USD 40 million to Kwale Titanium Mine Project
Tunis, 26 July 2006 – The Board of Directors of the African Development Bank (ADB) today approved a loan of US $ 40 million to Tiomin Kenya Ltd. for Tiomin Titanium Mine Project in Kwale, near Mombassa, Kenya. The project involves dry mining and processing of titanium-bearings sand into ilmenite, rutile and zircon. The project is a significant contribution to the diversification of the Kenyan economy and the promotion of non traditional exports.
The project will result in an increase in employment and significantly benefit local communities that will be empowered by means of skills development programme and new business opportunities that would include women entrepreneurship development.
It has been estimated that about 217 permanent jobs will be directly created by the mining project and an additional 750 during construction. In addition, indirect jobs will derive from the rehabilitation process, the transport of the minerals, security, catering, transportation, building and equipment maintenance.
Other development impact which will result from this project include: training and acquisition of technical know-how, technology transfer, education opportunities, farming & business opportunities (housing, restaurants, etc.) and employment for women.
The project will reinforce infrastructure developments such as the installation of a port terminal at Likoni, the construction of a new 8 km road of about USD 2.4 million, the upgrading of the highway to Tanzania, the creation of primary schools and clinics on the site and in host resettlement area, HIV/AIDS awareness campaign and training programs and safer drinking water supply.
The Government of Kenya will also benefit from this project in the form of corporate income tax & royalties, duties and fees for fuel among others.
To date, the Bank has approved five private sector operations in Kenya, all in the financial services sector. The most recent of which is a USD 10 million SME support mechanism for Growth-Oriented women Enterprises Development Programme (GOWEDP) approved in 2005. In 2004, the Board approved a line of credit of USD 7 million to CFC Bank; other recent operations in the financial sector include an equity fund to the Acacia Fund and equity to K-Rep Bank.