

consists of unconsolidated sediments derived from the Duruma sandstone series. The

Magarini sands are believed to be of aeolian origin, deposited as coastal dunes after

conditions of intense erosion. The Kwale deposit is generally poorly stratified and

contains a silt fraction varying from 15 to 30%. Heavy minerals, mainly ilmenite, rutile

and zircon are locally concentrated.

 

The general stratigraphic sequence is composed of a brown sand at the surface followed

by orange or reddish sand becoming more beige or pinkish at depth. The base of the

deposit is weathered sandstone from the basal formation. White sand and clay is also

described at the bottom of several holes. A typical cross-section of the Kwale Central

Dune is shown in Figure 3.

 

 

Figure 3 Typical Cross Section - Central Dune

 

 

- 11

 

 

The Kwale mineralized zones have been subdivided in Central Dune, South Dune and

North Dune. The Central Dune envelope is 2 km long and 800-1,250 m wide with an

average thickness of 29 m in two horizons. The upper horizon has a higher grade of

>5% Total Heavy Mineral (THM) than the lower horizon at 1-5% THM. There is a

particularly high grade in the northern part of the Central Dune where grades can exceed

10% THM. For the dune as a whole, the heavy mineral content averages 5.7%. The

South Dune envelope is 4.5 km long and 600-800 m wide and has an average thickness

of 19 m. Within this area, the heavy mineral content averages 3.5%. The North Dune is

2 km long and 500-1000 m wide and the ore envelope extends to depth of up to 66 m.

However, there is a low-grade layer on the top that can be pre-stripped prior to mining.

The heavy minerals content averages 2.1% THM for the North dune as a whole. Plans

of both the Central and South Dunes are shown in Figure 4.

 

 

Figure 4 Location of Central and South Dunes

 

 

- 12

 

 

4.

CONCLUSIONS AND RECOMMENDATIONS

4.1 CONCLUSIONS

Based on the revenues and capital and operating costs as derived previously and

set out in Item 25 Section 41 of this Technical Report, Tiomin has publicly stated

that the development of the Kwale Mineral Sands Project is viable and has made a

strategic decision to proceed with contract preparation and financing with a view to

a Project construction start up in 2006. The capital works of the proposed Kwale

Project are generally described in Item 25. Compared to previous studies changes

were made in the processing plants and tailings deposition systems. The capital

estimate was reviewed in October/November 2005.

 

The following recommendations from the NI 43-101 report published in March 2005

were enacted:

 

-Update marketing strategies and finalise off-take agreements

92% of final product in the first 4 years of operation is sold in off-take

contracts

 

-

Update the capital costs of plant and infrastructure

-

Update water extraction plans following completion of aquifer pump tests

A revised plan involving a desalination plant to provide make-up water

in years of drought is included

 

-

Complete the Resettlement Action Plan

The resettlement of the first phase of affected people will start in March

2006

 

4.2 RECOMMENDATIONS

The following recommendations remain outstanding:

 

-

Verify outstanding questions on grade continuity

-

Derive a detailed mine plan and costing

-

Finalize an implementation strategy and assemble an Owners Team

-

After confirming all financial parameters, proceed to implementing the

Project

 

- 13

 

 

ITEM 4: INTRODUCTION AND TERMS OF REFERENCE

 

 

5. INTRODUCTION AND TERMS OF REFERENCE

5.1 THE COMPANY

The proponent of this Project is Tiomin Resources Inc, a Canadian base metal

exploration company trading on the Toronto Stock Exchange. Tiomin Resources

have incorporated a local Company, Tiomin Kenya Limited and have established

an office at Ukunda, south of Mombasa and 30 km from the Kwale deposit.

 

5.2 PREVIOUS REPORTS/STUDIES

A Feasibility Study for the Kwale Titanium Minerals Project was completed by

Ausenco/ LTA Process Engineering in May 2000 (2000 Feasibility Study).

 

In December 2000, Steffen Robertson and Kirsten (UK) Limited (SRK) completed

an Independent Technical Report (ITR) on the Kwale Project in compliance with

the Ontario Securities Commission (OSC) reporting requirements set out in

National Instrument 43-101. A team of consultants and associates sourced from

the SRK group office in Cardiff, United Kingdom, visited the Project Site and

prepared the report.

 

5.3 2004 PROJECT REVIEW

In October 2003, Ausenco Limited was commissioned by Tiomin Resources Inc to

prepare a review (2004 Project Review) of the 2000 Feasibility Study submitted by

Ausenco/LTA Process Engineering in May 2000. This Project Review made use of

some of the work carried out in 2001 when an earlier update was commenced on

the Feasibility Study. This earlier update was put on hold pending the granting of

the Mining Licence, which was approved in September 2003.

 

The 2004 Project Review by Ausenco was completed in April 2004 and issued to

Tiomin Resources Inc in May 2004 as a Final Draft.

 

A number of scope changes to the 2000 Feasibility Study scope were defined in

2001 and priced to varying levels of accuracy in 2004. These scope changes

included the altering of the primary mining unit and removal of the roasting and hot

acid leaching circuits. Additionally, designs were reconsidered in the light of the

2003 pilot plant work, a new port location was adopted and a number of other cost

saving initiatives were considered.

 

The information contained in this Technical Report is based on the 2004 Project

Review, the 2005 NI 43-101 Technical Report and results from testwork completed

by Roche Mining mt in October 2005. The information contained in the 2004

Project Review document is based on the 2000 Feasibility Study. Input into the

2000 Feasibility Study was provided by specialist consultants, appointed directly by

Tiomin Resources Inc. and retained for the 2004 Project Review to provide

continuity. Ausenco Limited has compiled the information from these various

consultants into this Technical Report.

 

In preparing the this Technical Report, Ausenco relied on various data from the

following parties:

 

x

Geology and Resource -Tiomin Resources Inc., SRK

x

Laboratories -Assay - Tiomin Kilifi; XRF - X-Ral

 

 

- 14

 

 

x

Resource audit -Snowden Mining Industry Consultants

 

(Snowden) $ SRK (UK)

x

Resource and Reserve Review -SRK (UK)

x

BWE Mine Plan -ThyssenKrupp Fördertechnik

x

Mining Study -Snowden ,

x

Metallurgy and plant criteria -Roche Mining mt (formerly MDmt)

x

Slimes and Tailings Systems -Davies Lynn & Partners

x

Hydrology -Groundwater Survey Kenya,

 

Surtech Ltd.

x

Environmental -Coastal and Environmental Services

x

Likoni Port -Muambi Associates

x

Process Design -Ausenco Limited

x

Plant Design and Costing -Ausenco Limited

x

Marketing Studies -Ausbec Pty Ltd & TZMI Pty Ltd

x

Freight Consolidation, Imports

 

& Customs, local transport -SDV Transami, Ausenco, Tiomin Kenya

x

Water Supply, Electrical

Reticulation and Access Roads -Surtech Ltd, Ausenco Limited

x

Financial Evaluation -Tiomin Resources Inc.

 

In carrying out the 2004 Project Review and this Technical Report, the professional

staff of Tiomin Resources Inc and Tiomin Kenya Limited has been intimately

involved in the above specific aspects of work as well as those facets affecting in

country and general owner's responsibilities during both implementation and

operations.

 

6. TECHNICAL REPORT

This Technical Report has been compiled in February 2006. It incorporates the bulk of

the findings of the 2004 Project Review and the Technical Report dated March 2005.

This Technical Report also incorporates a number of changes with respect to the scope

of the 2004 Project Review. The major change is the replacement of the 132kV grid

power supply with on-site power generation using HFO fired generators. Capital and

operating costs have been impacted as a result of this change and these have been

incorporated by Tiomin Resources Inc into Section 41. Other changes relate to the

testwork completed by Roche in October 2005 regarding the performance of High

Capacity Spirals and a later version of the High Tension separators used in the rutile dry

circuit.

 

In February 2005, the Government of Kenya signed the Fiscal Agreement for the Kwale

Project and the resultant changes that have come about are now included in the

Economic Assessment prepared by Tiomin Resources Inc in Section 41.

 

 

- 15

 

 

ITEM 5: DISCLAIMER

 

7. RELIANCE ON OTHER EXPERTS

In compiling this Technical Report, Ausenco has been provided with data emanating

from a large body of consultants, contractors and Tiomin Resources Inc personnel.

 

Ausenco has no reason to believe that any other persons or companies engaged by

Tiomin Resources Inc that have provided input and or data to the Studies and reports

listed in the references in Item, and to this Technical Report, are not experts in their

respective fields. Ausenco therefore has no reason to doubt the relevance of the various

inputs to this Technical Report. In compiling this Report Ausenco has applied all

reasonable endeavours to avoid the introduction of any bias into the Report and so avoid

issuing a misleading document.

 

Within this Report, the authors who have contributed are summarised hereunder:

 

Items 1,2,3,4,5,18, 23, 25 (partial) Ausenco

Items 6,8,9,10,11,12,13,14-16,19, 21, 22, 25 (partial) Tiomin

Items 13,14-16,19 (sections as referenced in letter of consent) SRK

Items 25 (section 31.3, waste) DLP

Items 25 (section 37, marketing) Ausbec *

Items 25 (section ,environmental, ) CES *

Items 21 (section 28.1 to 28.3) and Item 25 (section 31.1) Snowden

 

* As noted above, Ausbec and CES are deemed to be unqualified persons as set out in

the document "Proposed Form 43-101F1 reference (2004) 27 OSCB 7738." The

marketing and environmental sections of the Report respectively were prepared by

Ausbec and CES.

For completeness, the contributors to this Technical Report are listed hereunder:

 

x

Geology and Resource

x

Laboratories

x

Resource audit

x

Mining Study

x

BWE Mining Study

x

Mining Review

 

x

Metallurgy and plant criteria

x

Slimes and Tailings Systems

x

Hydrology

x

 

 

Environmental

 

x

 

 

Likoni Port

 

x

 

 

Process Design

 

x

 

 

Plant Design and Costing

 

x

 

 

Marketing Studies

 

x

 

 

Freight Consolidation, Imports

& Customs, local transport

 

x

 

 

Water Supply, Electrical

 

-

Tiomin Resources Inc., SRK

-

Assay - Tiomin Kilifi; XRF - X-Ral

-

Snowden Mining Consultants & SRK(UK)

-

Snowden Mining Consultants,

-

ThyssenKrupp Fördertechnik

-

Snowden Mining Consultants,

SRK

-

Roche Mining mt (formerly MDmt)

-

Davies Lynn & Partners

-

Groundwater Survey Kenya & Surtech Ltd

-

Coastal and Environmental Services

-

Muambi Associates

-

Ausenco Limited, Roche Mining mt

-

Ausenco Limited, Roche Mining mt

-

Ausbec Pty Ltd

-

SDV Transami, Ausenco, Tiomin Kenya

Reticulation and Access Roads -Surtech Ltd &, Ausenco Ltd

x

Financial Evaluation -Tiomin Resources Inc.

 

 

- 16

 

 

ITEM 6: PROPERTY DESCRIPTION

 

 

8. LOCATION OF PROPERTY AND DETAILS OF EXPLORATION LICENCE

The Kwale property covers an area of 56 km2 (Special Exploration Licence No.173) and

is located 40 km south of Mombasa and some 10 kilometers inland from the Indian

Ocean coastline. The licence No.173 has been issued in March 1997 to Tiomin by the

Government of Kenya and has been renewed in April 2005 for another two year term

(ending April 1st 2007). The licence gives Tiomin the exclusive right to explore for

specified minerals within the boundaries of the licence. The renewal of the licence is

subject to minimum annual work expenditures of 500,000 KSh and the work that Tiomin

spent on the property in 2003/2005 exceeded that expenditure by a considerable

margin.

 

The boundaries of the exploration licence are shown in Figure 2 and the coordinates for

the licence as filed to the Commissioner of Mines are provided in Table 1.

 

Point Latitude

South

Longitude

East

A 4o 18' 39o 27'

B 4o 18' 39o 30'

C 4o 26' 39o 26'

D 4o 26' 39o 24'

 

Table 1 Coordinates of Exploration Licence Boundaries

 

9. LOCATION OF MINERALISED ZONES

Within the Kwale deposit, three mineralised zones are recognised which represent

remnants of what was an extensive dune system. This trends north-northeast, parallel to

the coastline, about 10 km inland. The South Dune is approximately 4 km long by 1 km

wide and the Central Dune is approximately 2 km long and 1 km wide. A third dune, the

North Dune which is approximately 2 km long and 1 km wide and is lower grade and has

not been incorporated in the 2000 Kwale Feasibility Study. The mineralisation within these

three zones lies within poorly stratified aeolian sands of the Magarini Formation and

consists mainly of ilmenite, rutile and zircon. The Central and the South Dunes have an

average thickness of 29 m and 19 m respectively.

 

10. PERMITS AND ENVIRONMENTAL LIABILITIES

The National Environmental Management Authority (NEMA) has approved the EIA and the

EMP for the Kwale project and the Environmental licence was granted in 2002. After the

completion of the Feasibility Study and obtaining the Environmental licence, Tiomin applied

for and was granted a Mining Lease by the Government of Kenya in July 2004. The

Special Mining Lease #23 covers an area of 495 ha and is issued for a period of 21 years

under Section 55 of the Mining Act Cap.306 of the Laws of Kenya. The license allows

mining for ilmenite, rutile and zircon. A royalty of 2.5% on the gross value received for the

exported products is payable to the Kenyan government for the first five years, to be renegotiated

thereafter. An appropriate bond will be paid as security for reclamation and

protection of and mitigation of damage to land and water courses affected by mining

 

 

- 17

 

 

operations. The Mining Lease requires excavations to be filled and re-contoured after the

mining operations have ceased. Top soil must be kept and used in the rehabilitation of the

disturbed areas and surface must be replanted with suitable vegetation. No pollutants or

waste should be discharged into rivers or creeks.

 

The approval of the EMP by NEMA was subject to the preparation and approval of

comprehensive and workable action plans for all mitigation measures. The different action

plans are now in preparation and will be submitted to NEMA at the appropriate stages of

the works. All construction action plans will be approved before the commencement of

construction.

 

Various permits for the environment, community affairs, construction and operation are

required. They include (but not limited to) those for water abstraction and effluent

discharge, air emission from the power generation plant and the MPP, waste disposal

licence if the operation includes a landfill. These licences have not been sought yet but

applications for these permits will be submitted by Tiomin as required before the start of

operations.

 

11. RESETTLEMENT

Tiomin has signed agreements with the landowners of the area affected by the Kwale

Project to pay compensation of 80,000 KSh per acre in addition to crops and property

compensation. The key elements of this agreement are included in the Mine Lease

Agreement. After Tiomin has completed mining and rehabilitation of the area, the land is

vested in the Government of Kenya who has agreed that it will be used for the benefit of

the people in the Kwale district. The resettlement area has been agreed between the

farmers and the government, and the allocation of land has also been agreed. Each

resettled farmer will receive, without payment, ownership of 5.5 acres of farm land.

 

The Government of Kenya, having allocated land for the affected people to resettle, has

instructed Tiomin to carry out an Environmental Impact Assessment (EIA) of the

resettlement area. Tiomin appointed Coastal and Environmental Services (CES) from

South Africa, the consultancy who completed the main project EIA in 2000, to carry out the

EIA. This Host Site EIA has been completed and is undergoing the statutory public review

period after which the approval will be granted.

 

Through an interministerial committee, the Government of Kenya has also appointed a

District Resettlement and Compensation Committee (DRCC) to manage the resettlement

Program. The DRCC consists of 44 participants and has the following membership:

 

x

affected communities at the mine site and the relocation site (or host site)

 

x

local government and area councillors

 

x

relevant government departments and administration

 

..

 

 religious leaders

 

x

 

 

various development organizations

 

x

 

 

local political leaders

 

Significant progress has been achieved by the DRCC including a number of important

milestones outlined below:

 

x

A Resettlement Action Plan (RAP) was developed in conjunction with

environmental experts CES of South Africa. This document has been subject to

intensive DRCC review culminating in its adoption by the DRCC, and subsequent

approval by NEMA. The RAP has been developed to World Bank standards and is

in line with the Equator Principles. The RAP focuses on the following:

 

 

- 18

 

 

A demographic and socio-economic analysis of both the mine site and the host

site.

 

x

A generous compensation package for the affected farmers that encompasses

land, structures and improvements, crops and indigenous trees as well as graves.

 

x

Allocation of 5.5 acres of replacement land at a designated host area for each

affected household.

 

x

A resettlement option allowing for individual households to determine their own

future living arrangements, outside the host site, facilitated by advance payments

from Tiomin.

 

x

The development and implementation of a focused plan for the replacement of

social infrastructure including schools, health centres, water, churches, mosques

and social halls.

 

x

A description of the relocation process involving the signing of compensation

agreements, land transfer and relocation transportation.

 

x

A budget for resettlement.

 

Other milestones are:

 

x

Development of the compensation agreements, which have undergone

government scrutiny and DRCC review. Processing of these agreements is due to

begin late November.

 

x

Training of field assessors for the determination of compensation values according

to government guidelines in relation to crops, trees and structures. This fieldwork

commenced on November 1st and is ongoing.

 

x

A Government budget for DRCC activities has been established.

 

Tiomin will soon be in a position to implement the resettlement process by initiating

compensation payments followed by relocating the affected farmers to their chosen

destination. With this in mind planning for the efficient and timely processing of the 399

households involved, is already underway. Relocation will be carried out in 3 phases

corresponding to the development of project infrastructure and the mining operations to

follow:

 

Phase Number of

Households

Project Stage Resettlement

Starting Date

I 21 Construction June 2006

II 188 Mining (Central Dune) September

2006

III 190 Mining (South Dune) March 2007

 

 

- 19

 

 

ITEM 7: BIOPHYSICAL DESCRIPTION

 

 

12. GEOMORPHOLOGY, PHYSIOGRAPHY

The Kwale district is composed of 3 main physiographic units, namely the erosional plains,

the coastal uplands and the coastal plains. The mining area is part of the coastal uplands

while the south-eastern part of the area is in the coastal plains unit. The altitude of the

coastal uplands ranges from about 50 m along the entire eastern fringe to 225 m in the

north-west and 100 m in the south-west. The most prominent features of the district are

the Shimba Hills, which are composed of the Mazeras sandstone formation. The boundary

towards the coastal plains is well defined. The altitude of the coastal plains varies from

10 m along the Coast to 50 m at its western limit and the landscape shows a flat to gently

undulating topography.

 

There are five major and three minor perennial rivers in the district. Many streams with

their sources in the uplands disappear in the Kilindini Sands of the coastal plains before

reaching the sea. During the dry season, most seasonal rivers and ponds dry up leaving

running water in the perennial rivers, springs and a few dams only. The coastal region has

reliable ground water sources, which are concentrated within a stretch 10 km inland from

the Indian Ocean. In the Shimba Hills region, streams and springs are the main sources of

water; these springs are the sources for the Mukurumudzi, Ramisi and Marere rivers. The

Mukurumudzi separates the North and the Central Dunes from the South Dune while the

Ramisi and Marere pass to the south and north of the area, respectively.

 

13. ACCESS

The Kwale deposit is located 40 kilometers south of Mombasa and about 10 kilometers

inland from the coastline as shown in Figure 1 and is composed of 2 large Pliocene aeolian

dunes separated by the Mukurumudzi River. Roads and tracks give good access to the

site from the main coastal highway. The coastal strip and the northern part of Kwale are

served by bitumen roads running from Mombasa-Lungalunga and Mombasa-Nairobi. The

Mombasa-Lungalunga road is the only heavily utilised road in the district. The access road

from the coast to Kwale is also a bitumen road. The other access roads are compacted

earth roads with open storm-water drains.

 

14. CLIMATE

The climate in the concession area is tropical, with reasonably constant temperatures

throughout the year. The warmest temperatures are generally from November-April when

they reach 26-28°C, while May-October has slightly cooler maximum temperatures

between 24-26°C.

 

The area experiences a bimodal rainfall pattern with the long rains occurring from March-

July, and short rains occurring from October-December. The proposed mining area

receives about 1300mm of rain per year. During the rainy periods, the wind blows mainly

westwards bringing moist air from the Indian Ocean and consequently rains, while during

the dry season the north-east monsoon is dominant.

 

15. VEGETATION, LAND USE

Four main categories of vegetation cover or land use are recognised in the proposed

mining area: They are areas comprising natural vegetation or water bodies, areas where

agricultural farming is carried out or those where human development has occurred and

there are structures including communal buildings or abodes. The natural vegetation is

 

 

- 20

 

 

mainly composed of woodlands and shrub lands while forest and riverine vegetation

occupy only 2% and 3% of the vegetation cover (HSEDCO, 1998 EIA-Volume 3).

 

The southern part of the South Dune is mainly occupied with woodlands with few farms.

The northern portion of the South Dune is occupied by subsistence and mixed farming,

coconut plantations and a small area of grassland and shrub land. The Central and North

Dunes are mainly covered with grassland and shrub land. Some cashew nut and mango

plantations and subsistence farming occurs along trails.

 

16. LOCAL RESOURCES

Electricity is available at the main district town and principal market centres like Kinango,

Ukunda and Diani Beach. Through the Rural Electrification Program, power has been

extended to the Msambweni and Shimoni areas of the Msambweni Division. There is no

electrical power grid reticulation available at the mining site. Therefore, it will be necessary

to establish a power generation plant to supply the requirements of the Mining Operations,

Wet Plant and Minerals Processing Plant.

 

The supply of water has been the subject of a detailed study by Groundwater Survey

Kenya of Nairobi and was followed by additional studies in 2005 by out by Surtech

Engineers, also based in Nairobi. It was established that sufficient surface water is

available in the Mukurumudzi River and Koromojo Dam during years of normal or above

normal rainfall. However, during periods of prolonged drought, a supplementary water

source will be required to sustain normal plant operations. The Msambweni Aquifer has

been considered as a potential source in this respect and remains so, although not fully

proven. However, a desalination option has been selected as a proven and reliable

method.

 

17. SUFFICIENCY OF SURFACE RIGHTS

The mining and plant area as defined in the Special Mining Lease issued to Tiomin Kenya

Limited (TKL) consists of two different land tenure types. Those landowners with title

deeds own their land on a freehold basis while those without title are situated on a

leasehold plot belonging to the Associated Sugar Company (Ramisi). Tiomin already has

rights to 80% of the area with title deeds and will acquire the rest during the lease

transfer/sales agreement completion phase. The Government of Kenya (GoK) is

responsible for acquiring the Ramisi area.

 

The surface water infrastructure will consist of a weir and pump station on the

Mukurumudzi River immediately below the Koromojo Dam spillway, which is to be rebuilt.

This will also receive water, when required, from the desalination plant located at the

mouth of the Mukurumudzi River. These installations will be linked to the plant site by

approximately 10km of pipeline.

 

Road access to the mine area will follow the alignment of the official E966 government

road reserve, hence no special land arrangements will be required.

 

The District Land Registrar and the Land Control Board will ensure that the land required

for mining and processing plants is transferred in a timely manner and that consents are

not unreasonably withheld.

 

 

- 21

 

 

ITEM 8: HISTORY

 

 

18. HISTORY

The existence of the Magarini sand dunes has been known for a long time. However, no

detailed geological work had been carried out and the economic potential had not been

evaluated prior to the involvement of Tiomin Resources Inc.

 

In 1996, Tiomin carried out reconnaissance exploration and preliminary surface sampling

in the Kwale area as well as in other dune systems along the Kenyan Coast. Following the

encouraging results obtained, Tiomin applied and were granted the exploration licence for

the Kwale deposit by the Kenyan Government. Following the preliminary sampling,

Tiomin carried out an initial drilling program followed by infill drilling in 1997. The results

were used to estimate the initial unclassified resources for the 2000 Feasibility Study.

Snowden reviewed the resources calculations and concluded that the estimation method

has resulted in a reliable global estimate (Snowden 2000). The resources were later

audited and classified by SRK in 2000.

 

 

- 22

 

 

ITEM 9: GEOLOGICAL SETTING

 

 

19. GEOLOGICAL SETTING

The rocks of the area are essentially of sedimentary origin and range in age from Upper

Carboniferous to Recent. Three divisions are recognized: the Cenozoic rocks, the Upper

Mesozoic rocks (not exposed on the area) and the Duruma Sandstone Series giving rise

to the dominant topographical feature of the area: the Shimba Hills.

 

The Shimba grits and Mazeras sandstone are of Upper Triassic age and form the Upper

Duruma Sandstone. They consist of coarse-grained quartzofeldspatic sandstones and

grits showing a trace of bedding. This formation contains polished quartz pebbles of

several centimeters in diameter and is sometimes reddish or purplish in color due to iron

hydroxide. The contact of the sandstone and the grit is marked by a horizon of silicified

wood that forms an excellent stratigraphic marker. Outcrops showing this petrified wood

have been observed in several places in the area.

 

The Magarini sands form a belt of low hills running parallel to the coast. They rest with

slight unconformity on the Shimba grits and Mazeras sandstone. This formation was

deposited during Pliocene times and consists of unconsolidated sediments derived from

the Duruma sandstone Series. The Magarini sands are believed to be of aeolian origin,

deposited as coastal dunes after conditions of intense erosion. The Kwale deposit is

generally poorly stratified and contains a fraction of silt of about 30%. Heavy minerals,

mainly ilmenite, rutile and zircon, are locally concentrated and are abundant in some

places.

 

The Kilindini sands are of Pleistocene age and consist of unconsolidated erosion

products of Magarini Formation, Shimba grits and Mazeras sandstone. The sediments,

ranging from sands to clays were deposited in a lagoon formed between the Pleistocene

coral reef on the seaward side and the Magarini sand hills on the landward side. In the

Kwale deposit area, grey hard clay also occupies low-lying terrain between hills and

dunes.

 

 

- 23

 

 

ITEM 10: DEPOSIT TYPE

 

 

20. DEPOSIT TYPE

The deposit lies within the Magarini sands formation, which forms a belt of low hills

running parallel to the coast. The formation was deposited in an aeolian/dune

environment during Pliocene times and consists of unconsolidated sediments derived

from the Duruma sandstone series. The Magarini sands were deposited as coastal

dunes alongside the Pliocene shoreline after conditions of intense erosion about 2 million

years ago. Heavy minerals, mainly ilmenite, rutile and zircon, were concentrated during

the development of the dune system by physical processes (waves, longshore currents,

wind). The dunes were later subjected to erosion by local rivers and the South Dune

was isolated from the Central and North Dune by the Mukurumudzi River.

