News
More protests against Mannar sand mining project
View(s):By Mimi Alphonsus
Australian company Titanium Sands Limited and the Central Environmental Authority (CEA) were met with angry protests this week when they visited the proposed site for the Mannar heavy mineral sand mining project.
The CEA had aimed to draft the terms of reference (TOR) for the project’s mandatory environmental impact assessment (EIA) based on this visit. Area residents oppose the project over environmental concerns and accusations of land grabbing by Titanium Sands.
Earlier this year, the Sunday Times reported on land and environmental issues tied to the 69 km² project. But Titanium’s path through Lankan bureaucracy is also of interest – and concern.
Residents say the heavy mineral sand mining project is a land-grabbing exercise
Three main government bodies are now involved: the CEA, the Geological Survey and Mines Bureau (GSMB), and the Board of Investment (BoI). The CEA is drafting the TOR, and the GSMB has issued exploration licences to Titanium Sands’ subsidiaries since 2017. They will also be the final authority to grant the mining licence.
The BOI supports foreign investments in Sri Lanka. According to BoI Director General Renuka Weerakone, Titanium Sands is seeking approval under section 17 of the BoI Act. If granted, they will receive special incentives and tax concessions.
Friends in High Places
Getting a mining licence in Sri Lanka isn’t easy, but Titanium has received some help.
In April, Saman Ekanayake, then Secretary to the former President, arranged a meeting with the company and government heads to address delays. In May, he also asked the Mannar District Secretary to set up a meeting for the company to present the project to the local community.
Officials from the Australian High Commission attended the April meeting arranged by Ekanayake. Titanium’s June report expressed gratitude for the Australian High Commission’s support in its dealings with the Sri Lanka Government. Responding to questions on this involvement, GSMB Director General Prof Ranjith Premasiri told the Sunday Times that “some things are international matters” and that these aspects of licensing are “out of our hands.”
In response, the Australian High Commissioner’s office said they provide support to all Australian companies doing business in Sri Lanka, including Titanium Sands, but “don’t have any direct links into the business operations of Australian companies, either in Australia or off-shore.”
Local companies have also been involved in the project. In 2023, Titanium Sands entered a formal agreement with James Global, a Lankan mining firm led by Aelian Gunawardene. This partnership followed the revocation of Titanium Sands’ exploration licenses in 2022.
In an effort to reinstate these licences, Mr Gunawardene said that he engaged with the then-Minister of Environment, Naseer Ahmed, stating that he initially had faith in Titanium Sands’s credibility. “I acted in good faith, believing them to be a reputable company,” he insisted, adding that he has since severed all ties with Titanium Sands. “However, they did not maintain their part of the agreement.”
Mr Gunawardene’s name has regularly appeared in Titanium Sands’s correspondence with the GSMB. Initially, Mr Gunawardene was also listed as Titanium Sands’s primary contact in documents submitted to the CEA as part of their EIA application. He clarified that his company, James Global, had already ended its relationship with Titanium Sands at that time. “They should make sure they remove my name from all applications and stop misusing my reputation.”
James Global has issued a formal letter of demand to Titanium Sands, seeking to address these issues and protect the integrity of its reputation.
Although a common practice, use of networks and influence for obtaining, renewing and keeping licences raises concerns about conflicts of interest and due process.
Some of Titanium Sands’ licences were retained during the tenure of Dr Sanjay Perera, former GSMB Chairman. He told the Sunday Times he supported Titanium’s Mannar project at the time because of their link with James Global, which he saw as a “reputable, trustworthy local company we could hold accountable.” Dr Perera now works for James Global.
Environment front and centre
The last month has been busy for Titanium Sands. They completed their presentation to the CEA and consolidated their exploration licences under one subsidiary’s name. On November 6, CEA and other government officials visited the site to prepare the TOR, but were met with protests.
Officials who requested anonymity revealed that Saliya Galagoda, the director of Titanium Sands’s local subsidiary and man on the ground, is asking the CEA to use drones for site inspections to avoid scrutiny from the local community. “They are trying to implement this project quietly,” said Father Santhiyogu Marcus, President of the Mannar Citizens Committee and a strident voice against the project, “I am sure they will come back, but we will fiercely oppose it.”
Whatever the outcome of the TOR struggle, Titanium Sands only has until May 2025 to procure a mining licence before their largest exploration licence (EL370), covering 31km2, expires for good.
Galagoda says the project has been delayed by bureaucracy and “imported opposition” long enough. Meanwhile, Mannar residents fear they are bulldozing for a licence. The Titanium Sands project, controversial Adani wind power project and mining explorations by Mars Metals, cover nearly all of Mannar Island. In some areas the locations overlap.
Hemantha Vithanage, Chairman of the Centre for Environmental Justice, is concerned about the combined impact of these projects. He argues that the TOR for the EIA on the Titanium Sands sand mining project should include an assessment of cumulative effects from other projects as well.
A senior official at CEA who requested anonymity said the TOR won’t necessarily require cumulative assessment but that “we [CEA] will look at impacts in various fields involving several authorities.” When asked if he felt pressure to push the project forward, the source responded, “There is no pressure, but there is follow-up.”
| Fake companies that vanishIndustry and GSMB sources shared that often “fake” companies will get exploration licences and “sit on them,” exaggerating their findings to investors in order to attract investments into their company, only to vanish with the money. These companies have no genuine interest in mining, but rather use the long drawn out mining process and their exclusive exploration rights to milk investors and scam them.While only a comprehensive investigation can reveal if Titanium Sands is one such company, the Sunday Times found that the company was subject to very little financial scrutiny in the many years it has maintained exclusive exploration rights. Neither feasibility studies nor bank inspections were conducted by GSMB, nor were they required by regulation, says Prof Premasiri.According to Prof Premasiri, there are still many gaps in GSMB regulations despite reforms in 2023, and plans are underway to change these under the new government. The gaps reveal broader issues with the “first come, first serve” mining policy in Sri Lanka, as competitors eye Mannar and accuse Titanium Sands of being “fake” from the get-go, but are unable to compete for the exploration rights. Mr Galagoda, however, insists that the company is set on seeing the project through. He says they have spent over Rs 1 billion already on exploration expenditures and promised that if the government shows interest in the project and requests it, the company will be able to show the money for mining, via proper channels, within fourteen days. [Additional reporting by Joseph Nayan] | |
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