Australian Mining Giant completes a Prefeasibility study of a Sri Lankan Ilmenite deposit
Australian miner Iluka Resources Ltd. reported that it has finished a prefeasibility study of Sri Lanka’s ilmenite deposit that it wishes to mine. Iluka is a global mineral sands firm with exploration, growth, mining, processing, marketing and rehabilitation knowledge in the mining sector. The company’s experience in the mineral sands sector spans over 60 years. Iluka’s portfolio and activities involve projects in Australia, Sierra Leone and Sri Lanka and they also manage a marketing and distribution network that is incorporated to control its worldwide marketing activities.
A prefeasibility study was recently finished on the Puttalam deposit on the southwest shore of the island, 170 kilometres South of Colombo, by Iluka. The research included a detailed study of the Puttalam deposit’s pre-mining and baseline circumstances.
Iluka said it spent $4.8 million in the first half of 2019 on exploring and evaluating the mining deposit. The firm is currently in talks with the Government of Sri Lanka to develop the Puttalam deposit on legal and investment terms. These include securing ground access rights, ministerial and other public approvals for any subsequent mining licenses and reaching a fiscal agreement as well as other agreements to be applied to the project with the government.
OSL Take:
The feasibility study conducted by the Australian mining giant in Sri Lanka shows the varying scope of business/investment opportunities in the island and their success. The state-owned enterprise selling Zircon and mineral sands is also a clear indication of the many raw materials available for sale in Sri Lanka. Besides mineral sands, there is also a big phosphate deposit in the nation. Foreign mineral businesses could approach the government of Sri Lanka and explore company possibilities in conducting mineral-related operations.
| Article Code : | VBS/AT/01102019/Z_T1 |