Tuesday Nov 19, 2024
Tuesday Nov 19, 2024
Tuesday, 11 June 2013 00:00 - - {{hitsCtrl.values.hits}}
The race to invest in Sri Lanka’s crucial strategic resource–the mineral sands and rare earth elements sector has further intensified with the global rare earth swing power Australia announcing its entry with a huge investment exceeding $100 million. “Australian mining and mineral sand firms have a strong reputation in this global industry. We are keen to partner with Sri Lanka’s mineral sands and rare earth elements industry,” said Australian High Commissioner to Sri Lanka Robyn Mudie, on 7 June in Colombo.
Mudie stressed this to Minister of Industry and Commerce Rishad Bathiudeen at the Ministry in Colombo 3 during her courtesy call on Minister Bathiudeen.
“We wish to expand our relationship with Sri Lanka by significantly engaging in this sector. I’d very much like to see some confirmation of Sri Lankan interest towards Australian investments in this sector and also to see a major Australian presence and investments growing here. I might as well add that in the year of the Sri Lankan CHOGM and Commonwealth Business Forum, it will be very good for all of us to talk in concrete terms of expanding Australian investments in Sri Lanka,” Mudie stressed.
“An Australian firm in this segment is planning to enter Sri Lanka with an initial investment of $150 million,” she revealed.
On 24 April, the German Ambassador to Sri Lanka Dr. Jürgen Morhard revealed to Minister Bathiudeen: We too, are exploring Lanka’s REE and mineral sands sector.” On 8 April, the Chinese Ambassador in Sri Lanka Wu Jianghao, meeting Minister Bathiudeen and signalling China’s interest to enter into Sri Lanka’s rare earth elements sector, stressed: “We now believe that boosting mineral sands and rare earth exports from Sri Lanka, among others, is a good first step in changing our bilateral trade.”
China is the largest supplier of rare earth minerals and mineral sands to the global market with almost 97% share. Australia, meanwhile, being a swing producer of rare earth elements, is also considered to be a major player with listed Aussie companies controlling around 40% of the world’s rare earth element resources in various counties.
In 2012, Sri Lanka’s overall rare earth and mineral exports to the world totalled $42.7 million, rising by a strong 30% from 2011’s $32.86 million. 65% of Y2012 exports consisted of mineral sands followed by silica and quartz (20%), graphite (10%), mica (3%) and other natural sands (2%). China was the lead buyer of Sri Lankan mineral sands in 2012.
“We warmly welcome Australian investments to our mineral sands and rare earth elements industry. Sri Lanka is in need of investments in this sector, preferably large scale, to develop value addition processes. Therefore we encourage such Australian investments so that we can jointly explore emerging global opportunities in this segment,” Minister Bathiudeen stated. He added: “We have strong bilateral cooperation, including bilateral trade which stood at $351.5 million in 2012.”
Sri Lanka-Australia bilateral trade, which stood at $214.8 million in 2002, increased by 64% in 2012 to $351.5 million and more importantly, the value of Sri Lanka’s exports to Australia in the same period have registered a 285% increase to $134.34 million in 2012, from $47 million in 2002.