 

 

- 24

 

 

ITEM 11: MINERALIZATION

 

 

21. MINERALISATION

The Kwale mineralized zones have been subdivided in Central Dune, South Dune and

North Dune. The Central Dune envelope is 2 km long and 800-1,250 m wide with an

average thickness of 29 m. The upper section has higher grade (>5% THM) than the

lower section (1-5%). There is a particularly high grade in the northern part of the

Central Dune where grades can exceed 10% THM. For the dune as a whole, the heavy

mineral content averages 5.7%. The South Dune envelope is 4.5 km long and 600-800

m wide and has an average thickness of 19 m. The deposit lies directly on a paleotopographic

surface occurring at a depth varying from 6 to 24 m. This marked paleosurface

separates the higher-grade mineralized orange sands unit from the lower-grade

beige to pink sands unit. Within the area, the heavy mineral content averages 3.5%.

The North Dune is 2 km long and 500-1000 m wide and the ore envelope extends to

depth of up to 66 m. However, there is a low-grade layer on the top that could be pre-

stripped prior to mining. The heavy minerals content averages 2.1% THM for the North

dune as a whole.

 

 

- 25

 

 

ITEM 12: EXPLORATION

 

 

22. EXPLORATION

Surface sampling and auger drilling was carried out at the beginning of 1997 to investigate

the mineralised Magarini Formation sand in the Kwale area. The results of this preliminary

work showed high rutile and zircon grades and identified three main zones of mineralization

in the concession: the Central, the South Dune and the North Dune.

 

At the same time, a study was also undertaken on Tiomin's other licence areas to test the

applicability of the reverse circulation air flush method. The results showed that the method

suffered from limited penetration due to the nature of the material drilled and sample losses

(Ross, 1999). A top drive rotary rig, using polymer/water as the flushing agent was then

introduced and applied as the main method in the Kwale licence. An initial drilling program

aimed at a preliminary evaluation of the mineralised dunes was completed during the

second quarter of 1997 on the main zones. The initial 49 drill holes (1,800 m) confirmed a

mean depth of 30 m above the sandstone basement (Tiomin Resources, 1998). Following

this initial drilling campaign, a detailed drilling program of 198 drill holes was initiated in July

1997 focussing on the high-grade zones. The drill holes totalling 4,710 m covered the two

main dunes as well as the northern part. Subsequently, twenty-two open flight auger holes

of 600 mm diameter were drilled in the Central and South Dunes to provide 100 tonnes of

pilot plant sample from each.

 

In 2000, Tiomin completed an infill drilling program on the Central Dune comprising 28 holes

with a spacing of 50 m by 100 m and a small area of detailed infill drilling at a 25 m by 50 m

grid (Tiomin Resources, 2000).

 

Zone Detail of Drilling

Auger Deep drilling

Initial

Deep drilling

Infill

Infill 2000 LDA*

No. m No M No. m No. m No. m

South 5 51 19 587 108 1825 --13 199

Central 2 25 12 772 75 1884 28 733 9 183

North 1 13 18 441 15 1001 ----

 

* LDA: Large Diameter Auger

Table 2 Summary of drilling programs at Kwale

 

 

- 26

 

 

ITEM 13: DRILLING

 

 

23. DRILLING

An initial programme of 49 deep holes (KDN and KD series of holes) covered the South,

Central and North dune areas with a uniform density of holes on an unspecified grid. This

work was undertaken by a reputable contractor, Mowlem, based in Nairobi, but under

TKL's direct control. This led to the design and implementation of a more detailed drilling

programme in July 1997 based on 200 holes (Kc and Ks series of holes) at generally 100

m centres on north-westerly orientated drill lines whose spacing shows considerable

variation but which was originally based on a nominal 200 m spacing. The drill holes

totaling 4,710 m covered the Central and South dunes as well areas further north.

 

The coverage of the South Dune area (Figure 2) is variable with incomplete sampling

along many lines. Line spacing is, however, maintained at close to 200m. In the Central

Dune area, drilling along lines is also incomplete and the line spacing is much more

variable, ranging from 100 to 250m with the closer spacing largely concentrated over the

north-western area of the deposit. The reason for this variation in sample density is partly

the product of the early realisation that the highest grades are lying within the northern

area of this dune and partly the result of limited accessibility due to steep slopes, woods

etc. These are practical problems, which are often unavoidable, but the implication is that

the confidence in grade estimation will be lower in these often peripheral areas than

elsewhere. Drilling within the North Dune is more widely spaced averaging between 200 m

and 400 m reflecting the lower grade potential of this area.

 

When this drilling was almost complete in June 1997, sampling and assay procedures

were independently audited by Robertson Research Minerals (Robertson Research

Minerals, 1998). In September 1997, Knight Piesold Ltd reviewed the quality of drilling and

logging procedures as well as sampling (Knight Piesold, 1998). Both reviews were subject

to technical audit by Snowden Mining Industry Consultants in 1999, who corroborated the

conclusion that no significant problem was introduced by the drilling and sampling methods

adopted by TKL (Snowden, 1999a).

 

Westralian Sands Ltd supervised the drilling of two sets of duplicate holes to compare

recoveries and grades and this work was reviewed and extended by Snowden who

compared an additional four sets of holes which were closely spaced. This work was

considered by Snowden to confirm the repeatability and reliability of the methods

employed (Snowden, 1999a).

 

A comparison, by Knight Piesold in 1998, of the slimes content of drill samples with those

from a nearby pit showed that very little loss of slime had occurred by the use of water

flush techniques. Similarly, 600 mm over-drilling of existing holes in the South and Central

Dunes (22 in total) to produce bulk samples, also indicated that the drilling method used

did produce reliable samples.

 

SRK have assessed the available information presented by these reviews in December

2000 and SRK accepts that drilling and sampling have been undertaken as carefully as

possible (SRK (UK), 2000). However, as indicated earlier, SRK had concerns about the

ability of the drilling layout to prove resources to a uniform level of confidence. The lack

of closer spaced sampling, perhaps on some specially chosen control lines, limits the

reliability of currently available variographic studies and the accurate assessment of local

random controls on data variability.

 

The early drilling programme was designed to penetrate through to the bedrock

unconformity beneath the dune sands in order to locate the base of the mineralisation as

defined by the 1% Total Heavy Mineral (THM) content. Review of the footwall of the

Central Dune, based on the combined KDN and KC drilling, shows that there are some

major anomalies centred on single drill holes.

 

 

- 27

 

 

In March 2000, after issue of the 2000 Feasibility Study, 28 additional infill holes were

drilled in the north section of the Central Dune using a 6-inch open flight auger machine.

These holes were primarily completed to provide data on slimes characteristics from the

area designated for mining in the first two years of mine development, but a secondary aim

was to confirm grade, slimes content and deposit thickness and also to obtain more

mineralogical information. The results of the infill drilling confirmed the general grade

distribution as obtained previously but it has also highlighted some local lack of grade

continuity. The holes were drilled to depths predicted from the earlier drilling and were

terminated on entering sands known from lithology and coloration, to host sub-grade

mineralisation. The new holes put the base of the deposit, as defined by a 1% THM, at a

shallower depth than before. This tends to support the suggestion that the earlier holes

might have suffered from down-the-hole contamination due to the drilling method chosen.

Where down-the hole smearing has taken place there will be an overestimation of

resource tonnage, however, in practice, the mined grades will be higher than the modelled

grades, giving some upside potential to the feed grades for the tonnage mined (SRK,

2000).

 

The possibility of downward smearing of grades due to contamination, loss of fines and

possible bias introduced by the use of water flush, has been recognised by Snowden but

they also considered that it would not have an adverse impact on the project economics

(SRK, 2000).

 

 

- 28

 

 

ITEM 14 TO 16: SAMPLING AND DATA VERIFICATION

 

 

24. SAMPLING AND DATA VERIFICATION

24.1 SAMPLING, DRILLING AND ASSAYS

Drill holes have been sampled from top to bottom and 3 m long composites have

been calculated for analysis and modelling. Though this is acceptable for

homogeneous grade zones, both SRK and Snowden have concerns that smearing

may have occurred across sharp contacts either lithological or mineralogical, where

sudden changes of grade does exist. Loss of definition of the basal ore contact is a

result of this strategy. SRK concur with Snowden that compositing should take into

account obvious visible signs of sudden grade change. Again this problem gives an

upside in that the global grade will be underestimated.

 

The quality of the sampling process has been reviewed by TKL's resource

consultants (Snowden) and SRK accepts that sampling has been undertaken in the

best possible way, given the difficulties of sample retrieval in this type of material.

Two duplicate holes were drilled by TKL in the South and Central Dune areas to

assess the repeatability of recovery, grade and slimes content. The results were

considered by Snowden to confirm the repeatability of the methods employed.

SRK reviewed the results and believed that there is evidence for small-scale

variability but it does not impact the global resources estimation.

 

Sample recovery has an important impact on sample quality and TKL have given

SRK the assurance that the drilling and sampling was carefully monitored and that

they are "confident that the recovery was satisfactory".

 

24.2 SAMPLE PREPARATION AND ANALYSIS

The sample preparation, processing and analytical protocol applied by TKL was

examined by SRK and found to be thorough and likely to produce reliable results.

The procedure in the laboratory was as follows:

 

1. Drying if necessary

2. Splitting of sample until 250 g using a riffle splitter

3. Desliming by attritionning and wet screening at 45 ..m

4. Drying

5. Heavy liquid separation with TBE

6. Magnetic separation with a lift type Carpco High Intensity Magnet

Independent quality control involved checking sample assays by the use of

different methods and by different laboratories. Regression analysis of the

duplicate assay data sets gave good results with no evidence of bias with the

exception of percentage slimes which were under-estimated by TKL's Kilifi

laboratory compared to those from the MD mineral technology laboratories (Tiomin

Resources Inc., 1998).

 

The studies undertaken by TKL concentrated on the reproducibility of assays from

the same original samples but using different laboratories and thus give confidence

that the preparation and analytical procedures are of adequate standard. SRK

would have liked to have seen a study of the reproducibility of results after repeat

analysis by TKL's Kilifi laboratory and an extended programme of repeat sampling

at the same site to determine the combined sampling and analytical

variance/precision. However, this issue has little impact on the reliability of the

global resource, only on local block estimation. For mine planning purposes, this

can be resolved by infill drilling prior to mining.

 

 

- 29

 

 

24.3 SAMPLE SECURITY

All samples were transported on a daily basis to the assay laboratory by the

geologist in charge and processed under that person's direct supervision. All

duplicates and remaining samples from the various steps of the analytical

procedure have been stored in the laboratory since 1997 under 24-hour security

guard. No persons have been allowed inside the facility without authorisation. This

situation was confirmed during a site visit by SRK in August 1999.

 

24.4 DATA CORROBORATION

SRK have scrutinised drill hole logs and assay data files and has also been given

access to copies of the results of check assays undertaken by MD Laboratories, an

accredited assay laboratory, all of which indicate that the data is valid and that the

work reported in the Kwale Licence area has been undertaken and to the standard

required.

 

Preliminary investigation of the Kwale mineralized sand deposit in early 1997, by

surface sampling and auger drilling, indicated high rutile and zircon grades on the

Central and the South Dunes.

 

A deep drilling program of 49 holes and 1800 m on the main zone mineralized

dunes was completed by mid 1997, refer Figure 4. This confirmed a zone with a

mean depth of 30 m above the sandstone basement. Composite of every 3 m

were assembled and samples were assayed in Richards Bay, South Africa (Old

Blen Laboratories).

 

Subsequently, a more detailed drilling program of 198 drill holes was initiated in

July 1997 focusing on high-grade zones. The drill holes totalling 4,710 m covered

the Central and South dunes as well areas further north.

 

A total of 1,611 drill samples were assayed at Tiomin's Laboratory established in

Kilifi (Kenya), which was designed, equipped and commissioned by Old Blen

Laboratories, an experienced independent laboratory in South Africa. Magnetic

concentrates were sent for XRF analysis to an outside lab (SGS then X-Ral,

Toronto). The Tiomin laboratory was audited in 1999 (SRK, 1999) and

independent quality control has involved checking sample assays by the use of

different methods and two independent laboratories confirmed adequate standards

were achieved.

 

Quality control checks on results and the methods used for sampling and drilling in

1997 as well as sampling by different expert groups, concluded that the drilling

method and sampling techniques were reliable.

 

Thereafter, these reviews have been subject to a technical audit by Snowden

Mining Industry Consultants, who also concluded that drilling and sampling

methods adopted by Tiomin were appropriate and reliable (Snowden, 2000).

Westralian Sands Ltd supervised the drilling of two sets of duplicate holes to

compare recoveries and grades and this work was reviewed and extended by

Snowden who compared an additional four sets of holes. This further confirmed

the repeatability and reliability of the methods employed.

 

In 2000, Tiomin completed an infill drilling program on the Central Dune comprising

of 28 holes with a spacing of 50 m by 100 m and a small area of detailed infill

drilling at a 25 m by 50 m grid (Tiomin Resources, 2000). During this campaign, a

total of 603 samples were collected and assayed in the Tiomin laboratory in Kenya.

 

 

- 30

 

 

ITEM 18: MINERAL PROCESSING AND METALLURGICAL TESTING

 

25. MINERAL PROCESSING AND METALLURGICAL TESTING

25.1 PILOT PLANT 1997

The Pilot Plant 1997 testwork was carried out at the pre-feasibility stage. The aim

was to check the separability, product quality and flowsheet development. Five

tests were carried out on the ore drawn from the Kwale Central and South Dunes.

The material was collected by large diameter augering and approximately

80 tonnes was treated separately from each orebody. Based on the results from

this work, processing flowsheets were then developed. SRK reviewed the

proposed flowsheets in 1999 and considered that they were well designed.

However, they recommended that a bigger bulk sample be processed.

 

25.2 PILOT PLANT 2003

A second onsite pilot plant testwork program was carried out in 2003.

 

Since the development of the 2000 study flowsheets there have been a number of

advancements in the separation technology as applied in the Mineral Processing

Plant. Due to these advancements it was necessary to verify results and then

redevelop the Rutile and Zircon Dry and Zircon Wet Circuits.

 

The emphasis during the trial programme was on slimes production and thickening,

due to the excessive water demand if tailings could not be placed at satisfactory

densities.

 

The programme provided for the production of 20 tonnes of heavy mineral

concentrate (HMC) to be used for flowsheet modifications and adjustments. The

20 tonnes of HMC was produced from Central Dune ore processed through the

pilot plant.

 

The concentrate was shipped to Roche Mining mt Laboratories in Australia where it

was processed for the development of updated flowsheets to produce ilmenite,

rutile and zircon.

 

The results of this testwork were incorporated in the 2004 Project Review and

details on the flowsheets are set out in Item 25.

 

25.3 HIGH CAPACITY SPIRALS

In 2005, Roche Mining mt revised the Kwale WCP flowsheet to incorporate newly

commercialised compound-stage high capacity spiral separators. Previous WCP

performance could be matched using high capacity spiral separators and would

result in a reduction of 30% floor space effected by the replacement of 194 rougher

stage spirals with 48 high capacity units. The revised circuit design also allowed a

further 42 spirals to be eliminated from the original circuit. A testwork programme

was carried out by Roche mt under the supervision of Tiomin to confirm the

predicted performance of the revised WCP circuit.

 

 

- 31

 

 

Approximately 2 tonnes of ROM feed material, reportedly from Tiomin's Kwale

deposit, was received into RMMT's laboratory for this program. As it contained

approximately 17% slime it required scrubbing and desliming prior to conducting

the investigation.

 

Conclusions of the WCP testwork, as reported by Roche mt are as follows;

 

Very good separation was achieved at 4.1t/h with the recovery of 96.5% of

the HM in 33% of the feed mass. Good results were also achieved at 7.8t/h

with the recovery of 90.1% of the HM in 32% of the feed mass.

 

25.4 REVISED PRIMARY MSP CIRCUIT

Further advances in high tension separators (HTR's) have been achieved since the

completion of the MSP validation and revision testwork. Roche Mining mt

proposed in 2005 to evaluate the suitability of the new Roche mt HTR design in the

Kwale project MSP Dry Rutile circuit.

 

The feedstock reportedly used for this test program was the reserve head sample

set aside in the 2004 MSP testwork. The following Scope of Work agreed on:

 

1.

Process the feed sample through a Rutile Dry circuit utilising the enhanced

Carrara HTR as appropriate with a view to reducing the required processing

stages.

2.

Draw comparisons of metallurgical performance and equipment requirements

with the standard Carrara circuit.

3.

Review the magnetic separation circuitry to optimise rutile recovery.

Conclusions of the MSP testwork, as reported by Roche mt are as follows;:

 

x

The use of the Enhanced Carrara

HTR will enable the electrostatic

separation in the Rutile Dry Circuit to be reduced from five stages to three.

The three stage circuit will maintain the product quality and recoveries of

the five stage circuit.

 

x

The use of Readings RER magnetic separators on the combined

conductors will eliminate the need for the magnetic scavenging stage.

 

x

An ilmenite product, low in Cr2O3, can be produced from the first pass

Readings RER magnetic separators.

 

 

- 32

 

 

ITEM 19: MINERAL RESOURCE AND MINERAL RESERVE

ESTIMATES

 

 

26.

MINERAL RESOURCES

This section summarises the methods used by TKL to derive and classify their quoted

resource estimates, gives SRK's comments and opinions on the reasonableness of these

and finally presents an SRK audited Mineral Resource Statement. While these have not

been independently recalculated, SRK has reviewed the quantity and quality of the data

and also the methodologies used to derive the estimates and have made adjustments

where considered appropriate.

 

SRK has confirmed that in its opinion, their classification of Resources (and Reserves)

satisfies the definitions of the National Instrument 43-101 for Mineral Resources and

Reserves, and confirm that only Measured and Indicated Mineral Resources are being

used to derive the Life-of-Mine (LoM) Plan.

 

26.1 DATABASE CONSTRUCTION AND VALIDATION

Snowden in 2000, undertook an independent review of the resource evaluation

procedures and results, which includes a brief validation of TKL's database. Their

conclusion is that geological, assay and survey data has been accurately

transcribed and that the standard of information is acceptable for the purposes of

resource estimation. SRK have no reason to doubt this conclusion, having also

reviewed the data files used.

 

SRK noted that global resource estimates, based on 3D block modelling using

Gemcom software, use calculated percentages of zircon, rutile and "true ilmenite"

for each 3 m composite. As only a single borehole composite is analysed for TiO2

and ZrO2, these sample grades are based on the assumption of consistency of

chemical composition of the ilmenite and non-magnetic fractions from top to bottom

of the deposit. Three holes KC49, KC50 and KC51 have in fact, been analysed

separately for the upper layer and lower layer and the results for TiO2 in ilmenite

ZrO2 in non-magnetics and TiO2 in non-magnetics are the same. There was still an

element of uncertainty about the results of the modelling process, but SRK

believed that the magnitude of the errors is probably not significant in terms of

project risk.

 

26.2 STATISTICAL ANALYSIS OF THE DATABASE

TKL have presented a thorough study of the statistics of each data population (total

heavy minerals, true-ilmenite, rutile, zircon and slimes) which demonstrates that

the histograms are highly complex with evidence of either bi- or tri-modality with the

exception of slimes, which usually show normally distributed raw data histograms.

The database contained a total of 243 drill holes covering the three main

prospects.

 

26.3 VARIOGRAPHIC ANALYSIS

Variography was undertaken by Snowden for two reasons:

 

To control the search radii used in Inverse Distance Weighting (IDW)

interpolation for constructing the model.

As a basis for confidence classification of resources.

 

- 33

 

 

The Snowden report of 15th December 1999 (Feasibility study, volume 2, section

2.3) acknowledges the complex nature of the populations and suggests the use of

median indicator variography. Snowden also suggests that some of the higher and

lower grade areas be modelled separately. SRK supports this approach in order to

resolve the problem of the complex populations but point out that, for the Central

Dune in particular, it may not be vertical grade zones that are to blame but a lateral

change to higher grade mineralisation in the northern section of the deposit. This

change appears to take place at approximately the 6% THM grade contour (full

orebody composite grade). Preliminary studies by SRK, in which the data are split

using this threshold, show a marked improvement in population statistics.

 

The indicator variography undertaken by Snowden indicates good grade continuity

but there are uncertainties as to the magnitude of the nugget effect. This highlights

the need to resolve the structure at low lags with more precision.

 

Snowden's preliminary conclusion was that, on the basis of the ranges and

anisotropism of the semi-variograms, TKL's IDW search radii for future resource

updates will need to be modified (Snowden (2000). "Kwale – Variography Update

 

– Central Dune" – Section 5.3). SRK, however, felt at that time that this might be

premature given the uncertainties in the modelling of the experimental variograms

and the lack of information at low lags.

26.4 RESOURCE MODELLING PROCEDURES AND PARAMETERS

Block size

 

TKL have used a 40 x 40 x 3m block size to produce the resource estimates for

both the South and Central Dune areas. This compares with nominal drill spacings

of 100m (NW) and 200m (NE). The geometrical and geostatistical anisotropism

suggest that a rectangular block would have been more suitable. Also, the

generally accepted rule that the block dimensions should not be less than one half,

or at most one third, of the drilling grid dimension in each direction, would suggest

optimal block sizes of 40 x 80 x 3 m. However, if the long ranges (high continuity of

grade) are confirmed, then SRK accept the smaller block sizes used by TKL.

 

Search Algorithm

 

Inverse distance squared weighting procedures have been used to interpolate

grades into a block model (3D by Gemcom and 2D by GIS/Matlab software). SRK

accept that this is a suitable method for the evaluation of the resources at this early

stage in the project's life but that, once additional infill drilling results are

accessible, alternative methods should be considered such as Ordinary, Log

Normal or Median Indicator Kriging. SRK are thus confident that the method will

give reliable global resource estimates for the ore envelope TKL have defined but

that, at this stage, there remain uncertainties as to the reliability of local estimates.

 

The search radii used (150 x 325 x 2 m for the Central and South Dunes, 400 x

400 x 2 m for the North Dune) are also considered acceptable at this stage in that

they minimise the amount of smearing especially in the vertical direction. However,

the orientation of the ellipsoidal/elliptical search volume/area may need

modification to reflect grade continuity as opposed to the geometry of the drilling

grid.

 

Horizontal grade zoning within the Central Dune, reflected by the histograms and

log-probability plots of grades, suggests that this area should be subdivided on the

basis of a 6% THM drill hole composite threshold so that the two areas can be

modelled separately before recombining the blocks into a global model. This will

prevent horizontal grade smearing and will acknowledge the existence of two

separate and statistically homogeneous grade zones.

 

 

- 34

 

 

Bulk Density

 

TKL have applied a constant dry bulk density of 1.8 t/m3 for all their resource

blocks. Snowden's reviews of both the Pre-Feasibility and Feasibility studies

reflect concern over the use of a constant density and the need to evaluate an

alternative method of density estimation based on mineralogical composition. SRK

have previously agreed with Snowden's conclusions (SRK report dated

22 September 1999).

 

In 1999, TKL have excavated 2 m deep pits and have determined bulk in-situ

densities (dry) which ranged from 1.52 to 1.797 with an average of 1.665, closely

agreeing with the range of theoretical estimates made by SRK. (I can't see that in

the report, unless it is really there, I suggest to stop the sentence after"… estimates

made by SRK.". Snowden's South Dune Resource Review and Mining study

(December 1999) presents a revised South Dune resource, which they state is

"based on the latest density figure of 1.651 t/m3".

 

It is understood that the issue of possible change of density with depth needs

clarification. At this stage SRK consider that a constant factor of 1.7 t/m3 should be

applied and have thus adjusted the resource tonnages accordingly in SRK's

audited resource statement. This also applies to the South Dune for the use of

 

1.651 implies a high degree of precision to what is really only a "guesstimate" at

this stage. Once the entire section of the deposit is exposed by mining, new

measurements should be made so that the whole subject of whether to apply a

constant density or a variable one can be revisited.

Resource envelope

 

The resources estimated by IDW methods are constrained by a resource envelope,

which is effectively the intersection of the topographic surface with the base of the

deposit defined by the 1% THM cut-off. No economic constraints have been

applied to the resource. In order to validate the use of the above assay cut-off

grade, SRK calculated a breakeven cut-off grade (BCOG) based on rutile

equivalent values for each sample, operational costs, metallurgical recoveries,

production schedules and prices for each mineral as quoted in the Feasibility

Study. This approach thus allows for variability in the mineralogical composition of

the heavy mineral concentrate (HMC) which can have a significant impact on the

revenues received due to large price differences.

 

SRK's BCOG of 0.45 % Rutile equivalent was then used to determine the base of

the Central Dune. In no case was the SRK base lower than that indicated by the

1% THM cut-off. If the assumptions concerning economic and technical

parameters prove to be correct, the application of an economic base to the deposit

could reduce the tonnage of the deposit by as much as 7.5%. This can only be

verified by remodelling of the ore envelope, an exercise that SRK agrees is not

warranted until final project methods and costs are determined with a higher

degree of confidence. SRK thus accept the resource envelope used by TKL but

recommend that consideration be given in future recalculations of the resource to

the use of an economically derived basal cut-off. The implications of placing the

base of the deposit at a higher elevation are again that there is an upside to the

project cash flow resulting from the higher grades.

 

From the above discussion, it is evident that SRK have concerns about the

definition of the resource envelope because of downward smearing of grade due to

the use of 3 m long sample composites, to downward contamination of samples

and finally due to the use of a cut-off value which fails to reflect the relative

proportions of the different minerals and mining economics. All of these concerns,

however, mean that the current resources are conservative and that there is further

upside potential to the project.

 

 

- 35

 

 

26.5 RESOURCE CONTINUITY

SRK agree with Snowden's belief that the lateral continuity of the mineralisation is

good, a view which is reflected in the long variographic ranges. However, SRK

questions the belief that local continuity of grade is also good as this is based on a

possible under-estimation of nugget variances and the presence of short range

structures not yet confirmed by drilling. SRK have determined a precision of

estimation based on the combined sampling and analytical variance calculated

from equivalent samples in closely spaced holes from the South and Central Dune

areas. The precision of 40.5% indicates that, at an average spacing of close to 10

m, the ability to repeat grades is not particularly great. If the two sets of twinned

holes are used, the precision is 33% over an average distance of 1 m. This is

based on only 22 sample pairs which is a statistically small population but which

again does not support a good short range continuity in grade.

