Sri Lanka embarks on fertiliser production utilising Eppawala deposit
Sri Lanka government is seeking to reduce the massive fertilizer import bill of Rs. 47 billion and curtail Rs. 33 billion in subsidies per annum by setting up a single super phosphate (SSP) plant making use of the Eppawala phosphate deposit, Agriculture Minister Mahinda Amaraweera said.
The 7- member expert committee headed by former Senior Professor of Agriculture at Peradeniya University O.A. Ileperuma has made this recommendation after a month-long feasibility study.
An earlier attempt to sell the Eppawala apatite deposit to China in 2014 by the previous Rajapaksa regime failed even after spending Rs. 650 million to construct an 850-metre road inside the phosphate deposit and a factory in a land belonging to a temple in Kurunegala area without a feasibility study.
The present government appointed the expert committee to review the earlier plan to set up the SSP plant following suspension of the earlier project.
The production capacity of the proposed new plant will be 200,000 tons of SSP per annum, the Minister told the Business Times adding that the estimated cost will be Rs. 5 billion to Rs. 7 billion.
This will be a Public Private Partnership joint venture between Lanka Phosphate Ltd (LPL) and a private company in a 51-49 per cent share and production will commence next year.
Mining and supplying of the rock phosphate for the proposed joint venture will be vested in the government owned LPL, he disclosed pointing out that the new venture will be able to save Rs.7 billion annually.
However a very senior Geological expert pointed out that mining of the apatite mine at Eppawala in the Anuradhapura district will not only cause irreparable social and ecological damage, but also rapidly deplete the country of a valuable natural resource and contribute little in ‘value-added’ to the economy.
He added that the Supreme Court had issued an injunction on June 2, 2000 restraining any contracts relating to the Eppawela Phosphate deposit.
State agencies involved were directed by the Supreme Court to desist from entering into any contract until they had carried out a comprehensive exploration and study of the location, quantity and quality of the phosphate deposit.
The court also ordered to carry out this study and exploration of phosphate in consultation with the National Academy of Science and the National Science Foundation and until the project proponent obtains the approval of the Central Environmental Authority according to law.
The Agriculture Ministry will be strictly adhering to the Supreme Court directive in implementing the SSP project, the Minister said emphasising that it will consult the Ministry of Science and Technology and relevant agencies before going ahead with the project.