Base Resources Ltd of Australia is pursuing tax refund of about $25 million arising from construction of titanium processing plant on Kenya’s coastline.

The claim, already lodged with Kenya Revenue Authority (KRA), is in respect to money the firm paid as value added tax for procurement of goods and services.

“Base is engaging with the National Treasury to expedite the refund,” said Base chief executive Tim Cartsens.

Early in the year, National Treasury Cabinet Secretary Henry Rotich announced that the government would settle all outstanding VAT claims by the end of April.

Some of the claims go back to 2013 when the government slashed tax exemptions to boost its revenue. It also slowed down accumulation of VAT refunds.

The Australia Stock Exchange-listed base Resources spent about $300 million on a titanium processing plant and other facilities to handle minerals destined for export before production started in December 2013. Base Resources acquired Kwale mineral sands project from Tiomin Resources of Canada in 2010.

Meanwhile, Base is working with Kwale county government and Kenyan national government on ways to withdraw or rescind export levy the local authority imposed last year on titanium products destined for overseas.

“There have been no invoices issued beyond the one in June 2014. Base remains comfortable with its legal position and expects to have the matter resolved in the near future,” said Mr Cartsens.

Last year, Base disputed the constitutional validity of Ksh5,000 (53.76) per tonne levy on exports of ilmenite and rutile among others from the Kwale project through Likoni port.

“Base will assess its options further, including taking the necessary legal action to have the levy declared unconstitutional and therefore void,” said the management in June 2014.

Production of heavy mineral concentrates by Base from its Kwale project in the first quarter of 2015 rose by about 25 per cent to 206,000 tonnes.

The Likoni port dispatched more than 169,000 tonnes between January to March this year. Out of the consignment, about 48,000 tonnes of ilmenite was exported to Base’s China warehouse.

Mr Cartsens said holding stock of ilmenite in China is part of the strategy for securing market share by offering product for immediate delivery in smaller volumes than could be justified for a shipment from Kenya.