 

The infill drilling recently completed can also be used to demonstrate a local lack of

grade continuity. For example, holes BH25 and BH26 are markedly different as are

Kc 55 and BH18 (13 m apart). Though similar grades are seen in the central

sections of Holes Kc54 and BH15, significant differences occur between the tops

and bottoms of these holes.

 

Despite the above evidence for small scale data variability, their impact will only be

on local block estimation and not on the global resource estimation.

 

26.6 RESOURCE VALIDATION

Snowden confirm that the tonnages and grade produced by 3-dimensional IDW

methods in the October 1998 update have been checked by 2-dimensional IDW

methods and that the tonnages have been further validated by cross-sectional

methods, though this has not been undertaken for the most recent update. The

Gemcom model was validated by both visual and statistical comparison of block

grades against the sample grades which shows that the model honours the input

data though is slightly conservative. Though SRK have not undertaken an

additional independent recalculation of the resources, they are able to give a

qualified acceptance of Snowden's opinion that the IDW method has "resulted in a

reliable global grade estimate". In addition, SRK agree that refinements can be

made to procedures to improve local resource estimation but that this is only

warranted once additional infill drilling has been completed.

 

Areas of minor concern in relation to the existing block model relate to:

 

Possible local incomplete penetration of the base of the mineralised body.

Uncertainties in the estimation of the grade of basal blocks due to the above

problem.

Downward smearing of grade (contamination) by the drilling process, as

evident in some holes, will cause some errors in block estimation and in local

definition of the economic base of the deposit.

These issues can be addressed if new infill drilling campaigns are undertaken

prior to mining.

 

 

- 36

 

 

26.7 CLASSIFICATION OF RESOURCES

The classification of resources applied by TKL is based on a combination of drill

spacing, confidence in the continuity of the mineralised sands and of geological

knowledge and on variographic studies.

 

TKL state that the South and Central Dunes are considered to be in the Measured

category and that the North Zone is allocated to the Indicated category. Snowden,

in their review of the Feasibility study, recommend that the classification be based

on a comparison of the continuity seen in the variograms with the drill spacing in

various parts of the deposit. Following a variographic analysis of the data from the

Central Dune and from the northern and southern portions of the South Dune,

Snowden (Snowden, 1999b) state that they " ..recommend that the resource

estimated for the Central Dune and the northern part of South Dune be classified

as Measured in line with Tiomin's classification".

 

The basis for the classification of resources as being Measured relates to the

sample spacing necessary to explain at least two-thirds of the data variability as

demonstrated by grade semi-variograms. Though this is accepted as one possible

acceptable method, SRK have concerns for the following reasons:

 

Lack of available data at low lags to enable reliable modelling of the

semivariograms at distances equivalent to those required above.

Scrutiny of variograms from the South Dune areas suggest that the distance

at which the two-thirds rule applies is considerably less than the current hole

spacing.

Gaps in sampling due to topographic/access problems should be reflected by

a lower confidence classification until infilled by new drilling.

Undrilled marginal areas, into which grades have been extrapolated, should

also have a lower confidence classification.

Uncertainties due to bulk density.

Differences in drilling density within the Central Dune and between this dune

and the others.

Snowden (Snowden, 2000) state that there is a problem for zircon and rutile in

particular and that their variography does not support a Measured status. The

same problem occurs with the slimes content which, though not relevant for

resource classification, could impact on reserve classification. Local variability of

slimes is poorly understood on the basis of the current drill holes spacing – hence

the need for infill drilling for mine planning purposes.

 

Snowden (Snowden, 2000), produced variograms for %THM and the various heavy

minerals using data which now includes the infill drilling. SRK accept these

variograms as being suitable for resource classification Snowden's preferred

threshold between Measured and Indicated Resources placed at a sampling

spacing equivalent to that which explains two thirds of the data variability. SRK

have examined the directional variograms for %THM and determined that the

above spacing is 160 m across strike and 104 m along strike. As the sample

spacing in the northern area of the Central Dune is generally 100 x 100 m, with

localised higher densities in the area of infill drilling, this area clearly falls within the

Measured category. However, the sample spacing in the southern area of the

Central Dune is 100 m across strike and 200 m along strike. There are also some

areas with a lower density than this. SRK thus concludes that the spacing between

drill lines is too large for the Measured category and an Indicated status is best

assigned to the southern area of the Central Dune.

 

 

- 37

 

 

26.8 SRK AUDITED MINERAL RESOURCES

The resources presented in the 2000 Feasibility Study are those produced by 2D

modelling using GIS / Matlab software. 3D models were prepared, primarily for the

purpose of calculating the mineral reserves and production schedule. Snowden

reviewed these alternative resource models and concluded that both the 2D and

the 3D resource evaluation methods gave similar results. With satisfactory

resolution of the ore definition envelope, SRK concur that both methods should be

able to produce reliable block models given adequate density of drilling in all areas.

 

Table 3 presents the December 2000 SRK audited Mineral Resources statement

for the South, Central and North Dune areas based on the 1% THM ore envelope

defined by TKL but using a bulk density tonnage factor of 1.7 t/m3. It should be

pointed out that the South Dune figure does contain some ore blocks which fail to

meet this arbitrary 1% THM criteria and which would also probably not be viable on

the basis of the SRK rutile equivalent BCOG value (0.45 % rutile eq). If nonselective

bulk mining is to be applied, then this is not a serious problem; the

decision being taken during their conversion to reserves as to whether they should

be retained or removed from reserve on the basis of mining criteria.

 

Dune Classification Tonnes

X 106

THM

%

Ilm.

%

Rutile

%

Zircon

%

Tonnes

HMC

X 106

Central Measured 38.51 6.79 3.95 0.90 0.50 2.61

Central Indicated 30.24 4.54 2.47 0.63 0.32 1.37

South Indicated 70.1 3.5 1.4 0.4 0.2 2.45

North ** Indicated 116.0 2.1 1.0 0.2 0.1 2.44

All Total 254.85 3.48 1.73 0.41 0.21 8.87

 

** No pre-stripping assumed

 

Table 3 SRK Audited Mineral Resource Statement – For Density 1.70 t/m3

 

It should be noted that Snowden updated the South Dune resource in December

1999, and this was presented in the Feasibility study, volume 3, section 3.4. The

revised resource for the South Dune was stated to be 67.9 Mt @ 3.5% THM (2.38

Mt HMC) using a lower in-situ density of 1.651t/m3. No individual mineral grades

were published with this statement. SRK have therefore not utilised this updated

South Dune resource statement as the basis for SRK's audited resource

statement.

 

 

- 38

 

 

27.

MINERAL RESERVES

27.1 ESTIMATION AND CLASSIFICATION OF MINING RESERVES

The resources created within the 1% THM mineral envelope on both the Central

and South dunes are considered mineable and are therefore entirely included in

the reserves. The mineable reserves for the Bucket Wheel Excavator (BWE)

includes additional material outside the envelope required to open up face

positions for the BWE and conveyors.

 

27.2 SRK AUDITED MINERAL RESERVE STATEMENT

The mineral reserves compiled in the in Volume 3 (Mining) of the Feasibility study

included most of the sub 1% THM material and are the product of the intersection

of the 3D resource block model with the preferred mine design. SRK observed that:

 

Operational cut-off grades are not applied.

No ore losses were accounted for at the base of the deposits in response to

topographic irregularities.

Dilution due to mining of low grade material at the base of the deposit by

BWE's has been included.

Dilution due to mining of low grade sub-economic internal blocks has been

included.

Table 5 presents SRK's audited statement of reserves using SRK's preferred

density factor of 1.7 t/m3.

 

Dune Classification Tonnes

X 106

THM

%

Ilm.

%

Rutile

%

Zircon

%

Tonnes

HMC

X 106

Central Proven 38.23 6.87 3.93 0.90 0.50 2.63

Central Probable 30.04 4.59 2.45 0.64 0.32 1.38

South Probable 72.64 3.41 1.33 0.36 0.18 2.30

 

Table 4 SRK Audited Mining Reserve Statement

 

SRK note that Snowden stated that there were problems in reconciling the results

produced by Krupp using Surpac and the results by TKL using Gemcom. Snowden

have examined the problem and have concluded that the discrepancies are of no

serious concern (Snowden, 2000).

 

 

- 39

 

 

ITEM 21: INTERPRETATION AND CONCLUSIONS

 

 

28. PRODUCTION

The mining inventory and production schedule has been revised in line with a pit

optimization (Whittle 4X) and design study undertaken by Snowden during 2005.

Initial work was undertaken March to July 2005 using resource models (Central

Dune - Gemcom model, South Dune – Datamine model "smod2.dm") as confirmed

by TKL for both Central and South Dunes. The supplied models were not

classified by resource category and assumed a 1.70t/m3 density for Central and

1.65t/m3 density for South Dune.

During December 2005, the models were tagged and reported by resource

category (Measured and Indicated for Central, all Indicated for South) in

accordance with the audited mineral resource classification specified by SRK (Feb

2005). In addition, the density adopted for South Dune was adjusted to 1.70t/m3 in

accordance with the SRK specifications. The resulting mining reserves and

schedules are based on the current resource status and the cost and revenue

assumptions as at July 2005.

 

28.1 OVERBURDEN OR TOPSOIL REMOVAL

The topsoil and overburden volume required to be removed during the mining

operation was estimated by generating a parallel surface 0.35m below the surface

topography and reporting from the relevant ore and waste model, constrained to

the pit design limit. All material between these two surfaces was considered as

topsoil/overburden material regardless of the grade.

 

Detailed pre-strip and production mining schedules have been developed, quarterly

for the first two years and annually thereafter over the life of mine (LOM). The

schedule is based on mining commencing at Central constrained by a maximum

ore mining rate of 12.5 Mtpa or concentrate production of a maximum 630 kt per

month at 96.2% plant recovery. Full production using a Krupp S400 bucketwheel

excavator (BWE) is preceded by prestrip using a scraper mining fleet. Mining at

Central will be completed over the course of 7 years while mining at South Dune

will be completed over the course of 5 years.

 

It is intended that all overburden and topsoil material will be stripped ahead of ore

mining using the mobile equipment fleet comprising primary scraper units. Based

on ore mining in 30m strips using a single BWE, it is planned to initially pre-strip

sufficient to maintain topsoil/overburden stripping three (3) strips or 90m ahead of

ore mining. Pre-strip mining at Central is planned in two stages over six months as

summarized below in Table 5:

 

Table 5 Central Dune Pre-strip using Scraper Fleet

 

Stage Topsoil, kt Waste, kt Ore, kt Total, t

Production

Rate t/EOHr

Effective

Operating

Hours/Week

Plan

Duration

Weeks

1 108 34 198 340 548 108 6

2 24 149 861 1,033 548 108 18

Total 132 183 1,059 1,373 548 108 24

 

The first stage is designed to conduct only such scraper mining work necessary to

build a 200 kt maximum capacity ore stockpile. Once the plant is ready to receive

ore, the second stage could commence with further mining using scrapers to

supply approximately 870 kt of ore and expose the 108 mRL sufficient to install an

in-pit conveyor and commence ore mining using the BWE.

 

 

- 40

 

 

In the first two months before the start of operations at Central Dune, 108 kt of overburden, all

regarded as topsoil, will be stripped in preparation for mining. Topsoil and overburden

stripping will continue at the rate of 10 kt per month in the first year of operation and between

10 kt and 20 kt per month for the remaining life of the Central Dune.

 

The pre-strip at South Dune has been designed in a similar fashion to expose the pit to

105mRL for installation of an in-pit conveyor and commencement of ore mining using the

BWE. This will involve stripping of 100 kt of topsoil/overburden, 28 kt of waste and stockpiling

of 54 kt of ore over a one month period. Topsoil/overburden stripping at South Dune will then

proceed at the rate of 30 kt to 40 kt per month over the remaining LOM.

 

28.2 MINEABLE RESERVE

A mineable reserve estimate has been prepared based upon Whittle optimization,

detailed design and scheduling for both Central and South Dunes.

 

28.2.1 Key Assumptions

The estimate has been based on the following key assumptions:

x

Costs, revenue and operating parameters as at July 2005;

 

 

x

A BWE mining strategy, costs and productivity rates as supplied by

ThyssenKrupp;

 

x

Topsoil, overburden and waste mining using a conventional scraper mining

fleet;

 

x

Revenue based on May 2005 prices for ilmenite (US$50/t), rutile (US$450/t) and

zircon (US$500/t). Final prices net of a 2.5% royalty as specified by TKL;

 

x

Process plant recovery of 96.2% for ilmenite, 90.6% for rutile and 88.5% for

zircon as specified by TKL;

 

x

Production limits of 630 ktpa heavy mineral concentrate or 12.5 Mtpa ore as

supplied by TKL;

 

x

Process costs of US$1.66/t ore (based on Ausenco, Nov 2004 data);

 

x

Mining cost of US$0.32/t ore (based on 95% mined using a bucketwheel

excavator (BWE) at US$0.28/t and 5% mined using a scraper fleet/BWE

combination at US1.08/t); and

 

x

Unplanned mining dilution assumed to be negligible for the bulk mining style of

deposit considered. In practice, considerable 'planned' internal dilution has

been incurred within the identified zones for ore mining using the BWE.

Selective mining of waste blocks within the ore mining zone has only been

identified where the quantity of waste exceeds 30m by 30m by the bench height

(or 9kt to 18kt depending on the bench height.

 

28.2.2 Equivalent Grade Calculation

In conducting the optimization and pit design work, Snowden has adopted an

equivalent ilmenite grade approach. Previous work assumed a 1.0% THM grade

as a provisional cut-off for design and scheduling purposes, whereas the

equivalent ilmenite grade approach more appropriately takes into account grades

on a block by block basis, prevailing mineral prices and individual recoveries for the

significant mineral species.

 

 

- 41

 

 

The calculation of the ilmenite equivalent grade is presented below.

 

Ilm Eq % = Ilm % + Rut Rev $/t x Rut Rec% x Rut% + Zir Rev $/t x Zir Rec % x Zir %

Ilm Rev$/t x Ilm Rec % Ilm Rev $/t x Ilm Rec %

 

= Ilm % + 438.75 $/t x 90.6 % x Rut % + 487.50 $/t x 88.5 % x Zir %

 

 48.75 $/t x 96.2 % 48.75 $/t x 96.2 %

Ilm Eq % = Ilm % + 8.48 x Rut %+ 9.20 x Zir %

The equivalent ilmenite grade methodology is amenable to open pit optimization

and allows ease of application of a cut-off grade in reporting the mining inventory.

 

28.2.3 Cut-off Grade

The equivalent ilmenite cut-off grade was estimated as follows:

 

Ilm Eq COG % = (Costs/t x (1+ Mining Dilution)) / (Revenue/t x Process Recovery)

 

= US$(1.66 + 0.32)/t x (1 + 0) / ($48.75/t x 96.2%)

 

= 4.22%

 

Generally the mining cost is excluded as part of the cut-off grade calculation, but in

this case it has been included due to the nature of the mining process. The

relatively shallow and bulk nature of the mining process provides for a decision to

be made in-pit as to whether waste material is mined using a BWE, thereby

reporting directly to the process plant, or is relocated to in-pit mined out areas. In

addition, the waste stripping cost is a relatively minor portion of the overall mining

cost and this cost must be incurred in exposing ore that is directed straight to the

plant. Once the decision is made as to whether material is designated ore or

waste, the revenue obtained from each block must be able to support the total cost

of mining and processing that block.

 

28.2.4 Mining Dilution and Recovery

The previous mineable reserve estimate assumed a 1% THM cut-off grade with all

internal waste blocks assumed to be mined using conventional equipment. This is

not always possible to successfully achieve using a BWE for ore mining. The

current mine plan and estimate only allows selective waste mining within the

nominal ore zones when blocks are at least bench scale height. This has been

calculated during the scheduling phase for each 30m strip mined. Waste blocks

less than the identified minimum size for each operating bench/strip are recoded to

be mined as internal dilution.

Given the bulk nature of the deposit, the reserve estimate incorporates significant

'planned' internal dilution but the degree of unplanned mining dilution and recovery

has been assumed to be negligible.

 

28.2.5 Estimation Methodology

The reserve estimation has comprised three distinct phases:

 

1. Optimisation using Whittle 4X based on the equivalent ilmenite grade to identify

optimal pit shells as the basis for pit design.

2. Pit design smoothed in accordance with operating equipment limits and bench

heights.

3. Recoding of the resource model for scheduling of mining by 30m wide benches

consistent with the BWE mining strategy. Blocks are coded by bench,

sequence and mining method (BWE or mobile equipment).

4. Scheduling of the material inventory reported at a 4.22% equivalent ilmenite cutoff

grade. Material has been flagged by bench number, sequence number and

mining equipment to topsoil/overburden, waste and ore material types. Any

internal waste dilution has then been reallocated to be mined with the ore in the

spreadsheet schedule. Prestrip and production schedules have then been

 

- 42

 

 

developed constrained to an ore mining limit of 12.5 Mtpa and concentrate

production limit of 630 ktpa.

 

The final mining reserve has been reported from the detailed mining schedule.

 

28.2.6 Summary Mineable Reserve

The total mineable reserves identified within the final pit boundaries compared to

the previous estimates by Tiomin (as included in the Ausenco March 2004 Project

Review) are as follows:

 

Table 6 Summary Mineable Reserve Comparison

 

Tiomin Apr 2003 Snowden Jan 2006

Central Dune South Dune Central Dune South Dune

Ore 65.4 Mt 70.5 Mt 64.5 Mt 52.5 Mt

@ 6.1% THM @3.4% THM @ 6.1% THM @ 4.0% THM

Waste (Mt) 3.3 2.1 2.8 4.5

Top-soil (Mt): 1 0.8 1.2 1.5

Total Waste (Mt): 4.3 2.9 4 6

Total Material (Mt): 69.7 73.4 68.5 58.5

Stripping Ratio: 0.07 0.04 0.06 0.11

 

Note:

Tiomin 2003 estimate at 1% THM cut-off, Snowden Jan 2006 estimate at 4.22% ilmenite equivalent cut-off plus

internal dilution.

 

The significantly reduced inventory for South Dune arises from the different

methology adopted by Snowden in undertaking a formal optimisation, design and

mining schedule compared to the previous work. Snowden has relied on an

equivalent grade evaluation rather than applying a 1% THM cut-off. This approach

will provide a more reliable outcome given the lower grade nature of the South

Dune deposit, which has almost half the ilmenite, rutile and zircon grade compared

to Central Dune. In addition, the orebody is less continuous and exhibits a higher

degree of internal dilution.

 

The classified mining reserve has been reported at a nominal cut-off grade of

4.22% equivalent ilmenite grade plus internal mining dilution for Central and South

Dunes as at July 2005, as detailed below:

 

Table 7 Mineable Reserve for Kwale Central and South Dunes -

As at July 2005 at a 4.22% Ilmenite Equivalent Cut-off Grade

 

Deposit Category Tonnes % Thm

%Ilm.

Equ.

%

Ilmenite

%

Rutile

%

Zircon

Central

Dune Proven 38.9 7.1 16.7 4.1 0.9 0.5

Probable 25.5 4.5 10.6 2.4 0.6 0.3

South

Dune Probable 52.5 4.0 7.6 1.7 0.5 0.2

 

The classified mining reserve has been determined in accordance with the

optimization, design and scheduling work conducted by Snowden during July 2005,

as updated for density and classification in December 2005. The estimate is based

on the resource classification and material densities supplied by SRK and the

independent verification of costs, revenue, productivity and project cashflow by

TKL.

 

 

- 43

 

 

28.3 PRODUCTION SCHEDULING

The mining schedule was prepared based on excavation of 30m ore mining strips

progressing from north to south in each case. Strips will be developed as either

30m parallel or slewing action shifts of the in-pit conveyor. The conveyor horizon

will be maintained at relatively fixed horizons commencing at 108mRL for Central

Dune and at 105mRL for South Dune. Mining is scheduled on multiple benches

above and below the conveyor horizon in accordance with the mining strategy

originally devised by ThyssenKrupp.

 

Snowden have not conducted any recent mine planning work nor cost estimation in

relation to tailings disposal. Given the similar approach adopted for the mining

method and sequence, Snowden have assumed that the existing feasibility study

plan for tailings disposal can be maintained. This schedule allows for tailings dams

to be constructed in the mined out Central Dune after the first quarter in Year 3 and after

Year 5 of the mining operation.

 

Production scheduling was carried out on a quarterly basis in the first two years of

the mining operation and annually thereafter. A detailed schedule has been

developed split to bench elevation, strip number, mining equipment type and

material type. On this basis, Snowden has prepared face advance plans for the

pre-strip and annually thereafter for each of the deposits. In addition, a coded

scheduling block model has been prepared to assist with reporting and

presentation for scheduling purposes. Schematics showing the pit designs and

overall pit sequence are provided in Figure 5 and Figure 6.

 

Figure 5 Central Dune final design showing pit sequence progressing north to south

 

Pit 1

 

Pit 2

 

Pit 3

 

 

- 44

 

 

Figure 6: South Dune final design showing pit squence progressing north to south

 

 

To a large degree, the scheduling sequence has been dictated by the BWE ore

mining method. Once initiated, there is little flexibility in adjusting the mining area

to suit plant head grade requirements. However, the scheduling process has

considered maximising the plant head grade in the early pit life for each of the

deposits. In each case the highest grade northern portions of the deposit have

been scheduled to be mined first.

 

Summary mining schedules for each of the deposits are presented in Table 8 and

Table 9. Each deposit has been scheduled separately with Central Dune over 7

years life and South Dune over 5 years life.

 

Kwale Central

 

x

64.5 Mt of ore is scheduled over almost 7 years

 

x

3.8 Mt of heavy minerals concentrate and 16.0 Mt of slimes are produced

 

 

- 45

 

 

 

Table 8 Kwale Central Annual Schedule Summary

 

Period Concentrate

Ore

kt kt

Topsoil Waste Ore TOTAL

Volume kt ktVolume Volume kt

% Ilmt

Equiv % Thm % Ilmt % Rut % Zir % Slim Slimes kt ktVolume

Year 1 Quarter 1

Year 1 Quarter 2

Year 1 Quarter 3

Year 1 Quarter 4

Total Year 1

Year 2 Quarter 1

Year 2 Quarter 2

Year 2 Quarter 3

Year 2 Quarter 4

Total Year 2

Year 3

Year 4

Year 5

Year 6

Year 7

Grand Total

1,587 85

2,020 141

2,169 154

2,242 154

8,018 534

2,261 158

2,235 158

2,014 158

2,040 158

8,550 630

8,342 630

8,927 630

11,834 630

12,500 528

6,302 178

64,473 3,760

78 132

20 34

13 23

18 30

129 219

18 31

28 48

24 40

25 43

95 162

77 131

74 126

138 235

116 197

59 101

689 1,171

108 183

17 30

40 68

92 157

257 438

89 152

27 46

0 0

0 0

116 198

356 606

445 757

401 681

53 90

31 53

1,660 2,821

934

1,188

1,276

1,319

4,717

1,330

1,315

1,185

1,200

5,030

4,907

5,251

6,961

7,353

3,707

37,925

1,587

2,020

2,169

2,242

8,018

2,261

2,235

2,014

2,040

8,550

8,342

8,927

11,834

12,500

6,302

64,473

13.46

17.51

17.62

16.82

16.55

17.16

17.45

19.15

18.94

18.13

18.4

16.72

12.96

10.37

7.31

14.26

5.57

7.26

7.38

7.14

6.92

7.24

7.33

8.13

8.03

7.66

7.85

7.34

5.53

4.39

2.94

6.06

3.1

4.19

4.25

4.05

3.95

4.08

4.14

4.59

4.51

4.32

4.52

4.21

3.03

2.33

1.57

3.39

0.76

0.98

0.99

0.94

0.93

0.96

0.97

1.07

1.06

1.01

1.01

0.93

0.76

0.62

0.44

0.81

0.43

0.54

0.54

0.52

0.51

0.54

0.55

0.6

0.59

0.57

0.57

0.5

0.38

0.3

0.22

0.43

26.2

24.16

24.28

23.84

24.51

23.54

23.5

22.92

22.74

23.19

25.67

24.96

24.01

24.26

28.48

24.8

416

488

527

535

1,966

532

525

462

464

1,983

2,141

2,228

2,841

3,033

1,795

15,989

1,119 1,902

1,226 2,084

1,330 2,260

1,429 2,429

5,103 8,675

1,437 2,444

1,370 2,328

1,209 2,055

1,225 2,083

5,241 8,910

5,340 9,078

5,771 9,810

7,500 12,750

7,522 12,787

3,798 6,456

40,274 68,465

 

Table 9 Kwale South Annual Schedule Summary

 

Period Concentrate

Ore

kt kt

Topsoil Waste Ore TOTAL

Volume kt Volume kt Volume kt

% Ilmt

Equiv % Thm % Ilmt % Rut % Zir % Slim Slimes kt Volume kt

Year 1

Year 2

Year 3

Year 4

Year 5

Grand Total

12,500 492

12,500 516

12,500 490

12,500 438

2,488 71

52,488 2,007

254 431

295 501

203 346

121 206

0 0

872 1,483

682 1,159

1,127 1,916

151 257

667 1,134

19 33

2,646 4,498

7,353

7,353

7,353

7,353

1,463

30,875

12,500

12,500

12,500

12,500

2,488

52,488

13.46

17.51

17.62

16.82

17.16

14.26

5.57

7.26

7.38

7.14

7.24

6.06

3.1

4.19

4.25

4.05

4.08

3.39

0.76

0.98

0.99

0.94

0.96

0.81

0.43

0.54

0.54

0.52

0.54

0.43

26.2

24.16

24.28

23.84

23.54

24.8

3,275

3,020

3,035

2,980

586

13,017

8,288 14,090

8,775 14,917

7,707 13,102

8,141 13,840

1,482 2,520

34,393 58,469

 

 

- 46 -

 

 

Kwale South

 

x

52.5 Mt of ore is scheduled from mid Year 7 to Year 12

 

x

2.0 Mt of heavy minerals concentrate and 13.0 Mt of slimes are produced

 

Key constraints to progress of the mining schedules are a 12.5 Mtpa limit on ore

mining and a 630ktpa limit upon concentrate production. The impact of these

constraints upon the mining schedules is quite clear in the annual movements.

Key aspects are highlighted as follows:

 

x

The Central Dune schedule proceeds in accordance with a planned concentrate

rampup sequence from 85 kt in the first quarter of production to 141 kt, 154 kt

and 154 kt in the following quarters. Total concentrate production in Year 1 is

planned at 534 kt.

