Puttalam Ilmenite Mining draws disputes among state bodies
The exploration and mining operations for ilmenite in Puttalam have faced significant disruptions due to conflicts among various government institutions and officials tasked with managing this valuable mineral resource.
Official sources indicate that the Ministry of Industry and the Ministry of Environment have not yet agreed on whether to permit Iluka Lanka Exploration (Pvt) Ltd to proceed with its activities.
Concurrently, Lanka Mineral Sand Ltd has asserted its capability to manage the mining operations if provided with the necessary resources and permissions.
Amidst this confusion, the Sri Lanka Cement Corporation (SLCC) entered into a controversial 30-year agreement with Asha Minerals Ltd on April 10, 2023.
This agreement, executed without due process, bypassed several protocols. At the time, Asha Minerals Ltd had a share capital of merely Rs 1,000, entirely owned by a single individual, lacked mineral licences from the Geological Survey and Mines Bureau (GSMB), and had no prior experience in the mineral sector.
Treasury representative W.A. Walpita, the only non-political appointee on the SLCC board, opposed this agreement. Furthermore, Siam City Cement, which held leasehold rights, was unaware of this deal and lodged a complaint with the relevant authorities, as evidenced in board meeting minutes.
Following these developments, the SLCC was transferred from the State Ministry of Primary Industries under the Industries Ministry to the Finance Ministry on May 30, 2023.
Despite this transition, the agreement between SLCC and Asha Minerals Ltd remains contentious, with SLCC entering another agreement with Asha Minerals Ltd without the Finance Ministry’s consent.
Former Minister of State for Finance and current SJB MP Eran Wickramaratne questioned in Parliament why Puttalam Ilmenite Ltd (PIL), which has invested over US$20 million over the past decade, has been denied access to SLCC land, thereby hindering the realisation of a significant project.
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