Chamber of Mineral Exporters debuts, calls for growth policies for sector

Thursday, 3 August 2023 04:14 - - {{hitsCtrl.values.hits}}

From left: Chamber of Mineral Exporters Treasurer Yaasir Nizam, Vice Chairman A.F.M. Farook, Chairman Amila Jayasinghe, and Secretary Dr. Sandun Dalpatadu – Pic by Ruwan Walpola

By Darshana Abayasingha

The Chamber of Mineral Exporters was officially inaugurated yesterday calling on Government and regulators to formulate relevant policies to transform the industry to a vital thrust sector.

The Chairman of the new chamber, Amila Jayasingha of Bogola Graphite PLC, said the new trade body hopes to enhance foreign exchange earnings through export, encourage investment from local and foreign agencies through the adoption of more conducive regulations that would also enable the industry to operate in a sustainable manner.

Mineral exports already offer a substantial amount of foreign exchange earnings to Sri Lanka, but the Chamber notes there is potential for much more if some regulatory challenges could be overcome. It was also noted that Sri Lanka must conduct a resource survey to identify the quantity and quality of the available minerals.

Vice Chairman of the Chamber, A. F. M. Farook from CeyQuartz MBI, said accessibility to raw material is also a significant obstacle to expanding growth in the sector.

“Sri Lanka is geographically small, but we have fairly rich resources available in this country. Whilst there are many acts to safeguard mineral rights, in reality land rights supersede mineral rights. In most other countries it is the other way around. Sri Lanka also has the necessary framework in place to obtain minerals for industry and its people, but it is not implemented in the best possible manner. Mineral rights are not ensured for people investing in this country and industry. It is a sensitive subject, but it is a key subject that should be considered if the Government wants to make this a thrust sector,” Farook noted.

The Chamber also pointed to the need for a good lab to be set up to qualify material for different application needs in a global supply chain. It noted there is a great deal of room for enhancements to the investment and business climate through change in regulations. For instance, companies involved in mining for mineral sands must renew their licenses every year, whereas licenses are often afforded for over ten to fifteen years in other countries. Regulations such as these can hamper investment, the Chamber noted.

“The Chamber aims to utilise Sri Lanka›s mineral resources for economic growth, employment, and sustainable development. It marks a milestone by uniting key exporters towards a vibrant mineral resource industry. The minerals available in Sri Lanka present an opportunity to increase the country›s international market presence to expand its global footprint. The Chamber aims to drive growth, innovation, and sustainable development in the mineral resource industry by leveraging resources effectively. ” said Chairman Amila Jayasinghe.

The newly formed Chamber called on the Government to assist the industry, thereby boosting the country’s economy by implementing transparent and consistent regulations for mining and exports, and set up independent oversight bodies that implement a strong regulatory framework, plus, simplify and streamline licensing process for mineral exports using online platforms.