In early 2011 SRK was engaged by potential lenders as the independent engineer for the project financing of the Kwale Heavy Mineral Sands project in Kenya owned by Base Resources. SRK undertook a multi-disciplined review of all technical, environmental, social, and economic aspects of the project feasibility study and issued a due diligence audit report to the potential lenders, including an assessment of the project against the Equator Principles. During SRK’s review of the feasibility study, a number of risks were identified and recommendations were made for further work to be undertaken to mitigate these, prior to the loan facility being agreed and before construction started. SRK also recommended adjustments to certain assumptions in the financial model the lenders used in assessing the project for the loan facility that was ultimately agreed. SRK was retained by the lender group to monitor the project through its construction and ramp-up of production. This included regular quarterly site visits by a technical team and review of monthly construction and status reports produced by Base. The project successfully started operations in Q4 2013 and SRK was retained until late 2018 to review various aspects of the project on behalf of the lenders including review of production performance, lender completion tests, annual resource/reserve, and mine plan updates. SRK’s involvement on the project concluded following Base repaying the project finance loan facilities.