 

x

Mining of the higher grade Central deposit results in a reduced ore mining

requirement of 8 – 9 Mtpa in Years 1 to 4. The ore mining rate increases close

to the plan limit of 12.5 Mtpa from Year 5 onwards.

 

x

The concentrate production target of 630ktpa for Central is achieved from Year

2 to 5, after which the lower grade limits potential concentrate production

despite the escalation in the mining rate.

 

x

Mining of the South Dune deposit requires the maximum ore production rate to

be maintained over the life of the pit. Despite this, the reduced grade still limits

concentrate production in the range 438 – 516 ktpa.

 

28.4 CONCENTRATES PRODUCTION

Testwork has been completed to determine recovery in each plant for each mineral

except for the final Wet Zircon Circuit, which will be completed in June

2006. The recovery rates achieved for each circuit and mineral in the testwork

completed in 1998 and 2004, adjusted for recirculating loads in continuous

operations, are set out in Table 10.

 

Circuit Mineral Testwork Recovery %

Wet Concentrator - Spirals Plant Rutile 94.4

Zircon 97.8

Feed Preparation Rutile 98.5

Zircon 98.5

Ilmenite 90.6

Rutile Circuit Rutile 95.0

Zircon 99.0

Wet Zircon Zircon 95.0 (assumed)

Dry Zircon Zircon 90.0

 

Table 10 Recovery Rates

 

 

- 47

 

 

ITEM 22: RECOMMENDATIONS

 

 

29. RESOURCE DEVELOPMENT

The 2004 Project Review considered only the development of the Central and South

Dunes of the Kwale deposits. The North Dune is excluded from the mining lease but it is

part of the Special Exploration license and is estimated to hold 116 Mt of indicated

resources @ 2.1 % THM (SRK, 2000). The North Dune is 2 km long and 500 - 1,000m

wide and the ore envelope extends to depths of up to 66m but is overlain by a cover of

sub-grade material varying from 20 to 30 m in thickness that could be pre-stripped prior

to mining to achieve slight improvements in grade.

 

Since 1997, no additional drilling has been done on Kwale North. However, Snowden

has recently reviewed the current resources model of Kwale North prior to a preliminary

optimization potential study. Snowden confirmed resources of 102.3 Mt @ 2.38 % THM,

0.9% ilmenite, 0.2% rutile and .1% zircon at a cut-off of 1%THM and using a density of

 

1.7 (Snowden, 2005a). Following the resources review, the North Dune optimisation

potential has been evaluated and only a relatively small portion of the resources

optimised, which is confined to block resources having ilmenite equivalent (ilm Eq)

grades above an assessed cut-off of 4.22%. At this cut-off, an indicative resources of

116 Mt at 5.08% ilm. Eq, 1.6% ilmenite, 0.26% rutile, 0.14% zircon and 4.03% THM has

been identified from resource model interrogation (Snowden, 2005b).

Boundary controls on the minerals in the model are based on stratigraphic and

topographic boundaries. While this approach is relatively accurate for the northern

contour, it is less for the southern. The boundary between the North Dune and the

barren zone between Central and North is not precisely defined due to a limited number

of drill holes in this area. According to Snowden's report, there is a small possibility that

tonnages to the south-east can be increased. More drilling is recommended to better

define the outline of the deposit, assess potential for higher grade extensions, bring the

resources to another level and confirm the variability of grade and slimes content.

Detailed expenditures for this work have not been estimated yet.

 

 

- 48

 

 

ITEM 23: REFERENCES

 

 

30. REFERENCES

30.1 GEOLOGICAL

Knight Piesold Ltd. 1998. Tiomin Resources Inc. Kwale Industrial Mineral Sands

Project - Factual report on Geotechnical Investigations, Sampling and laboratory

testing.

 

Robertson Research Minerals Ltd. (RRM). 1998. An independent Evaluation of the

Kwale Mineral Sands deposit, Kenya. Report no 4586, June 1998.

 

Snowden Mining Industry Consultants, 1999 (a). Kwale Mineral sands deposit,

Independent resource review, June 1999.

 

Snowden Mining Industry Consultants, 1999 (b). Kwale Variography, December

1999.

 

Snowden Mining Industry Consultants, 1999 (c). South Dune resource review and

mining study, December 1999.

 

Ross, N. 1999. Development of a drilling technique to suit high slimes titanium

mineral deposits. Abstracts of the Heavy Minerals Conference '99, Durban, South

Africa.

 

Snowden Mining Industry Consultants, 2000. Kwale variography update- Central

dune, December 2000.

 

Snowden Mining Industry Consultants, 2005a. Kwale North conceptual model

review- updated, 9 September, 2005.

 

Snowden Mining Industry Consultants, 2005b. Kwale North Dune preliminary

review of optimisation potential, July 2005.

 

Tiomin Resources Inc. 1998. Titanium Sands - Geology of the Kwale deposit.

Internal Report, August 1998, prepared by N. Ross.

 

Tiomin Resources Inc. 2000. Summary report of infill drilling, July 2000.

 

30.2 HYDROLOGY

Groundwater Survey Kenya. 2003. Exploratory drilling program, Additional

Geophysical Work and Sieve Analysis, Msambweni Aquifer, Kwale District, Coast

Province. Report no. 03/923. November, 2003.

 

Groundwater Survey Kenya. 2004. Wellfield Design, Installation & Engineering

Survey, Kwale District, Coast Province. Report no. 04/970. April 2004.

 

 

- 49

 

 

30.3 MINERAL PROCESSING

Roche Mining (MT) 2005, Metallurgical Testwork for Performance Assessment of

a Revised WCP Circuit Incorporating High Capacity Spiral Separators. Report no.

05/81280/1, Rev 1.0, 5 October 2005

 

Roche Mining (MT) 2003, Performance Assessment of a Revised Primary MSP

Circuit. Report No. MS.05/81279/1, Rev 1.0, 14 September 2005

 

Roche Mining (MT) 2003, Commissioning and Metallurgical Report on the Kwale

Pilot Plant, February 2004.

 

Roche Mining (MT) 2004, MPP Flowsheet Validation with the latest Technology,

May 2004.

 

30.4 TAILINGS DEPOSITION

GL&V South Africa Ltd. 2005, Tiomin Kwale Sands, Sedimentation Testwork, 17

February 2005.

 

Paterson & Cooke Consulting Engineers 2003. Clay Behavior Analysis of Kwale

Mine Ore., Report no. PCC-KEN-8008.R01 Rev 01, 9 March 2005

 

Paterson & Cooke Consulting Engineers 2003. Simulation of the Kwale Mining

Process and Production of Thickener Feed Material for Desktop Thickener tests.

Report no. GLV-683.R02 Rev. 0, February 2005

 

Davies Lynn & Partners, 2003. Addendum Report on the Feasibility Design of the

Waste Disposal Facilities for Kwale Central and Kwale South Titanium Mineral

Sands Deposit, Kenya. January 2004.

 

Paterson & Cooke Consulting Engineers 2003, Tiomin Heavy Minerals Project:

Pilot Thickener Underflow Rheology Tests. Report No. DLP-498.R03, December

2003.

 

30.5 PROJECT

Tiomin Resources Inc. 1997. Pre-feasibility Study, Kwale Project Kenya, 4

volumes, September 1997.

 

Tiomin Resources Inc./Ausenco/LTA Process Engineering, 2000. Kwale Titanium

Minerals project, Feasibility Study for Tiomin Kenya Ltd., 16 volumes, May 2000,

including specialist reports for:

 

x

Resource audit -Snowden Mining Industry Consultants

x

BWE Mining Study -ThyssenKrupp Fördertechnik

x

Mining Review -Snowden Mining Industry Consultants

x

Metallurgy and plant criteria -MD mineral technologies (Roche MiT)

x

Slimes and Tailings deposition -Davies Lynn & Partners

x

Hydrology -Groundwater Survey Kenya

x

Environmental Impact Assessmnt - Coastal and Environmental Services

 

 

- 50

 

 

x

Port & Storage facilities -Lassing Dibben Consulting Eng.

x

Marketing Studies -TZ Minerals International

 

Ausenco Limited, 2004. Project Review 2004, May 2004.

 

Ausenco Limited, Technical Report NI 43-101 March 2005

 

Coastal and Environmental Services, 2004. Addendum Report to the

Environmental Impact Assessment Of Tiomin Resources Proposed Materials

Handling and Shiploading Facility at Likoni, Mombasa District, Kenya, October

2004.

 

Knight Piesold Ltd. 1998. Tiomin Resources Inc. Kwale Industrial Mineral Sands

Project - Factual report on Geotechnical Investigations, Sampling and laboratory

testing.

 

SRK (UK). 1999. Initial Fatal Flaw analysis, Kwale Project., September. 1999.

 

SRK (UK). 2000. Independent Technical Report. December 2000.

 

 

- 51

 

 

ITEM 25: ADDITIONAL REQUIREMENTS FOR TECHNICAL REPORTS

ON DEVELOPMENT PROPERTIES AND PRODUCTION PROPERTIES

 

31.

MINING OPERATIONS

The Kwale Project comprises the components hereunder. The entire facility is shown in

Figure 7.

 

-

Mining Operations

-

Wet Plant

-

Slimes and Tailings Disposal

-

Mineral Processing Plant

-

Product Storage and Shipping

-

Related Infrastructure

The base case for the Project provides for:

 

-

Mining using a single bucket wheel excavator (BWE) supported by a

conventional mining fleet

-

Sale of ilmenite produced direct from wet magnetic separation

-

Rutile and zircon produced by standard wet and dry separation techniques ie

no hot acid leaching

-

Contracted power supply using HFO powered generation units.

-

Process water supply from dam, river and acquifer sources

-

Conventional mobile shiploading at Likoni

-

Sale of all ilmenite, rutile and zircon produced FOB Likoni Port

From the BWE and ancilliary mining operations ore will be fed by an overland

conveyor to a Wet Plant (WP) where the slimes and tails are removed and a heavy

mineral concentrate (HMC) will be delivered to a Minerals Processing Plant (MPP)

for separation of the three valuable products ilmenite, rutile and zircon.

 

The products will be trucked to a port installation at Likoni where they are stored in

silos prior to loading ships via a conveyor loading system.

 

 

- 52

 

 

Figure 7 Facility Schematic Block Diagram

 

31.1 MINING

31.1.1 Summary

The mining operation is designed to deliver feed to the Wet Plant commencing at 8

Mtpa, increasing to 9 Mtpa by Year 4 and building to the sustained rated

nameplate capacity of 12.5 Mtpa of feed by Year 6. The lower rates are applicable

to higher grade feed for the initial years, gradually increasing as grade falls off in later

years. This is consistent with mining the higher grade northern portion of Central Dune

sweeping to the lower grade portion to the south. Following this, the lower grade South Dune

is intended to be mined at the rate of 12.5 Mtpa.

 

 

- 53

 

 

The mineralised sand of the Central and South Dunes is located above the water

table, which makes a dry mining method the most suitable method to excavate the

ore for further processing.

 

For the 2005 Project Review by TKL, mine planning issues were considered in

further detail by Snowden, namely:

 

x

Review of capital improvement options, including an update of capital estimates as at June

2005 for supply of:

 

x

A BWE and in-pit conveying system based on quotes from ThyssenKrupp, Man Takraff,

Forderlangen Magdeburg and key items of mobile plant;

 

x

Key items for the mobile equipment fleet (scrapers, dozers, grader) from Unatrac Limited

(UK);

 

x

Mining ancillary plant estimates based on Snowden's inhouse cost database; and,

 

x

Second hand conveyors based on budget estimates and availability.

 

x

Review and adoption of BWE mining unit operating costs supplied by ThyssenKrupp in

earlier study work. This was based on an owner-operate scenario;

 

x

Review and estimation of budget unit costs for the mobile and ancillary mining fleet based

 

upon Caterpillar Fleet Productivity and Performance software simulations and spreadsheet

 

analysis;

 

x

Assessment of equivalent ilmenite grade and cut-off grades;

 

x

Formal pit optimization, design and scheduling for both Central Dune and South Dune;

 

x

Development of annual face advance plans over the life of the project;

 

x

Re-assessment of mobile fleet mining using primary scraper units; and,

 

x

Assessment of BWE and mobile fleet relative mining production contributions.

 

The mine plan developed by Snowden was based upon using a single 2,000 lcm/hr rated

capacity BWE (ThyssenKrupp S400 BWE or similar) and a conventional scraper mining fleet

based on Caterpillar 623G elevator scrapers. An owner-operate scenario was assessed. The

mine planning study undertaken by Snowden concluded that further work was required, most

significantly, in relation to geotechnical assessment, the confirmation of mining productivity

estimates (BWE and scraper fleet), detailed capital costs for the mobile equipment fleet and

contract mining costs.

 

 

- 54

 

 

31.1.2 Mining Operation Economic Considerations

A BWE provides the lowest operating costs for any dry mining method. The BWE

will be used for all ore mining. Based on average stripping ratios of 0.06:1 for

Central Dune and 0.11:1 for South Dune, the use of the BWE will therefore seek to

optimize unit operating costs. The benefits of using a BWE for Kwale Central and

South are summarised as:

 

x

Low operating cost. After consideration of capital cost, the operating cost of the

BWE is approximately half the cost of contract mining;

 

x

Relatively homogeneous grade distribution. This reduces the requirement for

selective waste mining using a mobile fleet at higher unit cost;

 

x

High mining rate. In the later stages of mining Kwale Central and after

commissioning and start up of the South Dune Wet Plant, the mining rate will be 12.5

Mtpa; and,

 

x

Shape of the pits. The size of the pits for both Central and South Dunes makes

the deposits amenable to high throughput, low unit cost mining using a BWE.

The Central Dune is approximately 1.5 km in north-south strike and 1 km wide

while the South Dune is approximately 4 km in strike by 650 m wide. The

dimensions are suited to installation of long in-pit conveyors of up 1.4km total

length. This will optimize the BWE efficiency by minimizing the time lost in

shifting in-pit conveyors as each strip is mined.

 

Owner mining of predominantly waste and topsoil with a conventional scraper

mobile equipment fleet will supplement the BWE to increase flexibility in

operations. This will include the following activities:

 

x

Mining of internal waste (subject to a minimum dimension constraint defined by

the resource block lateral extents and mining bench height);

 

x

Excavating areas which are inaccessible to a BWE, such as the pit extremities

and bottom benches;

 

x

Stripping and stockpiling of topsoil;

 

x

Blending high grade ore from the centre of the pit and low grade ore from the

perimeter and lower levels.

 

The mining method and production schedule is described in more detail under Item

21, Clause 28. In summary, mining commences initially at the northern, higher

grade portion of Central Dune, progressively mining in 30m strips to the south.

Once mining has been completed at the Central Dune after seven (7) years, mining

is then commenced at the South Dune in a similar fashion.

 

After 5 years, the mineral grade of the Central Dune ore starts to drop and the mining rate

of approximately 8 to 9 Mtpa is no longer restricted by the 630 ktpa capacity of the

MPP. The mining rate will then be increased from approximately 9 Mtpa in Year 4 to 12.5

Mtpa by Year 6. This is the maximum capacity of the Wet Plant and mine production

will be maintained at this rate for mining of lower grade ore through to project

completion after approximately 12 years. It is in this period that the economic

benefit of operating a large BWE will be most beneficial to the Project.

 

Mining Capital Cost Estimate

 

Based on the work conducted by Snowden in June 2005, the total capital cost of

the BWE and scraper mobile equipment fleets has been developed as detailed in

Table 10. The total capital cost of the BWE and conveyor system is estimated at

$10.5M and the scraper fleet at $3.4M to yield a total capital cost of $13.9M.

 

 

- 55

 

 

The BWE costs are based upon the Krupp May 2005 quotation while the scraper

fleet cost is based upon Unatrac and Snowden database estimates. Costs exclude

any interest allowance. The BWE capital is proposed to be amortised over 15

years, while the scraper fleet has a five (5) year payback, both at 10% interest, as

reflected in developed own and operate estimates. The capital estimate also

excludes minor ancillary equipment that is accounted for under operating costs as

an own and operate hourly unit rate.

 

Table 10 BWE and auxiliary scraper fleet capital cost

 

Item

Estimated

Cost

No

required

Total Cost

($)

BWE – S 400 3,986,000 1 3,986,000

Beltwagon 2,145,000 1 2,145,000

Hopper and cable car 559,000 1 each 559,000

Conveyor - 950m, new 2,983,000 1 2,983,000

Conveyor - 450m, 200m, 2nd hand 863,500 1 863,500

Total BWE system 10,536,500

Auxiliary Equipment

CAT 623G scraper 632,500 2 1,265,000

CAT D10T dozer 884,300 1 884,300

CAT D8R dozer 453,700 1 453,700

CAT 140H grader 272,800 1 272,800

CAT 980G wheel loader 476,800 1 476,800

Total Auxiliary 3,352,600

Total 13,889,100

 

The total capital cost of $13.9M is slightly lower than the previous 1999 estimate of

$14.63M mainly due to the counteracting influence of potential cost savings from

second hand conveyor purchase and inclusion of a D10T dozer in the auxiliary

scraper fleet. Other significant changes from the previous estimate were:

 

x

BWE quote based upon a single BWE S400 instead of a dual BWE S250 and

conveyor system; and,

 

x

Selection of two 623G elevator scrapers at similar total cost to the previously

selected 651E auger scraper.

 

Not included in the capital estimate is the requirement for an additional 950m

length of conveyor for mining South Dune at a cost of $1,262,000 based on second

hand pricing.

 

Mining Operating Cost Estimate

 

An overall unit mining cost estimate has been generated by Snowden for the

Central and South Dunes as detailed in and Table 12, which combines BWE,

auxiliary scraper fleet and ancillary equipment costs. Costs have been estimated

in the mining study undertaken by Snowden as at June 2005.

 

 

- 56

 

 

Central Dune

 

Summary unit mining costs for Central Dune are presented below:

 

Table 11 Central Dune summary unit mining cost

 

Unit

Cost Estimate Units Cost

US$/t

 

BWE/Scraper Operation US$/t ore 0.443

Cost excl. BWE Capital US$/t ore 0.32

 

 

Whittle Cost US$/t material 0.40

US$/t ore 0.42

 

Original Cost BWE 2 x S250 US$/t ore 0.40

 

An average unit mining cost of $0.443/t ore has been determined, inclusive of a

10% contingency. This estimate is approximately 10% higher than the previous

estimate of $0.40/t ore that assumed dual S250 BWEs and a Cat 651E auger

scraper as support. It is also slightly higher than the $0.42/t ore ($0.40/t total

material) assumed for the purpose of Whittle optimization. This level of variance is

unlikely to produce a significant change in the optimal shell derived from

optimization as a result of the variance being reduced by a relatively higher

contribution to total costs from processing (US$1.66/t).

 

South Dune

 

Summary unit mining costs for South Dune are presented below:

 

Table 12 South Dune summary unit mining cost

 

Unit

Cost Estimate Units Cost

US$/t

BWE/Scraper Operation US$/t ore 0.549

Cost excl. BWE Capital US$/t ore 0.41

Whittle Cost US$/t material 0.44

US$/t ore 0.45

Original Cost BWE 2 x S250 US$/t ore 0.46

 

An average unit mining cost of $0.549/t ore has been determined for South Dune,

approximately 18% higher than the previous estimate of $0.46/t ore that assumed

dual S250 BWEs and a Cat 651E auger scraper as support. It is also higher than

the $0.45/t ore ($0.44/t total material) assumed for the purpose of Whittle

optimization. This level of cost differential may incur an additional penalty in a

reduction in optimum shell, despite some attenuation due to the relatively higher

proportion of cost contributed from processing. Only an additional iteration of

optimization, sensitivity analysis and design will provide confirmation of a potential

decrease in the South Dune inventory as the result of increase mining costs.

The higher unit cost differential for South Dune compared to Central Dune is mainly

attributable to the combined effects of an increased proportion of waste and ore

mining using the higher cost scraper fleet and an increased allowance for capital to

cover purchase of an additional conveyor section.

 

In general terms, the increased mining cost also reflects:

 

 

- 57

 

 

x

Revised unit mining cost for scraper fleet upwards from 34.5c/t to 70c/t consistent with

adjusted fleet makeup and increased dozer support;

 

x

Revised BWE capital leading to a decrease in unit capital cost for the BWE;

 

x

Increased fuel (50c/l to 64c/l) and labour input costs;

 

x

Increased own and operate unit costs consistent with current capital, maintenance and

GET estimates;

 

x

Revised fleet makeup and operating hours; and

 

x

Revised FPC analysis to incorporate shorter haul profiles.

 

x

Revised mining inventory, waste quantities and detailed schedules.

 

Annual mining cost schedules have been generated based upon unit costs for the

scraper fleet and BWE. The scraper unit costs were varied each year in

accordance with estimates derived from FPC annual haul profiles for Central and

South Dune. On this basis, mining cost schedules over the life of mine for the

purpose of input to TKL's project cashflow schedules.

 

31.1.3 Mining Operations Description

Conventional Mining Fleet

 

The scraper mobile equipment fleet identified by Snowden for the purpose of

stripping topsoil and overburden from the mining areas and to selectively mine

waste zones comprises:

x

2 Elevator Scrapers (Caterpillar 623G or equivalent)

 

 

x

1 Track Dozer – scraper assist and production (Caterpillar D10T or equivalent)

 

supported by:

x

1 Track Dozer – ancillary works (Caterpillar D8R or equivalent)

 

 

x

1 Motor Grader (Caterpillar 140H or equivalent)

 

x

1 Wheel Loader (Caterpillar 980G or equivalent)

 

x

1 Water truck (converted second hand Caterpillar 773D or equiv. 40 kl)

 

Overburden stripping is limited to the removal of topsoil from the dunes. In some areas with

dense vegetation, as found on the West and South slopes of the Central Dune and

in the river valleys in the tailings dam area, greater thickness of overburden

stripping are found. For both dunes an average of 0.35m of sand is classified as

overburden, which will be stripped and stockpiled at designated areas close to the edge of

the pit. The stockpiled topsoil is returned to the tailings dam and pit areas upon

closure of each dam as part of the rehabilitation program.

 

All internal waste material identified by the mine design and schedule will be mined

by mobile equipment. Only those internal waste dilution blocks within the BWE

zones that meet minimum size constraints in each mining strip will be earmarked

for selective waste mining using the scraper fleet. It is expected that once

production sampling starts and more information from this sampling program

becomes available, the amount of internal waste, as determined in the block

model, can be adjusted to suit the mining operating criteria for both the BWE and

scraper fleet.

 

BWE Mining

 

The technical suitability of mining Kwale using BWE methods was determined

primarily from work carried out by ThyssenKrupp Fördertechnik (TKF) of Germany.

TKF provided a detailed mine plan for 2 BWE's for the 2000 Feasibility Study and in

 

 

- 58

 

 

February 2001 issued an update for a single BWE. The mining study undertaken by Snowden

during 2005 has been based upon an option employing a single ThyssenKrupp S400 BWE.

 

It is proposed that the single S400 BWE system be used for excavating and

transporting mineralised sand from the dune to the Wet Plant feed preparation

module. The system comprises the BWE, one beltwagon, one cable reel car and a

set of three conveyors (950m, 450m and 280m in length). The BWE has the

capacity to excavate a total height of 44m over 5 benches. The system is electrically

powered and estimated to draw 1.6MW reticulated at 6kV.

 

The S400 bucket wheel excavator had a bucket outreach and a digging height of 11

metres and a theoretical output of 2,000 LCM/hr. Based on ThyssenKrupp

provided specifications, the operating regime provides for a digging efficiency of

70%, overall utilisation (including mechanical availability) of 70.5% and a long term

reduction factor of 85%. This results in an average annual production rate of

10.5Mt.

 

In order to achieve the required maximum production rate of 12.5 Mtpa (dry)

identified by TKL, the operating regime was reviewed to provide for a digging

efficiency of 70%, overall utilisation (including mechanical availability) of 75% and a

long term reduction factor of 92%. At an average assumed moisture content of 6%

or 1.80t/bcm wet density, this results in an average annual production rate of 13.24

Mtpa wet or 12.5 Mtpa dry. The production target determined by Snowden

requires further confirmation by the supplier.

 

The maximum annual production rate for the South Dune is set at 12.5 Mt. A

larger used BWE with a theoretical output of 3,200 LCM/hr selected for the project

will be better suited to achieve the higher annual production rates than the S400

BWE.

 

For the purpose of the 2005 Project Review, based on the mining study work

undertaken by Snowden (June 2005), the mining schedule and costing is based

on:

x

Owner-operated, single S400 BWE capable of up to 12.5Mtpa dry, for ore

 

mining.

 

x

Scraper mobile fleet for topsoil, overburden and waste mining.

 

31.2 PROCESS PLANTS

From the mining operations ore will be fed to a wet plant where the fines and tails

are removed and a heavy mineral concentrate will be delivered to a minerals

processing plant for separation of the three valuable products ilmenite, rutile and

zircon.

 

 

- 59

 

 

The simplified flowsheet is shown in Figure 8

 

 

Desalinated

Water

 

 

 

Koromojo Dam

 

 

8,884,866 tpa

Feed

4,262,808 tpa

Water

Wet Concentrator

 

Sand Tail

 

Conc

 

Rutile

Dry

Circuit

Wet

Zircon

Circuit

Dry

Zircon

Circuit

WHIMS

Circuit

N/Mags

Wet

Circuit

620,932 tpa

HMC

Stockpile

8,263,934

tpa Tails

Cond Mag

318,010 tpa

Ilmenite

Feed

 

Mag

Prep

Circuit

 

N/Mag

 

Tails

 

 

N/Mag Conc

 

Rejects

 

 

Tails

 

 

Rejects

 

 

184,708 tpa

Rejects

Mkurumudzi

River

 

 

Ilmenite Stockpile

 

 

Ilmenite

Dryer

(max 337,500 tpa)

 

 

 

Cond N/Mag

 

N/Cond

 

76,727 tpa

Rutile

Mine Site Storage

 

Surge Bin

 

Conc

Stockpile

 

 

N/Cond N/Mag

 

42,117 tpa

Zircon

Figure 8

 

ZirconRutileIlmenite

ZirconRutileIlmenite

Likoni Port Storage

 

Simplified Flowsheet

 

 

- 60

 

 

The physical layout is shown in Figure 9

 

 

 

Figure 9 Kwale Layout Diagram

 

31.2.1 Process Plant Geotechnical Considerations

The plant site geotechnical investigation (Davies Lynn & Partners, 2003) has

identified a zone of near-surface material, up to 5 metres below ground,

which is loose, weak and potentially collapsible clayey sand. This zone is

considered unsuitable for founding of major plant structures and facilities

without significant improvement. Strata below the surface zone are typically

medium dense sands which are expected to support bearing pressures of

175 kPa.

