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Tuesday 17 June 2014

Base disputes validity of Kenya export levy

Aim- and ASX-listed Base Resources was disputing the constitutional validity of a Kenya Shillings 5 000/t levy on exports of ilmenite and rutile from its Kwale mineral sands project, in Kenya.
The company on Thursday said it had received unqualified legal advice that the Kwale county government did not have legislative authority under the Kenyan Constitution to impose such a levy, with all rights to manage and administer minerals exclusively reserved by the Kenyan national government.
The company indicated that it was currently working with the Kwale county and the Kenya national government to have the invoice for the levy withdrawn and the levy repealed.
“Base is confident that this matter will be resolved shortly. However, in the event that the Kwale county government invoice is not withdrawn or the levy is not repealed in a timely manner, Base will assess its options further, including taking the necessary legal action to have the levy declared unconstitutional and therefore void,” it stated.

By Leandi Klover

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