The Jinchuan Group of China has received board approval to invest US $ 25 million in the titanium mining project in Kenya in exchange for a 70% stake in the Toronto listed Tiomin Resources Inc.'s wholly-owned subsidiary.

The subsidiary, Tiomin Kenya Ltd operates the Kwale titanium project in Kwale district. Interfax China reported that once Jinchuan Group acquires the stake, it will arrange finances for the construction, development and daily operation of the project.

Mr Robert Jackson CEO of Tiomin Resources however said Jinchuan Group's funding and building of the project is dependent upon the Kenyan government honoring its commitments.

"The responsibility for success or failure now rests firmly with the bureaucrats of the Kenyan government, who must complete their work for the deal to close, " he said.

Jinchuan Group's board also authorized its management team to cooperate with Tiomin Resources on document finalization and any other related issues to close the transaction by November 1 2008.

The Kwale titanium project is estimated to contain 38.9 million tonnes of proven ore reserves of heavy metals, including titanium and zircon, grading 7.1% as well as 78 million tonnes of probable ore reserves.

The project is designed to produce 330,000 tons of ilmenite, 75,000 tonnes of rutile and 40,000 tonnes of zircon per annum. – Kenya Broadcasting Corporation