 

The plant site area will be benched to form a series of platforms stepping

down the ridge, such that a usable area of the medium dense material is

exposed for founding of major structures in each plant area. It is then

proposed that ancillary facilities will be located at the periphery of each of the

benches. Approximately 300,000m3 of material will be cut to spoil.

 

 

- 61

 

 

Requirements for ground improvement either in-situ or by removal and

replacement are thereby minimised.

 

31.2.2 Wet Plant

The Wet Plant (WP), shown in Figure , receives ore directly from the mine

and will be designed for a feed rate dependent on the following operational

limits on a continual basis:

 

A maximum of 6.4 tph per rougher spiral

80 tph HMC production

The circuit design has been designed to exceed these limits moderately for

short term fluctuations.

 

Ore

U/S O/F

O/F

U/F U/F

O/F

U/F Water return

Conc Tail

Mid

Sand tails

Conc Mid

Run- Off

Tail

Mid Tail

Conc 1 Conc 2

Mid Tail

Conc

U/F

Oversize

Screen

Primary

Deslime

Cyclone

Rougher

Spirals

Scavenger

Spirals

Cleaner

Spirals

Bucket

Wheel

Excavator

Secondary

Deslime

Cyclone

Thickeners

Tailings

Dewater

Tailings Dam

Process Water

Desalinated

Water

Koromoji

Dam

Mkurumudzi

River

Recleaner

Spirals

Concentrate

Cyclone

Slurry Box

MPP

Feed

Tank

Figure 10 Wet Plant Flow Sheet

 

 

- 62

 

 

The plant feed rate will be dependent on the THM grade of the ore. That is,

at high feed grades (+5% THM) the feed rate will be limited by the production

of HMC whereas at lower feed grades (-5% THM) the feed rate will be limited

by the tonnage presenting to the rougher spiral stage.

 

The ore will be slurried with water ahead of a vibrating screen to reject +4mm

trash material. The undersize reports to the primary surge bin. The slurry will

be withdrawn from the surge bin and subjected to two stage desliming using

cyclones to remove slimes present in the ore, typically 25%. The deslimed

sand fraction will be upgraded using a four stage wet gravity spiral circuit to

remove quartz and tailings to yield a heavy mineral concentrate.

 

The plant will be designed to maximise heavy mineral recovery while

producing a high grade of dewatered concentrate (+90%HM) suitable for

presentation to the Mineral Preparation Plant (MPP).

 

31.2.2.1 Wet Plant Description

From the mine, the ROM delivery conveyor feeds into the Wet Plant where

water will be added to form slurry containing about 40% solids by weight.

This slurry reports to the vibrating screen to reject +4mm oversize waste and

the undersize reports to the primary Surge Bin.

 

Slurry will be drawn from this surge bin and pumped to the primary desliming

cyclones. The primary desliming cyclone overflow reports to the thickener

and the underflow to the feed sump for the secondary desliming cyclone.

 

The secondary cyclone overflow will be used to slurry the incoming ROM ore.

The deslimed sand in the underflow reports to the secondary surge bin.

 

The deslimed sand will be drawn from the secondary surge bin and fed to a

four stage wet gravity spiral circuit. The wet gravity spiral circuit upgrades the

valuable heavy minerals rutile, ilmenite and zircon into a heavy mineral

concentrate (HMC) while rejecting the lighter gangue quartz sands to tailings.

 

The design of this circuit provides for heavy mineral recovery and an HMC

grade of +90%THM.

 

The HMC will be pumped to cyclones located above the MPP feed surge bin.

When this surge bin is full the HMC will be pumped to a separate cyclone as

a standby stockpile.

 

The WP will be required to process a range of heavy minerals due to grade

variations in the Kwale orebody.

 

To cope with the large grade range, a control strategy has been developed

for the operation of the WP. The plant throughput will be controlled as an

inverse function of the grade of heavy minerals in the plant head feed. This

will limit feed introduced into the circuit to match the capacity of the back end

of the spiral circuit and the concentrates pumping system.

 

The WP will be fully instrumented to allow the control to be automated.

 

The separation process at the WP generates both sand tailings and slimes

rejects as well as HMC. The primary cyclone overflow containing the slimes

reports to one 46m diameter thickeners. Flocculant is added to aid water

recovery and generate a suitable solids density in the thickener underflow.

 

 

- 63

 

 

The WP will require both electrical power and large quantities of water. A

process water pond with a capacity of 5,000 cubic meters will be located

adjacent to the WP.

 

The existing Pilot Plant, located to the east of the Wet Plant will remain for

future test work. Permanent power and water supplies are to be provided.

 

31.2.3 Mineral Processing Plant (MPP)

The MPP will be established adjacent to the location of the WP at the Central

Dune. The MPP will not be relocated to the South Dune.

 

The MPP will comprise the Feed Preparation Circuit (FPC), Rutile Dry Circuit,

Wet Zircon Circuit and Zircon Dry Circuit.

 

The MPP is designed to receive up to 80 tph of HMC from the WP at +90%

THM. The annual production rate of the MPP is scheduled to be 350 ktpa

ilmenite, 75 ktpa rutile and 40 ktpa zircon.

 

Trash minerals will be removed using gravity, electromagnetic and

electrostatic equipment to generate marketable products of ilmenite, rutile

and zircon.

 

The mineral products are produced in bulk for sale overseas but space

provision has been made for the addition of bagging facilities should demand

for this packaging prove economical to warrant installation.

 

Waste products are returned to the WP for disposal with the sand and slimes

tailings.

 

The MPP will separate the HMC that it receives from the WP into ilmenite,

rutile and zircon products and a number of reject streams.

 

Some sand rejects will be stockpiled for possible re-processing or use / sale

for construction purposes. The remainder of the rejects will be transferred to

the WP for deposition with the slimes/tailings stream from the plant.

 

The flows depicting the production of ilmenite, rutile and zircon are as shown

in Figure 8, Figure 13, Figure 10 and Figure 11.

 

The following is a brief description of this process, which identifies project

actions and resultant environmental impacts.

 

31.2.3.1 Feed Preparation Circuit

The HMC will be pumped from the Wet Plant to the Feed Preparation Circuit.

The HMC reports either to a cyclone located above The Feed Preparation

Circuit Constant Density (CD) tank or if the load cell on the CD tank indicates

an over full condition then to a stockpile cyclone stacker.

 

 

- 64

 

 

Figure 11 Feed Preparation Circuit Flow Sheet

 

Stockpiled HMC will be recovered into the plant when insufficient feed is

available from the WP or via a feed bin and conveyor into the CD Tank.

 

From the CD tank the HMC goes through a number of processes including

screening, LIMS and WHIMS magnetic separation stages.

 

The magnetic product from this stage will be the ilmenite product. This

product will be pumped to a series of cyclones in a covered drying shed for

dewatering. Once dewatered to an acceptable level the product will be

recovered by FEL and transferred from a feed bin by conveyor to the ilmenite

dryer. The dried product will be stored in a 500 tonne truck load-out bin.

 

This crude ilmenite will be suitable for use as a feedstock for the production

of titanium slag.

 

The non-magnetic fraction will be presented to a three-stage spiral circuit for

rejection of additional sand tailings (ie free quartz and kyanite). The nonmagnetic

concentrate produced by this spiral circuit will then be dewatered in

a covered stockpile, reclaimed by FEL for drying and fed into the Rutile Dry

Circuit.

 

31.2.3.2 Rutile Dry Circuit

Within this circuit, a combination of process stages of high tension,

electrostatic and magnetic separation generates:

 

x

A rutile product which is stored in a 500 tonne truck load-out bin

 

 

- 65

 

 

x

A zircon enriched non conductor stream which is retained in a bin as feed

to the Wet Zircon Circuit.

 

x

An ilmenite product which if of marketable quality will be combined with

the crude ilmenite from the Feed Preparation Circuit or will be rejected.

 

x

A rejects stream which is combined with other MPP tails for transfer to the

final tails.

 

N/Mag Conc

Stockpile

Conductors ex-Dry Zircon

N/C Cond

Mid

Mags ex-Dry Zircon

N/C Cond

N/C Cond Mag

N/M Mag 2

Mag 1

Rejects

Transfer

Feed

Hopper

Fluid Bed

Dryer

Rougher

RRHTR

Mid Scav

ESP

Rutile RER

Magnet

Rutile

Screen

Rutile Product

BinWet ZirconStorage Bin

Mid Ret

RRHTR

Ilmenite Product

Bin

Figure 12 Dry Rutile Circuit Flow Sheet

 

31.2.3.3 Wet Zircon Circuit

The Wet Zircon Circuit treats the non-conductor mineral stream from the Rutile

Dry Circuit. Following a hydraulic classification stage, the coarse and fine

fractions will each be passed over a series of spirals and wet shaking to remove

the lighter trash minerals. Most of the tails from two circuits will be retreated

 

 

- 66

 

 

over separate centrifugal jig circuits to recover more of the valuable zircon

mineral. The jig products will be recycled to the classifier at the head of the

circuit.

 

The rejects from the jigs will be pumped to a stacking cyclone for use or sale as

construction material or disposed of with the WP tails. The concentrates from

each circuit are combined, dewatered in a covered stockpile, ahead of being

reclaimed for drying and further processing in a Zircon Dry Circuit.

 

Final testwork is in progress to confirm the Wet Zircon Circuit shown in

Figure 13.

 

 

U/F O/F

Conc Tail Tail Conc

Mid Mid T M

Mid

T Mid Tail Tail Mid

Conc

Conc Conc

Conc Tail Tail Conc

T

Mid C

Mid Tail Tail Mid

Conc Conc

Conc Conc

Tail Tail

Zircon Conc

Stockpile

Dry Zircon

Tails

Transfer

WetZirconStorage

Upstream

Classifier

U/F Primary

Spirals

O/F Primary

Spirals

U/F Retreat

Spirals

O/F Retreat

Spirals

O/F Cleaner

Tables

O/F Mid

Tables

U/F Cleaner

Tables

U/F Mid

Tables

Kelsey

Jig

Conc

Cyclone

Kelsey

Jig

U/F Mid Scav

Tables

O/F Cleaner

Spirals

O/F Scav

Tables

Circuit Feed

 

Figure 13 Wet Zircon Circuit Flow Sheet

 

 

- 67

 

 

31.2.3.4 Dry Zircon Circuit

The dewatered Wet Zircon concentrate will be reclaimed by FEL for drying and fed

into the Zircon Dry Circuit using a combination of high tension, electrostatic and

magnetic separation stages to produce:

 

A zircon product that will be stored in a 500 tonne truck load-out bin.

A rutile rich fraction that will be returned to the Rutile Dry Circuit to maximise the

overall rutile recovery

A magnetic fraction which is combined with other rejects streams for transfer to

the WP tails handling system.

Zircon Conc

Stockpile

N/Cond Cond

Mid

Cond

N/C

N/Cond Cond

Mid

N/Cond Cond

N/Mag

Mag

N/Mag

To Dry Rutile

Mag Feed

Rejects

Transfer

Feed

Hopper

Fluid Bed

Dryer

Rougher

HT Roll

Cleaner

HT Roll

Primary IR

Mag HTR

Secondary

IR Mag

Scav HT

Roll

Scav ESP

Zircon

Product

Bin

Figure 14 Dry Zircon Circuit Flow Sheet

 

 

- 68

 

 

31.2.4 Water

A water reclaim circuit will be provided at the Mineral Processing Plant. Two

flows from the Feed Preparation Circuit (ie primary attritioner deslime cyclone

overflow and rougher spiral cyclone overflow) will carry clay / slime

particulates generated from the degradation of clay balls and or surface

coatings on the mineral grains of the HMC. These two flows are directed to

the WP thickener for removal of these particles and clarification of the water.

 

The other outflows from the various circuits are directed to silt ponds to allow

particulates to drop to the floor of the ponds. The water will then flow into the

MPP process water pond for reuse. The silt ponds will be clay lined to

minimise seepage and will be routinely excavated to control the build up of

silt.

 

31.2.5 Product Handling

The truck load out facility consists of three 500 tonne elevated bins above a

common shed. The shed will be divided into three discrete enclosures to

prevent cross contamination of product due to drift and provide a dry

environment for the loading of the trucks.

 

Provision has been made for the future addition of bagging facilities and

storage for rutile & zircon adjacent to the bulk storage bins. Bagging

capability would be compatible with the industry standard which is for 2000

kg bulk bags, 1000 kg bulk bags and 40 kg multi-wall paper bags.

 

31.2.6 Environmental Considerations

Levels of radioactivity as seen in Kwale ores in the evaluation work indicates

that the level of radioactivity is sufficiently low that the products as

concentrated will not be classified as radioactive under current international

standards.

 

The MPP will generate dust in both the Rutile and Zircon Dry Circuits. The

dust will be collected by a dust extraction system, which will maintain the air

quality within the plant at an acceptable level in compliance with Kenyan

standards. Dust in the reject circuit containing monazite will be contained in

a separately clad enclosure with additional dust collection facilities. Each of

the dryers will also be fitted with a bag-house to entrap particulate matter in

the emissions.

 

Heavy fuel oil will be utilised as fuel for the drying of the ilmenite product, as

well as feed to the Rutile and Zircon Dry Circuits. This will result in gas

emissions and a by-product from the approximately 2.5% sulphur contained

in the heavy fuel oil, emitted into the atmosphere as sulphur dioxide. About

70 tonnes of sulphur will be emitted per year as SO2 from the MPP.

 

The MPP will be be design and constructed to comply with applicable

Kenyan emission standards.

 

31.2.7 Concentrate and Potential Waste Product

The main products to be transported from the Mineral Processing Plant will

be bulk ilmenite, rutile and zircon. These products will be transported by

road to the Marine Terminal and exported from there by bulk carrier to their

final destination. Other than a small local demand for rutile to produce

 

 

- 69

 

 

welding electrodes, there is currently no other demand for these products

and none is anticipated in the near future.

 

Approximately 22 tph of MPP sand waste reject streams will be combined

and slurried for pumping back to the WP. They will be combined with WP

sand tailings streams for disposal in the tailings dam. The slime bearing

Cyclone overflow streams, post the attritioning stages, are added to the WP

flows reporting to the thickener.

 

Some 8 tph of the sand waste from the Wet Zircon Circuit will be clean sand

rich in kyanite and free quartz which has potential as a product for

construction use. This product may be stockpiled separately for use or sale

to local enterprises.

 

31.3 WASTE DISPOSAL FACILITIES

The salient features of the revised slimes and sand tailings disposal system are :

 

Two tailing streams, one sand tailings and the other slimes tailings, are

discharged from the Wet Plant.G

The sand tailings are used predominantly to construct tailings dam

walls/embankments and to a lesser extent they are co-disposed with the

slimes tailings.

The slimes tailings stream is directed to one 46m diameter mechanical high

density thickener where flocculant is added to increase the slimes density

and recover additional process water.G

The thickened slimes from the thickener underflow is then pumped to a

mixing hopper where sand tailings may be added to achieve a 60% slimes :

40% sand mixture which is pumped at a solids concentration of 42% to a

tailings dam.G

A major off-orebody slimes dam with a maximum wall height of 42 metres

provides 52 per cent of the required total storage volume of 90.6 million cubic

metres, with the balance of total storage capacity provided by six smaller onorebody

tailings dams.

The average design densities for the thickened slimes and the 60% slimes :

40% sand mixture deposited in the tailings dams have been taken as 500kg/

m3 and 850kg/m3 respectively, which field tests have shown to be achievable.

 

- 70

 

 

31.3.1 Tailings Dams

A total of six tailings dams are to be constructed. The volumes of the tailings

dams are set out in Table 13.

 

Tailings

Dam No.

Average crest

elevation

m MSL

Volume in

perimeter

berm

m 3

Volume of storage /

impoundment

Surface shaped at 1 : 150

m 3

1 101 11,874,705 47,518,308

2 125 3,885,463 4,152,052

3A 125 2,938,944 7,179,946

3B 120 5,047,421 9,889,295

4 118 5,742,319 8,054,076

5 118 2,924,127 4,278,383

6 118 5,282,501 9,560,598

TOTALS 37,695,480 90,632,658

 

Table 13 Tailings Dam Volumes

 

The walls of the tailings dams will be built and completed in their entirety

sequentially. The construction of the main off-orebody Tailing Dam No 1 wall

will only be completed in Year 3 Month 6 and will use 100% of the sand

tailings generated by the Wet Plant.

 

This will be followed by construction of Tailings Dams No. 2 through to No. 6

and these walls will utilise 80% percent of the sand tailings produced in the

Wet Plant. The completion of the final Tailings Dam No. 6 wall will be in Year

12 Month 2.

 

Tailings Dam No. 1 provides storage capacity for more than 50 percent of the

projected tailings waste storage requirement. The crest elevation of Tailings

Dam No. 1 has a wall height of 42m, a crest width of 10m and 1 vertical in 3

horizontal gradients for both the inner and outer embankment slopes.

 

The final infill surface will slope at 1:150 from 100.5m MSL along the

perimeter embankment wall to approximately 95m MSL at closure. The

storage capacity is approximately 47.5 million m3 and the tailings quantity in

the wall is some 12 million m3.

 

Tailings Dam No. 6 has a storage capacity of about 10 million m3 which will

be filled substantially with sand tailings generated in excess of dam wall

construction requirements.

 

Tailings dam construction will be by the downstream method which is

considered to be the most appropriate methodology with the following

advantages:

Stability of outer berm more predictable:

 

 

-Large storm water retention;

-Ease of construction

-Smaller water demand with water recovered from sand berm;

-No mixing of sand and slimes for first 2 to 3 years.

Thickened slimes will be deposited directly in to Tailings Dam 1. With time

the slimes will naturally settle and consolidate under self-weight releasing

 

 

- 71

 

 

supernatant water, which will gravitate towards designated water collection

points along the valley lines. Thereafter, the slimes will be exposed to the

atmosphere and will dry and desiccate under natural conditions. The surface

area of the deposited slimes will be maximised by rotationally depositing the

slimes over a wide area in thin layers of ±300mm thick.

 

After completion of this phase, the outer slopes and crest of Tailings Dam 1

will be top soiled and replanted with vegetation.

 

The construction of the remaining disposal dams will proceed in sequence as

required. A similar method will be employed for these dams.

 

31.3.1.1 Parameters determined by the 2003 Pilot Programme

In 2003, performance examined included thickened and unthickened slimes

as well as sand / slime mixtures for the upper and lower horizon ore 15 and

23 days after placement. This has provided the average dry densities results

to be expected under evaporative beach conditions and non-evaporative pool

conditions that could be anticipated during full scale operational conditions

for each of the materials tested.

 

Percentage of Slimes :Sands Tailing

(%)

Dry Density

(kg/m³ )

100 : 0 500

60 : 40 850

0 : 100 1,600

 

Table 14 Dry densities of Deposited Tailings

 

31.4 CONCENTRATES TRANSPORT

A bulk storage and shipping terminal will be established at Likoni, approximately

50km North of the Plant facilities and concentrates will be delivered to this by road.

 

Trucks with a 36 tonne payload (maximum GVW 56 tonnes) will be used, operating

up to 20 hours a day, 7 days a week. Between two and three trucks per hour will

therefore leave the MPP.

 

The products from the MPP will be transported by road to the Marine Terminal,

using 8.1 kms of road road reserve of the E966 from the plant to the main road at

Gazi. the E966 is going to be designed and built to the Kenyan Government

specifications. This road is a government registered road,, Tiomin is going to

finance the construction of the E966) which is 8.1 kms long and joins the A14 near

Gazi. The A14 is the main road from Mombasa to Lunga Lunga which is on the

Kenyan Tanzanian border. This section of road is 42 kms therefore total distance

from Mine Site to Likoni Marine Terminal is 50.1 kms. The Kenyan Government

has embarked on an expansion programme on the A14 road plus the access to the

marine terminal, which is the road that links the Likoni Ferry channel to the Border

post at Lunga Lunga as part of its infrastructure upgrade strategy to accommodate

the envisaged increase in traffic that will be expected once the Tiomin Port Loading

facility becomes operational. We are aware that the initial work of gaining the

required space for the road reserves has started in earnest and will continue in the

months to come. Tiomin will engage a third party haulage company to export in

trucks with a 36 tonne payload capacity (maximum GVW 56 tonnes) to the Marine

Terminal. These trucks will operate on a 24 hr a day, 7 days a week therefore on

average there will be a truck arriving at the marine terminal every 45 minutes.

 

 

- 72

 

 

Permanent access to the Kwale site will be along 1.3km of a new gravel-surfaced

road which runs to the southeast of the plant site linking up with the existing E966

road (itself to be upgraded for 8.3km) before joining the A14 main road near Gazi.

 

Roads needed for mining and tailings dam construction will be built and maintained

by the mining contractor as required. These roads will be of a basic standard, to

allow Tiomin and contractors' vehicles access, and will not be open to the public.

 

The transportation of product will be managed and operated by a contractor.

 

The transport route is set out in Figure 15.

 

Concentrates will be delivered by trucks to individual bins and stored in silos for

each product to prevent contamination.

 

The transportation of product will be managed and operated by a contractor.

 

 

- 73

 

 

Figure 15 Likoni Transport Route

 

 

- 74

 

 

32. LIKONI MARINE TERMINAL

A bulk storage and shipping terminal will be established at Likoni, approximately

50km north of the Plant facilities.

 

The three products will be discharged into unique receival bins and lifted by bucket

elevator to silos allocated to each of ilmenite, rutile and zircon.

 

A mobile shiploader utilising conventional conveyor technology will load at an

average rate of 1,000 tph into vessels of between 10,000 dwt and 30,000 dwt. At

this rate, a 30,000 DWT vessel could be loaded in less than 36 hours, including the

time for berthing and ship movements.

 

32.1 MARINE TERMINAL DESCRIPTION

The products to be transported from the Mineral Processing Plant will be bulk

ilmenite, rutile and zircon. These products will be transported by road to the Marine

Terminal and exported from there by bulk carrier to their final destination. There is

no local demand for these products. Trucks with a 36 tonne payload (maximum

GVW 56 tonnes) will be used, operating up to 20 hours a day, 7 days a week. Two

to three trucks will therefore arrive at the Marine Terminal every hour on average.

 

The Marine Terminal will be located at Likoni, a total 50 km haul distance from the

Kwale processing facilities.

 

The storage system consists of 4 vertical silos with gravity reclaim to a central

tunnel belt conveyor. All silos are 20m in diameter, 2 silos with total capacity of

35,000 tonne dedicated to ilmenite, one silo of 15,000 tonne capacity for rutile

and silo of 10,000 tonne capacity for zircon. Each product has its own dedicated

truck dump hopper to avoid cross contamination of product.

 

The silos are of slip formed concrete construction. Prefabricated steel silos

constructed in SE Asia and barged to the port were also investigated. However

concrete proved to be more cost effective. The style of construction and associated

costs should be revalidated prior to the detailed design stage.

 

The annual quantities to be exported in the first 6 years of operation are 330,000 t

of ilmenite, 80,000 t of rutile and 40,000 t of zircon.

 

Bottom dumper bodies will be dedicated to individual products and a series of

coloured cards on vehicles will identify product being carried and destination for

tipping. It is anticipated that there will be seven trailers sets dedicated to ilmenite,

three sets for rutile and two sets for zircon. These trailers will be loaded by gravity

from the overhead bins at the MPP and will discharge by gravity at the Likoni

Terminal.

 

The loaded trailers discharge into dedicated hoppers from which bucket elevators

will convey the concentrates to the individual storages. One dump hopper is

dedicated to each of the zircon, rutile and ilmenite products.

 

Reclaim conveyors under the storage silos carry the product to a central outloading

conveyor to the shiploader. The total distance from the storage silo to the

shiploader is approximately 120 metres.

 

The back end of the out-loading conveyor is located in a tunnel under the silos, and

remains in the tunnel until past the service road, a distance of approximately 35

metres. Beyond the road, the conveyor is located on stringers on grade and then

steel truss structures over the water to the wharf structure with an elevated head

 

 

- 75

 

 

end to provide the necessary transfer height to the link conveyors to the shiploader

conveyor.

 

The mobile shiploader conveyor is located on a concrete wharf structure measuring

20 metres by 70 metres on marine piles.

 

The conveyors are enclosed and transfer points are dust tight, with rubber seals on

the skirt board and at the entrance and outlet of the chutes. It was considered that

dust collection was not required as the product does not contain a lot of fines and

will not generate much dust.

 

 

Figure 16 Likoni Marine Terminal Plan

 

 

- 76 -

 

 

Handimax bulk carrier ships of up to 30,000 tonnes dead weight will load out

ilmenite. It is expected that generally rutile and zircon will be loaded out with ships

in the range of 15,000 t to 30,000 t capacity, using partial loads. The total number

of ship movements per year is expected to be in the range of 25 to 40.

 

The Marine Terminal at Lat. 4º 05'S, Long. 39º 40'E, will be subject to the East

African Harbours Regulations 1970 and is within the responsibility of the Kenya

Ports Authority. Tiomin will provide navigation aids and markers in the port channel

as required.

 

32.1.1 Selection of Likoni Location

For the 2000 Feasibility Study, Shimoni was selected as the preferred

location for the marine terminal for the Kwale Project.

 

The fundamental reasons were:

 

-

Shimoni is located 35km from the Kwale deposit in a southerly direction

and is therefore closer than Likoni

-

Handimax ships can be accommodated with ease

-

Topography is flat and requires minimum work for site preparation

-

Access is good with an existing road located less than 3km away.

In 2003, additional review work was undertaken and the location was altered

to Likoni for the following primary reasons:

 

-

Shimoni's jetty would be unprotected with heavy seas 8 months per

year

-

Shimoni storage facility would be ± 2 km from jetty, but adjacent at

Likoni.

-

Port facilities i.e. Navigation Lights, Pilots, Tugs available at Likoni from

Mombasa, would be less so at Shimoni.

-

For marine accidents, there are facilities at Likoni but not at Shimoni

-

Shimoni land acquisition would cause significant delays.

