brand logo

Exploring ilmenite illegally? 

27 Dec 2020

  • Australian company not licensed to operate in SL 

  • No local partner confirmed

  The controversial Australian company Titanium Sands Ltd. (TSL), which was reported to be exploring Sri Lanka’s ilmenite reserves, is operating in the island illegally according to investigations conducted by the Geological Surveys and Mines Bureau (GSMB), The Sunday Morning learnt.  The investigations have revealed that the company was neither offered a license to engage in mineral exploration activities in Sri Lanka, nor had it entered a joint venture with a local license. The local companies that have been issued licenses to engage in mineral activities have informed the bureau in writing that they have not entered any agreement with TSL, it is learnt.  According to GSMB, foreign companies are not allowed to explore minerals in Sri Lanka alone but jointly with a local component which owns more than 50% of the shares in the joint venture.    GSMB Director (Minerals) Hema Liyanarachchi told The Sunday Morning that the bureau had not granted a license to TSL or any other local company which had signed a MoU with TSL.  “If a local company is going to explore minerals jointly with a foreign company, that has to be communicated to the GSMB when applying for licenses,” she explained.  There was no mention made with regard to the controversial company, according to Liyanarachchi.    When the bureau queried the license holders, they had informed the bureau in writing that TSL had not entered into agreements with any of the local licensees, Liyanarachchi said.    According to her, she has also given details to an inquiry which is being conducted by the Ministry of Industries.  An Australian media report published last week stated that the Perth-based company had entered into an agreement with Srinel Holdings Ltd. to explore the extent of the island's ilmenite reserves.   The media reported that Titanium Sands Managing Director James Searle had said that the company is looking to mine an area of the island that is 2 km wide and about 8 km long.  “That's probably over a 30-plus year lifespan," he told ABC RN's Science Friction. "On an annualised basis that's probably…in the region of between 10 and 16 hectares,” it is stated in the report.  Nevertheless, according to the TSL company projects mentioned on its official website, it holds five exploration licences for heavy mineral sands located in North West Sri Lanka on Mannar and the adjacent mainland coast.    As it was reported, the TSL is to continue to carry out mineral sands exploration on Mannar under its granted exploration licences and with the support of the GSMB within guidelines already in place.  The company has reaffirmed this commitment and outlined responses to incorrect media reporting in Sri Lanka with regard to TSL and its Mannar project.  As it explained, the TSL’s tenure is owned and operated by local companies that are ultimately wholly-owned subsidiaries of TSL, and all activities are properly reported to the GSMB under the requirements of each exploration licence.    Further, it was reported that the company is not mining on Mannar island and does not have the equipment or regulatory approvals to do so. Activities are currently limited to exploration.  Meanwhile, when contacted by The Sunday Morning, Environment Ministry Secretary Dr. Anil Jasinghe stressed that he would look into the matter and see who has issued the license.  “I will conduct an inquiry into the alleged illegal mining conducted by this Australian company,” he said.    Sri Lanka is well-endowed with industrial minerals including graphite, ilmenite, rutile, zircon, quartz, feldspar, clay, kaolin, apatite (phosphate rock), silica sand, garnet sand, mica, calcite, and dolomite.  The Pulmoddai beach sand deposit is the most important non-ferrous mineral reserve in Sri Lanka to date and this deposit contains minerals including one of the most expensive and sought-after metals in the world – titanium. Ilmenite (FeTiO2) and rutile (TiO2) are also found in enormous concentrations in the Pulmoddai beach sand deposit area and several other beach mineral-sand deposits of monazite, zircon, garnet, and ilmenite are found in various parts of the island and are now being exported.   


More News..