- CME urges attracting investments into sector
- Country lacks technology due to inadequate funding
Although Sri Lanka’s graphite has the potential to facilitate Electric Vehicle (EV) battery production, its production levels are insufficient to attract international investors, The Sunday Morning Business learns.
Speaking to The Sunday Morning Business, Chamber of Mineral Exporters (CME) Vice Chairman A.F.M. Farook said that the Government should be encouraging and attracting Foreign Direct Investments (FDIs) for the manufacture of finished products related to EV batteries in Sri Lanka, instead of solely exporting the mineral.
“This can be achieved by means of a joint venture between local graphite miners or processors and an international partner who will leverage each other’s strengths. At the same time, the technology will need to transfer from the international partner while the skills required to navigate the local mining landscape, which is a ‘minefield’ for the uninitiated, will need to come from the local partner,” he explained.
The mineral industry is seeking investors to develop the required technology for mineral processing, as the country currently lacks such technology due to lack of funding.
“We have some of the very few vein graphite deposits found in the world and the purity levels are such that they are far more ‘environment-friendly’ than most other graphite producers.
“The CME has urged the Geological Survey and Mines Bureau (GSMB), the regulatory body, to take the lead in ensuring the accurate estimation of their mineral reserves,” Farook said.
According to reports, the exploration grids containing vein graphite deposits represent the majority of known historic graphite resources in Sri Lanka and the relevant areas in which these grids are located have previously had historical production dating back to the 1920s and 1930s.
Sri Lanka had not conducted a recent exploration of minerals and the existing exploration grids were outdated, the CME said. Therefore, international mining companies need to be welcomed to the country to use their modern technology on the resources to explore minerals.
Moreover, the CME has been lobbying for the streamlining of exploration and mining licensing procedures that will allow for more investors to enter the market.
It has also proposed to include clauses that ensure mineral rights over land rights in the National Mineral Policy. Accordingly, national interests would be better served by improving mineral accessibility.
The CME has had discussions with organisations such as the Japan External Trade Organization (JETRO) on the promotion of Sri Lankan graphite in Japan and facilitating trade delegations.