-

High Voltage electricity is not available at Shimoni and the cost to

establish this would be high.

-

Future mine sites located North of Mombasa, can more cheaply utilise

the Likoni jetty than Shimoni, either through the North road or using

barges from Kilifi.

32.1.1.1 Ship Loader Options

A number of alternative configurations of shiploaders where reviewed

to select the most appropriate for the Likoni application.

 

Initially a simple fixed stacker was proposed which would require

movement of the ship to discharge into the various holds. This was

proposed to minimise capital costs and mechanical complexity. Tiomin

discarded this approach due to difficulties foreseen with managing the

ship movements within a "tight" sea frontage and closeness of adjacent

jetty and other potential shipping movements in the area. It was agreed

to keep the ship fixed and move the shiploader.

 

A fixed boom length radial stacker type machine was discarded due to

the length necessary to cater for the various hold positions and the

resulting size of the structure needed to cater for the range of

movements.

 

 

- 77

 

 

A conventional traveling, luffing stacker type with a tripper was

considered too costly for an operation handling only 460,000 tpa, as

the shiploader becomes a substantial structure with mechanical

complexity and requires significant marine works to implement.

 

The minimum capital cost solution is a mobile wharf mounted stacker

fed by link conveyors ("grasshopper" type). This requires a

conventional wharf type structure for the ship to berth against to allow

the mobile conveyors to be positioned. Whilst this adds to the cost, a

conventional wharf structure also has the advantage of allowing the

port to be used for offloading conventional cargoes as well enabling

better utilisation of the facility. The negative side of this option is the

need to manoeuvre the conveyors into position between loading

adjacent holds. However this configuration was considered a better

option than moving the ship.

 

33.

POWER SUPPLY

Power will be provided by a 16 MW HFO fuelled on-site generating plant located

adjacent to the process plant facilities. Tiomin will appoint a recognised supplier of

power stations to design, deliver, install, and commission the facility. The operation

and maintenance (O & M) of the plant will be contracted to an specialist entity in

this field.

 

The capital cost of the power plant shall be amortized through a rental agreement

over the life of mine with a company specializing in the rental of equipment.

 

The plant shall consist of four independent units of 4 MW each (three operating,

one standby) and will deliver electricity at 11kV to Tiomin's operations through an

11 kV distribution system and a low voltage network (415 V) within the entire

mining area. The mine site will have electrically operated processes and drives,

most of which will be rated to operate at 415 VAC and have a total load profile

ranging from approximately 10 to 11.5 MW throughout the year.

 

The O & M contractor will generally be responsible to:

 

a)

undertake the necessary operation and maintenance of the power station

to satisfy all the energy requirements for Tiomin's operations at the

specified availability and Load Factors;

 

b)

ensure that spare parts are available at all times and that the plant

availability is maintained to satisfy all the energy requirements of the

operation at any given time (Tiomin is responsible for the supply of fuel

and lubricants);

 

c)

comply with all statutory requirements commensurate with such a plant by

maintaining proper working conditions, safety and health, insurance on

plant and personnel, environmental conditions, Factories Act, Electricity

Power Act 1997 and current regulations thereof and any international

treaties guiding operations of such plants, as well as any other

Government and or Local Government regulations that may be enacted

from time to time.

 

 

- 78

 

 

34. WATER SUPPLY

Total water demand for the project operations has been estimated to be a

maximum of 500m3/hr during the first 4 years of operation, increasing to 700m3/hr

from the fifth year in response to increased wet pant throughput. The water balance

is calculated assuming:

 

x

 

 

Operation of the slimes thickener at 36% solids in underflow; and

 

x

 

 

Dewatering of the sand tailings to 85-88% solids.

 

 This demand will be met, in order of precedence, from:

x

Water collected in the tailings storage facility from rainfall run-off and

 

decantation from tailings pulp.

.. Mukurumudzi River

.. Koromojo Dam

x

Desalination make-up during periods of drought, or insufficient streamflow

 

in the Mukurumudzi.

 

Results from hydrological and hydrogeological studies carried out by Groundwater

Survey Kenya (GSK) are included in the Feasibility Study (Tiomin

Resources/Ausenco/LTA Process Engineering, 2000).

 

Water recovered / collected from the tailings storage facilities is highly dependent

on rainfall occurrence. Baseline studies of local weather patterns indicate that this

supply will meet 100% of project demand during the wettest months of May and

June, but as little as 20% in the driest months of January to March.

 

The shortfall in supply will be met from the external sources.

 

34.1.1 Surface water

The Mukurumudzi River is the most important surface water source in the vicinity

of the mining area. This perennial river arises in the Shimba Hills and flows from

the north-west to the south-east and drains into the Indian Ocean near Gazi Bay.

 

River flow is governed by the seasonal rainfall which averages 1,160 mm annually

in the Mukurumudzi catchment. Droughts and floods are common features of the

Kenyan climate. The risk of long dry spells is relatively high and prolonged

droughts (with an average monthly rainfall of 70 mm extending for 15 to 24

months) have an expected recurrence interval of 5 years. Significant flood events

occur on a similar frequency to droughts.

 

The base flow of the Mukurumudzi River is primarily maintained by the discharge

of numerous perennial springs. Without disturbing the base flow of the river at any

time of the year, the Mukurumudzi River, in a normal rainfall year, is able to supply

100% of the mining requirement for 75% of the year, mostly during the rainy

seasons.

 

A second, more distant potential source is the Ramisi River situated 10 to 15 km

from the mining site. Average discharge volume is probably 3 to 4 times the rate of

the Mkurumudzi River at a suitable intake point. Water from the Ramisi River has

not been included in the water supply for the project owing to distance and high

salinity. It is equally prone to drought.

 

Koromojo Dam, developed for irrigation of sugar cane by the Ramisi sugar factory

which failed in 1988, is another potential water source, located 8 km from the

Kwale deposit. The dam is situated on the perennial Mwabanda River, the main

tributary of the lower Mukurumudzi catchment. Unfortunately, the Mwabanda River

 

 

- 79

 

 

has become seasonal in recent years, but will act as a useful storage facility for

excess water from the Mukurumudzi.

 

This dam has a current storage capacity of about 1.4 million m³. This capacity

would be increased to 1.8 million m³ by repairing the damaged spillway. This would

be sufficient for the full 98%-dry demand for approximately 1.5 to 2 months. Each

extra meter the water level in the dam is raised would store sufficient water for an

additional 0.5 month of demand.

 

34.1.2 Groundwater resources

Groundwater drainage in the mining area is strongly related to topography, and the

presence of impermeable clay layers that cause lateral drainage. Two main

groundwater levels seem to occur in the area. The first is located deeply at the

boundary between the Magarini Sands and the Mazeras Sandstone where the

perennial springs emerge from the dune. The second level of groundwater is more

shallow and seasonal, occurring at about 15 – 25m below ground level where the

perched aquifers are intercepted by the topography.

 

Immediately east of the mining area is the Kilindini Sand Formation, which hosts

the Msambweni aquifer with groundwater at a depth of 0 – 100m below the

surface. The Kilindini Formation is considered the most promising water bearing

formation within the Kenya South Coast. This formation comprises a mixture of

very fine to coarse sands, calcareous sands and silts, silts, loams, clays and

intercalated detrital limestone. The relatively deep central part of this aquifer has

potential for sustainable large-scale abstraction. Approximately 50% of its storage

volume is retained above sea level, and could therefore be safely abstracted

without serious sea water encroachment.

 

Limited exploratory borehole drilling and test pumping were carried out on the

demarcated Msambweni Aquifer in order to carry out a preliminary evaluation of

the extent and the characteristics of the aquifer (GSK 2003). Results indicated the

storage in the aquifer to be about 300Mm3. Assuming an average specific yield of

20%, the volume of water in the aquifer is 60Mm3. It is estimated that the daily

through flow in the most productive part of the aquifer is about 20,000 m3/day (GSK

2004). However, the effect of sustained extraction on the halocline and the nearby

Gongoni Forest is unknown.

 

Production borehole pump tests to determine the safe yield and drawdown rates

per hole were not conclusive, thus precluding the use of the aquifer in the event of

a severe drought. .

 

34.1.3 Desalination

As the Msambweni Aquifer has not been conclusively proven to have the capacity

to sustain processing operations in the event of a sustained drought occurrence, it

became necessary to adopt the desalination option as the third source of water.

 

The installation of a desalination unit, with its dedicated generator, adjacent to tidal

lagoons at the mouth of the Mukurumudzi River has been included in the water

supply concept. This unit will be connected to the Mukurumudzi Weir by a 3-4km

pipeline and will be capable of delivering up to 4,800m3/day in the event that the

river and dam flows drop below the required rate.

 

In the event that a severe drought situation develops, additional desalination

capacity of 4,800m3/day will be installed.

 

 

- 80

 

 

34.1.4 Water extraction

The water extraction strategy will seek to recover the maximum permissible flows

from the surface water resources. These extraction rates will be determined by the

rainfall occurrences prevailing. The mining demand is also influenced by the rate of

recovery from rainfall run-off captured in the tailings dam.

 

During abnormal dry periods, shortfalls in the supply of water will be met by the

desalination plant.

 

34.1.5 Wet Plant and MPP

The water gathered from the Mukurumudzi River and the Koromojo Dam will be

pumped from a weir to the make-up water pond adjacent to the Wet Plant.

 

The overall Plant Water Balance is shown on Figure 17. This data is based on 36%

slimes thickener underflow density and dewatering of sand tailings to 88% solids,

but no recovery of rain water from the tailings dam and indicates a make-up

requirements of 665m3/h (16,000m3/day) at full wet plant throughput.

 

34.1.6 Tails Dam Water Recovery

Between 20 and 100% of the operational water requirements will be met from

recovered flows from the tails dams. With the construction of the tails dams' walls

being washed sand tails the walls will be permeable to excess surface water on the

tails dams. This water is the result of additional sedimentation of the slimes pulp

and rainfall onto the dams.

 

Toe drains around the dam walls will direct the seepage into sumps, from which

recovered water will be pumped back into the water supply network.

 

34.1.7 Likoni

Potable water will be provided by connecting to the local domestic water services.

 

Fire protection and washdown will also rely on domestic water piped to the

terminal.

 

 

- 81

 

 

Make Up

Water

 

0

 

703

 

 

Return

Process

 

 

Desalination

Koromojo Dam Process Water

Dam

Water

Ancilliaries

Water

 

0

Process

 

0

 

3045

 

Water

 

466

 

0

0

 

 

3959

20

 

 

 

Thickener

U/F

Or

 

Slimes

 

Wet Plant

370

1534

 

 

368 658

170 Sand

 

3207

 

Tails

1084

 

889

 

Sand

 

Mukurumudzi

River

Mining

 

Return

Water

0

 

698

 

Rainfall

0

 

0

 

Residue

 

 

Dewatering

HMC

80

 

 

Slimes

 

MPP

2

497

Sand

 

34

 

Tails

1084

 

191

 

 

Sand

Dry

 

62 Tails

Product

 

0 16

4

Ilmenite MPP

Rutile Tails

Zircon

 

Key:

Solids, t/h

 

Water, t/h

 

Figure 17 Overall Plant Water Balance

 

Tailings

Dam

 

 

1454

 

849

 

 

 

- 82

 

 

35. INFRASTRUCTURE

35.1 BUILDINGS AND FACILITIES

35.1.1 Process Plant

The Plant will include buildings for administration office, technical office,

laboratory, change house, ablutions, security, maintenance workshop,

warehouse, combined mess / training, weighbridge enclosure, power station,

electrical switchrooms with transformer bays. Septic tanks will treat all

domestic effluent. A chain mesh security fence will surround the site.

 

35.1.2 Administration

This 550 m2 single story air-conditioned building will accommodate 42

employees. Construction materials consist of plastered blockwork walls,

concrete slab floor with terrazzo finish and coloured steel roof sheeting with

thermal insulation to the ceiling. Toilet and kitchen facilities are included.

 

35.1.3 Technical Office

This 400 m2 single story air-conditioned building will accommodate 30

employees. Construction materials consist of plastered blockwork walls,

concrete slab floor with terrazzo finish and coloured steel roof sheeting with

thermal insulation to the ceiling. Toilet and kitchen facilities are included.

 

35.1.4 Laboratory

The laboratory consists of 316 m2, single story, air-conditioned building of

plastered blockwork walls, concrete slab floor with terrazzo finish and

coloured steel roof sheeting with thermal insulation to the ceiling. It has its

own toilet facilities.

 

35.1.5 Ablutions

Ablution facilities consist of change rooms with locker storage, toilets and

showers. Two buildings with total area of 350 m2 will be provided located to

suit proximity to work areas. Construction will consist of plastered blockwork

walls on concrete slab with coloured steel sheet roofing.

 

35.1.6 Staff Mess

Serving both as a Mess and training facility this building of 250 m2 is

constructed of plastered blockwork on concrete slab floor and coloured steel

sheet roofing with thermal insulation to the ceiling. The facility includes its

own washroom and toilets and a kitchen and servery area.

 

35.1.7 Workshop/Stores

The workshop stores complex consists of a steel portal frame 860 m2 shed

with roof and wall sheeting of coloured steel on a concrete slab with a chain

mesh fenced 700 m2 open storage yard. Offices abut the workshop building

in annex format.

 

 

- 83

 

 

35.1.8 Likoni

The Marine Terminal facilities will include buildings for Administration office,

Security / Weighbridge house and Ablutions. The electrical sub station will

be on the site with slab only for the standby generator set. Septic tanks will

treat all domestic effluent. A chain mesh security fence will surround the site.

 

The Administration office will house 3 staff and consists of a 75 m2 single

story, air-conditioned blockwork building on a concrete slab floor terrazzo

finished with coloured sheet steel roof and thermal insulation to the ceiling.

Toilet and kitchen facilities are included.

 

Ablution facilities consist of change rooms with locker storage, toilets and

showers. The facility will be 48 m2 in area and construction will consist of

plastered blockwork walls on concrete slab with coloured steel sheet roofing.

 

A Security / weighbridge building will be located at the entrance gate to

control the entry of trucks delivering mineral sands to the silos via a boom

gate. The construction will consist of a 15 m2 blockwork walled, concrete

slab, steel sheet roofed building.

 

35.2 ROADS

Permanent access to the Kwale site will be along 1.3 kilometres of new road which

runs to the southeast of the plant site and links up to the existing E966 road. This

road will be gravel surfaced and approximately 8m wide.

 

The E966 road will be upgraded for 8.3 kilometres and joins the A14 main road

near Gazi.

 

The 42 km section of the A14 road to Mombasa used for product transport is a

main public road and no major upgrades by Tiomin are intended.

 

At Likoni, some upgrading of existing roads will be carried out to the Marine

Terminal. These are tarmac surface roads capable of handling trucks with an gross

vehicle weight of 56 tonnes (36 tonnes payload).

 

Roads needed for mining and tailings dam construction will be built and maintained

by the mining contractor as required.

 

These roads will be of a basic standard to allow Tiomin and contractors' vehicles

access and will not be open to the public.

 

36. COMMUNICATIONS

36.1 EXISTING PUBLIC SWITCHED NETWORK SERVICES

Communications Kenya (CCK) operates a public switched telephone network in

Kenya. The major centres are linked by fibre optic cable, as well as a microwave

network and satellite system. The closest CCK links to the rest of the world are

from Mombasa, which is connected by cable and satellite.

 

There is a microwave connection from Ukunda to the CCK network. A digital

mobile network is also functional. CCK provides telephone, fax and slow speed

internet services to the Project office in Ukunda, though the speed of transmission

for facsimile and data is below the requirement for a mining operation. A mobile

 

 

- 84

 

 

phone network is in operation in the area and on parts of the Site, the international

network can be accessed now.

 

The systems can be classed as not greatly reliable, but significantly superior to

those available in many other third world mining countries.

 

The logistics for the implementation of satellite communications is being

investigated as an alternative.

 

36.2 NEW SYSTEMS

Figure 18 shows the proposed communications system between each of the

centers involved in the Kwale Project.

 

36.2.1 Telephones and Data

The main office to be established at the Kwale complex will be the hub for all

site communications servers. Communication will be via PABX to the Kenya

public network and to International destinations via microwave and fibre optic

cable systems.

 

At the WP and MPP, conventional desk telephones will be provided, with

radio connection to other buildings such as security and water pumping

stations.

 

The marine terminal will be connected to the public telephone system.

 

Mobile phones will be allocated to key personnel.

 

Other system node points will be at the mine and Likoni offices which will be

connected to the main office and servers and fully networked.

 

A new microwave system will be installed at the main office to connect into

the existing CCK microwave system for data and all phone traffic. This will be

more in preference to a satellite system which is expensive in Kenya.

 

A PABX will be installed at the Main office. All phones and radios on the

Kwale site will be controlled through hardware at the Main office.

 

 

- 85

 

 

Figure 18 Kwale Communications System

 

36.2.2 Two-Way Radio System

All site vehicles and key personnel will have radios.

 

The radio system will be a combination of fixed base units, mobile vehicle

units and hand held radios. Communication will be via base station

equipment located in the

 

36.2.3 Licensing of Communications Systems

On approval of the Project, a license agreement must be entered into with

CCK to establish the new circuits and connect to the local CCK network.

 

36.3 COMPUTER SYSTEMS

The computer network in the main administration office will connect a total of thirty

 

(30) computers, including those in the mine, warehouse, process plants, laboratory,

plant workshop and weighbridge.

At Likoni two (2) computers have been provided in the office for administration and

process tasks.

 

 

- 86

 

 

37. MARKETING

37.1 TITANIFEROUS FEEDSTOCKS SUPPLY/DEMAND OUTLOOK

The titaniferous feedstock supply/demand analysis has been based on the

assumption that TiO2 pigment production will settle back to its 2.9% per annum

long-term trendline growth rate, after the 5-6% p.a. swings during the unsettled

period following the events of 11 September 2001. While most growth will take

place in the chloride sector, the sulphate sector is once again showing modest

growth due to the rapid expansion of pigment production in China.

 

The forecast makes the following key observations

 

-

Sulphate grade ilmenite supplies are in balance with demand and will tend

towards shortage t until new supplies from extensive reserves in Southern India

and from new projects, such as Tiomin's, come on stream from 2006 onwards.

-

Both sulphate and chloride grade slag will remain oversupplied beyond the end

of the decade, assuming existing producers move to full production, fulfill their

expansion plans and remain viable. Whereas slag and ilmenite have distinct

applications within the sulphate sector and thus excess sulphate slag does not

significantly affect the sales potential for ilmenite, there is greater feedstock

flexibility in the chloride sector. Thus excess chloride slag can influence the

sales potential for SR and rutile.

-

Rutile is currently in short supply due to reduced production from a number of

major suppliers in 2003, which reduced supplies by 15%, followed by a very

strong sales year in 2004, which boosted rutile use.. It will move into oversupply

in late 2006 / early 2007 as new supplies reach the market from Sierra Rutile,

Iluka, Bemax, Kenmare, RTIT (UGS) and Tiomin

-

Zircon is undersupplied at present. In late 2006 / early 2007, new supplies from

Iluka, Bemax, Kenmare and Tiomin will move the market back to a slight

oversupply – a situation that could last for one or two years. This, however,

depends on how long it takes these projects to reach full production and whether

design capacity is achieved or not.The longer-term outlook is very dependant on

Iluka's plans for its new deposits in the Eucla Basin and its intentions, as the

major supplier, on the timing for the introduction of these new deposits. As a

general observation, there will be a tendency towards less zircon being

associated with future titanium ore production than in the past (with the

exception of the Eucla deposits) Continuing strong demand from the ceramic

and zirconium chemicals sectors is forecast, particularly in the Asia-Pacific

region

37.2 MARKETABLE PRODUCTS FROM KWALE

The following comments are provided on the products from the Kwale project.

Shipment in bulk from Mombasa port is envisaged for all the output, except as

noted. All pricing is in US$ per metric ton, FOB Port in country of origin.

 

95-96% TiO2 rutile (75,000 tpa)

 

The quality of Kwale rutile isvery good. Its size distribution means it is well

suited to welding rod and titanium metal manufacture, while still being

acceptable to the major application of pigment production. Due to the

fragmented nature of the electrode industry and its practice of buying under

short-term arrangements, sales activity has been focused on chloride

pigment producers initially, to secure offtake contracts. This process is well

 

 

- 87

 

 

advanced and two sales agreements have been concluded, for a total of 4055,000

tons/year. It is believed that at least 65,000 tpa can be placed with

customers in this sector, with sales to the electrode and metal producers

making up the balance, closer to the project start-up date. For sales to

electrode producers, shipment in bulk in containers, or in big bags, will be

necessary.

 

66% ZrO2 zircon (36,000 tpa)

 

Kwale zircon is of good quality, equivalent to the majority of zircon produced

by such competitors as Iluka Resources and Richards Bay Minerals. In the

present undersupplied market, there has been no difficulty in placing all the

forecast output under long-term sales agreements. There is the potential, if

quality requirements should increase or the markets go into significant

oversupply, to upgrade Kwale zircon to premium quality, by hot acid leaching.

Such processing is not considered necessary at present.

 

48-49% TiO2 ilmenite (330,000 tpa)

 

Kwale ilmenite falls at the lower end of the TiO2 range when compared to

competitive products, but its low impurity levels, other than iron, make it a

suitable feedstock for the production of both sulphate and chloride grade

slags, as well for the sulphate pigment route in certain plants where iron

sulphate (copperas) by-product can be handled. It is believed that the

developing deficit of ilmenite supplies to the many small and medium-sized

sulphate plants in China from indigenous mines, can be addressed with

Tiomin ilmenite. Sales activities to both smelting and pigment outlets are

being actively pursued and one major agreement has been concluded with a

Chinese Buyer, for 200,000 tons/year for 5 years, renewable for a further 5

years. Given the level of competition, particularly from India, results are

slower in developing than with rutile and zircon, but some encouraging

responses have been received from a number of quarters and further offtake

contracts are under discussion. The Kwale ilmenite can be roasted to give a

51% TiO2 product, with a lower Fe2O3 content, but the cost of this treatment

is not justified by the price the higher-grade product would bring, in the

present and forecast markets.

 

37.3 OFF-TAKE AGREEMENTS AND LETTERS OF INTEREST

The titanium minerals and zircon ceramics industries are both quite arcane. It is the

normal practice for supplier and consumers to withhold details of supply sources

and prices paid for raw materials. Secrecy agreements often apply in dealings

between supplier and consumer and, in order to respect these practices, it is not

possible to disclose the identity of actual and potential customers in this Review

 

Tiomin is convinced that it is possible to make sales of its good quality products,

even in the most adverse of markets. This has already been substantially achieved,

with close to 80% of products sold, in terms of their revenue generation, at current

prices, for the first two years of operation

 

Discussions with producers have led to the conclusion of contracts covering 65% of

Kwale's rutile production. Prices in these contracts are considered realistic in the

context of the forecast market conditions in2007, as they apply to a new entrant.

 

Other pigment producers are interested in an additional 20% of annual production.

Discussions have also commenced with non-pigment outlets for rutile, in the metal

and welding electrode industries, where the Tiomin product is particularly suited to

each application.

 

 

- 88

 

 

Tiomin's objective is to become a supplier of ilmenite to major producers, by

replacing supplies that will decline in coming years. A major contract has been

concluded, as noted above and another two are under discussion. . In addition,

serious discussions have been held with a view to placing Kwale ilmenite in the

smelting business. Testing of the product for this application has been carried out

and the product approved. It is expected that further substantial quantities of

ilmenite will be sold in China, which has been identified as the growth market for

Kwale-type ilmenites. This is putting Tiomin in competition with the cheaper end of

the market.

 

From the outset there has been a strong interest in Kwale zircon, which was

confirmed when samples were evaluated in 1999 – 2002 and the product was

universally approved for the opacifier application. It was therefore decided to direct

sales exclusively towards the high value end of the market i.e. ceramics, advanced

zircon materials and zircon chemicals.

 

In getting customers to sign up for sales that would commence in 2007, Tiomin

faced the challenge that pricing for zircon is negotiated on a much shorter-term

basis of typically 6 or 12 months, compared to titanium minerals, which is typically

for 1 to 3 years. This has been overcome by pricing arrangements that take

account of the competitive situation that is expected to apply in the year of delivery.

Three contracts, covering all of the zircon output have been concluded, except a

small contingency tonnage, to allow for annual variations in production.

 

 

- 89

 

 

38. ENVIRONMENT

Legislation in Kenya requires that the an Environmental Impact Assessment (EIA) is

prepared for every potential new venture and accordingly, the EIA, completed in 2000,

firstly evaluated the environmental impacts related to the mining operation and the

transportation of minerals, and secondly, devised strategies to reduce the negative social

and ecological effects of the Kwale Project and optimise the benefits to Kenya and its

population to enhance the viability and sustainability of the Project.

 

The Environmental Impact Assessment has found that the ecological impacts of mining

are acceptable after mitigation, and that the social benefits marginally exceed the

negative social aspects. However, the economic benefits far exceed the economic

negatives and the EIA therefore concluded that mining at Kwale should proceed, subject

to the implementation of the recommendations made in the EIA Report.

 

38.1 GENERAL

The area affected by mining and related activities (such as mineral processing

plant) at Kwale consists of ancient dunes that run parallel to and some 10

kilometres inland from the coast, which are mainly dominated by secondary

savanna and cultivated areas.

 

The community residing in the mining area is composed of three dominant ethnic

groups, the Digo, Duruma and Kamba. These people maintain strong community

networks and help those in need during difficult times and regard the area as a

good place to live. Families have well developed shambas, with most people living

in traditional houses made of earth walls and thatched roofs. The infrastructure in

the area is generally poor with limited public transportation, no electricity, no water

reticulation and no sewerage services.

 

There are approximately 308 households in the concession area, and people

practice mixed farming including various subsistence and vegetable crops, fruit and

tree plantations and grazing areas. The agricultural production in the area is

relatively high, although a lack of infrastructure and markets limits the economic

benefits that can result from agriculture.

 

38.2 MINING ENVIRONMENTAL IMPACTS

38.2.1 Impacts on topography and soil

The main impacts of mining on the physical environment include permanent

changes to the topography on both the Central and South Dunes and the

tailings dam. The change to the topography cannot be mitigated, and results

in a high impact.

 

Another significant impact arising from the mining option is change to the soil

and agricultural potential, which can be effectively mitigated by re-mixing the

slimes and sand in the tailings. The mining operation is therefore regarded

as having a low impact on the texture and chemical properties of the soils.

