Thursday Nov 21, 2024
Thursday Nov 21, 2024
Saturday, 4 March 2023 00:55 - - {{hitsCtrl.values.hits}}
Capital Metals PLC, a UK mineral resources company listed on the London Stock Exchange, is ready to commence development of its high grade mineral sands project in the Eastern Province.
The extensive studies completed by the local Sri Lankan subsidiary, Damsila Exports Ltd., indicated the availability of commercial quantities of high grade mineral sands in this region.
Local investment company, Keynes Investments Ltd., was recently brought in to hold 60% of Damsila. Keynes is principally held by Dinal Peiris, who is also the Chairman of Lanka Aluminium Industries PLC Group and several other well-known companies in Sri Lanka.
The project commenced in 2015 with Capital Metals, a specialised mineral resource exploration and development company with significant international experience, acquiring ownership of Damsila which held the initial exploration licenses.
With investment from Capital Metals, Damsila completed numerous studies and obtained approval from the Department of Coast Conservation and Coastal Resources Management for its environmental impact studies following extensive local community and governmental consultation. With total expenditure to date of over $ 11 million, Damsila is now awaiting final approval to commence development.
“We are delighted to partner with Capital Metals in this environmentally responsible mining project. This is a first of its kind in Sri Lanka with modern mining practices to protect the environment and bring much needed employment and training to the local community,” said Dinal Peiris.
“With a development plan to ensure a win-win outcome from this project by adhering to rigorous standards for mining and rehabilitation principles, we will leave the area in a better state than we found it. Key advantages of the planned operations are that no blasting or chemicals are required and there will be continuous cleaning and restoration of the mined areas to remove the black mineral sands leaving the golden sands in place. This project will also help to position Sri Lanka as a strategic and responsible source for these critical minerals in the global market place,” said Capital Metals CEO and Director Michael Frayne.
The project requires a total investment of over $ 80 million and will bring a multitude of benefits to Sri Lanka and its people as it will generate much needed foreign exchange from export income, significantly upgraded infrastructure, employment and skills transfer, as well as various programmes to support local communities. It is estimated that over 300 new direct jobs will be created and the Sri Lankan Government will receive over $ 100 million in royalties and taxes.
Most importantly, Capital Metal’s pioneering project will, no doubt, open up a new industry in mining heavy mineral sands and other valuable mineral resources in the country and pave the way for similar projects in the future, opening up a much-needed new export industry.