The proposed mitigation measures will maintain the agricultural potential of

the Central and South Dunes and will improve the land capability of the

tailings area by providing a better soil mixture than before.

 

38.2.2 Impacts on water

The water required for the mining operation will be supplied mainly from three

primary sources, the Mukurumudzi River, the Msambweni aquifer and the

Koromojo Dam. From available hydrological/hydrogeological information,

 

 

- 90

 

 

none of the above sources alone is adequate to meet the water demand of

the Tiomin Resources Inc mining facility in Kwale throughout the year. As

such, there is need to develop all the three sources of water in order to

assure adequate amounts of water to the mining facility.

 

Based on past records, the Mukurumudzi River and the Koromojo Dam have

high flows for abstraction during the rainy season and low flows during the

dry season. During the wet season (April to July), the mean monthly flow of

Mukurumudzi River (based on data between 1967 and 1987) is in excess of

the required external make-up water. During these months therefore, all the

water can be obtained from the river. On the other hand, Gongoni boreholes

will yield steady flows during both dry and wet seasons. During the dry

season, water may have to be supplemented from the Koromojo dam if the

river is not able to supply the required water. Based on the information

available, it is estimated that the dam may have a sustainable yield of

approximately 4,000 m3/day.

 

Mining will not have severe impacts on ground or surface water and will not

change the overall water balance of the area. However, there will be

changes to local surface water drainage patterns and shallow groundwater

bodies will be affected. Maintaining the base flow of the Mukurumudzi River

reduces impacts on this system. Abstraction of water from the Msambweni

aquifer will not impact on the quantity or quality of groundwater, as this large

aquifer can sustain large scale abstraction. The results of the recently

completed exploratory borehole drilling programme indicate that the

demarcated aquifer indeed has potential for high yielding boreholes.

 

38.2.3 Impacts on vegetation, flora and fauna

The proposed mining operation will have a high impact on indigenous plant

diversity and ethnobotanical resources, since the vegetation needs to be

removed before mining can take place. Although plant species diversity is

relatively high, most of the vegetation types are widely spread in southern

Kenya.

 

This also results in habitat loss, consequently reducing animal diversity.

Grassland and bushclump communities will not be significantly affected since

they are widespread, but the loss of a portion of the swamp forest is of high

significance, since this species rich habitat with specific ecological

requirements is limited to small areas. There will also be a moderate impact

on species of special concern. A successful rehabilitation and management

programme is planned to be developed to restore different natural habitats.

The protection of adjacent forests is also important, as these measures will

increase the success of the rehabilitation programme and reduce the overall

significance of ecological impacts.

 

Due to the disturbed nature of the area, the number of animals is fairly low.

However, a number of vulnerable or near threatened animal species are

likely to occur in the area. It is reported that large animals like buffalo are

present in the Gongoni Forest.

 

38.3 REHABILITATION

The areas disturbed by the Mining Operations as well as the area covered by the

Disposal Dam No. 1 will be rehabilitated to achieve nominally the productive

capacity as the original land.

 

 

- 91

 

 

During the deposition of the slimes and sand tailings, the outer berms of the

disposal dams will be progressively replanted with vegetation. Topsoil, which had

previously been removed and stockpiled, will be spread over these surfaces before

the vegetation cover is established.

 

Rehabilitation of the surfaces of the disposal dams will commence as soon as

possible after the closure of individual dams. It can be seen from Section 1.4.3.5

above, that the first dam to be closed will be Dam No. 2, with closure commencing

in Year 7 of operations. The next dam closure will not commence until Year 10 of

operations with closure of the other dams will happen progressively over the

remaining three years life of the operations.

 

Once the material in the dam has dried sufficiently by evaporation and desiccation

to enable equipment to work on the dam surface, the surface will be contoured to

establish appropriate drainage patterns.

 

The material deposited in the upper layers of both the tailings dam and mined-out

areas will be of similar composition to the sand on the dune before it was mined.

These areas will not loose their agricultural productivity after mining. However, the

topography of both dunes and the tailings dam will be changed significantly as a

result of mining. The rehabilitation plan, mainly the choice of plant species, will be

determined in association with the local community to ensure that a sustainable

plan that responds to their needs is developed, both in terms of agricultural

requirements and natural resources.

 

38.4 WET PLANT IMPACTS

There are impacts that are either specific to the Wet Plant, or for which significance

or temporal scales differ.

 

Loss of productive resources and the disruption of community networks result in

high negative impacts. These are caused by the permanent resettlement of people

from the site. The land will be vested in the Government of Kenya who will decide

on its future use.

 

People will not be able to resettle in this area after mining, as it is unlikely that this

infrastructure can be used to establish community facilities such as schools and

clinics, resulting in a high negative impact.

 

A further impact resulting from the plant is increased water and noise pollution,

which results in a low negative impact, provided the facilities are well managed and

that planning considers environmental health issues.

 

38.5 MINERAL PROCESSING PLANT IMPACTS

Impacts relating to water abstraction and release, agricultural potential, species,

habitat and some socio-economic impacts were as described above for the Wet

Plant.

 

There are impacts that are specific to the MPP, or for which significance or

temporal scales differ. Increased water, air and noise pollution will result in a low

negative impact, provided the facilities are well managed and that planning

considers environmental health issues.

 

Heavy fuel oil and sulphuric acid will be stored safely in leak proof tanks and within

bunded areas, so that the potential impact of contamination of the natural

environment is low. The disposal of gypsum will have no effect on the soils in the

 

 

- 92

 

 

area and will be disposed of in the tailings. Similarly, the disposal of radioactive

monazite will have no effect, as concentrations are too low for radioactive

classification. Flocculent will be disposed of in the tailings, also with a low impact.

Septic tanks will be constructed to reduce the impact of sewage disposal on

groundwater to low. Air pollution in the form of dust and sulphur will occur, but the

use of dust extraction systems and limiting the amount of sulphur released each

year as SO2 to within the Kenyan Regulations will result in impacts of low

significance.

 

38.6 SOCIO-ECONOMIC IMPACTS

The project has the potential to provide significant socio-economic benefits, with

limited costs, provided the recommendations made in the EIA are followed. These

include formalised channels of communication between Tiomin, Government and

the local community, and the preparation of a detailed Resettlement Plan.

 

The most significant benefits on the social environment relates to the employment

of approximately 200 local people for mining operations, excluding the effects of

indirect employment in the areas of transport and support industries. It is planned

that employment benefits will be maximised by means of the local employment

policy and skills development programme.

 

The benefits of the proposed development will extend to the district level. These

benefits relate to improved infrastructure and the multiplier effects of increased

employment, leading to positive impacts of moderate significance. However, close

interaction with the community and district officer's needs to be maintained to

optimise the economic and infrastructural benefits arising from the mining project.

 

The resettlement of people in the proposed mining site has the potential to result in

the following negative impacts of high significance:

 

-

Loss of productive resources (land, trees, grazing, wood, water, homestead

improvements, etc.),

-

Disruption to community networks (co-operative neighbourhood relations, etc.),

-

Loss of community infrastructure (schools, etc.)

-

Loss of or damage to household housing or belongings.

A comprehensive resettlement plan offering acceptable compensation plans

mitigates against these impacts, reducing their significance to low.

 

38.7 INFRASTRUCTURE

The infrastructure at the proposed mine site is generally poor, with limited public

transportation, no electricity, no water reticulation and no sewerage services.

 

Benefits at the district level include improved infrastructure and the multiplier

effects of increased employment, that lead to positive impacts of moderate

significance. Close interaction with the community and district officer's needs to be

maintained to optimise the economic and infrastructural benefits arising from the

mining project.

 

 

- 93

 

 

38.7.1 Site and Access Roads

The Kwale Deposit is accessed from the main highway by an 8 km gravel

road.

 

This road is to be maintained to minimise dust and it is planned for this work

to be contracted to local inhabitants, each responsible for the road adjacent

to their habitat.

 

Site roads will be watered by the mining contractor, using water carts. This

will be carried out at all times that mining is occurring.

 

38.7.2 Power Generation and Drying Fuel Supply

Heavy fuel oil will be stored safely in carefully designed and constructed

tanks and within bunded areas, to minimise the potential negative impact of

contamination of the natural environment through seepage or leaks.

 

38.7.3 Diesel Fuel

Diesel oil will be stored safely in carefully designed and constructed tanks

and within bunded areas. High speed bowsers will fuel trucks and vehicles

and all practical steps will be taken to minimise the potential negative impact

of contamination of the natural environment through spillage or leaks.

 

38.7.4 Sewerage Disposal

Septic tanks and leach drains will be constructed to reduce the impact of

sewage disposal on groundwater to low.

 

38.8 IMPACTS OF THE LIKONI MARINE TERMINAL

The shiploading facility has been relocated from the original location at Shimoni to

Likoni at the South shore of Mombasa harbour. The products (bulk ilmenite, rutile

and zircon) will be transported by road from the Mineral Processing Plant to Likoni

and exported from there by bulk carrier to their final destination. The annual

projected quantities of product to be exported are 330,000 tonnes of ilmenite,

78,000 tonnes of rutile and 38,000 tonnes of zircon.

 

The shiploading facility will not result in any significant impacts on the physical

environment and there are no terrestrial or marine habitats of special concern to be

impacted on due to the location within an already industrially active area.

 

Impacts on the marine environment are generally of moderate or low significance,

except in the very unlikely event of a ship going aground, or an oil spill which will

have a high localised impact on marine habitats.

 

Socio economic benefits are generally only of limited significance as the storage

and shiploading facility will generate a relatively small number of jobs.

 

38.9 IMPACTS OF THE TRANSPORT ROUTE

The minerals separated at the Mineral processing Plant will be transported by road

to the shiploading facility in Likoni about 50 km to the north. The existing bitumen

road is the main access road to Tanzania and countries further south. Accordingly,

 

 

- 94

 

 

it carries significant traffic movement. The development of a shiploading facility in

the Likoni area will result in increased traffic. Trucks with a 30 to 36 tonne payload

will operate around the clock, 7 days per week, so there is the necessity to control

the operation of the trucks delivering product to Likoni and returning to Kwale.

 

The increased traffic flow resulting from the transport of heavy minerals to the

storage facility will cause a high negative impact on the communities living in the

area. This impact can be mitigated by the separation of the bitumen road from

pedestrian activity to limit the risk to persons, animals and property from the effects

of frequent truck movements. In all high density areas, pedestrian access ways

are proposed parallel to the main road (Coastal and Environmental Services,

2004). Community Affairs personnel will be charged with the responsibility of

introducing the proposed plan to the local community and reaching agreement on

the execution of the plan.

 

38.10 FUTURE ACTION

Early Project development activities will include the establishment of an

Environmental Management Plan, approved in 2003, to include detailed Action

Plans relating to rehabilitation and resettlement. Implementation of these plans will

ensure that the overall benefits of the project will achieve their objectives.

 

Recommendations relating to soil have been incorporated into the design of the

tailings disposal technique, effectively reducing potentially severe impacts on

agriculture to acceptable levels.

 

The establishment of a rehabilitation programme as devised will help reduce the

significance of many of the ecological impacts. The success of this will be assured

with Tiomin's clear objective to actively protect the adjoining forested areas.

 

Socio-economic negative impacts will be effectively mitigated by implementing the

comprehensive resettlement action plan. This plan hasl detailed the actual resettlement

process, the monitoring of living standards of resettled communities

and providing strategies for maintaining community networks.

 

General recommendations for the shiploading facility include the development of

an action plan and further detailed planning of transport routes and segregation

where necessary of pedestrians from vehicular traffic.

 

A community liaison officer and an ecologist are to be employed by Tiomin for the

duration of mining operations.

 

 

- 95

 

 

39. CAPITAL COST SUMMARY

39.1 BASIS OF ESTIMATE

Estimates for the separate functional areas of mine, process plant and individual

areas of infrastructure were prepared by the various companies that worked on the

the 2000 Feasibility Study through to the 2004 Project Review.

 

The mining estimate for this Technical Report was assembled by Tiomin. Iterations

of work encapsulated capital and operating cost estimates for new bucket wheel

excavators, for used BWEs and for conventional mining fleet based on current

international rates.

 

Power generation is the single largest operating cost influence on the Project

economics and extensive capital cost studies were conducted on grid power,

capitalised HFO and diesel based generation and over the fence generation. The

application of excise duties influenced the outcome. This Technical Report allows

for HFO fired power generation plant to designed, constructed, operated and

maintained by an independent power provider on a contract basis at a rate of 10.5

US cents/kwhr.

 

The cost of developing a port at Likoni was prepared by Tiomin Resources Inc.

 

The estimated capital cost for the processing plant and associated infrastructure

was re-estimated by Ausenco in November 2005.

 

39.2 GENERAL

The capital estimate prepared for the 2005 Technical Report was prepared in 4Q

2005 United States Dollar values and the exchange rates adopted for that estimate

were as follows;

 

USD 1.00 = KSh 74.91G

USD 1.181 = € 1.00G

USD 0.74 = AUD 1.00G

USD 1.00 = ZAR 6.54G

USD 1.723 = GBP 1.00G

G

There was no allowance in this Technical Report for escalation beyond the 4Q

2005 pricing used therein.

 

Accuracy provision allowances have been allowed for and included in the

December 2005 estimate. Each dicipline was evaluated separately and an

accuracy provision was applied as deemed appropriate. This resulted in the an

overall project accuracy provision of approximately 7.5% of estimated direct bare

costs.

 

Project contingency has not been allowed for in the Dec 2005 capital estimate for

risks such as project delays, forex movements, insurance deductibles, escalation,

or scope changes/scope growth.

 

Diesel fuel supplies were costed at US$0.56 per litre and no further specific

contingency was provided for fuel price increases. This was based on the

assumption that there will be no excise duty applied to diesel fuel provisions.

 

 

- 96

 

 

Allowances were made in the capital estimate for compensation payments and

owners costs as advised by Tiomin Resources Inc.

 

Financing costs were excluded from capital cost estimates prepared in Dec 2005

and are also not included in the Financial Assessment.

 

39.3

MINING

The mining estimate for the 2004 project Review and for the 2005 and 2006

Technical Reports was assembled by Tiomin. Iterations of work encapsulated

capital and operating cost estimates for new bucket wheel excavators (BWE), for

used BWEs and for conventional mining fleet based on current international rates.

 

An allowance has been made for the acquisition, refurbishment, delivery and

commissioning of a new BWE with a theoretical capacity of 3,000 m3/hr.

 

Specifically, the mine design and capital cost was undertaken as follows:

 

a)

The mine design allows overburden removal by excavator and truck

fleet, followed by BWE mining of the bulk of the reserve. Areas not

accessible to the BWE will be mined by conventional mining equipment.

 

b)

Further to a) above, overburden removal and acquisition of the BWE is

capitalised as is exposure of BWE working faces.

 

c)

Capital allows for supply, delivery and erection of conveyors, fed from

BWE to convey ore to the Wet Plant. The earthworks associated with

this works are capitalised.

 

d)

The BWE has been priced based on quotations received in October and

November 2005 from ThyssenKrupp Fördertechnik, MAN Takraf and

FAM, all based in Germany.

 

e)

Establishment costs for the mining contractor and Owner mining

personnel and facilities are allowed for.

 

f)

The capital development works are to be carried out over a period of

about 24 months. All costs during this period are capitalised.

 

 

- 97

 

 

39.4 TREATMENT AND ASSOCIATED TAILINGS FACILITIES

39.4.1 Basis of Estimate

39.4.1.1 Summary

Ausenco prepared an updated capital cost estimate for the treatment

plant in the April 2005 using the April 2004 Review as a basis.

 

Ausenco redefined the scope of works and obtained budget prices from

vendors and contractors and prepared an estimate of capital costs for

the processing plants and incorporated cost estimates provided by a

number of other consultants and from TKL to consolidate into an overall

project capital estimate which was tabled in April 2005..

 

New quantities were estimated based on revised plant layouts for

earthworks, concrete, structural steel and platework. Quantities for the

electrical bulk commodities were also taken off as were major pipeline

quantities.

 

These budget rates and revised quantiies were used to develop the

April 2005 capital cost estimate which allowed for all identified direct

costs of equipment, materials, transport and labour for the installation

of the permanent facilities as well as for indirect costs of project and

construction management, site facilities, construction plant, vendor

representation, commissioning spares and first fills.

 

Subsequent to the April 2005 capital cost estimate Tiomin changed the

contracting strategy for the tretment plant from a LSTK approach to a

reimbursable EPCM approach with various parties responsible for parts

of the project - all defined by a set of battery limits. This resulted in

further adjustments to the April 2005 capital estimate. Tiomin engaged

Roche MT to conduct testwork to evaluate a number of value

engineering and cost saving initiatives with the use of new generation

equipment marketed by Roche MT (namely the high capacity spirals

and HT Rolls Machines). Roche provided revised capital costs and

quantities for the spirals building and for parts of the dry mill and these

costs were incorporated into a revised capital cost estimate in the 4th

quarter 2005. Additional equipment was also added to the wet zircon

circuit in agreement with Tiomin in order to achieve desired Al2O3

content in zircon product of less than 0.5%. The thickener circuit was

also changed from one high rate thickener to a larger high density

thickener based on slimes underflow testwork results. A number of

other changes were made to product storage capacities and plant

layout in order to preserve capital.

 

Tiomin also obtained and provided a number of revised quotations for

infrastructure items outside of the process plant area including raw

water supply systems and configuration, access roads, Bucket Wheel

Excavator, overland conveying system and mobile mining fleet; Port

Facility; Owners Costs, Working Capital, construction camp facilities

and catering, to name a few.

 

In the 4th quarter 2005 Ausenco was instructed to update the April 2005

capital estimate tabling a revised estimate in December 2005. This

December 2005 capital cost estimate included updated pricing for

escalation of equipment items and for bulk commodities. Ausenco

obtained updated pricing quotations wherever possible for all significant

estimate line items. Tiomin provided updated capital costs for concrete

and for structural steel supply and erection and these unit rates were

 

 

- 98

 

 

used in compilation of the updated Dec 2005 estimate as requested by

Tiomin.

 

The December 2005 estimate also includes Roche MT flowsheet and

scope revisions.

Capital Cost amounts referred to in this report are those estimated in

the December 2005 estimate.

39.4.1.2 Tailings Facilities

Within the 2000 Feasibility Study, Davies Lynn & Partners, prepared a

costing for the design and construction of the tailings storage facilities

and DLP provided escalation figures to update their prior estimates.

This was updated in the December 2005 estimate to reflect the current

economic conditions.

39.4.2 Estimate Detail

39.4.2.1 Treatment Plants

In broad detail, the capital cost estimate preparation for the April 2005

and Dec 2005 capital cost estimates were carried out as follows:

a) Wet Plant and Mineral Processing Plant mass balances, flow sheets,

equipment lists and conceptual designs were prepared by Ausenco and

by Roche MT.

b) Renewed quotations were sought for equipment items.

c) Bills of quantities of concrete, steel, platework, electrical and

instrumentation, large bore non process plant pipelines, and buildings

were prepared

d) Revised unit rates were requested from various contyractors and

suppliers considered suitable for the works and a rates book was

compiled based on evaluation of the various prioing submissions and or

by use of in house database prices.

e) Small bore piping, valves and freight were factored based on in house

factors.

39.4.2.2 Tailings Disposal Facilities

a) The tailings dams and associated works were studied and cost estimates

were prepared for the Tailings Disposal Facilities, incorporating

thickening, pumping, tailings dams, ponds, return water systems and

peripherals.

b) Estimates were updated from earlier estimates prepared by DLP

including new pricing and escalation provisions from earlier pricing in

studies. Prices were obtained from reputable South African suppliers

and from contractors with tailings dam experience in Africa.

 

39.5 INFRASTRUCTURE

39.5.1 Roads

 

- 99

 

 

a)

The 8.4km access road between the Plant Site and the Mombasa

Highway has been routed and costed by a Kenyan quantity surveying

and engineering consulting company called Muambi Associates with the

intent to enter into a negotiated contract with a selected contractor to

construct the road on a bill of quantities basis.

 

b)

During operations, the 8.4km road will need regular maintenance and

costings allow for the periodic and on-going maintenance of the road by

local resident groups as a cottage industry.

 

c)

The 42km bitumen road between Gazi and Likoni (A 14) will require

minor maintenance leading up to and during implementation of the

Project. The Department of Roads in Mombasa has undertaken to

maintain the road.

 

d)

A further provision was made for 2km of improvements close to Likoni in

order to isolate pedestrians from vehicular traffic in selected areas of

high risk and/or pedestrian traffic.

 

39.5.2 Water

a)

Estimates of facilities for water supply were developed by Surtech

Engineers and provided for pumping stations at Koromojo Dam and

Mkurumuji River and a desalination plant at the Mukurumudzi Estuary.

This estimate included all discipline areas.

 

b)

Access tracks associated with water supply were included

 

c)

Ponds for water storage at the plant are included in the earthworks

estimate

 

39.6

INDIRECTS

39.6.1 Temporary Construction Camp

A considerable influx of temporary construction staff will be required which

will involve a skilled and semi-skilled workforce. It is anticipated that the

construction personnel will comprise a mixture of skilled workers sourced

from Kenya, neighbouring third world country nations and finally from second

or first world countries, as necessary, and accommodated on a temporary

basis.

 

It is expected that Contractors engaged for construction work will source the

majority of their semi-skilled or unskilled labour from local areas.

 

A camp, to internationally accepted standards, will be established to cater for

the influx of senior staff personnel. The camp will be managed and operated

by a catering contractor, who will provide all necessary catering, cleaning,

laundry and maintenance services for the duration of the construction phase.

This camp will be leased for the construction phase It is planned to

commence operation in month 3 with demobilization over a period of 6

months with total removal expected after month 26.

 

The costs of establishment of the camp and its operating costs during

construction have been provided for in the Dec 2005 estimate.

 

39.6.2 Preliminary and General Expenses

 

 

- 100

 

 

These costs included all contractors' indirect costs such as mobilisation and

equipment, man day rates for staff for accommodation at the site camp or

other off-site facilities, vehicle hire / lease costs, computers and other

construction support elements.

 

39.7 EPCM COSTS

39.7.1 Personnel Costs

39.7.2 Expenses

In addition to the costs incurred by personnel, allowances were made for the

categories of expenses that will be incurred in EPCM expenses over the two

year period of Project implementation.

 

Engineering , Procurement and Construction Management Services ( EPCM)

which include engineering design, procurement, inspection and expediting,

construction management, project management, logistics management,

planning and controls have been included in the capital cost estimate.

 

These costs have been developed by estimating labour man hours and

applying labour rates including all oncosts and markups. Manhours are

based on applying standard hours against an anticipated deliverable list for

those activities which are deliverable dependant and durations against those

that are schedule dependant. Labour rates were based on typical Australian

engineering company rates for the design, procurement and project

management activities and a mixture of South African and Kenyan rates for

site activities. EPCM engineering company expenses cost estimates were

developed.

 

Allowances were made for the provision of vendor support. Expatriate

commissioning assistance and management has been based on expected

duration for commissioning of the operation.

 

The Principal EPCM contractor services have been estimated from first

principles based on a take off of all anticipated deliverables and an activities

and consideration for time based resources and project duration. Budgeted

manhours were applied to each deliverable and activity and market rates for

an international EPCM consultant were applied to these manhour estimates.

Provision was also made for EPCM expense items and for site establishmnet

costs and construction support based on Ausenco's prior experience in east

Africa.

 

Since the completion of the December 2005 estimate additional EPCM

expenses related to risk or services provided by Ausenco or their

subconsultants have been identified. These expenses have not yet been

included in the current estimate.

 

The Dec 2005 estimate includes EPCM labour and expense amounts for

other consultants in addition to the Principal EPCM contractor including parts

of the process plant (Roche MT), tailings (DLP), water and infrastructure

project elements as advised Tiomin and Surtech; and various infrastructure

and the port facility (Muambi and Associates).

 

39.8 PLANT SERVICES

39.8.1 Power

 

 

- 101 -

 

 

Tiomin decided to seek quotations for various HFO power supply options

during 2005. As a consequence all previous capital allowances for power

supply via O/H transmission lines have been deleted. The current scope of

works allows for a power station to be designed and constructed by a

specialist contractor and leased to Tiomin Kenya Limited through a hire

purchase agreement with a separate operating and maintenance service

agreement. No capital costs are allowed under this scenario and all costs

have been included as operating costs.

 

39.8.2 Fuel Storage

HFO is utilised for the drying of products and for power generation and the

primary user of diesel fuel is the haulage fleet for delivering concentrates to

Likoni. Fuel company supplied storage tankage and hardware will be built by

the selected fuel supplier and the capital costs will be recovered through the

fuel supply cost as operating costs..

 

39.8.3 Potable Water

The capital cost estimate in the Dec 2005 estimate allows for a potable water

supply for on site operations.

 

39.8.4 IT & Communications

The capital cost estimate in the December 2005 estimate allows for:

 

a)

The site telecommunications system and radios

 

b)

CCTV security systems

 

c)

Computers and associated installations as well as relevant software

 

39.9

OWNER'S COSTS

d)

Operating costs prior to commencement of production in Month 0 are

included in the capital estimates prepared for the 2005 Project Review,

based on updating the figures contained in the 2004 Project Review and

utilising the Tiomin Operating Plan prepared in 2001. Provisions are

included for Owner's team manpower, office and administration, project

development and social and environmental management. Resettlement

costs are included in the latter estimate and constitute a significant

proportion of the total cost in the area.

 

e)

The cost of working capital and the deferred and replacement capital

requirements are included in the financial model

 

a)

The capital cost estimate prepared for the 2005 Project Review includes

the direct costs of work to be carried out during the implementation

period after availability of finance drawdown based on all of the work

being completed in a total 24 month implementation period. Prior to

finance availability and project commencement, interim activities will be

continued by the Owner. Costs incurred during this period are not

provided for in the capital cost estimates detailed herein.

 

39.10

CLOSURE COSTS

 

 

- 102 -

 

 

Tiomin has included US$ 4 million for closure costs in the last year of operations.

This cost however is expected to be off-set against US$ 4 million of residual value

obtained from salvaging plant and equipment and thus no additional capital

provision has been allowed in the economic model.

 

Capital Cost Item Total Cost

US$ 000

Mining equipment & infrastructure 17,750

Wet Plant 10,500

Mineral Processing Plant 30,460

Tailings Disposal 11,850

Plant Services 5,220

Infrastructure 18,680

Marine Terminal 15410

Power 0

Mobile Equipment 1,250

EPCM costs 22,830

Spares & First Fills 1,560

Indirects 8,280

Sub-total

excl Contingency, Owner's Costs 143,790

Owners Costs 15,590

Contingency allowance 12,390

Total Initial Capital 171,770

Working Capital

Stores and creditors 4,800

Total Capital 176,570

 

Table 15 Capital Cost Summary – November 2005 Capital estimate.

 

 

 

- 103

 

 

40. OPERATING COST SUMMARY

This summary has been prepared by updating the original operating costs found in the

2000 Feasibility Study and the 2004 Project Reiew. Those operating costs were

developed from first principles and were estimated by the individual estimators of the

various sections of the operation comprising mining, process plant, tailings disposal,

infrastructure and Owner's costs. Where plant and equipment is involved in estimates

these were split into fixed and variable components and reflect real costs for forecast

variable production tonnages.

 

Operating costs estimates were updated for the 2005 Project review. These costs are

quoted in US$ and are based on exchange rates of:

 

USD 1.00 = KSh 73.20G

USD 1.20 = € 1.00G

USD 0.74 = AUD 1.00G

USD 1.00 = ZAR 6.15G

USD 1.75 = GBP 1.00G

The nominal mining rate capability for the Kwale Project is 12.5 MTPA. The operation

commences at a lower tonnage during the first five years of operation when high grade

ore is mined and in the remaining years when the grade decreases the annual tonnage

mined increases to a maximum of 12.5 MTPA.

 

40.1 BASIS OF ESTIMATE

The following sources of information were utilised in determining the operating

costs in the 2004 Project Review and retained in the January 2006 estimate update

prepared by Tiomin.

 

-

Equipment supplier information

-

Ausenco/LTA Process Engineering operations experience

-

Kenya and expatriate labour rates are based on benchmarking against current

practice and international market surveys.

The operating costs were based on the predicted production rates and the cost of

which varies from year to year, depending upon the recovery grades.

 

Escalation, depreciation and taxation, were not taken into account in compiling the

operating costs in the 2004 Project Review as these were dependent upon the

financial accounting practices followed.

 

The operating cost estimates allowed for expected costs based on throughput rate

variation in turn dependent on grade. In the early years of production, when the

grade is high, the mining rate is to be curtailed to limit the production rate to match

plant capacities.

 

A contingency of 10% was provided for which can be reduced after the first two

years of operation, as the project beds in and the actual wear rates and cost

patterns are established.

 

The major cost element is that of power and the required input of HFO. The

operating cost estimate prepared by Tiomin for this Technical Report includes for

the revised power supply cost using HFO fuel and has been based on HFO costs

being exempt of excise duty.

 

The costs are prepared in January 2006 monetary terms.

 

 

 

- 104

 

 

The operating cost is extremely sensitive to the price of HFO. This has ranged

between $250 and $400 per tonne over the past 18 months. The current price is

$330 delivered to site.

 

The summary of the operating costs is presented to reflect the costs by functional

centres in Table 16 and by discipline centres in Table 17. These tables represent

only years 2 to 10 inclusive to discount the effect of ramp up and ramp down in

years 1 and 11. The overall life of mine unit cost including years 1 and 11 was

estimated to be $2.39 / tonne ore.

 

Years 2 - 10 $/ Tonne Ore %

Power $ 71,348,072 $ 0.72 30.6

Labour $ 40,206,046 $ 0.41 17.2

Earthworks/Rehab $ 12,855,474 $ 0.13 5.5

Contingency $ 20,059,705 $ 0.20 8.6

Maintenance $ 17,938,013 $ 0.18 7.7

Overheads $ 14,130,000 $ 0.14 6.1

Product Transport $ 16,854,646 $ 0.17 7.2

Management $ 16,992,222 $ 0.17 7.3

Floculant $ 14,424,071 $ 0.15 6.2

Drying HFO $ 6,675,510 $ 0.07 2.9

Consumables $ 1,935,000 $ 0.02 0.8

Total $ 233,418,760 $ 2.36 100.0

Tonnes Ore 98,854,747

 

Table 16 Operating Cost Summary by Functional Centres (Years 2-10)

 

Cost Centre Years 2 - 10 $/ Tonne Ore %

Mining $ 33,029,389 $ 0.33 14.2

Wet Plant $ 34,942,169 $ 0.35 15.0

MPP $ 39,477,981 $ 0.40 16.9

Tailings / Water $ 42,272,364 $ 0.43 18.1

Product Haulage $ 16,854,646 $ 0.17 7.2

Likoni $ 4,124,591 $ 0.04 1.8

Administration $ 29,895,914 $ 0.30 12.8

Management $ 12,762,000 $ 0.13 5.5

Contingency $ 20,059,705 $ 0.20 8.6

Total $ 233,418,760 $ 2.36 100.0

Tonnes Ore 98,854,747

 

Table 17 Operating Cost Summary by Discipline Centres (Years 2 -10)

 

 

 

- 105

 

 

41.

ECONOMIC ASSESSMENT

41.1 FINANCIAL MODEL

This financial and economic analysis has been prepared by Tiomin Resources Inc

and is based on the revenues generated, capital costs and operating costs

updated as part of this Technical Report. It also incorporates the terms defined in

the Fiscal Agreement executed by the Kenyan Government on 2nd February 2005

where appropriate.

 

The Project is evaluated on the basis of:

 

Royalties at 2½% of gross revenue after transport costs deducted.

15% corporate tax rate during first 10 years of operation

30% corporate tax rate after year 10

On site owner operated power generation

Fuel and HFO excise duty exempt

Plant and equipment free of import duty

VAT on Kenyan goods and services are reimbursable

No financing charges included

The capital provision allocated for final plant demolition and rehabilitation

costs are offset against revenue received from salvaging equipment and

materials.

The Marine Terminal will be sold at the end of the 11 year project life for a

price equivalent to an NPV of US$14M, discounted at !0%.

The following overall plant recoveries have been included by Tiomin Kenya

Limited in the financial model and economic assessment

Mineral Overall

Recoveries

Ilmenite 92.4%

Rutile 86.8%

Zircon 85.0%

 

41.2 SUMMARY OF THE EVALUATION

x

Revenue

Total project revenueUS$

$ 633.7 M

x

Capital CostsTotal Capital Estimate

Owners Costs

Contingency

Stores & Creditors Working Capital

US$

$143 790 000

$15 590 000

$12 390 000

$4 800 000

Total

_________________

$176 570 000

x

Operating Costs

Mine Life Operating Cost

Unit Operating Cost ($/tonne ore)

$276 784 000

$2.39 per tonne

 

 

 

- 106

 

 

x

Financial Summary

 

Cumulative Cash Flow US$137 012 000

NPV @ 7.5% US$46 209 000

NPV @ 10% US$26 983 000

IRR 14.7%

Payback 4 years

 

41.3 CONCLUSION

The financial summary demonstrates the economics of the project based on the

production and sale of all three products, rutile, zircon and ilmenite over the 11

year life of the mine

 

A graph of the annual and cumulative project cash flow is presented in Figure 19.

 

Kwale Project Cash Flow

 

200

 

150

 

100

 

50

 

-2 -1 1 2 3 4 5 6 7 8 9 10 11

Annual Cash Flow

0

 

 

Cumulative

-50

 

-100

 

-150

 

-200

 

Year of operation

 

Figure 19 Annual and cumulative project cash flow

 

US$ million

 

 

 

- 107

 

 

Copies of Certificates of Competency relating to contributors to NI 43-101 Technical

Report March 2006.

 

x

 

 

SRK Consulting (Richard Watts, Bruce Evans, Rick Skelton, Dr Alwyn Annels)

x

Ausenco Limited (Matt Langridge)

x

Tiomin Resources Limited (Robbert Borst)

x

Snowden (Allan Blair)

x

Nathalie Ross (Consultant to Tiomin Resources Limited)

 

 

 

87 Colin Street

West Perth WA 6005

PO Box 77

West Perth WA 6872

Telephone +61 8 9481 6690

Facsimile +61 8 9322 2576

 

 

perth@snowdengroup.com

www.snowdengroup.com

 

 

Perth, Brisbane, Vancouver,

Johannesburg,

London

 

 

CERTIFICATE OF QUALIFIED PERSON

 

 

I, Allan Blair, do hereby certify that:

 

 

1.

I am a Principal Mining Engineer of

Blair Mining Pty Ltd,

Consulting Mining Engineers, of

34 Portland Street,

Nedlands, Western Australia 6009.

 

 

I was previously employed as a Principal Mining Engineer by Snowden

Mining Industry Consultants of

87 Colin Street,

West Peth,

Western Australia 6005.

 

 

2.

I graduated with the following degrees:

MBA International -University of WA, 2004

BAppSc in Mining Engineering

Western Australian School of Mines, 1985

BSc in Biochemistry and Physiology

University of Western Australia, 1983

 

 

3.

I hold the following professional qualifications:

Member of the Australasian Institute of Mining

and Metallurgy (MAusIMM)

Member of the Australian Institute of Management (FAIM)

 

 

4.

I have worked as a professional mining engineer for a total

of twenty years since my graduation.

My experience encompasses operational, management, technical

and consulting experience in underground and open pit operations

in Australia and overseas.

 

Consulting experience includes a wide array of underground and

open pit studies and project management, ranging from bankable

feasibility studies and bank audits to scoping studies,

underground mine designs and pit optimisations.

 

 

5.

I have read the definition of "qualified person" set out in

National Instrument 43-101 ("NI 43-101") and certify that

by reason of my education, affiliation with a professional

association (as defined in NI 43-101) and past relevant

work experience, that I fulfil the requirements to be a

"qualified person" for the purposes of NI 43-101.

 

 

6.

Whilst in the employ of Snowden Mining Industry Consultants,

I prepared for Tiomin Resources Inc., a mining study for the

Kwale Mineral Sands Deposit, and dated July 2005.

 

This study was entitled:

"Mining Study

Pit Optimisation, Design, Schedule and Costs".

Certain content from this study was used for

the preparation of Items 21 (Section 28) and 25 (Section 31.1)

of the technical report entitled "NI 43-101 Technical Report

for the Tiomin Kenya Ltd, Kwale Mineral Sands Project",

dated February 2006.

 

 

This content relates to mining equipment selection, mine operating

and capital cost estimates, pit optimisation, mine design and

production scheduling.

 

 

 

7.

I have read NI 43-101 and Form 43-101F1, and certify that

the sections of the Technical Report for which I was responsible

as a qualified person have been prepared in compliance with

that instrument and form.

 

 

I further certify that I am not aware of any material fact or

material change with respect to the subject matter of the

Technical Report that is not reflected in the Technical Report,

the omission to disclose which makes the Technical Report

misleading.

 

 

 

8.

I have not had prior involvement with the property that is the

subject of the Technical Report and I am independent of the

issuer of the Technical Report, in accordance with the application

of section 1.4 of NI 43-101.

 

 

 

9.

I consent to the filing of the Technical Report with any stock

exchange and other regulatory authority and any publication

by them for regulatory purposes, including electronic publication

in the public company files on their websites accessible by the

public, of the Technical Report.

 

Dated this 20th Day of March, 2006.

 

 

 

Allan

Blair

 

 

 

CERTIFICATE OF QUALIFIED PERSON

 

Dr Nathalie Ross, PhD.

179 Central Park Dr.

Ottawa, Ontario, K2C 4B9

 

Tel: (613) 761-1273

E-Mail: rossnathalie@sympatico.ca

 

 

I, Nathalie Ross, PhD., P.Geol., do hereby certify that:

 

1.

I am a geologist and a member in good standing of the Ordre des Géologues du Québec (OGQ) and

the Ordre des Ingénieurs du Québec (OIQ) since 1983.

2.

I graduated with a degree in Geological Engineering from the University du Québec in 1983. In

addition, I have obtained a Ph.D. in Geology from the Université Laval (Québec) in 1993.

 

3.

I have worked as a geologist for a total of 15 years since my graduation from university, and from

1994 to 2002, as a geologist specialized in mineral sands deposits. During this time, I have been

involved in the evaluation of minerals sands deposits in Canada, Kenya and Ecuador.

4.

I have read the definition of "qualified person" set out in National Instrument 43-101 ("NI 43-101")

and certify that by reason of my education, affiliation with a professional association (as defined in

NI 43-101) and past relevant work experience, I fulfill the requirements to be a "qualified person"

for the purposes of NI 43-101.

5.

I am responsible for the preparation of the geological sections 6, 9, 10, 11, 12 and 22 of the report

titled "Kwale Mineral Sands Project, Technical Report" compiled by Ausenco Limited and dated

March 2006.

6.

I have had prior involvement with the properties that are the subject of this report. The nature of my

prior involvement is evaluation, sampling, drilling supervision. I visited the site at numerous

occasions from 1996 to 2002 and my last visit on the Kwale property was in July 2004 for three

weeks.

7.

I am not aware of any material fact or material change with respect to the subject matter of the

report that is not reflected in this report, the omission to disclose which makes this report

misleading.

8.

I am not independent of the issuer applying all of the tests in section 1.5 of National Instrument 43101,

as I was working for Tiomin Resources Inc. as an employee from 1994 to 2002.

9.

I have read National Instrument 43-101 and Form 43-101F1, and this report has been prepared in

compliance with that instrument and form.

10.

I consent to the filing of the above mentioned Technical Report with securities regulatory

authorities and any publication by them for regulatory purposes, including electronic publication in

the public company files on their websites accessible by the public, of the Technical Report.

Dr. Nathalie Ross

March 23, 2006

 

 

Kwale

 

SRK Consulting

Windsor Court

1-3 Windsor Place

Cardiff

United Kingdom

CF10 3BX

 

e-mail: cardiff@srk.co.uk

URL: www.srk.co.uk

 

Tel: + 44 (0)29 20 34 81 50

Fax: + 44 (0)29 20 34 81 99

 

 17 March 2006

 

Tiomin Resources Inc

26 Wellington Street East,

Suite 820

Toronto

Ontario

CANADA

M5E 1S2

 

For Attention: Mr Robbert Borst

 

Dear Sir

 

Re: Kwale Resources and Reserves

 

Further to you request, we have examined the references to SRK's comments and conclusions

on the resources as set out in the draft Ausenco report entitled "Kwale Mineral Sands Project,

Technical Report, February 2006" as contained in Word file "43-101 Mar 2006 master" that

was e-mailed to us on 12 March 2006.

 

We confirm that qualified SRK consultants have visited the site at various times and

examined the deposits, the documentation and samples, and have critically assessed

and reported on these in December 2000.

 

We are in agreement with the references and quotations of our resources and reserves

work up to December 2000, as set out in the above Ausenco report in the Introduction

Sections 13, 14-16 and 19. Other items in the Ausenco Report have not been

examined by SRK.

 

We have no hesitation in supporting these comments and quotations attributed to SRK

(UK) Limited.

 

1

 

 

 

 Kwale

 

 

Attached for information, are electronic copies of Certificates of Qualified Persons

and Statements by qualified Persons Dr Alwyn Annels and Mr Bruce Evans, dated

January 2001. These persons were primarily responsible for the resource and reserve

verifications for the December 2000 43-101 Report.

 

Yours faithfully

For and on behalf of SRK (UK) Ltd

 

 

W Bruce Evans Dr Alwyn A Annels

Partner / Principal Principal Resource Geologist

 

2

 

 

 

 Kwale

 

 

Certificate of Qualified Person: BRUCE EVANS

 

This certificate complies with section 8.1 of National Instrument 43-101, Standards

for Disclosure for Mineral Projects.

 

Details of Qualified Person

 

Name Bruce Evans

Address SRK Consulting, Summit House, 9/10 Windsor Place,

Cardiff CF10 3SR, United Kingdom

Occupation Director and Principal Mining Engineer

Qualifications Pr Eng, BSc Eng(Mining)

Professional associations MSAIMM

 

Summary of relevant experience

 

Bruce Evans is a Principal of the SRK Group and a mining engineer with SRK (UK).

His specialisations are the interpretation of orebodies and their mineability and mine

feasibility and economics, especially in gold and base metal underground mining. He

has many years experience of operation and of project evaluation and implementation

at senior levels including ten years of international mining consulting from the UK;

mainly in the leading of expert teams in due diligence, evaluation and independent

mine project reviews for bankability and stock exchange purposes. He was also Mine

Manager of Richards Bay Minerals, a Heavy Mineral sand operation in South Africa,

from 1976-1978.

 

Bruce Evans visited site in August 1999 for 4 days and is responsible for reviewing

the technical report.

 

SRK Consulting considers that Bruce Evans is a Qualified Person for supervising the

technical report by virtue of his training and experience.

 

For and on Behalf of SRK (UK) Ltd.

 

 

Richard Watts (Scanned Signature)

Principal Mining Engineer

 

3

 

 

 

 Kwale

 

 

Certificate of Qualified Person : RICK SKELTON

 

This certificate complies with section 8.1 of National Instrument 43-101, Standards

for Disclosure for Mineral Projects.

 

Details of Qualified Person

 

Name Rick Skelton

Address SRK Consulting, Summit House, 9/10 Windsor Place,

Cardiff CF10 3SR, United Kingdom

Occupation Principal Mining Engineer

Qualifications BSc MSc Ceng

Professional associations MIMM MSAIMM

 

Summary of relevant experience

 

Rick Skelton has over 25 years of mining experience, specialising in open pit mine

and quarry planning, with particular emphasis on the implementation and use of

software in resource / reserve evaluation, mine planning and business management.

Rick has been with the SRK group for over 20 years, and was based in SRK's

Johannesburg offices until 1996, when he moved to SRK (UK) in Cardiff. In total,

Rick has worked on over 70 projects which includes operating mines, feasibility

studies, audits / reviews and general mine computerisation projects. These

international projects have been located in all the Southern Africa countries, West

Africa, as well as South America and Australia.

 

Rick Skelton has not visited site. He is responsible for managing the Independent

Technical Report and the Mining section. SRK Consulting considers that Rick

Skelton is a Qualified Person by virtue of his training and experience.

 

For and on Behalf of SRK (UK) Ltd.

 

 

Richard Watts (Scanned Signature)

Principal Mining Engineer

 

5

 

 

 

 Kwale

 

 

Certificate of Qualified Person: DR ALWYN ANNELS

 

This certificate complies with section 8.1 of National Instrument 43-101, Standards

for Disclosure for Mineral Projects.

 

Details of Qualified Person

 

Name Dr Alwyn Annels

Address SRK Consulting, Summit House, 9/10 Windsor Place,

Cardiff CF10 3SR, United Kingdom

Occupation Principal Geologist

Qualifications C Eng, PhD, DIC,

Professional associations FIMM

 

Summary of relevant experience

 

Dr Alwyn Annels is a Principal Mining Geologist with SRK (UK) Ltd. Previously he

lectured in mining geology at Cardiff University where he has supervised

undergraduate and postgraduate courses for 21 years. Prior to this he gained

industrial experience in the Zambian Copper belt in both exploration and mining. He

has undertaken research in ore geology but currently specialises in computer

modelling and in ore reserve evaluation by both classical and geostatistical

techniques. He has written many papers on aspects of mineral resources and has

produced two textbooks specifically on mineral deposit evaluation. His role with

SRK (UK) Ltd has been in the production of independent audits of feasibility studies

and ore reserve estimates.

 

Dr Alwyn Annels has not visited site. He is responsible for reviewing the resources

section of the report. SRK Consulting considers that Dr Alwyn Annels is a Qualified

Person by virtue of his training and experience.

 

For and on Behalf of SRK (UK) Ltd.

 

 

Richard Watts (Scanned Signature)

Principal Mining Engineer

 

7

 

 

 

CERTIFICATE OF AUTHOR

 

 

I, Bruce Campbell Lynn Pr.Sci.Nat. do hereby certify that :

 

1.

I am a Director of : Davies Lynn & Partners (Pty) Ltd

MRM Office Park

10 Village Road

KLOOF 3610

Republic of South Africa

2.

I graduated with a B.Sc. (hons) degree in Geology from the University of Natal in

1969. In addition, I obtained a M.Sc. in Engineering Geology from the University

of Durham, England in 1974.

3.

I am a Member of both the South African Institute of Engineering Geologists and

the USA based Association of Engineering Geologists.

4.

I have worked as an engineering geologist for a total of thirty four years since my

graduation from university.

5.

I have read the definition of "qualified person" set out in National Instrument 43101

("NI 43-101") and certify that by reason of my education affiliation with a

professional association (as defined in NI 43-101) and past relevant work

experience, I fulfill the requirements to be a "qualified person" for the purposes of

NI 43-101.

6.

I am responsible for the preparation of sections 31.2.1, 31.3, and 39.4.1.2 and

portion of 39.4.2.2 of the technical report titled Tiomin Kenya Limited Technical

Report and dated March 2006 relating to the Kwale deposit. I visited the Kwale

property between 15th and 20th June 1999 (6 days) and between 14th September

2003 and 5th October 2003 (21 days).

Page 2

March 2005

 

 

Certificate of Author

 

7.

I have not had any prior involvement with the property that is the subject of the

Technical Report.

8.

I am not aware of any material fact or material change with respect to the subject

matter of the Technical Report that is not reflected in the Technical Report, the

omission to disclose which, makes the Technical Report misleading.

9.

I am independent of the issuer applying all of the tests set out in section 1.5 of

National Instrument 43-101.

10.

I have read National Instrument 43-101 and Form 43-101F1 and the Technical

Report has been prepared in compliance with that instrument and form.

11.

I consent to the filing of the Technical Report with any stock exchange and other

regulatory authority and any publication by them for regulatory purposes,

including electronic publication in the public company files on their websites

accessible by the public, of the Technical Report.

Dated this 27th Day of March 2006

 

 

Signature of Qualified Person

 

BRUCE CAMPBELL LYNN

 

Print name of Qualified Person

 

 

CERTIFICATE OF AUTHOR

 

 

I, Robbert Hans Borst, C.Eng, MIMM do hereby certify that :

 

1.

I am the Vice President, Project Development with:

Tiomin Resources Inc.

26 Wellington Street East, Suite 820

Toronto, Ontario

Canada

M5E 1S2

2.

I graduated with a B.Sc. degree in Mining Engineering from Camborne School of

Mines in the United Kingdom.

3.

I am a Member of Institution of Mining and Metallurgy in the UK.

4.

I have worked as mining engineer for a total of twenty three years since my

graduation from university.

5.

I have read the definition of "qualified person" set out in National Instrument 43101

("NI 43-101") and certify that by reason of my education affiliation with a

professional association (as defined in NI 43-101) and past relevant work

experience, I fulfill the requirements to be a "qualified person" for the purposes of

NI 43-101.

6.

I am responsible for the preparation of sections of items 7, 8, 19 (partial), 21

(section 28.4) and 25 (partial) of the technical report titled Kwale Mineral Sands

Project - Technical Report and dated March 2006 relating to the Kwale deposit. I

visited the Kwale deposit 6 times between January 1999 and February 2001 and 8

times between October 2003 and February 2006.

7.

I have had prior involvement with the property that is the subject of the Technical

Report. I was an employee of Tiomin Resources from September 1996 to February

2002, have contracted to Tiomin Resources from March 2003 to April 2005 and

have been an officer of the company since May 2005.

8.

I am not aware of any material fact or material change with respect to the subject

matter of the Technical Report that is not reflected in the Technical Report, the

omission to disclose which, makes the Technical Report misleading.

9. I am not independent of the issuer applying all of the tests set out in section 1.5 of

National Instrument 43-101 for reasons stated in section 7 of this certificate.

 

Page 2

March 2005

Certificate of Author

 

10.

I have read National Instrument 43-101 and Form 43-101F1 and the Technical

Report has been prepared in compliance with that instrument and form.

11.

I consent to the filing of the Technical Report with any stock exchange and other

regulatory authority and any publication by them for regulatory purposes,

including electronic publication in the public company files on their websites

accessible by the public, of the Technical Report.

Dated this 24th Day of March 2006

 

 

Signature of Qualified Person

 

ROBBERT HANS BORST

Print name of Qualified Person

 

 

 

 

Armed raiders attack Samburu village

Related News

Disbelief as child defiled, murdered

Africa Stock Exchange remains a mirage

Be careful lest you flaunt to poverty this festive season

Village tycoon is no match for city loafer

 

SHARE THIS STORY

 

Updated Thursday, December 27 2012 at 00:00 GMT+3

 

 

By Michael Saitoti

 

Over 200 heavily armed bandits made away with hundreds of sheep and goats on the eve of Christmas

 

Samburu, Kenya: Barely a month after bandits killed 42 police officers in Samburu, more than 200 heavily armed cattle rustlers have invaded and attacked Waso Ronkai village and fled with hundreds of sheep and goats.

 

The incident in Samburu North occurred at 11pm when the residents were preparing to usher in Christmas Day.

 

Three families were attacked in the incident. A Good Samaritan took three members of a family who had sustained serious injuries from Baragoi, where they could not access medical services, to Maralal District Hospital where they are undergoing treatment.

 

 Doctors said they are out of danger. The more than 700 police officers currently stationed in Samburu North did not stop the raid despite receiving a report as the raiders fled with the livestock.

 

"The residents of Samburu North have strongly complained to the Government over persistent attacks and raids by bandits at Masikita and Kawap in Samburu North and the stealing of camels, cattle, sheep and goats from the area," said Lenkai Parsulai, a resident.

 

Insecurity

 

Fourty two guns were stolen from the police officers killed in Suguta valley in Baragoi and it is suspected they are now being used in the increased roadside robberies targeting those travelling for the Christmas holidays from Baragoi to Maralal.

 

Tension increased last week after bandits from Baragoi attacked Allamano village and police also recovered a mobile phone belonging to one of the police officers killed in Suguta valley in Maralal town.

 

The residents of Baragoi have again requested the Government to beef up security so that they can live peacefully. They fear schools will not re-open in Samburu North due to insecurity.

--
Jobs in Africa - www.wejobs.blogspot.com
International Jobs - www.jobsunited.blogspot.com
 
Kujiondoa Tuma Email kwenda
wanabidii+unsubscribe@googlegroups.com Utapata Email ya kudhibitisha ukishatuma
 
Disclaimer:
Everyone posting to this Forum bears the sole responsibility for any legal consequences of his or her postings, and hence statements and facts must be presented responsibly. Your continued membership signifies that you agree to this disclaimer and pledge to abide by our Rules and Guidelines.
 
 

0 comments:

Post a Comment